Stockholders' Equity

3 Months Ended

Nov. 30, 2025

Share-Based Payment Arrangement [Abstract]

Stockholders' Equity

Stockholders’ Equity

The Company recognized stock-based compensation expense within selling, general and administrative expense as follows (in millions):

	Three months ended
	November 30, 2025		November 30, 2024
Restricted stock units	$	58	$	40
Employee stock purchase plan	5		4
Total	$	63	$	44

As of November 30, 2025, the shares available to be issued under the 2021 Equity Incentive Plan were 6,579,931.

Restricted Stock Units

Certain key employees have been granted time-based, performance-based and market-based restricted stock unit awards (“restricted stock units”). The time-based restricted stock units generally vest on a graded vesting schedule over three years. The performance-based restricted stock units generally vest on a cliff vesting schedule over three years and up to a maximum of 200%, depending on the specified performance condition and the level of achievement obtained. The performance-based restricted stock units have a vesting condition that is based upon the Company’s cumulative adjusted core earnings per share during the performance period. The market-based restricted stock units generally vest on a cliff vesting schedule over three years and up to a maximum of 200%, depending on the specified performance condition and the level of achievement obtained. The market-based restricted stock units have a vesting condition that is tied to the Company’s total shareholder return based on the Company’s stock performance in relation to the companies in the Standard and Poor’s (S&P) Super Composite Technology Hardware and Equipment Index excluding the Company. During the three months ended November 30, 2025, and 2024, the Company awarded approximately 0.3 million and 0.6 million time-based restricted stock units, respectively, 0.1 million and 0.1 million performance-based restricted stock units, respectively, and 0.1 million and 0.1 million market-based restricted stock units, respectively.

The following represents the stock-based compensation information as of the period indicated (in millions):

	November 30, 2025
Unrecognized stock-based compensation expense – restricted stock units	$	100
Remaining weighted-average period for restricted stock units expense	1.5 years

Common Stock Outstanding

The following represents the common stock outstanding for the periods indicated:

	Three months ended
	November 30, 2025	November 30, 2024
Common stock outstanding:
Beginning balances	107,480,895	113,744,167
Shares issued under employee stock purchase plan	21	—
Vesting of restricted stock	1,088,648	1,082,612
Purchases of treasury stock under employee stock plans	(314,236)	(323,000)
Treasury shares purchased	(1,432,368)	(2,810,720)
Ending balances	106,822,960	111,693,059

Warrants

On December 27, 2024, the Company issued a warrant (the “Warrant”) to Amazon.com NV Investment Holdings LLC to acquire up to 1,158,539 ordinary shares of the Company (“Warrant Shares”) at an initial exercise price of $137.7671 per share. The Warrant allows for cashless exercise and expires December 27, 2031. The Warrant Shares are subject to vesting for payments for purchased products and services over the seven-year Warrant term.

The following table summarizes the Warrant activity for the three months ended November 30, 2025:

	Warrant Shares
Outstanding as of August 31, 2025	1,098,957
Changes during the period
Shares granted	—
Shares vested	—
Outstanding as of November 30, 2025	1,098,957
Exercisable as of November 30, 2025	59,582

Treasury Shares Purchased

The Company repurchases shares of its common stock under share repurchase programs authorized by the Company’s Board of Directors. The following Board approved share repurchase programs were executed through a combination of accelerated share repurchase (“ASR”) agreements and open market transactions (in millions):

	Board Approval Date	Amount Authorized		Shares Repurchased	Total Cash Utilized		Remaining Authorization		Authorization Completion Date
Amended 2023 Share Repurchase Program	Q1 FY 2024	$	2,500	20.4	$	2,500	$	—	Q1 FY 2025
2025 Share Repurchase Program	Q1 FY 2025	$	1,000	6.6	$	1,000	$	—	Q4 FY 2025
2026 Share Repurchase Program(1)	Q4 FY 2025	$	1,000	2.7	$	600	$	400

(1)As of November 30, 2025, 1.4 million shares had been repurchased for $300 million and $700 million remained available under the 2026 Share Repurchase Program. As of January 2, 2026, 2.7 million shares had been repurchased for $600 million and $400 million remained available under the 2026 Share Repurchase Program.

Under ASR agreements, the Company makes payments to the participating financial institutions and receives an initial delivery of shares of common stock. The final number of shares delivered upon settlement of the ASR agreements is determined based on a discount to the volume weighted average price of the Company’s common stock during the term of the agreements. At the time the shares are received by the Company, the initial delivery and the final receipt of shares upon settlement of the ASR agreements results in an immediate reduction of the outstanding shares used to calculate the weighted-average common shares outstanding for basic and diluted earnings per share.

The terms of ASR agreements, structured as outlined above, were as follows (in millions, except average price):

Agreement Execution Date	Agreement Settlement Date		Agreement Amount		Initial Shares Delivered	Additional Shares Delivered	Total Shares Delivered	Average Price Paid Per Share
Q4 FY 2024	Q1 FY 2025		$	555	4.2	1.0	5.2	$	107.08
Q2 FY 2025	Q3 FY 2025		$	310	1.8	0.2	2.0	$	154.44
Q3 FY 2025	Q4 FY 2025		$	309	1.8	0.0	1.8	$	171.91
Q1 FY 2026	Q2 FY 2026	(1)	$	45	0.2	0.0	0.2	$	209.67
Q2 FY 2026	Q3 FY 2026		$	200	0.8	(2)	(2)	$	226.62

(1)In October 2025, the Company entered into ASR agreements to repurchase $45 million, excluding excise tax, of the Company’s common stock. Under the ASR agreements, the Company made payments of $45 million to participating financial institutions and received an initial delivery of shares of common stock. In December 2025, the ASR transaction was completed and the final receipt of shares were delivered.

(2)In December 2025, the Company entered into ASR agreements to repurchase $200 million, excluding excise tax, of the Company’s common stock. Under the ASR agreements, the Company made payments of $200 million to participating financial institutions and received an initial delivery of shares of common stock. The delivery of any remaining shares will occur at the final settlement of the transactions under the ASR agreements.

In addition, the Company repurchased shares of its common stock through the open market as follows (in millions):

	Three months ended
	November 30, 2025			November 30, 2024
	Shares	Cost		Shares	Cost
Open market share repurchases(1)	1.2	$	255	1.8	$	232

(1)As of January 2, 2026, 1.7 million shares had been repurchased for $355 million through open market transactions under the 2026 Share Repurchase Program.