Income Taxes (Tables)

12 Months Ended

Jan. 31, 2025

Domestic and Foreign Components of Income Before Provision For (Benefit From) Income Taxes

The domestic and foreign components of income before provision for (benefit from) income taxes consisted of the following (in millions):


	Fiscal Year Ended January 31,
	2025		2024		2023
Domestic	$	5,119	$	4,045	$	398
Foreign	2,319		905		262
	$	7,438	$	4,950	$	660

Schedule of Income Taxes Provision (Benefit)

The provision for (benefit from) income taxes consisted of the following (in millions):


	Fiscal Year Ended January 31,
	2025		2024		2023
Current:
Federal	$	1,284	$	940	$	173
State	245		199		216
Foreign	925		417		397
Total	2,454		1,556		786
Deferred:
Federal	(982)		(640)		(134)
State	(167)		(182)		(203)
Foreign	(64)		80		3
Total	(1,213)		(742)		(334)
Provision for (benefit from) income taxes	$	1,241	$	814	$	452

Reconciliation of Statutory Federal Income Tax Rate

A reconciliation of income taxes at the statutory federal income tax rate to the provision for (benefit from) income taxes included in the accompanying consolidated statements of operations is as follows (in millions):


	Fiscal Year Ended January 31,
	2025		2024		2023
U.S. federal taxes at statutory rate	$	1,562	$	1,040	$	139
State, net of the federal benefit	106		19		29
Effects of non-U.S. operations (1)	315		29		287
Tax credits	(270)		(332)		(239)
Non-deductible expenses	100		43		94
Foreign-derived intangible income deduction (2)	(373)		(56)		(55)
(Windfall)/shortfall related to share-based compensation	(215)		(36)		31
Change in valuation allowance	51		101		171
Other, net	(35)		6		(5)
Provision for (benefit from) income taxes	$	1,241	$	814	$	452

(1) Fiscal 2024 effects of non-U.S. operations included tax benefits from foreign tax credits attributable to IRS notices.

(2) Fiscal 2025 foreign-derived intangible income deduction included tax benefits related to an adjustment for fiscal 2023 and 2024.

Significant Components of Deferred Tax Assets And Liabilities

Significant components of the Company’s deferred tax assets and liabilities were as follows (in millions):


	As of January 31,
	2025		2024
Deferred tax assets:
Losses and deductions carryforward	$	209	$	176
Deferred stock-based compensation expense	237		219
Tax credits	769		760
Accrued liabilities	482		419
Intangible assets	1,694		1,899
Lease liabilities	740		818
Unearned revenue	(28)		37
Capitalized research & development	2,431		1,710
Other	65		81
Total deferred tax assets	6,599		6,119
Less valuation allowance	(786)		(733)
Deferred tax assets, net of valuation allowance	5,813		5,386
Deferred tax liabilities:
Capitalized costs to obtain revenue contracts	(850)		(873)
Purchased intangible assets	(650)		(1,030)
Depreciation and amortization	(164)		(263)
Basis difference on strategic and other investments	(106)		(181)
Lease right-of-use assets	(554)		(636)
Total deferred tax liabilities	(2,324)		(2,983)
Net deferred tax assets (liabilities)	$	3,489	$	2,403

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending balance of total unrecognized tax benefits for fiscal years 2025, 2024 and 2023 is as follows (in millions):


	Fiscal Year Ended January 31,
	2025		2024		2023
Beginning of period	$	2,083	$	1,975	$	1,822
Tax positions taken in prior period:
Gross increases	53		53		53
Gross decreases	(65)		(85)		(45)
Tax positions taken in current period:
Gross increases	378		287		227
Settlements	(4)		(21)		(40)
Lapse of statute of limitations	(25)		(104)		(12)
Currency translation effect	(1)		(22)		(30)
End of period	$	2,419	$	2,083	$	1,975