SALESFORCE, INC., 10-Q filed on 12/4/2024
Quarterly Report
v3.24.3
Cover - shares
shares in Millions
 9 Months Ended
Oct. 31, 2024
Nov. 27, 2024
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Oct. 31, 2024  
Document Transition Report false  
Entity File Number 001-32224  
Entity Registrant Name Salesforce, Inc.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 94-3320693  
Entity Address, Address Line One Salesforce Tower  
Entity Address, Address Line Two 415 Mission Street, 3rd Fl  
Entity Address, City or Town San Francisco  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 94105  
City Area Code 415  
Local Phone Number 901-7000  
Title of 12(b) Security Common Stock, par value $0.001 per share  
Trading Symbol CRM  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   957
Amendment Flag false  
Document Fiscal Year Focus 2025  
Document Fiscal Period Focus Q3  
Current Fiscal Year End Date --01-31  
Entity Central Index Key 0001108524  
v3.24.3
Condensed Consolidated Balance Sheets - USD ($)
$ in Millions
Oct. 31, 2024
Jan. 31, 2024
Current assets:    
Cash and cash equivalents $ 7,997 $ 8,472
Marketable securities 4,760 5,722
Accounts receivable, net 4,741 11,414
Costs capitalized to obtain revenue contracts, net 1,836 1,905
Prepaid expenses and other current assets 2,091 1,561
Total current assets 21,425 29,074
Property and equipment, net 3,416 3,689
Operating lease right-of-use assets, net 2,167 2,366
Noncurrent costs capitalized to obtain revenue contracts, net 2,121 2,515
Strategic investments 4,845 4,848
Goodwill 49,093 48,620
Intangible assets acquired through business combinations, net 4,119 5,278
Deferred tax assets and other assets, net 4,209 3,433
Total assets 91,395 99,823
Current liabilities:    
Accounts payable, accrued expenses and other liabilities 5,331 6,111
Operating lease liabilities, current 572 518
Unearned revenue 13,472 19,003
Debt, current 0 999
Total current liabilities 19,375 26,631
Noncurrent debt 8,432 8,427
Noncurrent operating lease liabilities 2,420 2,644
Other noncurrent liabilities 2,643 2,475
Total liabilities 32,870 40,177
Stockholders’ equity:    
Common stock 1 1
Treasury stock, at cost (19,414) (11,692)
Additional paid-in capital 63,114 59,841
Accumulated other comprehensive loss (225) (225)
Retained earnings 15,049 11,721
Total stockholders’ equity 58,525 59,646
Total liabilities and stockholders’ equity $ 91,395 $ 99,823
v3.24.3
Condensed Consolidated Statements of Operations - USD ($)
shares in Millions, $ in Millions
 3 Months Ended 9 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Revenues:        
Total revenues $ 9,444 $ 8,720 $ 27,902 $ 25,570
Cost of revenues:        
Total cost of revenues [1],[2] 2,105 2,155 6,426 6,393
Gross profit 7,339 6,565 21,476 19,177
Operating expenses:        
Research and development [1],[2] 1,356 1,204 4,073 3,631
Sales and marketing [1],[2] 3,323 3,173 9,786 9,440
General and administrative [1],[2] 711 632 2,069 1,902
Restructuring [1],[2] 56 55 163 815
Total operating expenses [1],[2] 5,446 5,064 16,091 15,788
Income from operations 1,893 1,501 5,385 3,389
Losses on strategic investments, net (217) (72) (217) (242)
Other income 70 58 282 158
Income before provision for income taxes 1,746 1,487 5,450 3,305
Provision for income taxes (219) (263) (961) (615)
Net income $ 1,527 $ 1,224 $ 4,489 $ 2,690
Basic net income per share (in dollars per share) $ 1.60 $ 1.26 $ 4.66 $ 2.76
Diluted net income per share (in dollars per share) $ 1.58 $ 1.25 $ 4.60 $ 2.73
Shares used in computing basic net income per share (in shares) 956 972 963 976
Shares used in computing diluted net income per share (in shares) 965 981 975 985
Subscription and support        
Revenues:        
Total revenues $ 8,879 $ 8,141 $ 26,228 $ 23,789
Cost of revenues:        
Total cost of revenues [1],[2] 1,501 1,571 4,617 4,596
Professional services and other        
Revenues:        
Total revenues 565 579 1,674 1,781
Cost of revenues:        
Total cost of revenues [1],[2] $ 604 $ 584 $ 1,809 $ 1,797
[1] Amounts include amortization of intangible assets acquired through business combinations, as follows:
Three Months Ended October 31,Nine Months Ended October 31,
2024202320242023
Cost of revenues$131 $245 $600 $743 
Sales and marketing223 223 669 668 
[2] Amounts include stock-based compensation expense, as follows:
 Three Months Ended October 31,Nine Months Ended October 31,
 2024202320242023
Cost of revenues$135 $109 $386 $324 
Research and development278 238 814 735 
Sales and marketing312 275 911 815 
General and administrative95 71 267 223 
Restructuring 0 0 2 16 
v3.24.3
Condensed Consolidated Statements of Operations (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Stock-based expenses $ 820 $ 693 $ 2,380 $ 2,113
Cost of revenues        
Amortization of intangibles acquired through business combinations 131 245 600 743
Stock-based expenses 135 109 386 324
Sales and marketing        
Amortization of intangibles acquired through business combinations 223 223 669 668
Stock-based expenses 312 275 911 815
Research and development        
Stock-based expenses 278 238 814 735
General and administrative        
Stock-based expenses 95 71 267 223
Restructuring        
Stock-based expenses $ 0 $ 0 $ 2 $ 16
v3.24.3
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Statement of Comprehensive Income [Abstract]        
Net income $ 1,527 $ 1,224 $ 4,489 $ 2,690
Other comprehensive income (loss), net of reclassification adjustments:        
Foreign currency translation and other gains (losses) 4 (65) (23) (54)
Unrealized gains (losses) on marketable securities and privately held debt securities 9 (9) 27 2
Other comprehensive income (loss), before tax 13 (74) 4 (52)
Tax effect (2) 1 (4) (5)
Other comprehensive income (loss), net 11 (73) 0 (57)
Comprehensive income $ 1,538 $ 1,151 $ 4,489 $ 2,633
v3.24.3
Condensed Consolidated Statements of Stockholders’ Equity - USD ($)
shares in Millions, $ in Millions
Total
Common Stock
Treasury Stock
Additional Paid-in Capital
Accumulated Other Comprehensive Income/(Loss)
Retained Earnings
Beginning balance (in shares) at Jan. 31, 2023   1,009        
Beginning balance at Jan. 31, 2023 $ 58,359 $ 1 $ (4,000) $ 55,047 $ (274) $ 7,585
Beginning balance (in shares) at Jan. 31, 2023     (28)      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Common stock issued (in shares)   7        
Common stock issued 283     283    
Common stock repurchased (in shares)     (11)      
Common stock repurchased (2,144)   $ (2,144)      
Stock-based compensation 696     696    
Other comprehensive income (loss), net of tax 19       19  
Net income 199         199
Ending balance (in shares) at Apr. 30, 2023   1,016        
Ending balance at Apr. 30, 2023 57,412 $ 1 $ (6,144) 56,026 (255) 7,784
Ending balance (in shares) at Apr. 30, 2023     (39)      
Beginning balance (in shares) at Jan. 31, 2023   1,009        
Beginning balance at Jan. 31, 2023 58,359 $ 1 $ (4,000) 55,047 (274) 7,585
Beginning balance (in shares) at Jan. 31, 2023     (28)      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Other comprehensive income (loss), net of tax (57)          
Net income 2,690          
Ending balance (in shares) at Oct. 31, 2023   1,026        
Ending balance at Oct. 31, 2023 58,090 $ 1 $ (10,004) 58,149 (331) 10,275
Ending balance (in shares) at Oct. 31, 2023     (57)      
Beginning balance (in shares) at Apr. 30, 2023   1,016        
Beginning balance at Apr. 30, 2023 57,412 $ 1 $ (6,144) 56,026 (255) 7,784
Beginning balance (in shares) at Apr. 30, 2023     (39)      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Common stock issued (in shares)   7        
Common stock issued 595     595    
Common stock repurchased (in shares)     (9)      
Common stock repurchased (1,913)   $ (1,913)      
Stock-based compensation 724     724    
Other comprehensive income (loss), net of tax (3)       (3)  
Net income 1,267         1,267
Ending balance (in shares) at Jul. 31, 2023   1,023        
Ending balance at Jul. 31, 2023 58,082 $ 1 $ (8,057) 57,345 (258) 9,051
Ending balance (in shares) at Jul. 31, 2023     (48)      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Common stock issued (in shares)   3        
Common stock issued 111     111    
Common stock repurchased (in shares)     (9)      
Common stock repurchased (1,947)   $ (1,947)      
Stock-based compensation 693     693    
Other comprehensive income (loss), net of tax (73)       (73)  
Net income 1,224         1,224
Ending balance (in shares) at Oct. 31, 2023   1,026        
Ending balance at Oct. 31, 2023 58,090 $ 1 $ (10,004) 58,149 (331) 10,275
Ending balance (in shares) at Oct. 31, 2023     (57)      
Beginning balance (in shares) at Jan. 31, 2024   1,035        
Beginning balance at Jan. 31, 2024 59,646 $ 1 $ (11,692) 59,841 (225) 11,721
Beginning balance (in shares) at Jan. 31, 2024     (64)      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Common stock issued (in shares)   7        
Common stock issued 352     352    
Common stock repurchased (in shares)     (7)      
Common stock repurchased (2,168)   $ (2,168)      
Stock-based compensation 753     753    
Other comprehensive income (loss), net of tax (45)       (45)  
Cash dividends declared (388)         (388)
Net income 1,533         1,533
Ending balance (in shares) at Apr. 30, 2024   1,042        
Ending balance at Apr. 30, 2024 59,683 $ 1 $ (13,860) 60,946 (270) 12,866
Ending balance (in shares) at Apr. 30, 2024     (71)      
Beginning balance (in shares) at Jan. 31, 2024   1,035        
Beginning balance at Jan. 31, 2024 59,646 $ 1 $ (11,692) 59,841 (225) 11,721
Beginning balance (in shares) at Jan. 31, 2024     (64)      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Other comprehensive income (loss), net of tax 0          
Net income 4,489          
Ending balance (in shares) at Oct. 31, 2024   1,050        
Ending balance at Oct. 31, 2024 58,525 $ 1 $ (19,414) 63,114 (225) 15,049
Ending balance (in shares) at Oct. 31, 2024     (94)      
Beginning balance (in shares) at Apr. 30, 2024   1,042        
Beginning balance at Apr. 30, 2024 59,683 $ 1 $ (13,860) 60,946 (270) 12,866
Beginning balance (in shares) at Apr. 30, 2024     (71)      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Common stock issued (in shares)   5        
Common stock issued 384     384    
Common stock repurchased (in shares)     (18)      
Common stock repurchased (4,322)   $ (4,322)      
Stock-based compensation 813     813    
Other comprehensive income (loss), net of tax 34       34  
Cash dividends declared (388)         (388)
Net income 1,429         1,429
Ending balance (in shares) at Jul. 31, 2024   1,047        
Ending balance at Jul. 31, 2024 57,633 $ 1 $ (18,182) 62,143 (236) 13,907
Ending balance (in shares) at Jul. 31, 2024     (89)      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Common stock issued (in shares)   3        
Common stock issued 148     148    
Common stock repurchased (in shares)     (5)      
Common stock repurchased (1,232)   $ (1,232)      
Stock-based compensation 823     823    
Other comprehensive income (loss), net of tax 11       11  
Cash dividends declared (385)         (385)
Net income 1,527         1,527
Ending balance (in shares) at Oct. 31, 2024   1,050        
Ending balance at Oct. 31, 2024 $ 58,525 $ 1 $ (19,414) $ 63,114 $ (225) $ 15,049
Ending balance (in shares) at Oct. 31, 2024     (94)      
v3.24.3
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Operating activities:        
Net income $ 1,527 $ 1,224 $ 4,489 $ 2,690
Adjustments to reconcile net income to net cash provided by operating activities:        
Depreciation and amortization [1] 814 862 2,600 3,006
Amortization of costs capitalized to obtain revenue contracts, net 525 482 1,568 1,428
Stock-based compensation expense 820 693 2,380 2,113
Losses on strategic investments, net 217 72 217 242
Changes in assets and liabilities, net of business combinations:        
Accounts receivable, net 655 550 6,681 5,905
Costs capitalized to obtain revenue contracts, net (430) (300) (1,105) (906)
Prepaid expenses and other current assets and other assets (272) (407) (1,263) (750)
Accounts payable and accrued expenses and other liabilities 32 172 (503) (1,607)
Operating lease liabilities (144) (139) (387) (474)
Unearned revenue (1,761) (1,677) (5,555) (4,816)
Net cash provided by operating activities 1,983 1,532 9,122 6,831
Investing activities:        
Business combinations, net of cash acquired (179) (82) (517) (82)
Purchases of strategic investments (67) (103) (374) (390)
Sales of strategic investments 13 80 118 102
Purchases of marketable securities (1,239) (661) (5,041) (2,827)
Sales of marketable securities 554 315 3,652 1,117
Maturities of marketable securities 905 563 2,439 1,810
Capital expenditures (204) (166) (504) (589)
Net cash used in investing activities (217) (54) (227) (859)
Financing activities:        
Repurchases of common stock (1,285) (1,925) (7,753) (5,928)
Proceeds from employee stock plans 321 274 1,056 1,085
Principal payments on financing obligations (100) (114) (505) (506)
Repayments of debt 0 0 (1,000) (1,182)
Payments of dividends (382) 0 (1,154) 0
Net cash used in financing activities (1,446) (1,765) (9,356) (6,531)
Effect of exchange rate changes (5) (32) (14) (4)
Net increase (decrease) in cash and cash equivalents 315 (319) (475) (563)
Cash and cash equivalents, beginning of period 7,682 6,772 8,472 7,016
Cash and cash equivalents, end of period 7,997 6,453 7,997 6,453
Cash paid during the period for:        
Interest 28 28 146 164
Income taxes, net of tax refunds $ 471 $ 458 $ 1,388 $ 709
[1] Includes amortization of intangible assets acquired through business combinations, depreciation of fixed assets and amortization and impairment of right-of-use assets.
