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Income Taxes
 12 Months Ended
Jan. 31, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The domestic and foreign components of pre-tax income were as follows:
Year Ended January 31,
(in thousands)202620252024
U.S.$217,305 $179,128 $54,551 
International130,023 68,813 39,128 
Income before income taxes$347,328 $247,941 $93,679 

The components of our income tax provision (benefit) were as follows:
Year Ended January 31,
(in thousands)202620252024
Current
Federal$786 $4,758 $6,390 
State3,375 7,936 2,018 
Foreign29,583 6,105 4,974 
Total current33,744 18,799 13,382 
Deferred
Federal5,819 (747,082)21 
State9,495 (94,945)2 
Foreign(10,815)3,284 6,294 
Total deferred4,499 (838,743)6,317 
Provision for (benefit from) income taxes$38,243 $(819,944)$19,699 
Beginning in the year ended January 31, 2026, we adopted ASU 2023-09 "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" prospectively. A reconciliation of the U.S. federal statutory income tax rate to our effective tax rate pursuant to the disclosure requirements of ASU 2023-09 for the year ended January 31, 2026 was as follows:
Year Ended January 31,
(in thousands, except percentages)
2026
U.S. federal statutory tax rate$72,939 21.0 %
State and local income taxes, net of federal income tax effect (1)
6,383 1.8 
Foreign tax effects
Ireland
Foreign tax rate differential(6,616)(1.9)
Changes in valuation allowance(23,502)(6.8)
Other5,331 1.5 
Other foreign jurisdictions8,331 2.4 
Effect of cross-border tax laws
Dual jurisdiction deferred taxes6,702 1.9 
Other2,713 0.8 
Nontaxable or nondeductible items
Stock-based compensation(17,530)(5.0)
Nondeductible compensation23,293 6.7 
Permanent book/tax differences2,249 0.6 
Tax credits
Research and development credits(56,034)(16.1)
Change in valuation allowance(9,185)(2.6)
Other adjustments(3,259)(0.9)
Changes in unrecognized tax benefits26,428 7.6 
Effective tax rate$38,243 11.0 %
(1) State taxes in California, Pennsylvania, New York and New York City made up the majority (greater than 50 percent) of the tax effect in this category.

The following table presents the required disclosures prior to our adoption of ASU 2023-09 and provides a reconciliation of the statutory federal income tax rate to our effective tax rate for the years ended January 31, 2025 and 2024:
Year Ended January 31,
(in percentage)20252024
U.S. statutory rate21.0 %21.0 %
State taxes4.0 2.4 
Foreign tax rate differential0.5 37.9 
Foreign-derived intangible income deduction(3.8)(11.7)
Stock-based compensation7.9 81.8 
Change in valuation allowance(331.7)(102.5)
Dual jurisdiction deferred taxes(2.9)36.0 
Research and development credits(17.3)(46.0)
Other deferred adjustment(10.7)(1.2)
Other2.3 3.3 
Effective tax rate(330.7)%21.0 %
Cash paid for income taxes, net of refunds received, by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 for the year ended January 31, 2026 was as follows:
Year Ended January 31,
(in thousands)
2026
State and local jurisdictions$2,008 
Foreign10,938 
Total cash taxes paid, net of refunds$12,946 

The significant components of net deferred tax balances were as follows:
January 31,
(in thousands)20262025
Deferred tax assets
Net operating loss carryforwards$482,506 $486,505 
Accruals and reserves18,521 16,772 
Stock-based compensation37,114 42,949 
Research and development credits231,718 179,275 
Capitalized research and development expenses295,228 350,729 
Other69,391 54,286 
Total deferred tax assets1,134,478 1,130,516 
Less: Valuation allowance(88,918)(112,847)
Deferred tax assets, net of valuation allowance1,045,560 1,017,669 
Deferred tax liabilities
Deferred contract acquisition costs(125,660)(121,678)
Fixed assets and intangible assets(65,237)(54,137)
Other(40,925)(21,980)
Total deferred tax liabilities(231,822)(197,795)
Net deferred tax assets / (liabilities)$813,738 $819,874 

Our income tax provision was $38.2 million for the year ended January 31, 2026. The tax provision was driven by U.S. and foreign earnings, partially offset by benefits related to research and development tax credits. Our income tax benefit was $819.9 million for the year ended January 31, 2025. The tax benefit was driven by a $837.3 million release of a net valuation allowance related to our U.S. federal and state deferred tax assets.

