The following table summarizes the RSU and PSU activity under our stock plans during the three months ended October 31, 2024 (in millions, except per share amounts):


	Unvested RSUs			Unvested PSUs
	Number of Shares	Weighted-Average Grant-Date Fair Value Per Share		Aggregate Intrinsic Value		Number of Shares	Weighted-Average Grant-Date Fair Value Per Share		Aggregate Intrinsic Value
Balance—July 31, 2024	9.0	$	205.18	$	2,924.4	5.0	$	155.89	$	1,624.2
Granted(1)	0.4	$	351.52			1.6	$	404.69
Vested(2)	(1.3)	$	163.72			(0.6)	$	129.35
Forfeited	(0.3)	$	197.36			(1.5)	$	181.44
Balance—October 31, 2024	7.8	$	221.08	$	2,813.8	4.5	$	272.87	$	1,633.6

(1)For PSUs, shares granted represent the aggregate maximum number of shares that may be earned and issued with respect to these awards over their full terms.

Our RSUs generally vest over a period of three to four years from the date of grant. Until vested, RSUs do not have the voting and dividend participation rights of common stock and the shares underlying the awards are not considered issued and outstanding.

Our PSUs generally vest over a period of one to four years from the date of grant. The number of PSUs eligible to vest is determined based on the level of achievement against certain performance conditions, market conditions, and a combination thereof.

During the three months ended October 31, 2024, we granted 1.6 million shares of PSUs that contain service, performance, and market conditions. The service conditions are satisfied after a period of one to three years. The performance conditions are based on an average of next-generation security annualized recurring revenue and non-GAAP net income per diluted share. The market condition is measured based on our total shareholder return (“TSR”) relative to the TSR of the companies listed in the Standard & Poor’s 500 index. As of October 31, 2024, we have approved 1.3 million shares of PSUs, which will be granted upon the performance condition being established during the next two fiscal years.

The fair value of the PSUs subject to market conditions is estimated on the grant date using a Monte Carlo simulation model. The following table summarizes the assumptions used and the resulting grant-date fair value of our PSUs subject to market conditions granted during the three months ended October 31, 2024:



	Three Months Ended October 31,
		2024		2023
Volatility		44.1% - 47.6%		40.8% - 43.4%
Expected term (in years)		1.0 - 2.9		0.9 - 2.9
Dividend yield		0.0	%	0.0	%
Risk-free interest rate		3.7% - 4.5%		4.9% - 5.3%
Grant-date fair value per share		$529.01 - $611.65		$346.92 - $394.63

We have granted PSOs with both service and market conditions. The market conditions were achieved when certain stock price targets were met. As of October 31, 2024, all of our outstanding PSOs have been fully vested. The maximum contractual term of our outstanding PSOs is seven and a half years from the date of grant in fiscal year 2018 and 2019.

The following table summarizes the PSO activity under our stock plans during the three months ended October 31, 2024 (in millions, except per share amounts):



	Number of Shares	Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Balance—July 31, 2024	4.8	$	65.33	1.2	$	1,244.9

Exercised	(0.6)	$	65.63

Balance—October 31, 2024	4.2	$	65.29	1.0	$	1,251.3
Exercisable—October 31, 2024	4.2	$	65.29	1.0	$	1,251.3


	Three Months Ended October 31,
		2024		2023
Cost of product revenue		$	1.3	$	2.4
Cost of subscription and support revenue		30.4		30.6
Research and development		137.8		120.1
Sales and marketing		76.4		79.2
General and administrative		48.4		38.7
Total share-based compensation		$	294.3	$	271.0

As of October 31, 2024, total compensation cost related to unvested share-based awards not yet recognized was $2.2 billion. This cost is expected to be amortized over a weighted-average period of approximately 2.5 years.