Software & IT Services: Stock-based compensation (ASC 718)

As of January 31, 2026, there was $ 417 million in unrecognized compensation cost related to unvested stock options granted under the 2013 Equity Incentive Plan. This cost is expected to be recognized over a weighted average period of 2.0 years. The fair value of options vested was $ 148 million, $ 152 million, and $ 114 million for the fiscal years ended January 31, 2026, 2025, and 2024, respectively.

The options granted during the fiscal year ended January 31, 2026 were primarily made in connection with our annual performance review cycle. The weighted average grant-date fair value of options granted was $ 97.93 , $ 80.69 , and $ 81.17 per option for the fiscal years ended January 31, 2026, 2025, and 2024, respectively. The total intrinsic value of options exercised was approximately $ 120 million, $ 45 million, and $ 353 million for the fiscal years ended January 31, 2026, 2025, and 2024, respectively.

Stock Option Valuation Assumptions

The following table presents the weighted-average assumptions used to estimate the grant date fair value of options granted during the periods presented: