Financial Analysis

"Business Combinations Symmetry Systems, Inc. On May 27, 2026, we acquired all outstanding equity of Symmetry Systems, Inc. (""Symmetry""), a technology company, for cash consideration of $152.9 million . The acquisition is expected to enhance our AI security offerings and our Zero Trust Exchange security platform. In connection with the acquisition, we issued $16.9 million in restricted stock subject to post-combination service vesting conditions. The preliminary purchase price was primarily allocated $31.5 million to developed technology and $3.4 million to customer relationships, both valued using the replacement cost approach each with an estimated useful life of five years and goodwill of $122.7 million primarily attributable to the assembled workforce and anticipated operational synergies which is not expected to be deductible for income tax purposes. The purchase price allocation for Symmetry is preliminary and subject to adjustment during a measurement period of up to one year from the acquisition date. SquareX Holdings, Inc. On February 5, 2026, we acquired all outstanding equity of SquareX Holdings, Inc. (SquareX), a browser security company, for cash consideration of $112.8 million. The acquisition is expected to extend our browser capabilities, including on unmanaged devices. In connection with the acquisition, we issued $37.4 million in restricted stock subject to post-combination service vesting conditions. The preliminary purchase price was primarily allocated …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

Commitments and Contingencies Purchase and Other Commitments In the normal course of business, we enter into non-cancelable purchase commitments with various third parties to purchase products and services such as cloud infrastructure capacity, subscription-based cloud service arrangements, technology equipment, corporate and marketing events and consulting services. The maturities of non-cancelable purchase obligations with a remaining term in excess of one year as of July 31, 2026 consisted of the following: Amount Year ending July 31, (in thousands) 2027 $ 180,444 2028 191,763 2029 145,288 2030 32,979 2031 4,828 2032 3,427 Total $ 558,729 As of July 31, 2026 and 2025, we had outstanding irrevocable standby unsecured letters of credit and a guarantee, which serve as security for certain leases as described in Note 11, Operating Leases. The aggregate value of these commitments was not material for all periods presented. Legal Matters We are a party to various litigation matters from time to time and subject to claims that arise in the ordinary course of business, including patent, commercial, product liability, employment, class action, whistleblower and other litigation and claims, as well as governmental and other regulatory investigations and proceedings. In addition, third parties may from time to time assert claims against us in the form of letters and other communications. We record a liability when we believe that it is both probable that a loss has been incurred and …

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Revenue by geographical region based on the shipping address of our customers consisted of the following: Year Ended July 31, 2026 2025 2024 Amount % Revenue Amount % Revenue Amount % Revenue (in thousands, except for percentage data) United States $ 1,791,807 53 % $ 1,359,325 51 % $ 1,092,304 50 % Europe, Middle East and Africa 923,395 28 792,823 30 672,421 31 Asia Pacific 519,189 15 423,811 16 327,816 15 Other 118,132 4 97,156 3 75,230 4 Total $ 3,352,523 100 % $ 2,673,115 100 % $ 2,167,771 100 % Revenue by sales channel consisted of the following: Year Ended July 31, 2026 2025 2024 Amount % Revenue Amount % Revenue Amount % Revenue (in thousands, except for percentage data) Channel partners $ 2,835,257 85 % $ 2,360,224 88 % $ 1,967,908 91 % Direct customers 517,266 15 312,891 12 199,863 9 Total $ 3,352,523 100 % $ 2,673,115 100 % $ 2,167,771 100 %

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"Stock-Based Compensation Equity Incentive Plan Equity incentive awards which may be granted to eligible participants under our Amended and Restated FY 2018 Equity Incentive Plan (the ""2018 Plan"") include restricted stock units (""RSUs""), performance stock awards (""PSAs""), restricted stock, stock options, and stock appreciation rights. As of July 31, 2026, a total of 68.7 million shares of common stock were reserved for the issuance of equity awards under the 2018 Plan, of which 39.2 million shares remained available for grant. The shares of common stock available for issuance under the 2018 Plan includes an annual increase on the first day of each fiscal year pursuant to its automatic annual increase provision. Stock Options The activity of stock options for fiscal 2026 consisted of the following: Outstanding Stock Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands, except per share amounts and years) Balance as of July 31, 2025 177 $220.95 7.8 $ 11,854 Granted $ Exercised (27) $152.43 $ 3,693 Canceled, forfeited or expired $ Balance as of July 31, 2026 150 $232.89 8.2 $ Exercisable and expected to vest as of July 31, 2025 47 $172.65 3.8 $ 5,304 Exercisable and expected to vest as of July 31, 2026 71 $220.45 8.0 $ The weighted-average grant-date fair value per share for stock options granted was $144.58 and $117.41 during fiscal 2025 and fiscal 2024, respectively. The total grant-date fa …

