v3.25.4
Income Taxes (Tables)
 12 Months Ended
Jan. 31, 2026
Income Tax Disclosure [Abstract]  
Schedule of Domestic and Foreign Components of Pre-tax Loss The domestic and foreign components of pre-tax income (loss) for fiscal 2026, 2025 and 2024 were as follows:
 Year Ended January 31,
 202620252024
(dollars in millions)
Domestic$211 $28 $(360)
Foreign44 18 23 
Income (loss) before provision for income taxes
$255 $46 $(337)
Schedule of Components of Provision for (Benefit from) Income Taxes
The components of the provision for income taxes for fiscal 2026, 2025 and 2024 were as follows:
 Year Ended January 31,
 202620252024
(dollars in millions)
Current: 
Federal$(1)$5 $2 
State2 2 3 
Foreign7 9 6 
Total current provision for income taxes8 16 11 
Deferred: 
Foreign12 2 7 
Total deferred provision for income taxes
12 2 7 
Total provision for income taxes
$20 $18 $18 
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation of the statutory federal income tax rate to the Company’s effective tax rate for fiscal 2026 is as follows:
 
Year Ended January 31, 2026
(dollars in millions)
%
U.S. Federal Statutory Tax Rate$54 21.0 %
State and Local Income Taxes, Net of Federal (National) Income Tax Effect(1)
1 0.3 
Foreign Tax Effects
Australia
   Share based payment awards
3 1.1 
United Kingdom3 1.3 
Other Foreign Jurisdictions4 1.4 
Effect of Cross-Border Tax Laws
Foreign Derived Intangible Income Deduction(3)(1.3)
Tax Credits
Research and development tax credits(24)(9.4)
Changes in Valuation Allowances(51)(20.0)
Nontaxable or Nondeductible Items
Share base payment awards4 1.8 
Nondeductible Officer Compensation17 6.6 
Other4 1.5 
Changes in Unrecognized Tax Benefits8 3.3 
Other Adjustments— 0.3 
Effective Tax Rate$20 7.9 %
(1) State taxes in NY and NYC made up the majority (greater than 50%) of the tax effect in this category.
The following is a reconciliation of the statutory federal income tax rate to the Company’s effective tax rate for fiscal 2025 and 2024:
 Year Ended January 31,
 20252024
Tax at federal statutory rate21.0 %21.0 %
State income taxes, net of federal benefit3.7 3.8 
Change in valuation allowance27.4 (5.6)
Stock-based compensation14.5 (28.4)
Effect of foreign operations
8.1 (0.7)
Research and development credits(51.7)5.3 
Non-deductible expenses19.2 (1.5)
Provision to return true-up
(7.1)0.2 
Unrecognized tax benefits
7.9 — 
Other, net(4.0)0.6 
Effective tax rate39.0 %(5.3)%
Schedule of Deferred Tax Assets and Liabilities
The tax effects of temporary differences and related deferred tax assets and liabilities as of January 31, 2026 and 2025 were as follows:
 As of January 31,
 20262025
(dollars in millions)
Deferred tax assets: 
Net operating loss carryforwards$720 $702 
Capitalized research expenditures241 335 
Stock-based compensation27 41 
Operating lease liabilities28 31 
Other reserves and accruals27 24 
Research and development and other credits176 146 
Total deferred tax assets1,219 1,279 
Valuation allowance(1,089)(1,144)
Total deferred tax assets, net130 135 
Deferred tax liabilities:
Deferred commissions(124)(99)
Other deferred tax liabilities(16)(15)
Operating lease right-of-use assets(18)(20)
Depreciation and amortization— (14)
Total deferred tax liabilities(158)(148)
Net deferred tax liabilities
$(28)$(13)
Schedule of Unrecognized Tax Benefits Roll Forward
A reconciliation of beginning and ending amount of unrecognized tax benefit was as follows:
 Year Ended January 31,
 202620252024
(dollars in millions)
Gross amount of unrecognized tax benefits as of the beginning of the year$65 $49 $43 
Additions based on tax positions related to a prior year4 4 — 
Additions based on tax positions related to current year9 12 7 
Reductions based on tax positions taken in a prior year — — (1)
Gross amount of unrecognized tax benefits as of the end of the year$78 $65 $49 
Schedule of Income Taxes Paid, Net
Cash paid for income taxes, net of refunds received, by jurisdiction for fiscal 2026 was as follows:
 
Year Ended January 31, 2026
 
(dollars in millions)
Federal Taxes$(3)
State Taxes
New York State2 
Other State Jurisdictions1 
Foreign Taxes
India5 
Israel2 
Japan1 
Other Foreign Jurisdictions2 
Total income taxes paid (net of refunds)
$10