v3.24.3
Summary of Business and Significant Accounting Policies
 9 Months Ended
Oct. 31, 2024
Accounting Policies [Abstract]  
Summary of Business and Significant Accounting Policies Summary of Business and Significant Accounting Policies
Description of Business
Salesforce, Inc. (the “Company”) is a global leader in customer relationship management technology that brings companies and customers together. With the Salesforce platform, the Company delivers a single source of truth, connecting customer data with integrated artificial intelligence (“AI”) across systems, apps and devices to help companies sell, service, market and conduct commerce from anywhere. During the third quarter of fiscal 2025, the Company introduced Agentforce, a new layer of the trusted Salesforce platform that enables companies to build and deploy AI agents that can respond to inputs, make decisions and take action autonomously across business functions. Agentforce includes a suite of customizable agents for use across sales, service, marketing and commerce. Since its founding in 1999, the Company has pioneered innovations in cloud, mobile, social, analytics and AI, enabling companies of every size and industry to transform their businesses in the digital-first world.
Fiscal Year
The Company’s fiscal year ends on January 31. References to fiscal 2025, for example, refer to the fiscal year ending January 31, 2025.
Basis of Presentation
The accompanying condensed consolidated balance sheet as of October 31, 2024 and the condensed consolidated statements of operations, comprehensive income, stockholders' equity and cash flows for the three and nine months ended October 31, 2024 and 2023, respectively, are unaudited.
These financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the financial information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of the Company’s management, the unaudited condensed consolidated financial statements include all adjustments necessary for the fair presentation of the Company’s balance sheet as of October 31, 2024 and its results of operations, including its comprehensive income, stockholders' equity and cash flows for the three and nine months ended October 31, 2024 and 2023. All adjustments are of a normal recurring nature. The results for the three and nine months ended October 31, 2024 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending January 31, 2025.
These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2024, filed with the Securities and Exchange Commission (the “SEC”) on March 6, 2024.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the Company’s condensed consolidated financial statements and notes thereto.
Significant estimates and assumptions made by management include the determination of:
•the standalone selling price (“SSP”) of performance obligations for revenue contracts with multiple performance obligations;
•the valuation of privately-held strategic investments;
•the fair value of assets acquired and liabilities assumed for business combinations;
•the recognition, measurement and valuation of current and deferred income taxes and uncertain tax positions;
•the useful lives of intangible assets; and
•the fair value of certain stock awards issued.
Actual results could differ materially from these estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, which forms the basis for making judgments about the carrying values of assets and liabilities as well as income and expenses to be recognized.
Principles of Consolidation
The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
Segments
The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance. Over the past few years, the Company has completed a number of acquisitions which have allowed the Company to expand its offerings, presence and reach in various market segments of the enterprise cloud computing market. While the Company has offerings in multiple enterprise cloud computing market segments, including as a result of the Company's acquisitions, and operates in multiple countries, the Company’s business operates in one operating segment because most of the Company's service offerings operate on the Salesforce platform and are deployed in a nearly identical manner, and the Company’s CODM evaluates the Company’s financial information and resources, and assesses the performance of these resources, on a consolidated basis.
Concentrations of Credit Risk, Significant Customers and Investments
The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities and accounts receivable. The Company monitors and manages the overall exposure of its cash balances to individual financial institutions on an ongoing basis. The Company’s marketable securities portfolio consists primarily of investment-grade securities and the Company’s policies limit the amount of credit exposure to any one issuer. The Company does not require collateral for accounts receivable. The Company maintains an allowance for its doubtful accounts receivable for estimated credit losses. This allowance is based upon historical loss patterns, the number of days that billings are past due, an evaluation of the potential risk of loss associated with delinquent accounts and current market conditions and reasonable and supportable forecasts of future economic conditions to inform adjustments to historical loss patterns. The Company records the allowance against bad debt expense through the condensed consolidated statements of operations, included in general and administrative expense, up to the amount of revenues recognized to date. Any incremental allowance is recorded as an offset to unearned revenue on the condensed consolidated balance sheets. Receivables are written off and charged against the recorded allowance when the Company has exhausted collection efforts without success.
No single customer accounted for ten percent or more of accounts receivable as of October 31, 2024 and January 31, 2024. No single customer accounted for ten percent or more of total revenue during the three and nine months ended October 31, 2024 and 2023. As of October 31, 2024 and January 31, 2024, assets located outside the Americas were 13 percent and 16 percent of total assets, respectively. As of October 31, 2024 and January 31, 2024, assets located in the United States were 85 percent and 82 percent of total assets, respectively.
The Company is also exposed to concentrations of risk in its strategic investment portfolio, including within specific industries, as the Company primarily invests in enterprise cloud companies, technology startups and system integrators. As of October 31, 2024, the Company held two investments, both privately held, with carrying values that were individually greater than five percent of its total strategic investments portfolio and represented approximately 13 percent of the portfolio in the aggregate. As of January 31, 2024, the Company held two investments, both privately held, with carrying values that were individually greater than five percent of its strategic investments portfolio and represented approximately 16 percent of the portfolio in the aggregate.
Revenue Recognition
The Company derives its revenues from two sources: (1) subscription and support revenues and (2) professional services and other revenues. Subscription and support revenues include subscription fees from customers accessing the Company’s enterprise cloud computing services (collectively, “Cloud Services”), software license revenues from the sales of term software licenses and support revenues from the sales of support and updates beyond the basic subscription or software license sales. Professional services and other revenues include professional and advisory services for process mapping, project management and implementation services and training services.
Revenue is recognized upon transfer of control of promised products and services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. If the consideration promised in a contract includes a variable amount, for example, overage fees, contingent fees or service level penalties, the Company includes an estimate of the amount it expects to receive for the total transaction price if it is probable that a significant reversal of cumulative revenue recognized will not occur.
The Company determines the amount of revenue to be recognized through the application of the following steps:
•identification of the contract, or contracts, with a customer;
•identification of the performance obligations in the contract;
•determination of the transaction price;
•allocation of the transaction price to the performance obligations in the contract; and
•recognition of revenue when or as the Company satisfies the performance obligations.
Subscription and Support Revenues
Subscription and support revenues are comprised of fees that provide customers with access to Cloud Services, software licenses and related support and updates during the term of the arrangement.
Cloud Services allow customers to use the Company's multi-tenant software without taking possession of the software. Revenue is generally recognized ratably over the contract term. Substantially all of the Company’s subscription service arrangements are noncancellable and do not contain refund-type provisions.
Subscription and support revenues also include revenues associated with term software licenses that provide the customer with a right to use the software as it exists when made available. Revenues from term software licenses are generally recognized at the point in time when the software is made available to the customer. Revenue from software support and updates is recognized as the support and updates are provided, which is generally ratably over the contract term.
The Company typically invoices its customers annually and its payment terms provide that customers pay within 30 days of invoice. Amounts that have been invoiced are recorded in accounts receivable and in unearned revenue or revenue, depending on whether transfer of control to customers has occurred.
Professional Services and Other Revenues
The Company’s professional services contracts are either on a time and materials, fixed price or subscription basis. These revenues are recognized as the services are rendered for time and materials contracts, on a proportional performance basis for fixed price contracts or ratably over the contract term for subscription professional services contracts. Other revenues consist primarily of training revenues recognized as such services are performed.
Significant Judgments - Contracts with Multiple Performance Obligations
The Company enters into contracts with its customers that may include promises to transfer multiple performance obligations such as Cloud Services, software licenses, support and updates and professional services. A performance obligation is a promise in a contract with a customer to transfer products or services that are concluded to be distinct. Determining whether products and services are distinct performance obligations that should be accounted for separately or combined as one unit of accounting may require significant judgment.
Cloud Services, software licenses and support and updates services are generally concluded to be distinct because such offerings are often sold separately. In determining whether professional services are distinct, the Company considers the following factors for each professional services agreement: availability of the services from other vendors, the nature of the professional services, the timing of when the professional services contract was signed in comparison to the subscription start date and the contractual dependence of the service on the customer’s satisfaction with the professional services work. To date, the Company has concluded that professional services included in contracts with multiple performance obligations are distinct.
The Company allocates the transaction price to each performance obligation on a relative SSP basis. The SSP is the price at which the Company would sell a promised product or service separately to a customer. Judgment is required to determine the SSP for each distinct performance obligation.
The Company determines SSP by considering its overall pricing objectives and market conditions. Significant pricing practices taken into consideration include the Company’s discounting practices, the size and volume of the Company’s transactions, the customer demographic, the geographic area where services are sold, price lists, the Company's go-to-market strategy, historical and current sales and contract prices. In instances where the Company does not sell or price a product or service separately, the Company maximizes the use of observable inputs by using information that may include market conditions. As the Company’s go-to-market strategies evolve, the Company may modify its pricing practices in the future, which could result in changes to SSP.
In certain cases, the Company is able to establish SSP based on observable prices of products or services sold or priced separately in comparable circumstances to similar customers. The Company uses a single amount to estimate SSP when indicated by the distribution of its observable prices.
Alternatively, the Company uses a range of amounts to estimate SSP when the pricing practices or distribution of the observable prices are highly variable. The Company typically has more than one SSP for individual products and services due to the stratification of those products and services by customer size and geography.