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Fair Value Measurements Assets and liabilities measured at fair value on a recurring basis consisted of the following as of July 31, 2026: Fair Value Level 1 Level 2 Level 3 (in thousands) Cash equivalents: Money market funds $ 693,443 $ 693,443 $ $ U.S. treasury securities 5,000 5,000 Certificates of deposit 61,571 61,571 Total cash equivalents $ 760,014 $ 693,443 $ 66,571 $ Short-term investments: U.S. treasury securities $ 430,871 $ $ 430,871 $ U.S. government agency securities 45,295 45,295 Corporate debt securities 1,742,004 1,742,004 Asset-backed securities 229,287 229,287 Non-U.S. government securities 4,975 4,975 Certificates of deposit 93,365 93,365 Total short-term investments $ 2,545,797 $ $ 2,545,797 $ Total cash equivalents and short-term investments $ 3,305,811 $ 693,443 $ 2,612,368 $ Designated derivative instruments: Foreign currency contracts assets-current (1) $ 6,995 $ $ 6,995 $ Foreign currency contracts assets-noncurrent (2) $ 845 $ $ 845 $ Foreign currency contracts liabilities-current (3) $ 13,296 $ $ 13,296 $ Foreign currency contracts liabilities-noncurrent (4) $ 2,938 $ $ 2,938 $ Interest rate contracts liabilities-current (3) $ 5,611 $ $ 5,611 $ Interest rate contracts liabilities-noncurrent (4) $ 6,549 $ $ 6,549 $ Non-designated derivative instruments: Foreign currency contracts assets-current (1) $ 4,143 $ $ 4,143 $ Foreign currency contracts liabilities-current (3) $ 2,599 $ $ 2,599 $ (1) Included in prepaid expenses and other current assets in t …

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Goodwill and Acquired Intangible Assets Goodwill Changes in goodwill consisted of the following: Amount (in thousands) Balance as of July 31, 2024 $ 417,029 Goodwill acquired 701 Balance as of July 31, 2025 417,730 Goodwill acquired 800,368 Balance as of July 31, 2026 $ 1,218,098 Acquired Intangible Assets Changes in acquired intangible assets consisted of the following: Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful life July 31, 2025 Additions July 31, 2026 July 31, 2025 Amortization Expense July 31, 2026 July 31, 2025 July 31, 2026 July 31, 2026 (in thousands) (years) Developed technology $ 99,964 $ 105,700 $ 205,664 $ (57,772) $ (27,855) $ (85,627) $ 42,192 $ 120,037 3.9 Customer relationships 9,960 94,200 104,160 (4,829) (13,669) (18,498) 5,131 85,662 5.9 Trademarks 10,600 10,600 (1,944) (1,944) 8,656 4.1 Total $ 109,924 $ 210,500 $ 320,424 $ (62,601) $ (43,468) $ (106,069) $ 47,323 $ 214,355 4.7 As of July 31, 2025, the weighted-average remaining useful life for developed technology, customer relationships was 3.3 years and 3.5 years , respectively. Amortization expense of acquired intangible assets was $43.5 million, $16.8 million and $14.6 million in fiscal 2026, fiscal 2025 and fiscal 2024, respectively. Future amortization expense of acquired intangible assets as of July 31, 2026 consisted of the following: Amount (in thousands) Fiscal Year ending July 31, 2027 $ 50,086 2028 48,253 2029 44,355 2030 36,483 2031 21 …

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Income Taxes The geographical breakdown of income (loss) before the provision for income taxes consisted of the following: Year ended July 31, 2026 2025 2024 (in thousands) Domestic $ (100,269) $ (87,892) $ (112,758) International 83,130 69,601 83,529 Loss before provision for income taxes $ (17,139) $ (18,291) $ (29,229) The provision for income taxes consisted of the following: Year ended July 31, 2026 2025 2024 Current: (in thousands) Federal $ 140 $ (331) $ 203 State 4,912 4,272 1,337 Foreign 61,909 32,747 32,620 Total current tax expense 66,961 36,688 34,160 Deferred: Federal (2,138) 74 (4,526) State (446) 129 (693) Foreign (18,337) (13,704) (464) Total deferred tax benefit expense (20,921) (13,501) (5,683) Total provision for income taxes $ 46,040 $ 23,187 $ 28,477 A reconciliation of U.S. federal statutory income tax rates to our effective tax rate for fiscal 2026 is as follows: Year Ended July 31, 2026 (in thousands) Percent Tax at federal statutory Rate $ (3,599) 21.0 % State and local income tax, net of federal (national) income tax effect (1) 3,268 (19.1) % Foreign tax effects India Statutory tax rate difference between India and U.S. 3,053 (17.8) % Other 427 (2.5) % Israel Statutory tax rate difference between Israel and U.S. 10,649 (62.1) % Tax effect of internal restructuring 13,067 (76.2) % Change in valuation allowance (7,980) 46.6 % Other (1,530) 8.9 % Other foreign 8,380 (48.9) % Effects of cross-border tax laws (77) 0.4 % Tax credits Research credit (20,949 …

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Operating Leases We primarily lease office space and co-location assets including space and racks at data center facilities around the world under operating and short-term lease agreements. These lease agreements have original terms not exceeding seven years and may contain multi-year renewal options that are not considered reasonably certain of exercise. Our leases do not contain any material restrictive covenants or residual value guarantees. The components of lease cost and other supplemental information consisted of the following: Year Ended July 31, 2026 2025 2024 (in thousands) Operating lease cost $ 82,742 $ 62,915 $ 49,479 Short-term lease cost 15,789 17,480 13,228 Variable lease cost 26,635 18,832 15,954 Total lease costs $ 125,166 $ 99,227 $ 78,661 Cash paid, net of tenant incentive included in operating lease liabilities $ 67,601 $ 62,009 $ 49,239 Weighted-average remaining lease term (in years) 2.8 2.1 2.0 Weighted-average discount rate 5.0 % 5.2 % 4.9 % Maturities of operating lease liabilities consisted of the following as of July 31, 2026: Amount Year ending July 31, (in thousands) 2027 $ 60,290 2028 56,754 2029 23,785 2030 11,271 2031 12,378 Thereafter 9,685 Total future lease payments 174,163 Less: Imputed interest 14,694 Total $ 159,469 As of July 31, 2026, we entered into leases which have yet to commence. These leases have lease terms ranging from approximately 2 years to 4 years and are expected to commence during fiscal 2027 with total undiscounted lease …

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"Convertible Senior Notes 2028 Convertible Senior Notes On July 3, 2025, we issued $1,725.0 million in aggregate principal amount 0.0% convertible senior notes (the ""2028 Notes""), including the exercise in full by the initial purchasers of the 2028 Notes of their option to purchase an additional $225.0 million principal amount of the 2028 Notes. The 2028 Notes are unsecured, do not bear cash interest, and the principal amount will not accrete. Net proceeds, after deducting initial purchase discounts and other debt issuance costs, was $1,700.0 million. The 2028 Notes do not contain any financial covenants or restrictions on the payments of dividends, the incurrence of indebtedness or the issuance or repurchase of securities by us or any of our subsidiaries. The 2028 Notes mature on July 15, 2028, unless earlier converted, redeemed or repurchased. Details of the 2028 Notes consisted of the following: Initial Conversion Rate per $1,000 Principal Initial Conversion Price Initial Number of Shares (in thousands) Notes 2.2752 $439.52 3,925 The 2028 Notes are convertible at the holders' option prior to April 15, 2028, only upon satisfaction of certain conditions, including: During any fiscal quarter commencing after the fiscal quarter ending on October 31, 2025 (and only during such fiscal quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on and including, the …

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"Recently Adopted Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (""FASB"") issued Accounting Standards Update (""ASU"") No. 2023-09, Income Taxes (Topic 740) : Improvements to Income Tax Disclosures . The amendment requires additional income tax disclosure. Specifically, it requires public entities, on an annual basis, to provide disclosure of defined categories in the income tax rate reconciliation, as well as disclosure of income taxes paid, disaggregated by jurisdiction. We adopted this standard on a prospective basis for fiscal 2026. Refer to Note 15, Income Taxes for further information. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which requires disclosure of incremental segment information on an annual and interim basis. We adopted this standard during fiscal 2025. Refer to Note 17, Segment and Geographic Information for further information. Recently Issued Accounting Pronouncements Not Yet Adopted In September 2025, the FASB issued ASU No. 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) : Targeted Improvements to the Accounting for Internal-Use Software. This standard is intended to make targeted improvements to the accounting and application of guidance related to costs incurred to develop software for internal use. This standard is effective for us in the interim and annual periods beginning in the first qua …

