Deferred Commissions |
3 Months Ended |
|---|---|
Apr. 30, 2026 | |
| Revenue from Contract with Customer [Abstract] | |
| Deferred Commissions | Deferred CommissionsSales commissions capitalized as contract costs totaled $37 million and $32 million for the three months ended April 30, 2026 and 2025, respectively. Amortization of contract costs totaled $45 million and $36 million for the three months ended April 30, 2026 and 2025, respectivelyDeferred Revenue and Performance Obligations Deferred Revenue Deferred revenue, which is a contract liability, consists primarily of payments received and accounts receivable recorded in advance of revenue recognition under the Company’s contracts with customers and is recognized as the revenue recognition criteria are met. Subscription revenue recognized during the three months ended April 30, 2026 and 2025 that was included in the deferred revenue balances at the beginning of the respective periods was $696 million and $627 million, respectively. Transaction Price Allocated to the Remaining Performance Obligations Transaction price allocated to the remaining performance obligations (“RPO”) represents all future, non-cancelable contracted revenue that has not yet been recognized, inclusive of deferred revenue that has been invoiced and non-cancelable amounts that will be invoiced and recognized as revenue in future periods. Total remaining non-cancelable performance obligations under subscription contracts with customers were $4,719 million as of April 30, 2026. Of this amount, the Company expects to recognize revenue of $2,499 million, or 53%, over the next 12 months, with the balance to be recognized as revenue thereafter.
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