Costs Capitalized to Obtain Revenue Contracts
The Company capitalizes incremental costs of obtaining revenue contracts related to noncancellable Cloud Services subscription, ongoing Cloud Services support and license support and updates. For contracts with term software licenses where revenue is recognized upfront when the software is made available to the customer, costs allocable to those licenses are expensed as they are incurred. Capitalized amounts consist primarily of sales commissions paid to the Company’s direct sales force. Capitalized amounts also include (1) amounts paid to employees other than the direct sales force who earn incentive
payouts under annual compensation plans that are tied to the value of contracts acquired, (2) commissions paid to employees upon renewals of subscription and support contracts, (3) the associated payroll taxes and fringe benefit costs associated with the payments to the Company’s employees and (4) to a lesser extent, success fees paid to partners in emerging markets where the Company has a limited presence.
Costs capitalized related to new revenue contracts are amortized on a straight-line basis over four years, which is longer than the typical initial contract period, but reflects the estimated average period of benefit, including expected contract renewals. In arriving at this average period of benefit, the Company evaluates both qualitative and quantitative factors which included the estimated life cycles of its offerings and its customer attrition. Additionally, the Company amortizes capitalized costs for renewals and success fees paid to partners over two years.
The capitalized amounts are recoverable through future revenue streams under all noncancellable customer contracts. The Company periodically evaluates whether there have been any changes in its business, the market conditions in which it operates or other events which would indicate that its amortization period should be changed or if there are potential indicators of impairment.
Amortization of capitalized costs to obtain revenue contracts is included in sales and marketing expense in the accompanying condensed consolidated statements of operations. There were no impairments of costs to obtain revenue contracts for the three and nine months ended October 31, 2024 and 2023.
Cash and Cash Equivalents
The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are stated at fair value.
Marketable Securities
The Company considers all of its marketable debt securities as available for use in current operations, including those with maturity dates beyond one year, and therefore classifies these securities within current assets on the condensed consolidated balance sheets. Securities are classified as available for sale and are carried at fair value, with the change in unrealized gains and losses, net of tax, reported as a separate component on the condensed consolidated statements of comprehensive income until realized. Fair value is determined based on quoted market rates when observable or utilizing data points that are observable, such as quoted prices, interest rates and yield curves. Securities with an amortized cost basis in excess of estimated fair value are assessed to determine what amount of the excess, if any, is caused by expected credit losses. Expected credit losses on securities are recognized in other income on the condensed consolidated statements of operations and any remaining unrealized losses, net of taxes, are included in accumulated other comprehensive loss in stockholders' equity. For the purposes of computing realized and unrealized gains and losses, the cost of securities sold is based on the specific-identification method. Interest on securities classified as available for sale is included as a component of investment income within other income on the condensed consolidated statements of operations.
Strategic Investments
The Company holds strategic investments in privately held debt and equity securities and publicly held equity securities in which the Company does not have a controlling interest.
Privately held equity securities where the Company lacks a controlling financial interest but does exercise significant influence are accounted for under the equity method. Privately held equity securities not accounted for under the equity method are recorded at cost and adjusted only for observable transactions for same or similar investments of the same issuer or impairment events (referred to as the measurement alternative). All gains and losses on privately held equity securities, realized and unrealized, are recorded through losses on strategic investments, net on the condensed consolidated statements of operations. Privately held debt securities are recorded at fair value with changes in fair value recorded through accumulated other comprehensive loss on the condensed consolidated balance sheets. Other privately held investments not classified as debt or equity securities are recorded at cost and adjusted for impairment events, with any associated gains and losses recorded through losses on strategic investments, net on the consolidated statements of operations.
Valuations of privately held securities are inherently complex and require judgment due to the lack of readily available market data. In determining the estimated fair value of its strategic investments in privately held companies, the Company utilizes the most recent data available to the Company. The Company assesses its privately held strategic investments quarterly for impairment. The Company’s impairment analysis encompasses an assessment of both qualitative and quantitative factors, including the investee's financial metrics, market acceptance of the investee's product or technology and the rate at which the investee is using its cash. If the investment is considered impaired, the Company estimates the fair value of the investment and recognizes any resulting impairment through the condensed consolidated statements of operations.
Publicly held equity securities are measured at fair value with changes recorded through losses on strategic investments, net on the condensed consolidated statements of operations.
Fair Value Measurement
The Company measures its cash and cash equivalents, marketable securities, publicly held equity securities and foreign currency derivative contracts at fair value. In addition, the Company measures certain of its strategic investments, including its privately held debt and equity securities, at fair value on a nonrecurring basis when there has been an observable price change in a same or similar security or an impairment event. The additional disclosures regarding the Company’s fair value measurements are included in Note 4 “Fair Value Measurement.”
Derivative Financial Instruments
The Company enters into foreign currency derivative contracts with financial institutions to reduce foreign exchange risk associated with intercompany transactions and other monetary assets or liabilities denominated in currencies other than the functional currency of a subsidiary. The Company uses forward currency derivative contracts, which are not designated as hedging instruments, to minimize the Company’s exposure to balances primarily denominated in the Euro, British Pound Sterling, Canadian Dollar, Australian Dollar, Brazilian Real and Japanese Yen. The Company’s derivative financial instruments program is not designated for trading or speculative purposes. The Company generally enters into master netting arrangements with the financial institutions with which it contracts for such derivatives, which permit net settlement of transactions with the same counterparty, thereby reducing risk of credit-related losses from a financial institutions' nonperformance. While the contract or notional amount is often used to express the volume of foreign currency derivative contracts, the amounts potentially subject to credit risk are generally limited to the amounts, if any, by which the counterparties’ obligations under the agreements exceed the obligations of the Company to the counterparties. The notional amount of outstanding foreign currency derivative contracts as of October 31, 2024 and January 31, 2024 was $9.4 billion and $8.6 billion, respectively.
Outstanding foreign currency derivative contracts are recorded at fair value on the condensed consolidated balance sheets. Unrealized gains or losses due to changes in the fair value of these derivative contracts, as well as realized gains or losses from their net settlement, are recognized as other income in the condensed consolidated statements of operations consistent with the offsetting gains or losses resulting from the remeasurement or settlement of the underlying foreign currency denominated receivables and payables.
Property and Equipment
Property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful lives of those assets as follows:
Buildings and building improvements
10 to 40 years
Computers, equipment and software
3 to 5 years
Furniture and fixtures5 years
Leasehold improvements
Shorter of the estimated lease term or 10 years
The Company estimates the useful lives of property and equipment upon initial recognition and periodically evaluates the useful lives and whether events or changes in circumstances warrant a revision to the useful lives.
When assets are retired or otherwise disposed of, the cost and accumulated depreciation and amortization are removed from their respective accounts and any loss on such retirement is reflected in operating expenses.
Leases
The Company determines if an arrangement is a lease at inception and classifies its leases at commencement. Operating leases are included in operating lease right-of-use (“ROU”) assets and current and noncurrent operating lease liabilities on the Company’s condensed consolidated balance sheets. Assets (also referred to as ROU assets) and liabilities recognized from finance leases are included in property and equipment, accrued expenses and other liabilities and other noncurrent liabilities, respectively, on the Company’s condensed consolidated balance sheets. ROU assets represent the Company's right to use an underlying asset for the lease term. The corresponding lease liabilities represent its obligation to make lease payments arising from the lease. The Company does not recognize ROU assets or lease liabilities for leases with a term of 12 months or less for any asset classes.
Lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement, net of any future tenant incentives. The Company has lease agreements which contain both lease and non-lease components, which it has elected to combine for all asset classes. As such, minimum lease payments include fixed payments for non-lease components within a lease agreement but exclude variable lease payments not dependent on an index or rate, such as common area maintenance, operating expenses, utilities, or other costs that are subject to fluctuation from period to period. The Company’s lease terms may include options to extend or terminate the lease. Periods beyond the noncancellable term of the lease are included in the measurement of the lease liability only when it is reasonably certain that the Company will exercise the associated extension option or waive the termination option. The Company reassesses the lease term if and when a significant
event or change in circumstances occurs within the control of the Company. As most of the Company’s leases do not provide an implicit rate, the net present value of future minimum lease payments is determined using the Company’s incremental borrowing rate. The Company's incremental borrowing rate is an estimate of the interest rate the Company would have to pay to borrow on a collateralized basis with similar terms and payments, in the economic environment where the leased asset is located.
The lease ROU asset is recognized based on the lease liability, adjusted for any rent payments or initial direct costs incurred or tenant incentives received prior to commencement.
Lease expense for operating leases, which includes amortization expense of ROU assets, is recognized on a straight-line basis over the lease term. Amortization expense of finance lease ROU assets is recognized on a straight-line basis over the lease term and interest expense for finance lease liabilities is recognized based on the incremental borrowing rate. Expense for variable lease payments is recognized as incurred.
On the lease commencement date, the Company also establishes assets and liabilities for the present value of estimated future costs to retire long-lived assets at the termination or expiration of a lease. Such assets are included in property and equipment, net and are amortized over the lease term.
The Company has entered into subleases or has made decisions and taken actions to exit and sublease certain unoccupied leased office space. Similar to other long-lived assets discussed below, management tests ROU assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. For leased assets, such circumstances would include the decision to leave a leased facility prior to the end of the minimum lease term or subleases for which estimated cash flows do not fully cover the costs of the associated lease.
Intangible Assets Acquired through Business Combinations
Intangible assets are amortized over their estimated useful lives. Each period, the Company evaluates the estimated remaining useful life of its intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization.
Impairment Assessment
The Company evaluates intangible assets and other long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable, including, but not limited to, significant adverse changes in business climate, market conditions or other events that indicate an asset's carrying amount may not be recoverable. Recoverability of these assets is measured by comparing the carrying amount of each asset group to the future undiscounted cash flows the asset is expected to generate. If the undiscounted cash flows used in the test for recoverability are less than the carrying amount of these assets, the carrying amount of such assets is reduced to fair value.
The Company evaluates and tests the recoverability of its goodwill for impairment annually during its fourth quarter of each fiscal year or more often if and when circumstances indicate that goodwill may not be recoverable.
Business Combinations
The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The Company’s estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions, tax-related valuation allowances and pre-acquisition contingencies are initially recorded in connection with a business combination as of the acquisition date. The Company continues to collect information and reevaluates these estimates and assumptions quarterly and records any adjustments to the Company’s preliminary estimates to goodwill provided that the Company is within the measurement period. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s condensed consolidated statements of operations.
In the event the Company acquires an entity with which the Company has a preexisting relationship, the Company will generally recognize a gain or loss to settle that relationship as of the acquisition date within operating income on the condensed consolidated statements of operations. In the event that the Company acquires an entity in which the Company previously held a strategic investment, the difference between the fair value of the shares as of the date of the acquisition and the carrying value of the strategic investment is recorded as a gain or loss and recorded within losses on strategic investments, net in the condensed consolidated statements of operations.
Restructuring
The Company generally recognizes employee severance costs when payments are probable and amounts are estimable or when notification occurs, depending on the region an employee works. Costs related to contracts without future benefit or contract termination are recognized at the earlier of the contract termination or the cease-use dates. Other exit-related costs are recognized as incurred.
Stock-Based Compensation Expense
Stock-based compensation expense is measured based on grant date at fair value using the grant date closing stock price for restricted stock units and restricted stock awards and using the Black-Scholes option pricing model for stock options. The Company recognizes stock-based compensation expense related to restricted stock units, restricted stock awards, and stock options on a straight-line basis, net of estimated forfeitures, over the requisite service period of the awards, which is generally the vesting term of four years. The estimated forfeiture rate applied is based on historical forfeiture rates.
