XML 22 R12.htm IDEA: XBRL DOCUMENT v3.25.3
Deferred Revenue and Performance Obligations
 9 Months Ended
Oct. 31, 2025
Revenue from Contract with Customer [Abstract]  
Deferred Revenue and Performance Obligations Deferred Commissions
Sales commissions capitalized as contract costs totaled $58 million and $37 million for the three months ended October 31, 2025 and 2024, respectively, and $138 million and $97 million for the nine months ended October 31, 2025 and 2024, respectively.
Amortization of contract costs totaled $41 million and $33 million for the three months ended October 31, 2025 and 2024, respectively, and $117 million and $95 million for the nine months ended October 31, 2025 and 2024, respectively.
Deferred Revenue and Performance Obligations
Deferred Revenue
Deferred revenue, which is a contract liability, consists primarily of payments received and accounts receivable recorded in advance of revenue recognition under the Company’s contracts with customers and is recognized as the revenue recognition criteria are met.
Subscription revenue recognized during the three months ended October 31, 2025 and 2024 that was included in the deferred revenue balances at the beginning of the respective periods was $665 million and $597 million, respectively, and $1,495 million and $1,312 million in the nine months ended October 31, 2025 and 2024, respectively.
Transaction Price Allocated to the Remaining Performance Obligations
Transaction price allocated to the remaining performance obligations (“RPO”) represents all future, non-cancelable contracted revenue that has not yet been recognized, inclusive of deferred revenue that has been invoiced and non-cancelable amounts that will be invoiced and recognized as revenue in future periods.
Total remaining non-cancelable performance obligations under subscription contracts with customers was approximately $4,292 million as of October 31, 2025. Of this amount, the Company expects to recognize revenue of approximately $2,328 million, or 54%, over the next 12 months, with the balance to be recognized as revenue thereafter.