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Retirement Benefit Plan We sponsor a qualified defined contribution plan intended to qualify under Section 401 of the Internal Revenue Code. For fiscal 2026, fiscal 2025 and fiscal 2024, we incurred expenses of $16.6 million, $13.5 million and $9.5 million related to the matching contributions, respectively.

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Restructuring and Other Charges During fiscal 2026 and fiscal 2025, we carried out restructuring plans as part of planned efforts to streamline operations and to align people, roles and projects to our strategic priorities. As a result, we recognized restructuring charges related to employee termination benefits of $10.3 million and $4.9 million in fiscal 2026 and fiscal 2025, respectively. The restructuring plans were substantially complete at the end of each respective fiscal year. The components of restructuring and other charges recogni zed in the consolidated statements of operations consisted of the following: Year Ended July 31, 2026 2025 (in thousands) Cost of revenue $ 1,333 $ 138 Sales and marketing 6,501 Research and development 1,799 4,783 General and administrative 627 Total $ 10,260 $ 4,921 As of July 31, 2026 and 2025, $4.4 million and $3.8 million, respectively, of accrued restructuring obligations were included in accrued compensation in the consolidated balance sheets. …

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Revenue Recognition Disaggregation of Revenue Subscription and support revenue accounted for approximately 98%, 98% and 97% of our revenue for each of fiscal 2026, fiscal 2025 and fiscal 2024, respectively. Revenue by geographical region based on the shipping address of our customers consisted of the following: Year Ended July 31, 2026 2025 2024 Amount % Revenue Amount % Revenue Amount % Revenue (in thousands, except for percentage data) United States $ 1,791,807 53 % $ 1,359,325 51 % $ 1,092,304 50 % Europe, Middle East and Africa 923,395 28 792,823 30 672,421 31 Asia Pacific 519,189 15 423,811 16 327,816 15 Other 118,132 4 97,156 3 75,230 4 Total $ 3,352,523 100 % $ 2,673,115 100 % $ 2,167,771 100 % Revenue by sales channel consisted of the following: Year Ended July 31, 2026 2025 2024 Amount % Revenue Amount % Revenue Amount % Revenue (in thousands, except for percentage data) Channel partners $ 2,835,257 85 % $ 2,360,224 88 % $ 1,967,908 91 % Direct customers 517,266 15 312,891 12 199,863 9 Total $ 3,352,523 100 % $ 2,673,115 100 % $ 2,167,771 100 % Significant Customers No customer accounted for 10% or more of total revenue during the periods presented. As of July 31, 2026 and July 31 2025, one channel partner accounted for 13% and 12% of total accounts receivable, net, respectively. Contract Liabilities In fiscal 2026, fiscal 2025 and fiscal 2024 we recognized revenue of $2,053.4 million, $1,643.1 million and $1,277.8 million, respectively, that was included in the corr …

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Common Stock Holders of common stock are entitled to one vote for each share of common stock held and are not entitled to receive dividends unless declared by our board of directors. The shares of common stock reserved for future issuance consisted of the following: July 31, 2026 (in thousands) Equity awards outstanding: Stock options 150 Unvested RSUs 8,879 Committed unvested PSAs (1) 324 Unvested PSAs 997 Share purchase rights committed under the ESPP 1,757 Equity awards available for future grants: 2018 Plan 39,167 ESPP 7,219 Stock reserved for settlement of the 2028 Notes 3,925 Total 62,418 (1) Committed unvested PSAs represent the difference between the maximum number of shares issuable if maximum performance is achieved and the number of shares issuable at 100% of target performance.

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Subsequent Events On September 1, 2026, we committed to a plan to restructure and reduce our workforce, strategically reallocating resources to provide additional capacity to support our AI and growth initiatives. In connection with these actions, we expect to reduce our worldwide headcount by approximately 3% and incur aggregate non-recurring charges of approximately $30.0 million to $33.0 million, consisting primarily of employee severance and benefit costs. We expect to recognize the majority of these charges in the first half of fiscal 2027.

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