The Company grants performance share awards to executive officers and other members of senior management, which may include a market condition, a performance condition, or both. Stock-based compensation expense related to awards with a market condition are measured at fair value using a Monte Carlo simulation model and the expense related to these awards is recognized on a graded-vesting basis, net of estimated forfeitures, over the requisite service period of the awards, which is generally the vesting term. Stock-based compensation expense related to awards with a performance condition are measured based on the grant date closing stock price and the expense related to these awards is recognized based on the requisite service period elapsed, as well as the probability of achievement and estimated attainment of the performance condition as of the end of our reporting period.
Stock-based compensation expense related to the Company’s Amended and Restated 2004 Employee Stock Purchase Plan (“ESPP” or “2004 Employee Stock Purchase Plan”) is measured based on grant date at fair value using the Black-Scholes option pricing model. The Company recognizes stock-based compensation expense related to shares issued pursuant to the 2004 Employee Stock Purchase Plan on a straight-line basis over the offering period, which is 12 months. The ESPP allows employees to purchase shares of the Company's common stock at a 15 percent discount from the lower of the Company’s stock price on (i) the first day of the offering period or on (ii) the last day of the purchase period. The ESPP also allows employees to reduce their percentage election once during a six-month purchase period (December 15 and June 15 of each fiscal year), but not to increase that election until the next one-year offering period. The ESPP includes a reset provision for the purchase price if the stock price on the purchase date is less than the stock price on the offering date.
The Company, at times, grants unvested restricted shares to employee stockholders of certain acquired companies in lieu of cash consideration. These awards are generally subject to continued post-acquisition employment. Therefore, the Company accounts for them as post-acquisition stock-based compensation expense. The Company recognizes stock-based compensation expense equal to the grant date fair value of the restricted stock awards, based on the closing stock price on grant date, on a straight-line basis over the requisite service period of the awards, which is generally four years. 
Income Taxes
The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on temporary differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax laws is recognized in the condensed consolidated statements of operations in the period that includes the enactment date.
The Company’s tax positions are subject to income tax audits by multiple tax jurisdictions throughout the world. The Company recognizes the tax benefit of an uncertain tax position only if it is more likely than not that the position is sustainable upon examination by the taxing authority, solely based on its technical merits. The tax benefit recognized is measured as the largest amount of benefit which is greater than 50 percent likely to be realized upon settlement with the taxing authority. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in the income tax provision.
Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more likely than not expected to be realized based on the weighting of positive and negative evidence. Future realization of deferred tax assets ultimately depends on the existence of sufficient taxable income of the appropriate character (for example, ordinary income or capital gain) within the carryback or carryforward periods available under the applicable tax law. The Company regularly reviews the deferred tax assets for recoverability based on historical taxable income, projected future taxable income, the expected timing of the reversals of existing temporary differences and tax planning strategies. The Company’s judgments regarding future profitability may change due to many factors, including future market conditions and the ability to successfully execute its business plans. Should there be a change in the ability to recover deferred tax assets, the tax provision would increase or decrease in the period in which the assessment is changed.
Foreign Currency Translation
The functional currency of the Company’s major foreign subsidiaries is generally the local currency. All assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenues and expenses are translated at the average exchange rate during the period. Equity transactions are translated using historical exchange rates. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are recorded as a separate component on the condensed consolidated statements of comprehensive income. Foreign currency transaction gains and losses are included in other income in the condensed consolidated statements of operations.
Warranties and Indemnification
The Company’s arrangements generally include certain provisions for indemnifying customers against liabilities if its products or services infringe on a third party’s intellectual property rights. To date, the Company has not incurred any material costs as a result of such obligations and has not accrued any material liabilities related to such obligations in the accompanying condensed consolidated financial statements.
The Company has also agreed to indemnify its directors and executive officers for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by any of these persons in any action or proceeding to which any of those persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by the Company, arising out of that person’s services as the Company’s director or officer or that person’s services provided to any other company or enterprise at the Company’s request. The Company maintains director and officer insurance coverage that would generally enable the Company to recover a portion of any future amounts paid. The Company may also be subject to indemnification obligations by law with respect to the actions of its employees under certain circumstances and in certain jurisdictions.
New Accounting Pronouncements Pending Adoption
In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), which requires additional operating segment disclosures in annual and interim consolidated financial statements. ASU 2023-07 is effective for annual periods beginning after December 15, 2023 and for interim periods beginning after December 15, 2024 on a retrospective basis, with early adoption permitted. The Company will adopt ASU 2023-07 in the fourth quarter of fiscal year 2025 and does not expect the additional required disclosures to have a material impact on its financial statements.
In December 2023, the FASB issued Accounting Standards Update No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation and modifies other income tax-related disclosures. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 on a retrospective or prospective basis. The Company is evaluating the effect that ASU 2023-09 will have on its financial statement disclosures.
In November 2024, the FASB issued Accounting Standards Update No. 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” (“ASU 2024-03”), which requires disaggregation of certain costs in a separate note to the financial statements, such as the amounts of employee compensation, depreciation and intangible asset amortization, included in each relevant expense caption in annual and interim consolidated financial statements. ASU 2024-03 is effective for annual periods beginning after December 15, 2026 and for interim periods beginning after December 15, 2027 on a retrospective or prospective basis, with early adoption permitted. The Company is evaluating the effect that ASU 2024-03 will have on its financial statement disclosures.
v3.24.3
Revenues
 9 Months Ended
Oct. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
Disaggregation of Revenue
Subscription and Support Revenue by the Company's Service Offerings
Subscription and support revenues consisted of the following (in millions):
 Three Months Ended October 31,Nine Months Ended October 31,
 2024202320242023
Sales $2,119 $1,906 $6,188 $5,611 
Service 2,288 2,074 6,727 6,087 
Platform and Other 1,825 1,686 5,329 4,891 
Marketing and Commerce1,334 1,230 3,924 3,638 
Integration and Analytics (1) 1,313 1,245 4,060 3,562 
$8,879 $8,141 $26,228 $23,789 
(1) In the fourth quarter of fiscal 2024, the Company renamed the service offering previously referred to as Data to Integration and Analytics, which includes Mulesoft and Tableau.
Total Revenue by Geographic Locations
Revenues by geographical region consisted of the following (in millions):
 Three Months Ended October 31,Nine Months Ended October 31,
 2024202320242023
Americas$6,220 $5,862 $18,483 $17,113 
Europe2,228 1,998 6,557 5,923 
Asia Pacific996 860 2,862 2,534 
$9,444 $8,720 $27,902 $25,570 
Revenues by geography are determined based on the region of the Company's contracting entity, which may be different than the region of the customer. Americas revenue attributed to the United States was approximately 93 percent during the three and nine months ended October 31, 2024 and 2023. No other country represented more than ten percent of total revenue during the three and nine months ended October 31, 2024 and 2023.
Contract Balances
Contract Assets
The Company records a contract asset when revenue recognized on a contract exceeds the billings. Contract assets were $948 million as of October 31, 2024 as compared to $758 million as of January 31, 2024, and are included in prepaid expenses and other current assets and deferred tax assets and other assets, net on the condensed consolidated balance sheets.
Unearned Revenue
Unearned revenue represents amounts that have been invoiced in advance of revenue recognition and is recognized as revenue when transfer of control to customers has occurred or services have been provided. The unearned revenue balance does not represent the total contract value of annual or multi-year, noncancellable subscription agreements. The unearned revenue balance is influenced by several factors, including seasonality, the compounding effects of renewals, invoice duration, invoice timing, dollar size and new business linearity within the quarter.
The change in unearned revenue was as follows (in millions):
Three Months Ended October 31,Nine Months Ended October 31,
2024202320242023
Unearned revenue, beginning of period$15,222 $14,237 $19,003 $17,376 
Billings and other (1)7,620 6,876 22,158 20,536 
Contribution from contract asset63 167 189 218 
Revenue recognized over time(9,023)(8,249)(26,446)(24,264)
Revenue recognized at a point in time(421)(471)(1,456)(1,306)
Unearned revenue from business combinations11 4 24 4 
Unearned revenue, end of period$13,472 $12,564 $13,472 $12,564 
(1) Other includes, for example, the impact of foreign currency translation.
The majority of revenue recognized for these services is from the beginning of period unearned revenue balance.
Revenue recognized over time primarily includes Cloud Services subscription and support revenue, which is generally recognized ratably over time, and professional services and other revenue, which is generally recognized ratably or as delivered.
Revenue recognized at a point in time substantially consists of term software licenses.
Remaining Performance Obligation
Remaining performance obligation represents contracted revenue that has not yet been recognized and includes unearned revenue and unbilled amounts that will be recognized as revenue in future periods. The transaction price allocated to the remaining performance obligation is based on SSP. Remaining performance obligation is influenced by several factors, including seasonality, the timing of renewals, the timing of term license deliveries, average contract terms and foreign currency exchange rates. Remaining performance obligation is also impacted by acquisitions. Unbilled portions of the remaining performance obligation denominated in foreign currencies are revalued each period based on the period end exchange rates. Remaining performance obligation is subject to future economic risks, including bankruptcies, regulatory changes and other market factors.
The Company excludes amounts related to performance obligations from professional services contracts that are billed and recognized on a time and materials basis.
The majority of the Company's noncurrent remaining performance obligation is expected to be recognized in the next 13 to 36 months.
Remaining performance obligation consisted of the following (in billions):
 CurrentNoncurrentTotal
As of October 31, 2024$26.4 $26.7 $53.1 
As of January 31, 2024$27.6 $29.3 $56.9 
v3.24.3
Investments
 9 Months Ended
Oct. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Investments Investments
Marketable Securities
At October 31, 2024, marketable securities consisted of the following (in millions):
Amortized
Cost		Unrealized
Gains		Unrealized
Losses		Fair Value
Corporate notes and obligations$2,511 $7 $(25)$2,493 
U.S. treasury securities410 0 (5)405 
Mortgage-backed obligations125 0 (6)119 
Asset-backed securities1,018 2 (4)1,016 
Municipal securities96 0 (1)95 
Commercial paper527 0 0 527 
Covered bonds27 0 (1)26 
Other79 0 0 79 
Total marketable securities$4,793 $9 $(42)$4,760 
At January 31, 2024, marketable securities consisted of the following (in millions):
Amortized
Cost		Unrealized
Gains		Unrealized
Losses		Fair Value
Corporate notes and obligations$3,014 $9 $(45)$2,978 
U.S. treasury securities583 0 (8)575 
Mortgage-backed obligations244 1 (9)236 
Asset-backed securities1,381 5 (7)1,379 
Municipal securities139 0 (3)136 
Commercial paper213 0 0 213 
Covered bonds81 0 (3)78 
Other127 1 (1)127 
Total marketable securities$5,782 $16 $(76)$5,722 
The contractual maturities of the investments classified as marketable securities were as follows (in millions):
 As of
 October 31, 2024January 31, 2024
Due within 1 year$2,019 $2,523 
Due in 1 year through 5 years2,740 3,180 
Due in 5 years through 10 years1 19 
$4,760 $5,722 
Strategic Investments
Strategic investments by form and measurement category as of October 31, 2024 were as follows (in millions):
 Measurement Category
 Fair ValueMeasurement AlternativeOtherTotal
Equity securities$72 $4,543 $137 $4,752 
Debt securities and other investments 0 0 93 93 
Balance as of October 31, 2024
$72 $4,543 $230 $4,845 
Strategic investments by form and measurement category as of January 31, 2024 were as follows (in millions):
 Measurement Category
 Fair ValueMeasurement AlternativeOtherTotal
Equity securities$80 $4,557 $130 $4,767 
Debt securities and other investments0 0 81 81 
Balance as of January 31, 2024
$80 $4,557 $211 $4,848 
The Company holds investments in, or management agreements with, variable interest entities (“VIEs”) which the Company does not consolidate because it is not considered the primary beneficiary of these entities. The carrying value of VIEs within strategic investments was $439 million and $382 million, as of October 31, 2024 and January 31, 2024, respectively.