We regularly assess the need for a valuation allowance on our deferred tax assets. In making this assessment, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets to determine, based on the weight of available evidence, whether it is more likely than not that some or all the deferred tax assets will not be realized. Based on all available positive and negative evidence, having demonstrated sustained profitability, which is objective and verifiable, and taking into account anticipated future earnings, we concluded it is more likely than not that our Ireland deferred tax assets will be realizable. Accordingly, we released the valuation allowance on Irish deferred tax assets of $23.5 million during the year ended January 31, 2026. As of January 31, 2026, we continue to maintain a valuation allowance against our California deferred tax assets. We will continue to monitor the need for a valuation allowance against our deferred tax assets on a quarterly basis.

As of January 31, 2025, based on all available positive and negative evidence, having demonstrated sustained U.S. profitability, which is objective and verifiable, and taking into account anticipated future earnings, we concluded it is more likely than not that our U.S. federal and states deferred tax assets will be realizable, with the exception of certain federal deferred tax assets subject to limitation on use and our California deferred tax assets. The year ended January 31, 2025 included a $837.3 million release of a net valuation allowance, recorded as a discrete tax benefit.

On July 4, 2025, the One Big Beautiful Bill Act was enacted in the United States. The legislation includes significant tax law changes, including the restoration of immediate expensing for domestic research and development costs. The legislation has multiple effective dates with certain provisions effective in 2025 and others implemented through 2027. The impact of changes effective during fiscal 2026 resulted in additional tax expense.
We intend to invest substantially all of our foreign subsidiary earnings, as well as our capital in our foreign subsidiaries, indefinitely outside of the U.S. in those jurisdictions in which we would incur significant additional costs upon repatriation of such amounts.
Recognized tax benefits on total stock-based compensation expense, which are reflected in the "Provision for (benefit from) income taxes" in the consolidated statements of operations and comprehensive income, were $132.8 million, $143.0 million and $7.1 million in the years ended January 31, 2026, 2025 and 2024, respectively. Our tax provision includes $26.3 million of excess tax benefits, $16.0 million of excess tax benefits and $3.8 million of tax shortfalls from stock-based compensation for the years ended January 31, 2026, 2025 and 2024, respectively.

As of January 31, 2026, we had accumulated net operating loss carryforwards of $1.8 billion for federal and $1.3 billion for state. Of the federal net operating losses, $1.8 billion is carried forward indefinitely, but is limited to 80% of taxable income. The state net operating loss carryforwards will begin to expire in 2029. As of January 31, 2026, we also had total foreign net operating loss carryforwards of $53.8 million, which do not expire under local law.

As of January 31, 2026, we had accumulated U.S. research tax credits of $245.2 million for federal and $79.0 million of state, including $77.0 million for California. The U.S. federal research tax credits will begin to expire in 2039. The California research tax credits do not expire.

A reconciliation of the beginning and ending balance of total unrecognized tax benefits was as follows:
Year Ended January 31,
(in thousands)202620252024
Unrecognized tax benefits, beginning balance$75,546 $60,744 $47,946 
Gross increase for tax positions of prior years2,675 — 4,368 
Gross decrease for tax positions of prior years— (307)(156)
Gross increase for tax positions of current year24,167 15,109 8,586 
Unrecognized tax benefits, ending balance$102,388 $75,546 $60,744 

As of January 31, 2026, we had $102.4 million of unrecognized tax benefits, of which $83.5 million could affect the Company’s effective tax rate, if recognized. We recognize interest and penalties related to uncertain tax positions in provision for income taxes. As of January 31, 2026, accrued interest and penalties was $3.7 million.

We are subject to taxation in the U.S. and various foreign jurisdictions. Our tax years from inception in 2003 through January 31, 2026 remain subject to examination by U.S. and California taxing authorities, as well as taxing authorities in various other state and foreign jurisdictions. We are not under examination in any material jurisdictions.

The following table represents the rollforward of our valuation allowance:
Year Ended January 31,
(in thousands)202620252024
Beginning balance$112,847 $934,816 $1,032,016 
Valuation allowance charged to income tax provision(23,929)(821,969)(97,200)
Ending balance$88,918 $112,847 $934,816