v3.26.1
Fair Value Measurement
6 Months Ended
Jul. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurement Fair Value Measurement
The Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:
Level 1.    Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2.    Significant other inputs that are directly or indirectly observable in the marketplace.
Level 3.    Significant unobservable inputs which are supported by little or no market activity.
All of the Company’s cash equivalents, marketable securities and foreign currency derivative contracts are classified within Level 1 or Level 2 because these assets are valued using quoted market prices or alternative pricing sources and models utilizing observable market inputs.
The following table presents information about the Company’s assets that were measured at fair value as of July 31, 2026 and indicates the fair value hierarchy of the valuation (in millions):
DescriptionQuoted Prices in
Active Markets
for Identical Assets
(Level 1)
Significant Other
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Fair Value
Cash equivalents (1):
Time deposits$$1,914 $$1,914 
Money market mutual funds3,479 3,479 
Cash equivalent securities 937 937 
Marketable securities:
Corporate notes and obligations1,564 1,564 
U.S. treasury securities740 740 
Mortgage-backed obligations35 35 
Asset-backed securities562 562 
Municipal securities18 18 
Commercial paper104 104 
Other70 70 
Strategic investments:
Equity securities
Foreign currency derivative contracts 98 98 
Total assets$3,479 $6,042 $$9,521 
Liabilities:
Foreign currency derivative contracts155 155 
Total liabilities$$155 $$155 
(1) Included in “cash and cash equivalents” in the accompanying condensed consolidated balance sheets, in addition to $2.0 billion of cash, as of July 31, 2026.
The following table presents information about the Company’s assets that were measured at fair value as of January 31, 2026 and indicates the fair value hierarchy of the valuation (in millions):
DescriptionQuoted Prices in
Active Markets
for Identical Assets
(Level 1)
Significant Other
Observable Inputs (Level 2)
Significant
Unobservable
Inputs
(Level 3)
Fair Value
Cash equivalents (1):
Time deposits$$1,393 $$1,393 
Money market mutual funds3,204 3,204 
Cash equivalent securities567 567 
Marketable securities:
Corporate notes and obligations1,353 1,353 
U.S. treasury securities170 170 
Mortgage-backed obligations31 31 
Asset-backed securities622 622 
Municipal securities17 17 
Commercial paper30 30 
Other15 15 
Strategic investments:
Equity securities
Total assets$3,209 $4,198 $$7,407 
(1) Included in “cash and cash equivalents” in the accompanying condensed consolidated balance sheets in addition to $2.2 billion of cash, as of January 31, 2026.
Strategic Investments Measured and Recorded at Fair Value on a Non-Recurring Basis
Substantially all of the Company's privately held equity securities and other investments are recorded at fair value on a non-recurring basis. The estimation of fair value for these investments requires the use of significant unobservable inputs, and as a result, the Company deems these assets as Level 3 within the fair value measurement framework. For privately held equity investments without a readily determinable fair value, the Company applies valuation methods based on information available, including the market approach, the common stock equivalent method (“CSE”), option pricing models (“OPM”), or a combination of these methods. Observable transactions, such as the issuance of new equity by an investee, are indicators of investee enterprise value and are used to estimate the fair value of the privately held equity investments. The CSE method assumes all classes of stock have an equal fair value per share on a fully diluted, as-converted basis. By contrast, an OPM may be utilized to allocate value to the various classes of securities of the investee, including classes owned by the Company, adjusted to reflect varying rights and preferences between share classes. Fair value conclusions are determined using information shared by investee companies, which may be supplemented with estimates such as volatility and expected time to liquidity. When indicators of impairment are observed for privately held equity securities, the Company generally uses the market approach to estimate the fair value of its investment, giving consideration to the latest observable transactions, as well as the investee's current and projected financial performance and other significant inputs and assumptions, including estimated time to exit, selection and analysis of guideline public companies and the rights and obligations of the securities the Company holds. The Company's privately held equity securities and other investments amounted to approximately $11.3 billion and $7.6 billion as of July 31, 2026 and January 31, 2026, respectively.