v3.25.4
Income Taxes (Tables)
 12 Months Ended
Jan. 31, 2026
Income Tax Disclosure [Abstract]  
Schedule of Net Income (Loss) before Provision of Income Taxes
The components of net income before the provision for income taxes were as follows:
 Year Ended January 31,
 202620252024
 (in thousands)
Domestic$2,317,100 $1,238,452 $792,495 
Foreign105,185 77,132 39,817 
Total$2,422,285 $1,315,584 $832,312 
Schedule of Provision of Income Taxes
The provision for income taxes was as follows:
 Year Ended January 31,
 202620252024
 (in thousands)
Current:
Federal$342,568 $323,625 $257,913 
State52,041 52,186 44,457 
Foreign22,493 20,086 9,159 
Total current income tax expense
417,102 395,897 311,529 
Deferred:
Federal100,104 (78,476)(88,110)
State2,416 (12,875)(20,201)
Foreign2,515 800 (8,368)
Total deferred income tax expense
105,035 (90,551)(116,679)
Total provision for income taxes
$522,137 $305,346 $194,850 
Schedule of Effective Tax Rate Reconciliation
A reconciliation of the provision for income taxes to the amount computed by applying the 21% statutory U.S. federal income tax rate to income before income taxes after the adoption of ASU 2023-09 is as follows:
 
Year Ended January 31, 2026
 (in thousands, except percentages)
Amount
Percent
US federal statutory tax rate$508,680 21.0 %
State and local income tax, net of federal income tax effect(a)
39,700 1.6 
Foreign tax effects
    Other foreign jurisdictions
2,422 0.1 
Effect of cross-border tax laws
    Foreign-derived intangible income deduction
(42,360)(1.7)
    Other effect of cross-border tax laws
(2,705)(0.1)
Nontaxable or nondeductible items
    Stock-based compensation (b)
25,274 1.0 
Tax credits
    Research and development tax credits
(34,347)(1.4)
Changes in valuation allowance5,503 0.2 
Changes in unrecognized tax benefits16,065 0.7 
Other3,905 0.2 
Effective tax rate
$522,137 21.6 %
(a) The jurisdictions that contribute to the majority of the tax effect in this category are California, Massachusetts, New Jersey, New York, and Virginia.
(b) Includes amounts related to non-deductible stock-based compensation, including non-deductible executive compensation, in addition to excess tax benefits or shortfalls from stock-based compensation. Out of total stock-based compensation, $36.8 million is related to excess tax benefits on current year vested and exercised awards.
A reconciliation of the provision for income taxes to the amount computed by applying the 21% statutory U.S. federal income tax rate to income before income taxes for years prior to the adoption of ASU 2023-09 is as follows:
Year Ended January 31,
 20252024
(in thousands, except percentages)
Tax at federal statutory rate
$276,270 $174,785 
State taxes
56,336 37,137 
Foreign rate differential
141 2,943 
Non-deductible compensation
15,757 10,639 
Stock-based compensation
58,770 96,936 
Permanent items
10,371 4,016 
Foreign-derived intangible income deduction
(56,630)(63,571)
Research and development credits
(49,813)(39,226)
Tax uncertainties
7,478 2,674 
Change in valuation allowance
(7,765)(14,109)
Deferred rate change
(3,993)(6,803)
Other(1,576)(10,570)
         Total
$305,346 $194,850 
          Effective tax rate
23.2 %23.4 %
Schedule of Significant Components of Deferred Income Tax Assets Significant components of our deferred income tax assets as of January 31, 2026 and 2025 are as follows:
 
As of January 31,
 20262025
 (in thousands)
Deferred tax assets:
Net operating loss carryforwards$13,433 $7,362 
Research and development credit carryforwards5,083 6,586 
Stock-based compensation29,866 59,565 
Accruals and reserves42,279 43,953 
Deferred revenue343,910 328,114 
Capitalized research expenditures635,974 514,667 
Operating lease liabilities13,885 16,551 
Other assets
10,135 2,957 
Total deferred tax assets1,094,565 979,755 
Valuation allowance(11,026)(28,990)
Total deferred tax assets net of valuation allowance1,083,539 950,765 
Deferred tax liabilities:
Property and equipment and intangible assets(34,466)(38,343)
Deferred contract acquisition costs(79,421)(76,439)
Operating right-of-use assets(12,099)(14,233)
Strategic investments
(313,698)(75,290)
Total deferred tax liabilities(439,684)(204,305)
Net deferred tax assets$643,855 $746,460 
Schedule of Unrecognized Tax Benefits Roll Forward
A reconciliation of the beginning and ending balance of total unrecognized tax benefits is as follows:
Unrecognized Tax Benefits (in thousands)Year Ended January 31,
 202620252024
   
Balance, beginning of year$56,334 $41,772 $30,404 
Tax Positions taken in prior year:
Gross increases1,082 931 228 
Gross decreases(330)— — 
Tax Positions taken in current year:
Gross increases11,280 13,650 12,415 
Gross decreases— (19)(891)
Lapse of Statute of Limitations— — (384)
Settlements
(209)— — 
Balance, end of year$68,157 $56,334 $41,772 
Schedule of Cash Income Taxes Paid, Net of Amounts Refunded
The amounts of cash income taxes we paid, net of amounts refunded, were as follows:
Year Ended January 31, 2026
(in thousands)
Federal
$332,500 
State and local
67,178 
Foreign
21,927 
Income taxes, net of amounts refunded
$421,605