Losses on Strategic Investments, Net
The components of losses on strategic investments, net were as follows (in millions):
3Three Months Ended October 31,Nine Months Ended October 31,
2024202320242023
Unrealized gains (losses) recognized on publicly traded equity securities, net$8 $(2)$(11)$0 
Unrealized gains recognized on privately held equity securities, net18 14 167 65 
Impairments on privately held equity and debt securities(242)(98)(432)(355)
Unrealized losses, net(216)(86)(276)(290)
Realized gains (losses) on sales of securities, net(1)14 59 48 
Losses on strategic investments, net $(217)$(72)$(217)$(242)
Unrealized gains and losses recognized on privately held equity securities, net includes upward and downward adjustments from equity securities accounted for under the measurement alternative, as well as gains and losses from private equity securities in other measurement categories. For privately held securities accounted for under the measurement alternative, the Company recorded upward adjustments of $22 million and $14 million and impairments and downward adjustments of $245 million and $98 million for the three months ended October 31, 2024 and 2023, respectively, and upward adjustments of $182 million and $65 million and impairments and downward adjustments of $435 million and $354 million for the nine months ended October 31, 2024, and 2023, respectively.
Realized gains (losses) on sales of securities, net reflects the difference between the sale proceeds and the carrying value of the security at the beginning of the period or the purchase date, if later.
v3.24.3
Fair Value Measurement
 9 Months Ended
Oct. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurement Fair Value Measurement
The Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:
Level 1.    Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2.    Significant other inputs that are directly or indirectly observable in the marketplace.
Level 3.    Significant unobservable inputs which are supported by little or no market activity.
All of the Company’s cash equivalents, marketable securities and foreign currency derivative contracts are classified within Level 1 or Level 2 because these assets are valued using quoted market prices or alternative pricing sources and models utilizing observable market inputs.
The following table presents information about the Company’s assets that were measured at fair value as of October 31, 2024 and indicates the fair value hierarchy of the valuation (in millions):
DescriptionQuoted Prices in
Active Markets
for Identical Assets
(Level 1)		Significant Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Fair Value
Cash equivalents (1):
Time deposits$0 $1,267 $0 $1,267 
Money market mutual funds3,377 0 0 3,377 
Cash equivalent securities 0 1,114 0 1,114 
Marketable securities:
Corporate notes and obligations0 2,493 0 2,493 
U.S. treasury securities0 405 0 405 
Mortgage-backed obligations0 119 0 119 
Asset-backed securities0 1,016 0 1,016 
Municipal securities0 95 0 95 
Commercial paper0 527 0 527 
Covered bonds0 26 0 26 
Other0 79 0 79 
Strategic investments:
Equity securities72 0 0 72 
Total assets$3,449 $7,141 $0 $10,590 
(1) Included in “cash and cash equivalents” in the accompanying condensed consolidated balance sheets in addition to $2.2 billion of cash, as of October 31, 2024.
The following table presents information about the Company’s assets that were measured at fair value as of January 31, 2024 and indicates the fair value hierarchy of the valuation (in millions):
DescriptionQuoted Prices in
Active Markets
for Identical Assets
(Level 1)		Significant Other
Observable Inputs (Level 2)		Significant
Unobservable
Inputs
(Level 3)		Fair Value
Cash equivalents (1):
Time deposits$0 $1,337 $0 $1,337 
Money market mutual funds4,447 0 0 4,447 
Cash equivalent securities0 493 0 493 
Marketable securities:
Corporate notes and obligations0 2,978 0 2,978 
U.S. treasury securities0 575 0 575 
Mortgage-backed obligations0 236 0 236 
Asset-backed securities0 1,379 0 1,379 
Municipal securities0 136 0 136 
Commercial paper0 213 0 213 
Covered bonds0 78 0 78 
Other0 127 0 127 
Strategic investments:
Equity securities80 0 0 80 
Total assets$4,527 $7,552 $0 $12,079 
(1) Included in “cash and cash equivalents” in the accompanying condensed consolidated balance sheets in addition to $2.2 billion of cash, as of January 31, 2024.
Strategic Investments Measured and Recorded at Fair Value on a Non-Recurring Basis
Substantially all of the Company's privately held debt and equity securities and other investments are recorded at fair value on a non-recurring basis. The estimation of fair value for these investments requires the use of significant unobservable inputs, and as a result, the Company deems these assets as Level 3 within the fair value measurement framework. For privately held equity investments without a readily determinable fair value, the Company applies valuation methods based on information available, including the market approach and option pricing models (“OPM”). Observable transactions, such as the issuance of new equity by an investee, are indicators of investee enterprise value and are used to estimate the fair value of the privately held equity investments. An OPM may be utilized to allocate value to the various classes of securities of the investee, including classes owned by the Company. Such information, available to the Company from investee companies, is supplemented with estimates such as volatility, expected time to liquidity and the rights and obligations of the securities the Company holds. When indicators of impairment are observed for privately held equity securities, the Company generally uses the market approach to estimate the fair value of its investment, giving consideration to the latest observable transactions, as well as the investee's current and projected financial performance and other significant inputs and assumptions, including estimated time to exit, selection and analysis of guideline public companies and the rights and obligations of the securities the Company holds. The Company's privately held debt and equity securities and other investments amounted to $4.8 billion as of October 31, 2024 and January 31, 2024.
v3.24.3
Leases and Other Commitments
 9 Months Ended
Oct. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Leases and Other Commitments Leases and Other Commitments
Leases
The Company has leases for corporate offices, data centers and equipment under noncancellable operating and finance leases with various expiration dates.
Total operating lease costs were $162 million and $163 million for the three months ended October 31, 2024 and 2023, respectively, and were $513 million and $823 million for the nine months ended October 31, 2024 and 2023, respectively. Included in operating lease costs are amounts related to restructuring charges, which are discussed in Note 9 “Restructuring.”
As of October 31, 2024, the maturities of lease liabilities under noncancellable operating and finance leases were as follows (in millions):
Operating Leases Finance Leases
Fiscal Period:
Remaining three months of fiscal 2025$167 $91 
Fiscal 2026637 359 
Fiscal 2027565 246 
Fiscal 2028505 69 
Fiscal 2029415 24 
Thereafter1,080 8 
Total minimum lease payments3,369 797 
Less: Imputed interest(377)(43)
Total$2,992 $754 
Other Balance Sheet Accounts
Accounts payable, accrued expenses and other liabilities as of October 31, 2024 included approximately $2.0 billion of accrued compensation as compared to $2.5 billion as of January 31, 2024.
v3.24.3
Business Combinations
 9 Months Ended
Oct. 31, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Business Combinations Business Combinations
In February 2024, the Company acquired all outstanding stock of Spiff, Inc. (“Spiff”), an incentive compensation management platform company. The acquisition date fair value of the consideration transferred for Spiff was $419 million, which consisted primarily of $374 million in cash. The Company recorded $323 million of goodwill which is primarily attributed to the assembled workforce and expanded market opportunities. The goodwill associated with the acquisition of Spiff has no basis and is not deductible for U.S. income tax purposes. The Company also recorded approximately $52 million of intangible assets for developed technology and customer relationships with useful lives of nine and five years, respectively. The fair values assigned to assets acquired and liabilities assumed are based on management’s estimates and assumptions and may be subject to change as additional information is received and certain tax returns are finalized. The Company expects to finalize the valuation as soon as practicable, but not later than one year from the acquisition date. The Company has included the financial results of Spiff, which were not material, in its condensed consolidated financial statements from the date of acquisition. The transaction costs associated with the acquisition were also not material.
v3.24.3
Intangible Assets Acquired Through Business Combinations and Goodwill
 9 Months Ended
Oct. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Acquired Through Business Combinations and Goodwill Intangible Assets Acquired Through Business Combinations and Goodwill
Intangible Assets Acquired Through Business Combinations
Intangible assets acquired through business combinations were as follows (in millions):
Intangible Assets, GrossAccumulated AmortizationIntangible Assets, NetWeighted
Average
Remaining Useful Life (Years)
January 31, 2024Additions and retirements, netOctober 31, 2024January 31, 2024Expense and retirements, netOctober 31, 2024January 31, 2024October 31, 2024October 31, 2024
Acquired developed technology$4,624 $102 $4,726 $(3,208)$(600)$(3,808)$1,416 $918 1.6
Customer relationships6,674 8 6,682 (2,985)(632)(3,617)3,689 3,065 4.1
Other (1)303 0 303 (130)(37)(167)173 136 2.7
Total$11,601 $110 $11,711 $(6,323)$(1,269)$(7,592)$5,278 $4,119 3.5
(1) Included in Other are in-place leases, trade names, trademarks and territory rights.
Amortization of intangible assets resulting from business combinations for the three months ended October 31, 2024 and 2023 was $354 million and $468 million, respectively, and for the nine months ended October 31, 2024 and 2023 was $1.3 billion, and $1.4 billion, respectively.
The expected future amortization expense for intangible assets as of October 31, 2024 was as follows (in millions):
Fiscal Period:
Remaining three months of fiscal 2025$353 
Fiscal 20261,392 
Fiscal 20271,024 
Fiscal 2028639 
Fiscal 2029496 
Thereafter215 
Total amortization expense$4,119 
Goodwill
Goodwill represents the excess of the purchase price in a business combination over the fair value of net assets acquired.
The changes in the carrying amounts of goodwill, which is generally not deductible for tax purposes, were as follows (in millions):
Balance as of January 31, 2024$48,620 
Acquisition of Spiff323 
Other acquisitions and adjustments (1)150 
Balance as of October 31, 2024$49,093 
(1) Adjustments include the effect of foreign currency translation
v3.24.3
Debt
 9 Months Ended
Oct. 31, 2024
Debt Disclosure [Abstract]  
Debt Debt
The components of the Company's borrowings were as follows (in millions):
InstrumentDate of IssuanceMaturity DateContractual Interest Rate
Outstanding Principal as of October 31, 2024
Carrying Value as of October 31, 2024Carrying Value as of January 31, 2024
2024 Senior Notes (1)July 2021July 20240.625 %0 0 999 
2028 Senior NotesApril 2018April 20283.70 1,500 1,495 1,495 
2028 Senior Sustainability NotesJuly 2021July 20281.50 1,000 995 994 
2031 Senior NotesJuly 2021July 20311.95 1,500 1,491 1,490 
2041 Senior NotesJuly 2021July 20412.70 1,250 1,236 1,235 
2051 Senior NotesJuly 2021July 20512.90 2,000 1,979 1,978 
2061 Senior NotesJuly 2021July 20613.05 1,250 1,236 1,235 
Total carrying value of debt8,500 8,432 9,426 
Less current portion of debt0 (999)
Total noncurrent debt$8,432 $8,427 
(1) The Company repaid in full the 2024 Senior Notes in the second quarter of fiscal 2025.
The Company was in compliance with all debt covenants as of October 31, 2024.
The total estimated fair value of the Company's outstanding senior unsecured notes (the “Senior Notes”) above was $6.7 billion and $7.8 billion as of October 31, 2024 and January 31, 2024, respectively. The fair value was determined based on the closing trading price per $100 of the Senior Notes as of the last day of trading of the third quarter of fiscal 2025 and the last day of trading of fiscal 2024, respectively, and are deemed Level 2 liabilities within the fair value measurement framework.
