Income Taxes

6 Months Ended

Jul. 31, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

We compute our provision for income taxes by applying the estimated annual effective tax rate to year-to-date ordinary income and adjust the provision for discrete tax items recorded in the period. In each quarter, we update the estimated annual effective tax rate and make a year-to-date adjustment to the provision.

The following table provides details of the provision for income taxes:

	Three Months Ended July 31,						Six Months Ended July 31,
	2025			2024			2025			2024
	(in thousands, except percentages)
Income before provision for income taxes	$	448,162		$	292,889		$	763,927		$	584,853
Provision for income taxes	89,570			73,874			150,732			149,530
Effective tax rate	20.0		%	25.2		%	19.7		%	25.6		%

The year-over-year change in effective tax rate for the three and six months ended July 31, 2025 was primarily driven by changes in income before taxes and changes in tax shortfalls and tax benefits related to stock-based compensation. For both the three and six months ended July 31, 2025 and July 31, 2024, the effective tax rate differed from the U.S. federal statutory rate due primarily to the foreign-derived intangible income deduction, tax benefits related to stock-based compensation, and research credits offset by tax shortfalls on stock-based compensation, state income taxes, and other compensation-related permanent differences.