Income Taxes |
6 Months Ended |
|---|---|
Jul. 31, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes For the three and six months ended July 31, 2026, the Company recorded a provision for income taxes of $10 million and $14 million on pre-tax income of $126 million and $204 million, respectively. The effective tax rate for the three and six months ended July 31, 2026 was approximately 7.7% and 6.6%, respectively. The effective tax rate differs from the statutory rate primarily as a result of a full valuation allowance against the U.S. deferred tax assets, the favorable tax impact of the One Big Beautiful Bill Act (the “Act”), the tax effect of foreign operations, the integration of Axiom Security Ltd, and U.S. federal and state taxes. The Act was enacted on July 4, 2025. The Act, among other provisions, maintains the U.S. federal 21% corporate tax rate, makes permanent the immediate expensing of domestic research and development expenditures, allows for 100% bonus depreciation for qualified assets, and modifies the U.S. taxation of profits derived from foreign operations. For the three months ended July 31, 2025, the Company recorded an insignificant provision for income taxes on pre-tax income of $67 million. For the six months ended July 31, 2025, the Company recorded a provision for income taxes of $6 million on pre-tax income of $135 million. The effective tax rate for the three and six months ended July 31, 2025 was approximately 0.5% and 4.6%, respectively. The effective tax rate differs from the statutory rate primarily as a result of a full valuation allowance against the U.S. deferred tax assets, the favorable tax impact of the Act, the tax effect of foreign operations, and other U.S. federal and state taxes.
|