The contractual future principal payments for all borrowings as of October 31, 2024 were as follows (in millions):
Fiscal Period:
Remaining three months of fiscal 2025$0 
Fiscal 20260 
Fiscal 20270 
Fiscal 20280 
Fiscal 20292,500 
Thereafter6,000 
Total principal outstanding$8,500 
Revolving Credit Facility
In October 2024, the Company entered into a Credit Agreement with the lenders and issuing lenders party thereto, and Bank of America, N.A., as administrative agent (the “Revolving Loan Credit Agreement”). The Revolving Loan Credit Agreement replaced the Credit Agreement, dated December 23, 2020 (as amended, the “Prior Credit Agreement”), among the Company, the lenders and the issuing lenders party thereto, and Citibank, N.A., as administrative agent, which provided for a $3.0 billion unsecured revolving credit facility that was scheduled to mature on December 23, 2025. There were no outstanding borrowings under the Prior Credit Agreement.
The Revolving Loan Credit Agreement provides for a $5.0 billion unsecured revolving credit facility (“Credit Facility”) and matures in October 2029. The Company may use the proceeds of future borrowings under the Credit Facility for general corporate purposes. There were no outstanding borrowings under the Credit Facility as of October 31, 2024.
v3.24.3
Restructuring
 9 Months Ended
Oct. 31, 2024
Restructuring and Related Activities [Abstract]  
Restructuring Restructuring
In January 2023, the Company announced a restructuring plan (the “Restructuring Plan”) intended to reduce operating costs, improve operating margins and continue advancing the Company’s ongoing commitment to profitable growth. This plan included a reduction of the Company’s workforce and select real estate exits and office space reductions within certain markets. The actions associated with the employee restructuring under the Restructuring Plan were substantially completed in fiscal 2024 and the actions associated with the real estate portion of the Restructuring Plan are expected to be substantially complete in fiscal 2026. In the first nine months of fiscal 2025, the Company approved restructuring initiatives focused on driving further operational efficiencies, optimizing our management structure and increasing cost optimization efforts to realize long-term
sustainable growth through a targeted workforce reduction. The actions associated with these initiatives are expected to be substantially complete in fiscal 2025.
The following tables summarize the activities related to the Company’s restructuring initiatives for the three and nine months ended October 31, 2024 and 2023 (in millions):
Three Months Ended October 31, 2024Nine Months Ended October 31, 2024
Workforce ReductionOffice Space ReductionsTotalWorkforce ReductionOffice Space ReductionsTotal
Liability, beginning of the period$69 $0 $69 $118 $2 $120 
Charges47 9 56 117 46 163 
Payments(39)0 (39)(156)(2)(158)
Non-cash items0 (9)(9)(2)(46)(48)
Liability, end of the period$77 $0 $77 $77 $0 $77 
Three Months Ended October 31, 2023Nine Months Ended October 31, 2023
Workforce ReductionOffice Space ReductionsTotalWorkforce ReductionOffice Space ReductionsTotal
Liability, beginning of the period$117 $0 $117 $607 $0 $607 
Charges47 8 55 436 379 815 
Payments(103)(25)(128)(963)(27)(990)
Non-cash items0 20 20 (19)(349)(368)
Liability, end of the period$61 $3 $64 $61 $3 $64 
The liability for restructuring charges, which is related to workforce and office space reductions, is included in accounts payable, accrued expenses and other liabilities on the condensed consolidated balance sheets. The charges reflected in the tables above related to workforce reduction included charges for employee transition, severance payments, employee benefits and share-based compensation. The charges reflected in the tables above related to office space reductions included exit charges associated with those reductions.
v3.24.3
Stockholders' Equity
 9 Months Ended
Oct. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stockholders' Equity Stockholders’ Equity
Stock option activity for the nine months ended October 31, 2024 was as follows:
 Options Outstanding
 Outstanding
Stock
Options
(in millions)		Weighted-
Average
Exercise Price		Aggregate
Intrinsic Value (in millions)
Balance as of January 31, 202412 $185.77 
Exercised(3)173.21 
Balance as of October 31, 20249 $192.60 $965 
Vested or expected to vest9 $192.30 $952 
Exercisable as of October 31, 20247 $181.72 $762 
Restricted stock activity for the nine months ended October 31, 2024 was as follows:
 Restricted Stock Outstanding
 Outstanding
(in millions)		Weighted-Average Grant Date Fair ValueAggregate
Intrinsic
Value (in millions)
Balance as of January 31, 202428 $202.95 
Granted - restricted stock units and awards11 301.35 
Granted - performance-based stock units1 290.64 
Canceled(2)223.64 
Vested and converted to shares(10)201.53 
Balance as of October 31, 202428 $245.96 $8,181 
Expected to vest24 $7,051 
The aggregate expected stock-based compensation expense remaining to be recognized as of October 31, 2024 was as follows (in millions):
Fiscal Period:
Remaining three months of fiscal 2025$844 
Fiscal 20262,536 
Fiscal 20271,697 
Fiscal 20281,057 
Fiscal 2029151 
Total stock-based compensation expense$6,285 
The aggregate expected stock-based compensation expense remaining to be recognized reflects only outstanding stock awards as of October 31, 2024 and assumes no forfeiture activity and no changes in the expected level of attainment of performance share grants based on the Company’s financial performance relative to certain targets.
Share Repurchase Program
In August 2022, the Board of Directors authorized a program to repurchase up to $10.0 billion of the Company’s common stock (the “Share Repurchase Program”). In February 2023, the Board of Directors authorized an additional $10.0 billion in repurchases under the Share Repurchase Program. In February 2024, the Board of Directors authorized an additional $10.0 billion in repurchases under the Share Repurchase Program for an aggregate total authorization of $30.0 billion. The Share Repurchase Program does not have a fixed expiration date and does not obligate the Company to acquire any specific number of shares. Under the Share Repurchase Program, shares of common stock may be repurchased using a variety of methods, including privately negotiated and or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as part of accelerated share repurchases and other methods. The timing, manner, price and amount of any repurchases are determined by the Company in its discretion and depend on a variety of factors, including legal requirements, price and economic and market conditions. The Company accounts for treasury stock under the cost method.
The Company repurchased the following under its Share Repurchase Program (in millions, except average price per share):
20242023
SharesAverage price per shareAmountSharesAverage price per shareAmount
Three months ended April 307 $293.00 $2,168 11 $188.17 $2,143 
Three months ended July 3118 $246.14 $4,288 9 $211.83 $1,913 
Three months ended October 315 $257.00 $1,228 9 $209.33 $1,924 
All repurchases were made in open market transactions. As of October 31, 2024, the Company was authorized to purchase a remaining $10.6 billion of its common stock under the Share Repurchase Program.
Dividends
The Company announced the following dividends (in millions, except dividend per share):
Record DatePayment DateDividend per ShareAmount
March 14, 2024April 11, 2024$0.40 $388 
July 9, 2024July 25, 2024$0.40 $388 
September 18, 2024October 8, 2024$0.40 $385 
v3.24.3
Income Taxes
 9 Months Ended
Oct. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Effective Tax Rate
The Company computes its year-to-date provision for income taxes by applying the estimated annual effective tax rate to year-to-date pretax income or loss and adjusts the provision for discrete tax items recorded in the period. For the nine months ended October 31, 2024, the Company reported a tax provision of $961 million on pretax income of $5.5 billion, which resulted in an effective tax rate of 18 percent. The Company’s effective tax rate differed from the U.S. statutory rate of 21 percent primarily due to research and development credits, the foreign-derived intangible income deduction, and excess tax benefits from stock-based compensation.
For the nine months ended October 31, 2023, the Company reported a tax provision of $615 million on pretax income of $3.3 billion, which resulted in an effective tax rate of 19 percent. The Company’s effective tax rate differed from the U.S. statutory rate of 21 percent primarily due to discrete benefits from research and development credits, foreign tax credits attributable to the IRS Notice 2023-55, and certain adjustments resulted from a transfer pricing agreement in a foreign tax jurisdiction, partially offset by profitable jurisdictions outside of the United States subject to tax rates greater than 21 percent and withholding taxes.
Unrecognized Tax Benefits and Other Considerations
The Company records liabilities related to its uncertain tax positions. Tax positions for the Company and its subsidiaries are subject to income tax audits by multiple tax jurisdictions throughout the world. Certain prior year tax returns are currently being examined by various taxing authorities in countries including the United States, Germany, France, Israel, and India. The Company believes that it has provided adequate reserves for its income tax uncertainties in all open tax years. As the outcome of the tax audits cannot be predicted with certainty, if any issues arising in the Company’s tax audits progress in a manner inconsistent with management's expectations, the Company could adjust its provision for income taxes in the future. In addition, the Company anticipates it is reasonably possible that an insignificant decrease of its unrecognized tax benefits may occur in the next 12 months, as the applicable statutes of limitations lapse, ongoing examinations are completed, or tax positions meet the conditions of being effectively settled.
v3.24.3
Net Income Per Share
 9 Months Ended
Oct. 31, 2024
Earnings Per Share [Abstract]  
Net Income Per Share Net Income Per Share
Basic net income per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding for the fiscal period. Diluted net income per share is computed by giving effect to all potential weighted average dilutive common stock, including options and restricted stock units. The dilutive effect of outstanding awards is reflected in diluted net income per share by application of the treasury stock method.
A reconciliation of the denominator used in the calculation of basic and diluted net income per share is as follows (in millions):
3Three Months Ended October 31,Nine Months Ended October 31,
 2024202320242023
Numerator:
Net income$1,527 $1,224 $4,489 $2,690 
Denominator:
Weighted-average shares outstanding for basic net income per share956 972 963 976 
Effect of dilutive securities:
Employee stock awards9 9 12 9 
Weighted-average shares outstanding for diluted net income per share965 981 975 985 
The weighted-average number of shares outstanding used in the computation of diluted net income per share does not include the effect of the following potentially outstanding common stock. The effects of these potentially outstanding shares were not included in the calculation of diluted net income per share because the effect would have been anti-dilutive (in millions):
 Three Months Ended October 31,Nine Months Ended October 31,
 2024202320242023
Employee stock awards10 12 9 16 
v3.24.3
Legal Proceedings and Claims
 9 Months Ended
Oct. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Legal Proceedings and Claims Legal Proceedings and Claims
In the ordinary course of business, the Company is or may be involved in various legal or regulatory proceedings, claims or purported class actions related to alleged infringement of third-party patents and other intellectual property rights, commercial, corporate and securities, labor and employment, wage and hour and other claims. The Company has been, and may in the future be, put on notice or sued by third parties for alleged infringement of their proprietary rights, including patent infringement.
In general, the resolution of a legal matter could prevent the Company from offering its service to others, could be material to the Company’s financial condition or cash flows, or both, or could otherwise adversely affect the Company’s reputation and future operating results.
The Company makes a provision for a liability relating to legal matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. The outcomes of legal proceedings and other contingencies are, however, inherently unpredictable and subject to significant uncertainties. At this time, the Company is not able to reasonably estimate the amount or range of possible losses in excess of any amounts accrued, including losses that could arise as a result of application of non-monetary remedies, with respect to the contingencies it faces, and the Company’s estimates may not prove to be accurate.
In management’s opinion, resolution of all current matters, including those described below, is not expected to have a material adverse impact on the Company’s financial statements. However, depending on the nature and timing of any such dispute, payment or other contingency, the resolution of a matter could materially affect the Company’s current or future results of operations or cash flows, or both, in a particular quarter.
