v3.25.4
Income Taxes (Tables)
 12 Months Ended
Jan. 31, 2026
Income Tax Disclosure [Abstract]  
Components of Loss Before Provision for (Benefit from) Income Taxes
The components of income before provision for (benefit from) income taxes were as follows (in millions):
 Year Ended January 31,
 202620252024
Domestic$943 $660 $465 
Foreign66 (22)(109)
Income before provision for (benefit from) income taxes$1,009 $638 $356 
Summary of Provision for (Benefit from) Income Taxes
The provision for (benefit from) income taxes consisted of the following (in millions):
 Year Ended January 31,
 202620252024
Current:
Federal$34 $12 $2 
State46 45 19 
Foreign28 23 14 
Total108 80 35 
Deferred:
Federal198 52 (855)
State12 (20)(207)
Foreign(2)0 2 
Total208 32 (1,060)
Provision for (benefit from) income taxes$316 $112 $(1,025)
The income tax provision for fiscal 2026 was primarily attributable to an increase in our U.S. pretax income and income tax expenses in profitable foreign jurisdictions.
Reconciliation of Income Taxes Computed at Federal Statutory Income Tax Rate and Provision for (Benefit from) Income Taxes
We adopted ASU No. 2023-09 on a prospective basis effective February 1, 2025. The following table reconciles the difference between income taxes computed at the federal statutory income tax rate and the provision for (benefit from) income taxes (in millions, except percentages):
 
Year Ended January 31, 2026
 
Amount
Percentage
U.S. federal statutory tax rate
$212 21.0 %
State and local income taxes, net of federal income tax effect (1)
34 3.4 %
Foreign tax effects:
Ireland:
Intercompany transactions
(97)(9.6)%
Change in valuation allowance115 11.4 %
Other(14)(1.4)%
Other foreign jurisdictions
6 0.5 %
Effect of cross-border tax laws:
Foreign-derived intangible income
(24)(2.4)%
Other2 0.1 %
Tax credits:
Research and development tax credit(68)(6.7)%
Nontaxable or nondeductible items:
Share-based compensation
81 8.1 %
Intercompany transactions
26 2.6 %
Other12 1.2 %
Changes in unrecognized tax benefits (2)
32 3.2 %
Other adjustments
(1)(0.1)%
Effective tax rate
$316 31.3 %
(1)State and local taxes in New York state, New Jersey, Illinois, and New York city made up the majority (greater than 50 percent) of the tax effect in this category.
(2)Changes in unrecognized tax benefits are presented on an aggregated basis for all jurisdictions.
 Year Ended January 31,
 20252024
Federal statutory rate21.0 %21.0 %
Effect of:
Foreign income at other than U.S. rates0.2 %10.9 %
Intercompany transactions(1.0)%(4.3)%
Research tax credits(15.4)%(26.3)%
State taxes, net of federal benefit3.1 %5.1 %
Changes in valuation allowance0.0 %(315.5)%
Share-based compensation 8.1 %19.1 %
Permanent difference1.6 %1.2 %
Other(0.1)%1.2 %
Total17.5 %(287.6)%
Schedule of Cash Flow, Supplemental Disclosures
The following table presents income taxes paid, net of refunds (in millions):
 
Year Ended January 31, 2026
Federal taxes
$17 
State taxes:
California
7 
New York
8 
Other states
38 
Total state taxes
53 
Total U.S. taxes
70 
Foreign taxes
26 
Cash paid for income taxes, net of refunds
$96 
Schedule of Deferred Tax Assets and Liabilities
Significant components of our deferred tax assets and liabilities were as follows (in millions):
As of January 31,
20262025
Deferred tax assets:
Tax attributes carryforward$1,338 $1,290 
Capitalized research and development expense497 621 
Intangibles424 429 
Operating lease liabilities148 81 
Share-based compensation77 76 
Other reserves and accruals65 65 
Other69 37 
Total deferred tax assets2,618 2,599 
Valuation allowance(1,433)(1,259)
Deferred tax assets, net of valuation allowance1,185 1,340 
Deferred tax liabilities:
Deferred commissions(182)(162)
Operating lease right-of-use assets(128)(71)
Other(46)(75)
Total deferred tax liabilities(356)(308)
Net deferred tax assets$829 $1,032 
Summary of Reconciliation of Gross Unrecognized Tax Benefit
A reconciliation of the gross unrecognized tax benefits is as follows (in millions):
 Year Ended January 31,
 202620252024
Unrecognized tax benefits at the beginning of the period$309 $253 $196 
Additions for tax positions taken in prior years3 15 30 
Additions for tax positions related to the current year30 41 27 
Reductions related to a lapse of applicable statute of limitations(1)0 0 
Unrecognized tax benefits at the end of the period$341 $309 $253