v3.26.1
Deferred Costs
 3 Months Ended
Apr. 30, 2026
Revenue from Contract with Customer [Abstract]  
Deferred Costs Deferred Costs
Deferred costs, which consist of deferred sales commissions, were $926 million and $940 million as of April 30, 2026, and January 31, 2026, respectively. Amortization expense for the deferred costs was $79 million and $68 million for the three months ended April 30, 2026, and 2025, 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):
Condensed Consolidated Balance Sheets Location
April 30, 2026January 31, 2026
Contract assets:
Contract assets, current
Trade and other receivables, net$540 $443 
Contract assets, noncurrent
Other assets65 59 
Total contract assets
$605 $502 
Unearned revenue:
Unearned revenue, current (1)
Unearned revenue$4,325 $5,010 
Unearned revenue, noncurrent
Unearned revenue, noncurrent70 71 
Total unearned revenue
$4,395 $5,081 
(1)Included in this balance are amounts related to professional services that are subject to cancellation and pro-rated refund rights of $75 million and $89 million as of April 30, 2026, and January 31, 2026, respectively.
Revenues of $2.0 billion and $1.7 billion were recognized during the three months ended April 30, 2026, and 2025, respectively, that were included in the unearned revenue balances as of January 31, 2026, and 2025, respectively.
Transaction Price Allocated to the Remaining Performance Obligations
As of April 30, 2026, approximately $27.3 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 $15.6 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 April 30, 2026, were not material.