Net Income (Loss) Per Share

6 Months Ended

Jul. 31, 2025

The following tables present the calculation of basic and diluted net income (loss) per share. Net income (loss) is reported in millions and rounded from amounts in thousands; as a result, net income (loss) per share may not recalculate exactly due to rounding.


	Three Months Ended July 31,
	2025				2024
	Class A		Class B			Class A		Class B
	(dollars in millions, shares in thousands, except per share data)
Basic net income per share:
Numerator:
Net income, basic	$	64	$	3		$	28	$	1
Denominator:
Weighted-average shares outstanding, basic	167,615		7,845			161,310		7,302
Net income per share, basic	$	0.38	$	0.38		$	0.18	$	0.18

Diluted net income per share:
Numerator:
Net income	$	64	$	3		$	28	$	1
Interest and other1	—		—			(3)		—
Reallocation of net income as a result of assumed conversion of Class B to Class A common shares	3		—			1		—
Net income, diluted	$	67	$	3		$	26	$	1
Denominator:
Number of shares used in basic calculation	167,615		7,845			161,310		7,302
Weighted-average effect of diluted securities related to:
Employee share-based awards	2,642		456			2,289		3,436
Convertible senior notes	2,408		—			106		—
Assumed conversion of Class B to Class A common shares	8,301		—			10,738		—
Number of shares used in diluted calculation	180,966		8,301			174,443		10,738
Net income per share, diluted	$	0.37	$	0.37		$	0.15	$	0.12
1 Under the if-converted method, net income is adjusted to reflect the assumption that the convertible senior notes were converted at the beginning of the period.


	Six Months Ended July 31,
	2025				2024
	Class A		Class B			Class A		Class B
	(dollars in millions, shares in thousands, except per share data)
Basic net income (loss) per share:
Numerator:
Net income (loss), basic	$	123	$	6		$	(10)	$	(1)
Denominator:
Weighted-average shares outstanding, basic	166,934		7,893			160,749		7,296
Net income (loss) per share, basic	$	0.74	$	0.74		$	(0.06)	$	(0.06)

Diluted net income (loss) per share:
Numerator:
Net income (loss)	$	123	$	6		$	(10)	$	(1)
Interest and other1	2		—			—		—
Reallocation of net income as a result of assumed conversion of Class B to Class A common shares	6		—			—		—
Net income (loss), diluted	$	131	$	6		$	(10)	$	(1)
Denominator:
Number of shares used in basic calculation	166,934		7,893			160,749		7,296
Weighted-average effect of diluted securities related to:
Employee share-based awards	2,634		621			—		—
Convertible senior notes	3,274		—			—		—
Assumed conversion of Class B to Class A common shares	8,514		—			—		—
Number of shares used in diluted calculation	181,356		8,514			160,749		7,296
Net income (loss) per share, diluted	$	0.72	$	0.72		$	(0.06)	$	(0.06)
1 Under the if-converted method, net income is adjusted to reflect the assumption that the convertible senior notes were converted at the beginning of the period.

Potentially dilutive securities excluded because they would be anti-dilutive were as follows:


	Three Months Ended July 31,		Six Months Ended July 31,
	2025	2024	2025	2024
	(shares in thousands)




Employee share-based awards	1,227	3,021	2,835	15,506
Convertible senior notes	—	5,292	—	5,292
Total	1,227	8,313	2,835	20,798

The Company entered into capped call transactions in connection with the issuance of the convertible senior notes. The effect of the capped calls was also excluded from the calculation of diluted net income per share as the effect of the capped calls would have been anti-dilutive.