v3.26.1
Fair Value Measurements
 3 Months Ended
Apr. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows:

Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date.

Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.

Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.
The following table presents the fair value hierarchy for the Company’s assets and liabilities measured at fair value on a recurring basis as of April 30, 2026 (in thousands):

Level 1
Level 2
Level 3
Total
Assets:
Cash equivalents:
Money market funds$1,401,999 $— $— $1,401,999 
Time deposits— 107,558 — 107,558 
U.S. government securities— 44,361 — 44,361 
Commercial paper— 2,770 — 2,770 
Short-term investments:
Corporate notes and bonds— 629,364 — 629,364 
U.S. government and agency securities— 211,005 — 211,005 
Certificates of deposit— 25,307 — 25,307 
Commercial paper— 4,607 — 4,607 
Long-term investments:
Corporate notes and bonds— 1,220,148 — 1,220,148 
U.S. government and agency securities— 190,886 — 190,886 
Asset-backed securities— 21,460 — 21,460 
Strategic investments—included in other assets:
Marketable equity securities6,628 — — 6,628 
Non-marketable debt securities— — 5,000 5,000 
Derivative assets—included in prepaid expenses and other current assets:
Foreign currency forward contracts— 2,164 — 2,164 
Total assets$1,408,627 $2,459,630 $5,000 $3,873,257 
Liabilities:
Derivative liabilities—included in accrued expenses and other current liabilities and other liabilities:
Foreign currency forward contracts$— $(1,860)$— $(1,860)
Total liabilities
$— $(1,860)$— $(1,860)
The following table presents the fair value hierarchy for the Company’s assets and liabilities measured at fair value on a recurring basis as of January 31, 2026 (in thousands):

Level 1
Level 2
Level 3
Total
Assets:
Cash equivalents:
Money market funds$1,752,777 $— $— $1,752,777 
Time deposits— 108,727 — 108,727 
U.S. government securities— 94,532 — 94,532 
Commercial paper— 40,379 — 40,379 
Certificates of deposit— 2,808 — 2,808 
Corporate notes and bonds— 75 — 75 
Short-term investments:
Corporate notes and bonds— 860,872 — 860,872 
U.S. government and agency securities— 256,351 — 256,351 
Certificates of deposit— 65,689 — 65,689 
Commercial paper— 18,611 — 18,611 
Long-term investments:
— 
Corporate notes and bonds— 525,964 — 525,964 
U.S. government and agency securities— 229,049 — 229,049 
Strategic investments—included in other assets:
Marketable equity securities6,264 — — 6,264 
Non-marketable debt securities— — 10,000 10,000 
Derivative assets—included in prepaid expenses and other current assets:
Foreign currency forward contracts— 1,779 — 1,779 
Total assets$1,759,041 $2,204,836 $10,000 $3,973,877 
Liabilities:
Derivative liabilities—included in accrued expenses and other current liabilities:
Foreign currency forward contracts$— $(2,141)$— $(2,141)
Total liabilities
$— $(2,141)$— $(2,141)
    

The Company determines the fair value of its security holdings based on pricing from the Company’s service providers and market prices from industry-standard independent data providers. Such market prices may be quoted prices in active markets for identical assets (Level 1 inputs) or pricing determined using inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs), such as yield curve, volatility factors, credit spreads, default rates, loss severity, structural features, estimated cash flows, current market and contractual prices for the underlying instruments or debt, broker and dealer quotes, as well as other relevant economic measures.

The Company’s derivative financial instruments, consisting of foreign currency forward contracts, are carried at fair value on the condensed consolidated balance sheets. The following table summarizes the notional amounts of the Company’s outstanding derivative financial instruments (in thousands):

April 30, 2026January 31, 2026
Foreign currency forward contracts not designated as hedging instruments
$187,161 $228,997 
Foreign currency forward contracts designated as cash flow hedges
256,518 86,992 
Total derivative financial instruments
$443,679 $315,989 
These derivative financial instruments did not have a material impact on the Company’s condensed consolidated financial statements for all periods presented. All cash flow hedges were considered effective for all periods presented.

The Company’s non-marketable equity securities accounted for using the Measurement Alternative are recorded at fair value on a non-recurring basis. When indicators of impairment exist or observable price changes of qualified transactions occur, the respective non-marketable equity security would be classified within Level 3 of the fair value hierarchy because significant unobservable inputs or data in an inactive market are used in estimating their fair value. The estimation of fair value for these assets requires the use of an observable transaction price or other unobservable inputs, including the volatility, rights, and obligations of the securities the Company holds. See Note 4, “Cash Equivalents, Investments, and Strategic Investments,” for details regarding the Company’s strategic investments.

See Note 10, “Convertible Senior Notes,” for the fair value measurement of the Company’s convertible senior notes.