Income Taxes

12 Months Ended

Jan. 31, 2026

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The components of net income before the provision for income taxes were as follows:

	Year Ended January 31,
	2026		2025		2024
	(in thousands)
Domestic	$	2,317,100	$	1,238,452	$	792,495
Foreign	105,185		77,132		39,817
Total	$	2,422,285	$	1,315,584	$	832,312

The provision for income taxes was as follows:

	Year Ended January 31,
	2026		2025		2024
	(in thousands)
Current:
Federal	$	342,568	$	323,625	$	257,913
State	52,041		52,186		44,457
Foreign	22,493		20,086		9,159
Total current income tax expense	417,102		395,897		311,529
Deferred:
Federal	100,104		(78,476)		(88,110)
State	2,416		(12,875)		(20,201)
Foreign	2,515		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

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 allowance	5,503		0.2
Changes in unrecognized tax benefits	16,065		0.7
Other	3,905		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,
	2025			2024
	(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		%

Deferred income taxes result from differences in the recognition of amounts for tax and financial reporting purposes, as well as operating loss and tax credit carryforwards. Significant components of our deferred income tax assets as of January 31, 2026 and 2025 are as follows:

	As of January 31,
	2026		2025
	(in thousands)
Deferred tax assets:
Net operating loss carryforwards	$	13,433	$	7,362
Research and development credit carryforwards	5,083		6,586
Stock-based compensation	29,866		59,565
Accruals and reserves	42,279		43,953
Deferred revenue	343,910		328,114
Capitalized research expenditures	635,974		514,667
Operating lease liabilities	13,885		16,551
Other assets	10,135		2,957
Total deferred tax assets	1,094,565		979,755
Valuation allowance	(11,026)		(28,990)
Total deferred tax assets net of valuation allowance	1,083,539		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

The realization of tax benefits of net deferred tax assets is dependent upon future levels of taxable income, of an appropriate character, in the periods the items are expected to be deductible or taxable. Based on the available objective evidence during the year ended January 31, 2026, we maintained a valuation allowance against certain equity investment deferred tax assets for both U.S. federal and state income tax purposes and intend to maintain the applicable valuation

allowance until sufficient positive evidence exists to support a reversal of, or decrease in, the valuation allowance. With respect to California state income taxes, after evaluating all available positive and negative evidence, we concluded that it is more likely than not that the California net deferred tax assets, other than those related to certain equity investments, will be realized. Accordingly, during the year ended January 31, 2026, we released the valuation allowance previously recorded against the California net deferred tax assets and recognized a non-recurring income tax benefit of $24.4 million related to the reversal.

As of January 31, 2026, we had net operating loss carryforwards of approximately $30.1 million for federal income tax purposes, which can be carried forward indefinitely. We also had $35.8 million of net operating loss carryforwards for state income tax purposes, which will begin to expire in the year 2036 if unused. The federal and state net operating loss carryforwards may be subject to significant limitations under Section 382 and Section 383 of the Internal Revenue Code of 1986 and similar provisions under state law. Such provisions limit the net operating loss carryforwards that may be used in any given year in the event of special occurrences, including significant ownership changes. We also had certain foreign net operating loss carryforwards of $19.6 million, which have an indefinite life.

As of January 31, 2026, we had research and development credit carryforwards of approximately $0.2 million for federal income tax purposes and $26.0 million for state income tax purposes. The federal research and development tax credits have a twenty-year carryover period, while the state research and development tax credits carry forward indefinitely.

We indefinitely reinvest earnings from our foreign subsidiaries; therefore, no deferred tax liability has been recognized on the basis difference created by such earnings.

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,
	2026		2025		2024
Balance, beginning of year	$	56,334	$	41,772	$	30,404
Tax Positions taken in prior year:
Gross increases	1,082		931		228
Gross decreases	(330)		—		—
Tax Positions taken in current year:
Gross increases	11,280		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

As of January 31, 2026, gross unrecognized tax benefits related to uncertain tax positions were $68.2 million ($82.5 million total, including $14.3 million associated with interest and penalties). As of January 31, 2025, gross unrecognized tax benefits related to uncertain tax positions were $56.3 million ($66.0 million total, including $9.7 million associated with interest and penalties). As of January 31, 2024, gross unrecognized tax benefits related to uncertain tax positions were $41.8 million ($46.5 million total, including $4.7 million associated with interest and penalties). We recognized approximately $14.3 million, $9.7 million, and $4.7 million in potential interest and penalties associated with uncertain tax positions during fiscal years ended January 31, 2026, 2025, and 2024, respectively. To the extent taxes are not assessed with respect to uncertain tax positions, substantially all amounts accrued (including interest and penalties) will be reduced and reflected as a reduction of the overall income tax provision. Unrecognized tax benefits and associated accrued interest and penalties are included in our income tax provision.

We file income tax returns in the U.S. federal jurisdiction, various state jurisdictions, and various foreign jurisdictions. As of January 31, 2026, all of the years in which net operating losses or tax credits were utilized remain open to examination by the federal and state tax authorities.

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

The amounts of cash income taxes we paid, net of amounts refunded, during the fiscal years ended January 31, 2025 and 2024 were $395.4 million and $348.1 million, respectively.