Income Taxes

12 Months Ended

Jan. 31, 2026

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The components of loss before income taxes were as follows (in thousands):

	Fiscal Year Ended January 31,
	2026		2025		2024
U.S.	$	(1,377,141)	$	(1,341,798)	$	(875,703)
Foreign	65,231		56,699		26,480
Loss before income taxes	$	(1,311,910)	$	(1,285,099)	$	(849,223)

The provision for (benefit from) income taxes consists of the following (in thousands):

	Fiscal Year Ended January 31,
	2026		2025		2024
Current provision:
State	$	285	$	806	$	754
Foreign	19,177		10,978		14,775
Deferred benefit:
Federal	(5,392)		(6,294)		(15,376)
State	(1,130)		(1,011)		(4,700)
Foreign	4,185		(366)		(6,686)
Provision for (benefit from) income taxes	$	17,125	$	4,113	$	(11,233)

The following table presents the required disclosure pursuant to ASU 2023-09 and reconciles the federal statutory tax amount and rate to the Company’s actual global effective tax amount and rate for the fiscal year ended January 31, 2026:

	Fiscal Year Ended January 31, 2026
	Amount (in thousands)		Percent
Federal statutory tax rate	$	(275,501)	21.0	%
State and local income taxes, net of federal income tax effect(1)	(11,049)		0.8
Foreign tax effects	6,016		(0.4)
Effect of cross-border tax laws	(12,112)		0.9
Tax credits:
Research and development tax credits	(122,741)		9.4
Change in valuation allowances	490,646		(37.4)
Nontaxable or nondeductible items:
Section 162(m) - limitation on executive compensation	25,271		(1.9)
Stock-based compensation	(128,731)		9.8
Other	6,032		(0.5)
Worldwide changes in unrecognized tax benefits	39,294		(3.0)
Provision for income taxes	$	17,125	(1.3%)

________________

(1)State and local income tax benefits, net of federal income tax effect, was primarily attributable to California, which made up the majority (greater than 50 percent) of the tax effect in this category.

The following table presents the required disclosures prior to the adoption of ASU 2023-09 and reconciles the federal statutory income tax amount to the Company’s actual global effective tax amount for the fiscal years ended January 2025 and 2024 (in thousands):

	Fiscal Year Ended January 31,
	2025		2024
Income tax benefit computed at federal statutory rate	$	(269,871)	$	(178,337)
State taxes, net of federal benefit	33,910		26,380
Research and development credits	(133,266)		(101,725)
Stock-based compensation	(7,667)		(148,600)
Change in valuation allowance	363,422		371,767
IRC Section 59A waived deductions	—		11,550
Other	17,585		7,732
Provision for (benefit from) income taxes	$	4,113	$	(11,233)

The following table presents the required disclosure pursuant to ASU 2023-09 regarding the amount of income taxes paid, net of refunds received (in thousands):

	Fiscal Year Ended January 31, 2026
Federal	$	—
State	533
Foreign:
Netherlands	3,449
India	2,665
France	1,062
Germany	942
Other Foreign	4,668
Total cash paid for income taxes, net of refunds received	$	13,319

For the fiscal years ended January 31, 2025 and 2024, cash paid for income taxes, net of refunds received, was $15.7 million and $12.5 million, respectively.

A valuation allowance has been recognized to offset the Company’s deferred tax assets, as necessary, by the amount of any tax benefits that, based on evidence, are not expected to be realized. As of January 31, 2026, 2025 and 2024, the Company believes it is more likely than not that its U.S. and U.K. deferred tax assets will not be fully realizable and continues to maintain a full valuation allowance against these net deferred tax assets.

