Basic net income per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period.

Diluted net income per share is computed by dividing net income by the weighted-average shares outstanding, including potentially dilutive shares of common equivalents outstanding during the period. The dilutive effect of potential shares of common stock is determined using the treasury stock method.

The following table presents the calculation of basic and diluted net income per share (in thousands, except per share data):


	Three months ended July 31,				Six months ended July 31,
	2026		2025		2026		2025
Numerator:
Net income	$	273,429	$	200,309	$	534,365	$	428,499

Denominator:
Basic shares:
Weighted average common shares outstanding, basic	162,344		163,496		162,836		163,129
Diluted shares:
Weighted average common shares outstanding, basic	162,344		163,496		162,836		163,129
Effect of potentially dilutive common shares	2,713		4,189		3,236		4,143
Weighted average common shares outstanding, diluted	165,057		167,685		166,072		167,272
Net income per share:
Basic	$	1.68	$	1.23	$	3.28	$	2.63
Diluted	$	1.66	$	1.19	$	3.22	$	2.56

Potential common share equivalents excluded because their inclusion would be anti-dilutive are as follows (in thousands):