Slack Litigation
Beginning in September 2019, seven purported class action lawsuits were filed against Slack, its directors, certain of its officers and certain investment funds associated with certain of its directors, each alleging violations of securities laws in connection with Slack’s registration statement on Form S-1 (the “Registration Statement”) filed with the SEC. All but one of these actions were filed in the Superior Court of California for the County of San Mateo, though one plaintiff originally filed in the County of San Francisco before refiling in the County of San Mateo (and the original San Francisco action was dismissed). The remaining action was filed in the U.S. District Court for the Northern District of California (the “Federal Action”). In the Federal Action, captioned Dennee v. Slack Technologies, Inc., Case No. 3:19-CV-05857-SI, Slack and the other defendants filed a motion to dismiss the complaint in January 2020. In April 2020, the court granted in part and denied in part the motion to dismiss. In May 2020, Slack and the other defendants filed a motion to certify the court’s order for interlocutory appeal, which the court granted. Slack and the other defendants filed a petition for permission to appeal the district court’s order to the Ninth Circuit Court of Appeals, which was granted in July 2020. Oral argument was heard in May 2021. On September 20, 2021, the
Ninth Circuit affirmed the district court’s ruling. Slack filed a petition for rehearing with the Ninth Circuit on November 3, 2021, which was denied on May 2, 2022. Slack filed a petition for a writ of certiorari with the U.S. Supreme Court on August 31, 2022, which was granted on December 13, 2022. On June 1, 2023, the Supreme Court issued a unanimous decision vacating the Ninth Circuit’s decision and remanded for further proceedings. The Ninth Circuit ordered the parties to submit additional briefing in light of the Supreme Court’s decision. That briefing has concluded, and the parties await rulings from the Ninth Circuit. The state court actions were consolidated in November 2019, and the consolidated action is captioned In re Slack Technologies, Inc. Shareholder Litigation, Lead Case No. 19CIV05370 (the “State Court Action”). An additional state court action was filed in San Mateo County in June 2020 but was consolidated with the State Court Action in July 2020. Slack and the other defendants filed demurrers to the complaint in the State Court Action in February 2020. In August 2020, the court sustained in part and overruled in part the demurrers, and granted plaintiffs leave to file an amended complaint, which they filed in October 2020. Slack and the other defendants answered the complaint in November 2020. Plaintiffs filed a motion for class certification on October 21, 2021, which remains pending. On October 26, 2022, the court stayed the State Court Action pending resolution of Slack’s petition for a writ of certiorari in the Federal Action. The State Court Action remains stayed pending resolution of the appellate proceedings in the Federal Action. The Federal Action and the State Court Action seek unspecified monetary damages and other relief on behalf of investors who purchased Slack’s Class A common stock issued pursuant and/or traceable to the Registration Statement.
v3.24.3
Subsequent Events
 9 Months Ended
Oct. 31, 2024
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
In November 2024, the Company acquired all outstanding stock of Zoomin Software Ltd. (“Zoomin”), a data management company. Prior to the acquisition, the Company owned less than ten percent of the outstanding stock of Zoomin. The total consideration for the remaining shares of Zoomin was approximately $344 million in cash, subject to customary purchase price adjustments.
In November 2024, the Company acquired all outstanding stock of Own Data Company Ltd. (“Own”), a leading provider of data protection and data management solutions. Prior to the acquisition, the Company owned approximately ten percent of the outstanding stock of Own. The total consideration for the remaining shares of Own was approximately $1.9 billion in cash, subject to customary purchase price adjustments.
v3.24.3
Pay vs Performance Disclosure - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Oct. 31, 2024
Jul. 31, 2024
Apr. 30, 2024
Oct. 31, 2023
Jul. 31, 2023
Apr. 30, 2023
Oct. 31, 2024
Oct. 31, 2023
Pay vs Performance Disclosure                
Net income $ 1,527 $ 1,429 $ 1,533 $ 1,224 $ 1,267 $ 199 $ 4,489 $ 2,690
v3.24.3
Insider Trading Arrangements
 3 Months Ended 9 Months Ended
Oct. 31, 2024
shares
Oct. 31, 2024
shares
Trading Arrangements, by Individual    
Non-Rule 10b5-1 Arrangement Adopted false  
Rule 10b5-1 Arrangement Terminated false  
Non-Rule 10b5-1 Arrangement Terminated false  
Srinivas Tallapragada [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement   On September 23, 2024, Srinivas Tallapragada, President and Chief Engineering Officer, adopted a Rule 10b5-1 trading arrangement intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 193,219 shares of the Company’s common stock, subject to certain conditions, through June 30, 2025 (or the date all shares are sold under the arrangement, if earlier).
Name Srinivas Tallapragada  
Title President and Chief Engineering Officer  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date September 23, 2024  
Expiration Date June 30, 2025  
Arrangement Duration 280 days  
Aggregate Available 193,219 193,219
Amy Weaver [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement   On September 24, 2024, Amy Weaver, President and Chief Financial Officer, adopted a Rule 10b5-1 trading arrangement intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 55,993 shares of the Company’s common stock, subject to certain conditions, through April 30, 2025 (or the date all shares are sold under the arrangement, if earlier).
Name Amy Weaver  
Title resident and Chief Financial Officer  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date September 24, 2024  
Expiration Date April 30, 2025  
Arrangement Duration 218 days  
Aggregate Available 55,993 55,993
v3.24.3
Summary of Business and Significant Accounting Policies (Policies)
 9 Months Ended
Oct. 31, 2024
Accounting Policies [Abstract]  
Fiscal Year
Fiscal Year
The Company’s fiscal year ends on January 31. References to fiscal 2025, for example, refer to the fiscal year ending January 31, 2025.
Basis of Presentation
Basis of Presentation
The accompanying condensed consolidated balance sheet as of October 31, 2024 and the condensed consolidated statements of operations, comprehensive income, stockholders' equity and cash flows for the three and nine months ended October 31, 2024 and 2023, respectively, are unaudited.
These financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the financial information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of the Company’s management, the unaudited condensed consolidated financial statements include all adjustments necessary for the fair presentation of the Company’s balance sheet as of October 31, 2024 and its results of operations, including its comprehensive income, stockholders' equity and cash flows for the three and nine months ended October 31, 2024 and 2023. All adjustments are of a normal recurring nature. The results for the three and nine months ended October 31, 2024 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending January 31, 2025.
These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2024, filed with the Securities and Exchange Commission (the “SEC”) on March 6, 2024.
Use of Estimates
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the Company’s condensed consolidated financial statements and notes thereto.
Significant estimates and assumptions made by management include the determination of:
•the standalone selling price (“SSP”) of performance obligations for revenue contracts with multiple performance obligations;
•the valuation of privately-held strategic investments;
•the fair value of assets acquired and liabilities assumed for business combinations;
•the recognition, measurement and valuation of current and deferred income taxes and uncertain tax positions;
•the useful lives of intangible assets; and
•the fair value of certain stock awards issued.
Actual results could differ materially from these estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, which forms the basis for making judgments about the carrying values of assets and liabilities as well as income and expenses to be recognized.
Principles of Consolidation
Principles of Consolidation
The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
Segments
Segments
The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance. Over the past few years, the Company has completed a number of acquisitions which have allowed the Company to expand its offerings, presence and reach in various market segments of the enterprise cloud computing market. While the Company has offerings in multiple enterprise cloud computing market segments, including as a result of the Company's acquisitions, and operates in multiple countries, the Company’s business operates in one operating segment because most of the Company's service offerings operate on the Salesforce platform and are deployed in a nearly identical manner, and the Company’s CODM evaluates the Company’s financial information and resources, and assesses the performance of these resources, on a consolidated basis.
Concentrations of Credit Risk, Significant Customers and Investments
Concentrations of Credit Risk, Significant Customers and Investments
The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities and accounts receivable. The Company monitors and manages the overall exposure of its cash balances to individual financial institutions on an ongoing basis. The Company’s marketable securities portfolio consists primarily of investment-grade securities and the Company’s policies limit the amount of credit exposure to any one issuer. The Company does not require collateral for accounts receivable. The Company maintains an allowance for its doubtful accounts receivable for estimated credit losses. This allowance is based upon historical loss patterns, the number of days that billings are past due, an evaluation of the potential risk of loss associated with delinquent accounts and current market conditions and reasonable and supportable forecasts of future economic conditions to inform adjustments to historical loss patterns. The Company records the allowance against bad debt expense through the condensed consolidated statements of operations, included in general and administrative expense, up to the amount of revenues recognized to date. Any incremental allowance is recorded as an offset to unearned revenue on the condensed consolidated balance sheets. Receivables are written off and charged against the recorded allowance when the Company has exhausted collection efforts without success.
Revenue Recognition
Revenue Recognition
The Company derives its revenues from two sources: (1) subscription and support revenues and (2) professional services and other revenues. Subscription and support revenues include subscription fees from customers accessing the Company’s enterprise cloud computing services (collectively, “Cloud Services”), software license revenues from the sales of term software licenses and support revenues from the sales of support and updates beyond the basic subscription or software license sales. Professional services and other revenues include professional and advisory services for process mapping, project management and implementation services and training services.
Revenue is recognized upon transfer of control of promised products and services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. If the consideration promised in a contract includes a variable amount, for example, overage fees, contingent fees or service level penalties, the Company includes an estimate of the amount it expects to receive for the total transaction price if it is probable that a significant reversal of cumulative revenue recognized will not occur.
The Company determines the amount of revenue to be recognized through the application of the following steps:
•identification of the contract, or contracts, with a customer;
•identification of the performance obligations in the contract;
•determination of the transaction price;
•allocation of the transaction price to the performance obligations in the contract; and
•recognition of revenue when or as the Company satisfies the performance obligations.
Subscription and Support Revenues
Subscription and support revenues are comprised of fees that provide customers with access to Cloud Services, software licenses and related support and updates during the term of the arrangement.
Cloud Services allow customers to use the Company's multi-tenant software without taking possession of the software. Revenue is generally recognized ratably over the contract term. Substantially all of the Company’s subscription service arrangements are noncancellable and do not contain refund-type provisions.
Subscription and support revenues also include revenues associated with term software licenses that provide the customer with a right to use the software as it exists when made available. Revenues from term software licenses are generally recognized at the point in time when the software is made available to the customer. Revenue from software support and updates is recognized as the support and updates are provided, which is generally ratably over the contract term.
The Company typically invoices its customers annually and its payment terms provide that customers pay within 30 days of invoice. Amounts that have been invoiced are recorded in accounts receivable and in unearned revenue or revenue, depending on whether transfer of control to customers has occurred.
Professional Services and Other Revenues
The Company’s professional services contracts are either on a time and materials, fixed price or subscription basis. These revenues are recognized as the services are rendered for time and materials contracts, on a proportional performance basis for fixed price contracts or ratably over the contract term for subscription professional services contracts. Other revenues consist primarily of training revenues recognized as such services are performed.
Significant Judgments - Contracts with Multiple Performance Obligations
The Company enters into contracts with its customers that may include promises to transfer multiple performance obligations such as Cloud Services, software licenses, support and updates and professional services. A performance obligation is a promise in a contract with a customer to transfer products or services that are concluded to be distinct. Determining whether products and services are distinct performance obligations that should be accounted for separately or combined as one unit of accounting may require significant judgment.
Cloud Services, software licenses and support and updates services are generally concluded to be distinct because such offerings are often sold separately. In determining whether professional services are distinct, the Company considers the following factors for each professional services agreement: availability of the services from other vendors, the nature of the professional services, the timing of when the professional services contract was signed in comparison to the subscription start date and the contractual dependence of the service on the customer’s satisfaction with the professional services work. To date, the Company has concluded that professional services included in contracts with multiple performance obligations are distinct.
The Company allocates the transaction price to each performance obligation on a relative SSP basis. The SSP is the price at which the Company would sell a promised product or service separately to a customer. Judgment is required to determine the SSP for each distinct performance obligation.
The Company determines SSP by considering its overall pricing objectives and market conditions. Significant pricing practices taken into consideration include the Company’s discounting practices, the size and volume of the Company’s transactions, the customer demographic, the geographic area where services are sold, price lists, the Company's go-to-market strategy, historical and current sales and contract prices. In instances where the Company does not sell or price a product or service separately, the Company maximizes the use of observable inputs by using information that may include market conditions. As the Company’s go-to-market strategies evolve, the Company may modify its pricing practices in the future, which could result in changes to SSP.
