Taxes (Tables)

12 Months Ended

Jan. 31, 2026

The components of income before income taxes are as follows:


	Fiscal Years Ended January 31,
(Amounts in millions)	2026		2025		2024
U.S.	$	23,272	$	18,571	$	20,092
Non-U.S.	6,197		7,738		1,756
Total income before income taxes	$	29,469	$	26,309	$	21,848

Schedule of Income Tax Provision

A summary of the provision for income taxes is as follows:


	Fiscal Years Ended January 31,
(Amounts in millions)	2026		2025		2024
Current:
U.S. federal	$	2,128	$	3,478	$	3,215
U.S. state and local	678		886		762
Non-U.S.	2,116		2,451		1,772
Total current tax provision	4,922		6,815		5,749
Deferred:
U.S. federal	2,010		(214)		(438)
U.S. state and local	294		30		141
Non-U.S.	(27)		(479)		126
Total deferred tax expense (benefit)	2,277		(663)		(171)
Total provision for income taxes	$	7,199	$	6,152	$	5,578

Schedule of Income Tax Rate

A reconciliation of the significant differences between the U.S. statutory tax rate and the effective income tax rate on pre-tax income from continuing operations for fiscal year 2026 is as follows:


	Fiscal Year Ended January 31, 2026
	Amount		Percent
U.S. federal statutory tax rate	$	6,188	21.0	%

State and local income tax, net of federal (national) income tax effect	760		2.6	%

Foreign tax effects
India
Changes in valuation allowances	461		1.6	%
Other	(93)		(0.3)	%
Luxembourg
Changes in valuation allowances	(1,811)		(6.1)	%
Internal reorganization	1,814		6.2	%
Other	83		0.3	%
Other foreign jurisdictions	498		1.7	%

Effect of cross-border tax laws	400		1.4	%


Tax credits
Foreign tax credits	(586)		(2.0)	%
Research and development tax credits	(323)		(1.1)	%
Other	(167)		(0.6)	%
Changes in valuation allowances	374		1.3	%
Nontaxable or nondeductible items
Share based compensation	(373)		(1.3)	%
Internal reorganization	(349)		(1.2)	%
Other	132		0.4	%
Changes in unrecognized tax benefits	301		1.0	%
Other adjustments	(110)		(0.5)	%
Effective income tax rate	$	7,199	24.4	%

A reconciliation of the significant differences between the U.S. statutory tax rate and the effective income tax rate on pre-tax income from continuing operations for fiscal years 2025 and 2024 is as follows:


	Fiscal Years Ended January 31,
	2025		2024
U.S. statutory tax rate	21.0	%	21.0	%
U.S. state income taxes, net of federal income tax benefit	2.8	%	3.0	%
Income taxed outside the U.S.	1.3	%	0.1	%

Valuation allowance	0.4	%	1.2	%
Net impact of repatriated international earnings	(0.6)	%	(0.4)	%
Federal tax credits	(1.4)	%	(1.5)	%

Change in unrecognized tax benefits	0.3	%	0.6	%
Other, net	(0.4)	%	1.5	%
Effective income tax rate	23.4	%	25.5	%

Schedule of Deferred Tax Balances

The significant components of the Company's deferred tax account balances are as follows:


	January 31,
(Amounts in millions)	2026		2025
Deferred tax assets:
Loss and tax credit carryforwards	$	4,615	$	7,539
Accrued liabilities	3,504		3,009

Lease obligations	5,181		4,611
Other	1,239		1,339
Total deferred tax assets	14,539		16,498
Valuation allowances	(4,421)		(7,405)
Deferred tax assets, net of valuation allowances	10,118		9,093
Deferred tax liabilities:
Property and equipment	6,122		4,303
Acquired intangibles	1,066		1,096
Inventory	3,570		3,336
Lease right of use assets	5,345		4,816

Other	1,373		813
Total deferred tax liabilities	17,476		14,364
Net deferred tax liabilities	$	7,358	$	5,271

Schedule of Deferred Tax Classification in the Balance Sheet

The deferred taxes noted above are classified as follows in the Company's Consolidated Balance Sheets:


	January 31,
(Amounts in millions)	2026		2025
Balance Sheet classification
Assets:
Other long-term assets	$	1,891	$	1,748
Liabilities:
Deferred income taxes and other	9,249		7,019

Net deferred tax liabilities	$	7,358	$	5,271

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of gross unrecognized tax benefits from continuing operations is as follows:


	Fiscal Years Ended January 31,
(Amounts in millions)	2026		2025		2024
Gross unrecognized tax benefits, beginning of year	$	3,757	$	3,540	$	3,307
Increases related to prior year tax positions	342		445		336
Decreases related to prior year tax positions	(1,360)		(228)		(74)
Increases related to current year tax positions	94		93		102
Settlements during the period	(328)		(77)		(102)
Lapse in statutes of limitations	(65)		(16)		(29)
Gross unrecognized tax benefits, end of year	$	2,440	$	3,757	$	3,540

Schedule of Cash Flow, Supplemental Disclosures

A summary of the cash paid for income taxes is as follows:


	Fiscal Year Ended January 31,
(Amounts in millions)	2026
Cash taxes paid in total	$	5,364
U.S. federal	1,743
U.S. state and local	895
Non-U.S.	2,726

Cash taxes paid by jurisdiction
U.S. federal	1,743
Mexico	1,285
China	382