Income Taxes |
6 Months Ended |
|---|---|
Jul. 31, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes The Company computes its year-to-date provision for income taxes by applying the estimated annual effective tax rate to year-to-date pretax income or loss and adjusts the provision for discrete tax items recorded in the period. During the three months ended July 31, 2026 and 2025, the Company recorded an income tax provision of $5.6 million and $11.1 million, respectively. During the six months ended July 31, 2026 and 2025, the Company recorded an income tax provision of $17.7 million and $17.9 million, respectively. During the three and six months ended July 31, 2026, the Company’s effective tax rate differed from the U.S. federal statutory tax rate primarily due to the impact of non-deductible items, state taxes, and foreign tax rate differential on non-U.S. income. During the three and six months ended July 31, 2026, the Company also recorded discrete income tax expense related to the impact of non-deductible stock-based compensation of $2.9 million and $6.8 million, respectively, and withholding tax of $0.9 million and $2.1 million, respectively, and changes in uncertain tax positions for certain of the Company’s non-U.S. entities of $(2.7) million and $(0.4) million, respectively. During the three and six months ended July 31, 2025, the Company’s effective tax rate differed from the U.S. federal statutory tax rate primarily due to the impact of non-deductible items, stock-based compensation, and foreign tax rate differential on non-U.S. income. During the three and six months ended July 31, 2025, the Company also recorded discrete income tax expense related to impacts of non-deductible stock-based compensation of $1.5 million and $4.5 million, respectively, and withholding tax of $1.9 million and $3.5 million, respectively. The Company monitors the realizability of its deferred tax assets taking into account all relevant factors at each reporting period. As of July 31, 2026, based on the relevant weight of positive and negative evidence, including cumulative taxable income over the past three years, which is objective and verifiable, and consideration of its expected future taxable earnings, the Company concluded that it is more likely than not that its deferred tax assets are realizable. The IRA was signed into law on August 16, 2022. The bill was meant to address the high inflation rate in the U.S. through various climate, energy, healthcare, and other incentives. These incentives are meant to be paid for by the tax provisions included in the IRA, such as a 15 percent corporate minimum tax, an excise tax on stock buybacks, additional Internal Revenue Service funding to improve taxpayer compliance, and other items. During the three and six months ended July 31, 2026, the Company paid $0.8 million in excise taxes associated with the Company’s share repurchase programs. As of July 31, 2026, the Company has accrued $0.7 million in excise taxes associated with the 2026 Share Repurchase Program. During the three and six months ended July 31, 2025, the Company paid $1.9 million of excise taxes associated with the share repurchase program that the Board had authorized and approved in 2024. As of July 31, 2025, the Company had accrued $1.0 million of excise taxes associated with the 2025 Share Repurchase Program.
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