Deferred Commissions |
6 Months Ended |
|---|---|
Jul. 31, 2026 | |
| Revenue from Contract with Customer [Abstract] | |
| Deferred Commissions | Deferred Commissions Sales commissions capitalized as contract costs totaled $59 million and $48 million for the three months ended July 31, 2026 and 2025, respectively, and $96 million and $80 million for the six months ended July 31, 2026 and 2025, respectively. Amortization of contract costs totaled $47 million and $40 million for the three months ended July 31, 2026 and 2025, respectively, and $92 million and $76 million for the six months ended July 31, 2026 and 2025, respectively. Deferred Revenue and Performance ObligationsDeferred 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 July 31, 2026 and 2025 that was included in the deferred revenue balances at the beginning of the respective periods was $722 million and $651 million, respectively, and $1,265 million and $1,144 million in the six months ended July 31, 2026 and 2025, 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 $4,858 million as of July 31, 2026. Of this amount, the Company expects to recognize revenue of $2,585 million, or 53%, over the next 12 months, with the balance to be recognized as revenue thereafter.
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