Significant components of the Company’s deferred tax assets and deferred tax liabilities are shown below (in thousands):

	January 31, 2026		January 31, 2025
Deferred tax assets:
Net operating losses carryforwards	$	1,967,803	$	1,707,649
Capitalized research and development	913,392		725,823
Tax credit carryforwards	648,589		511,504
Operating lease liabilities	113,268		104,517
Deferred revenue	67,582		95,779
Stock-based compensation	40,935		36,044
Capped call transactions	32,288		45,032
Net unrealized losses on strategic investments	21,850		6,143
Other	84,115		50,790
Total deferred tax assets	3,889,822		3,283,281
Less: valuation allowance	(3,696,149)		(3,104,505)
Net deferred tax assets	193,673		178,776
Deferred tax liabilities:
Intangible assets	(19,021)		(27,481)
Operating lease right-of-use assets	(72,684)		(94,997)
Deferred commissions	(103,104)		(56,662)
Other	(3,286)		(234)
Total deferred tax liabilities	(198,095)		(179,374)
Net deferred tax liabilities	$	(4,422)	$	(598)

The valuation allowance was $3.7 billion and $3.1 billion as of January 31, 2026 and 2025, respectively, primarily relating to U.S. federal and state net operating loss carryforwards, capitalized research and development, and tax credit carryforwards. The valuation allowance increased $591.6 million and $520.4 million during the fiscal years ended January 31, 2026 and January 31, 2024, respectively, primarily due to increased U.S. federal and state net operating loss carryforwards, capitalized research and development, and tax credit carryforwards. The valuation allowance increased $483.5 million during the fiscal year ended January 31, 2025, primarily due to increased capitalized research and development and tax credit carryforwards.

As of January 31, 2026, the Company had U.S. federal, state, and foreign net operating loss carryforwards of $7.3 billion, $6.5 billion, and $174.5 million, respectively. Of the $7.3 billion U.S. federal net operating loss carryforwards, $7.2 billion may be carried forward indefinitely with utilization limited to 80% of taxable income, and the remaining $0.1 billion will begin to expire in 2032. The state net operating loss carryforwards begin to expire in 2027. The foreign net operating loss carryforwards may be carried forward indefinitely. As of January 31, 2026, the Company also had federal and state tax credits of $605.6 million and $275.5 million, respectively. The federal tax credit carryforwards will expire beginning in 2032 if not utilized. The state tax credit carryforwards do not expire. Utilization of the Company’s net operating loss and tax credit carryforwards may be subject to annual limitation due to the ownership change limitations provided by the Internal Revenue Code and similar state provisions. Such an annual limitation could result in the expiration of the net operating loss and tax credit carryforwards before utilization.

Foreign withholding taxes have not been provided for the cumulative undistributed earnings of the Company’s foreign subsidiaries as of January 31, 2026 due to the Company’s intention to permanently reinvest such earnings. Determination of the amount of unrecognized deferred tax liability related to these earnings is not practicable.

The following table shows the changes in the gross amount of unrecognized tax benefits (in thousands):

	Fiscal Year Ended January 31,
	2026		2025		2024
Beginning balance	$	151,660	$	115,253	$	75,180
Increases based on tax positions during the prior period	3,689		655		12,708
Increases based on tax positions during the current period	37,778		35,752		27,365
Foreign currency translation adjustments	(193)		—		—
Ending balance	$	192,934	$	151,660	$	115,253

The Company files income tax returns in the U.S. federal jurisdiction, various state jurisdictions, and in various international jurisdictions. Tax years 2012 and forward generally remain open for examination for federal and state tax purposes. Tax years 2020 and forward generally remain open for examination for foreign tax purposes. To the extent utilized in future years’ tax returns, net operating loss carryforwards at January 31, 2026 and 2025 will remain subject to examination until the respective tax year is closed.

On August 16, 2022, President Biden signed the Inflation Reduction Act of 2022 (Inflation Act) into law. The Inflation Act contains certain tax measures, including a corporate alternative minimum tax of 15% on some large corporations and an excise tax of 1% on stock repurchases. For the fiscal year ended January 31, 2026, the Inflation Act had no material impact to the Company, including its stock repurchase program.

On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was enacted in the United States. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions including the immediate expensing of the United States research and development expenditures. For the fiscal year ended January 31, 2026, the OBBBA had no material impact on the Company’s consolidated financial statements.