v3.26.1
Deferred Revenue and Commissions
 6 Months Ended
Aug. 02, 2026
Revenue from Contract with Customer [Abstract]  
Deferred Revenue and Commissions Deferred Revenue and Commissions
Deferred Commissions
Deferred commissions consist of incremental costs paid to our sales force to obtain customer contracts.
Changes in total deferred commissions during the periods presented are as follows (in thousands):
Second Quarter of Fiscal
First Two Quarters of Fiscal
2026202720262027
Beginning balance
$332,277 $432,249 $328,620 $419,569 
Additions53,100 82,097 99,027 167,167 
Recognition of deferred commissions(45,362)(67,452)(87,632)(139,842)
Ending balance$340,015 $446,894 $340,015 $446,894 
Of the $446.9 million total deferred commissions balance at the end of the second quarter of fiscal 2027, we expect to recognize approximately 34% as sales commission expense over the next 12 months and the remainder thereafter.
There was no impairment related to capitalized commissions for the second quarter and first two quarters of fiscal 2026 and 2027.
Deferred Revenue
Deferred revenue primarily consists of amounts that have been invoiced but have not yet been recognized as revenue including performance obligations pertaining to subscription services.
Changes in total deferred revenue during the periods presented are as follows (in thousands):
Second Quarter of Fiscal
First Two Quarters of Fiscal
2026202720262027
Beginning balance
$1,827,545 $2,377,357 $1,795,303 $2,227,497 
Additions495,801 629,356 923,488 1,276,386 
Recognition of deferred revenue(412,282)(485,442)(807,727)(982,612)
Ending balance$1,911,064 $2,521,271 $1,911,064 $2,521,271 
Revenue recognized during the second quarter of fiscal 2026 and 2027 from deferred revenue at the beginning of each respective period was $344.4 million and $419.4 million. Revenue recognized during the first two quarters of fiscal 2026 and 2027 from deferred revenue at the beginning of each respective period was $586.6 million and $858.6 million.
Remaining Performance Obligations
Total remaining performance obligations (RPO) which is contracted but not recognized revenue was $4.1 billion at the end of the second quarter of fiscal 2027, of which $44.5 million relates to a lessor arrangement. RPO consists of both deferred revenue and non-cancelable amounts that are expected to be invoiced and recognized as revenue in future periods. Of the $4.1 billion RPO at the end of the second quarter of fiscal 2027, we expect to recognize approximately 42% over the next 12 months, and the remainder thereafter.