Income Taxes |
6 Months Ended |
|---|---|
Jul. 31, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes The Company recognized income tax expense (benefit) of $(1.4) million and $6.0 million for the three months ended July 31, 2026 and July 31, 2025, respectively, and $(8.3) million and $27.1 million during the six months ended July 31, 2026 and July 31, 2025, respectively. The tax benefit for the three months ended July 31, 2026, based on the application of interim period tax accounting methodology, was primarily attributable to excess tax benefits related to stock-based awards, partially offset by income taxes on earnings in jurisdictions in which the Company conducts business. The tax benefit for the six months ended July 31, 2026, based on the application of interim period tax accounting methodology, was primarily attributable to income tax benefit recognized in the current period resulting from the realization of deferred tax assets in connection with recent acquisitions and excess tax benefits related to stock-based awards, partially offset by income taxes on earnings in jurisdictions in which the Company conducts business. The tax expense for the three months ended July 31, 2025 was primarily attributable to tax impacts from the enactment of the One Big Beautiful Bill Act (“OBBBA”), partially offset by valuation allowance in the U.S. and certain foreign jurisdictions where the Company does not benefit from losses and tax credits. The tax expense for the six months ended July 31, 2025 was primarily attributable to income taxes in foreign jurisdictions and withholding taxes related to customer payments in certain foreign jurisdictions in which the Company conducts business. The Company’s effective tax rates were (34.9)% and (9.3)% for the three months ended July 31, 2026 and July 31, 2025, respectively and (19.2)% and (18.3)% during the six months ended July 31, 2026 and July 31, 2025, respectively. The difference in the effective tax rate for the three months ended July 31, 2026 from the U.S. statutory tax rate is primarily due to excess tax benefits related to stock-based awards, partially offset by income taxes on earnings in jurisdictions in which the Company conducts business. The difference in the effective tax rate for the six months ended July 31, 2026 from the U.S. statutory tax rate is primarily due to income tax benefits recognized in the current period resulting from the realization of deferred tax assets in connection with recent acquisitions and excess tax benefits related to stock-based awards, partially offset by income taxes on earnings in jurisdictions in which the Company conducts business. The effective tax rate for the three and six months ended July 31, 2025, differ from the U.S. statutory tax rate primarily due to income taxes in foreign jurisdictions, withholding taxes related to customer payments in certain foreign jurisdictions in which the Company conducts business, and tax impacts from the enactment of the OBBBA, partially offset by valuation allowance in the U.S. and certain foreign jurisdictions where the Company does not benefit from losses and tax credits. Total gross unrecognized tax benefits were $140.9 million and $137.8 million as of July 31, 2026 and January 31, 2026, respectively, which are primarily attributable to research and development credits. As of July 31, 2026 and January 31, 2026, there were approximately $45.3 million and $41.0 million, respectively, of unrecognized tax benefits, which, if recognized, would affect the Company’s effective tax rate due to the full valuation allowance. The Company’s policy is to classify interest and penalties related to unrecognized tax benefits as part of the income tax provision in the condensed consolidated statements of operations. The Company incurred $8.8 million and $6.6 million of interest and penalties related to unrecognized tax benefits as of July 31, 2026 and January 31, 2026, respectively. In accordance with the guidance on the accounting for uncertainty in income taxes, for all U.S. and other tax jurisdictions, the Company recognizes potential liabilities for anticipated tax audit issues based on the Company’s estimate of whether, and the extent to which, additional taxes and interest will be due. The Company files income tax returns in the U.S. federal, and various state jurisdictions, as well as various foreign jurisdictions. Tax years 2011 and onwards remain subject to examination by taxing authorities. If the Company’s estimate of income tax liabilities proves to be less than the ultimate assessment, a further charge to expense would be required. If events occur and the payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period when the Company determines the liabilities are no longer necessary. The Company includes interest and penalties related to unrecognized tax benefits within the provision for income taxes in the condensed consolidated statements of operations. Accrued interest and penalties are included within other liabilities, noncurrent on the condensed consolidated balance sheets. The Company maintains a full valuation allowance on U.S. federal and state and certain foreign deferred tax assets, including net operating loss carryforwards and tax credits, which the Company has determined are not realizable on a more-likely-than-not basis. The Company evaluates the need for a valuation allowance on a quarterly basis.
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