v3.26.1
Income Taxes
 6 Months Ended
Jul. 31, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
We compute our provision for income taxes by applying the estimated annual effective tax rate to year-to-date ordinary income and adjust the provision for discrete tax items recorded in the period. In each quarter, we update the estimated annual effective tax rate and make a year-to-date adjustment to the provision.
The following table provides details of the provision for income taxes:
Three Months Ended July 31, Six Months Ended July 31,
2026202520262025
(in thousands, except percentages)
Income before provision for income taxes$1,994,967 $448,162 $2,526,587 $763,927 
Provision for income taxes452,522 89,570 558,465 150,732 
Effective tax rate22.7 %20.0 %22.1 %19.7 %
The year-over-year change in effective tax rate for the three and six months ended July 31, 2026 was primarily driven by changes in income before taxes and changes in tax shortfalls and tax benefits related to stock-based compensation. For both the three and six months ended July 31, 2026 and 2025, the effective tax rate differed from the U.S. federal statutory rate due primarily to the foreign-derived deduction eligible income, tax benefits related to stock-based compensation, and research credits offset by tax shortfalls on stock-based compensation, state income taxes, and other compensation-related permanent differences.