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Contract Balances and Performance Obligations
12 Months Ended
Jan. 31, 2026
Revenue from Contract with Customer [Abstract]  
Contract Balances and Performance Obligations Deferred Costs
Deferred costs, which consist of deferred sales commissions, were $940 million and $828 million as of January 31, 2026, and 2025, respectively. Amortization expense for the deferred costs was $292 million, $251 million, and $213 million for fiscal 2026, 2025, and 2024, respectively. There was no impairment loss in relation to the costs capitalized for the periods presented.
Contract Balances and Performance Obligations
Contract Balances
Contract assets and unearned revenue balances were as follows (in millions):
Consolidated Balance Sheets LocationAs of January 31,
20262025
Contract assets:
Contract assets, current
Trade and other receivables, net$443 $373 
Contract assets, noncurrent
Other assets59 44 
Total contract assets
$502 $417 
Unearned revenue:
Unearned revenue, current (1)
Unearned revenue$5,010 $4,467 
Unearned revenue, noncurrent
Unearned revenue, noncurrent71 80 
Total unearned revenue
$5,081 $4,547 
(1)Included in this balance are amounts related to professional services that are subject to cancellation and pro-rated refund rights of $89 million and $83 million as of January 31, 2026, and 2025, respectively.
Revenues of $4.4 billion, $4.0 billion, and $3.5 billion were recognized during fiscal 2026, 2025, and 2024, respectively, that were included in the unearned revenue balances at the beginning of the respective periods.
Transaction Price Allocated to the Remaining Performance Obligations
As of January 31, 2026, approximately $28.1 billion of revenues are expected to be recognized from remaining performance obligations for subscription contracts. We expect to recognize revenues on approximately $8.8 billion and $15.8 billion of these remaining performance obligations over the next 12 and 24 months, respectively, with the balance recognized thereafter. Revenues from remaining performance obligations for professional services contracts as of January 31, 2026, were not material.