Income tax (Tables)

12 Months Ended

Jul. 31, 2025

Income Tax Disclosure [Abstract]

Schedule of Income Tax by Geographical Area

Income before income tax by geographical area consisted of the following:

	For the years ended July 31,
(In millions)	2025	2024	2023
United States	$2,263	$2,022	$2,011
International	160	442	453
Total	$2,423	$2,464	$2,464

Schedule of Provision for Income Tax

Provisions for income taxes for the U.S. federal, state and local and international consisted of the following:

	For the year ended July 31,
(In millions)	2025
Current:
U.S. Federal	$458
U.S. State and Local	125
International	23
Total current	$606
Deferred:
U.S. Federal	($36)
U.S. State and Local	(7)
International	4
Total deferred	($39)
Provision for income taxes	$567

Provision for income taxes in prior years consisted of the following:

	For the years ended July 31,
(In millions)	2024	2023
Current:
Federal and state (U.S.)	$552	$624
United Kingdom	3	—
International	49	55
Total current	$604	$679
Deferred:
Federal and state (U.S.)	($32)	($120)
United Kingdom	155	17
International	2	(1)
Total deferred	$125	($104)
Provision for income taxes	$729	$575

Schedule of Reconciliation of Income Tax Expense

The following is a reconciliation of income tax expense with income taxes at the U.S. statutory rate:

	For the years ended July 31,
(In millions)	2025
Provision for income taxes at U.S. statutory rate(1)	$509	21.0	%
State and local income tax net of federal income tax benefit	92	3.8
Foreign operations	8	0.3
Impact of change in reserves	(21)	(0.9)
U.S. business credits	(11)	(0.4)
Non-taxable income	(10)	(0.4)
Income tax expense	$567	23.4	%

(1)For fiscal years 2025, the Company was a tax resident in the U.S. Therefore, the Company utilized the U.S. statutory rate.

The following is a reconciliation of income tax expense with income taxes at the U.K. statutory rate:

	For the years ended July 31,
(In millions)	2024			2023
Provision for income taxes at U.K. statutory rate(1)	$616	25.0	%	$518	21.0	%
Non-U.K. tax rate differentials	(30)	(1.2)		68	2.8
Impact of change in reserves	12	0.5		8	0.3
Tax credits	(8)	(0.3)		(15)	(0.6)
Impact of Merger transaction (2)	144	5.8		—	—
Non-taxable income	(13)	(0.5)		(6)	(0.2)
Other	8	0.3		2	—
Income tax expense	$729	29.6	%	$575	23.3	%

(1)For fiscal years 2024 and 2023, the Company was a tax resident in the U.K. Therefore, the Company utilized the U.K. statutory rate. Since the change in statutory rate transitioned between fiscal years, the Company utilized a prorated statutory rate during fiscal 2023.

(2)As a result of the steps taken in the fourth quarter of fiscal 2024 to complete the Merger, the Company recognized one-time, non-cash deferred tax charges of $137 million composed of a reduction in deferred tax assets of $90 million related to tax losses that were no longer expected to be realizable and an increase in valuation allowance of $47 million related to U.K. deferred tax assets no longer expected to be realizable, as well the tax impact of non-deductible expenses related to the Merger.

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows:

	As of July 31,
(In millions)	2025	2024
Assets:
Deferred compensation	$97	$82
Tax loss carryforwards	92	90
Lease liabilities	460	404
Sales returns and other liabilities	146	106
Inventory	36	45
Capitalized research and development	114	82
Other	32	49
Total deferred tax assets	977	858
Valuation allowance	(129)	(128)
Total deferred tax assets, net of valuation allowance	$848	$730
Liabilities:
Right of use assets	($447)	($397)
Goodwill and intangible assets	(139)	(129)
Property, plant and equipment	(44)	(34)
Total deferred tax liabilities	(630)	(560)
Net deferred tax assets	$218	$170

Schedule of Unrecognized Tax Benefits Roll Forward

The following table reconciles the beginning and ending amount of our gross unrecognized tax benefits:

	For the years ended July 31,
(In millions)	2025	2024	2023
Unrecognized tax benefits at beginning of fiscal year	$151	$144	$140
Additions based on tax positions related to current year	5	25	27
Additions for tax positions of prior years	2	2	2
Reductions for tax positions of prior years	—	(10)	—
Reductions due to lapse of statute of limitations	(32)	(10)	(25)
Unrecognized tax benefits	$126	$151	$144