In certain cases, the Company is able to establish SSP based on observable prices of products or services sold or priced separately in comparable circumstances to similar customers. The Company uses a single amount to estimate SSP when indicated by the distribution of its observable prices.
Alternatively, the Company uses a range of amounts to estimate SSP when the pricing practices or distribution of the observable prices are highly variable. The Company typically has more than one SSP for individual products and services due to the stratification of those products and services by customer size and geography.
Costs Capitalized to Obtain Revenue Contracts
The Company capitalizes incremental costs of obtaining revenue contracts related to noncancellable Cloud Services subscription, ongoing Cloud Services support and license support and updates. For contracts with term software licenses where revenue is recognized upfront when the software is made available to the customer, costs allocable to those licenses are expensed as they are incurred. Capitalized amounts consist primarily of sales commissions paid to the Company’s direct sales force. Capitalized amounts also include (1) amounts paid to employees other than the direct sales force who earn incentive
payouts under annual compensation plans that are tied to the value of contracts acquired, (2) commissions paid to employees upon renewals of subscription and support contracts, (3) the associated payroll taxes and fringe benefit costs associated with the payments to the Company’s employees and (4) to a lesser extent, success fees paid to partners in emerging markets where the Company has a limited presence.
Costs capitalized related to new revenue contracts are amortized on a straight-line basis over four years, which is longer than the typical initial contract period, but reflects the estimated average period of benefit, including expected contract renewals. In arriving at this average period of benefit, the Company evaluates both qualitative and quantitative factors which included the estimated life cycles of its offerings and its customer attrition. Additionally, the Company amortizes capitalized costs for renewals and success fees paid to partners over two years.
The capitalized amounts are recoverable through future revenue streams under all noncancellable customer contracts. The Company periodically evaluates whether there have been any changes in its business, the market conditions in which it operates or other events which would indicate that its amortization period should be changed or if there are potential indicators of impairment.
Amortization of capitalized costs to obtain revenue contracts is included in sales and marketing expense in the accompanying condensed consolidated statements of operations.
Cash and Cash Equivalents
Cash and Cash Equivalents
The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are stated at fair value.
Marketable Securities
Marketable Securities
The Company considers all of its marketable debt securities as available for use in current operations, including those with maturity dates beyond one year, and therefore classifies these securities within current assets on the condensed consolidated balance sheets. Securities are classified as available for sale and are carried at fair value, with the change in unrealized gains and losses, net of tax, reported as a separate component on the condensed consolidated statements of comprehensive income until realized. Fair value is determined based on quoted market rates when observable or utilizing data points that are observable, such as quoted prices, interest rates and yield curves. Securities with an amortized cost basis in excess of estimated fair value are assessed to determine what amount of the excess, if any, is caused by expected credit losses. Expected credit losses on securities are recognized in other income on the condensed consolidated statements of operations and any remaining unrealized losses, net of taxes, are included in accumulated other comprehensive loss in stockholders' equity. For the purposes of computing realized and unrealized gains and losses, the cost of securities sold is based on the specific-identification method. Interest on securities classified as available for sale is included as a component of investment income within other income on the condensed consolidated statements of operations.
Strategic Investments
Strategic Investments
The Company holds strategic investments in privately held debt and equity securities and publicly held equity securities in which the Company does not have a controlling interest.
Privately held equity securities where the Company lacks a controlling financial interest but does exercise significant influence are accounted for under the equity method. Privately held equity securities not accounted for under the equity method are recorded at cost and adjusted only for observable transactions for same or similar investments of the same issuer or impairment events (referred to as the measurement alternative). All gains and losses on privately held equity securities, realized and unrealized, are recorded through losses on strategic investments, net on the condensed consolidated statements of operations. Privately held debt securities are recorded at fair value with changes in fair value recorded through accumulated other comprehensive loss on the condensed consolidated balance sheets. Other privately held investments not classified as debt or equity securities are recorded at cost and adjusted for impairment events, with any associated gains and losses recorded through losses on strategic investments, net on the consolidated statements of operations.
Valuations of privately held securities are inherently complex and require judgment due to the lack of readily available market data. In determining the estimated fair value of its strategic investments in privately held companies, the Company utilizes the most recent data available to the Company. The Company assesses its privately held strategic investments quarterly for impairment. The Company’s impairment analysis encompasses an assessment of both qualitative and quantitative factors, including the investee's financial metrics, market acceptance of the investee's product or technology and the rate at which the investee is using its cash. If the investment is considered impaired, the Company estimates the fair value of the investment and recognizes any resulting impairment through the condensed consolidated statements of operations.
Publicly held equity securities are measured at fair value with changes recorded through losses on strategic investments, net on the condensed consolidated statements of operations.
Fair Value Measurement
Fair Value Measurement
The Company measures its cash and cash equivalents, marketable securities, publicly held equity securities and foreign currency derivative contracts at fair value. In addition, the Company measures certain of its strategic investments, including its privately held debt and equity securities, at fair value on a nonrecurring basis when there has been an observable price change in a same or similar security or an impairment event.
Derivative Financial Instruments
Derivative Financial Instruments
The Company enters into foreign currency derivative contracts with financial institutions to reduce foreign exchange risk associated with intercompany transactions and other monetary assets or liabilities denominated in currencies other than the functional currency of a subsidiary. The Company uses forward currency derivative contracts, which are not designated as hedging instruments, to minimize the Company’s exposure to balances primarily denominated in the Euro, British Pound Sterling, Canadian Dollar, Australian Dollar, Brazilian Real and Japanese Yen. The Company’s derivative financial instruments program is not designated for trading or speculative purposes. The Company generally enters into master netting arrangements with the financial institutions with which it contracts for such derivatives, which permit net settlement of transactions with the same counterparty, thereby reducing risk of credit-related losses from a financial institutions' nonperformance. While the contract or notional amount is often used to express the volume of foreign currency derivative contracts, the amounts potentially subject to credit risk are generally limited to the amounts, if any, by which the counterparties’ obligations under the agreements exceed the obligations of the Company to the counterparties. The notional amount of outstanding foreign currency derivative contracts as of October 31, 2024 and January 31, 2024 was $9.4 billion and $8.6 billion, respectively.
Outstanding foreign currency derivative contracts are recorded at fair value on the condensed consolidated balance sheets. Unrealized gains or losses due to changes in the fair value of these derivative contracts, as well as realized gains or losses from their net settlement, are recognized as other income in the condensed consolidated statements of operations consistent with the offsetting gains or losses resulting from the remeasurement or settlement of the underlying foreign currency denominated receivables and payables.
Property and Equipment
Property and Equipment
Property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful lives of those assets as follows:
Buildings and building improvements
10 to 40 years
Computers, equipment and software
3 to 5 years
Furniture and fixtures5 years
Leasehold improvements
Shorter of the estimated lease term or 10 years
The Company estimates the useful lives of property and equipment upon initial recognition and periodically evaluates the useful lives and whether events or changes in circumstances warrant a revision to the useful lives.
When assets are retired or otherwise disposed of, the cost and accumulated depreciation and amortization are removed from their respective accounts and any loss on such retirement is reflected in operating expenses.
Leases
Leases
The Company determines if an arrangement is a lease at inception and classifies its leases at commencement. Operating leases are included in operating lease right-of-use (“ROU”) assets and current and noncurrent operating lease liabilities on the Company’s condensed consolidated balance sheets. Assets (also referred to as ROU assets) and liabilities recognized from finance leases are included in property and equipment, accrued expenses and other liabilities and other noncurrent liabilities, respectively, on the Company’s condensed consolidated balance sheets. ROU assets represent the Company's right to use an underlying asset for the lease term. The corresponding lease liabilities represent its obligation to make lease payments arising from the lease. The Company does not recognize ROU assets or lease liabilities for leases with a term of 12 months or less for any asset classes.
Lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement, net of any future tenant incentives. The Company has lease agreements which contain both lease and non-lease components, which it has elected to combine for all asset classes. As such, minimum lease payments include fixed payments for non-lease components within a lease agreement but exclude variable lease payments not dependent on an index or rate, such as common area maintenance, operating expenses, utilities, or other costs that are subject to fluctuation from period to period. The Company’s lease terms may include options to extend or terminate the lease. Periods beyond the noncancellable term of the lease are included in the measurement of the lease liability only when it is reasonably certain that the Company will exercise the associated extension option or waive the termination option. The Company reassesses the lease term if and when a significant
event or change in circumstances occurs within the control of the Company. As most of the Company’s leases do not provide an implicit rate, the net present value of future minimum lease payments is determined using the Company’s incremental borrowing rate. The Company's incremental borrowing rate is an estimate of the interest rate the Company would have to pay to borrow on a collateralized basis with similar terms and payments, in the economic environment where the leased asset is located.
The lease ROU asset is recognized based on the lease liability, adjusted for any rent payments or initial direct costs incurred or tenant incentives received prior to commencement.
Lease expense for operating leases, which includes amortization expense of ROU assets, is recognized on a straight-line basis over the lease term. Amortization expense of finance lease ROU assets is recognized on a straight-line basis over the lease term and interest expense for finance lease liabilities is recognized based on the incremental borrowing rate. Expense for variable lease payments is recognized as incurred.
On the lease commencement date, the Company also establishes assets and liabilities for the present value of estimated future costs to retire long-lived assets at the termination or expiration of a lease. Such assets are included in property and equipment, net and are amortized over the lease term.
The Company has entered into subleases or has made decisions and taken actions to exit and sublease certain unoccupied leased office space. Similar to other long-lived assets discussed below, management tests ROU assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. For leased assets, such circumstances would include the decision to leave a leased facility prior to the end of the minimum lease term or subleases for which estimated cash flows do not fully cover the costs of the associated lease.
Intangible Assets Acquired through Business Combinations
Intangible Assets Acquired through Business Combinations
Intangible assets are amortized over their estimated useful lives. Each period, the Company evaluates the estimated remaining useful life of its intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization.
Impairment Assessment
Impairment Assessment
The Company evaluates intangible assets and other long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable, including, but not limited to, significant adverse changes in business climate, market conditions or other events that indicate an asset's carrying amount may not be recoverable. Recoverability of these assets is measured by comparing the carrying amount of each asset group to the future undiscounted cash flows the asset is expected to generate. If the undiscounted cash flows used in the test for recoverability are less than the carrying amount of these assets, the carrying amount of such assets is reduced to fair value.
The Company evaluates and tests the recoverability of its goodwill for impairment annually during its fourth quarter of each fiscal year or more often if and when circumstances indicate that goodwill may not be recoverable.
Business Combinations
Business Combinations
The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The Company’s estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions, tax-related valuation allowances and pre-acquisition contingencies are initially recorded in connection with a business combination as of the acquisition date. The Company continues to collect information and reevaluates these estimates and assumptions quarterly and records any adjustments to the Company’s preliminary estimates to goodwill provided that the Company is within the measurement period. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s condensed consolidated statements of operations.
In the event the Company acquires an entity with which the Company has a preexisting relationship, the Company will generally recognize a gain or loss to settle that relationship as of the acquisition date within operating income on the condensed consolidated statements of operations. In the event that the Company acquires an entity in which the Company previously held a strategic investment, the difference between the fair value of the shares as of the date of the acquisition and the carrying value of the strategic investment is recorded as a gain or loss and recorded within losses on strategic investments, net in the condensed consolidated statements of operations.
Restructuring
Restructuring
The Company generally recognizes employee severance costs when payments are probable and amounts are estimable or when notification occurs, depending on the region an employee works. Costs related to contracts without future benefit or contract termination are recognized at the earlier of the contract termination or the cease-use dates. Other exit-related costs are recognized as incurred.
Stock-Based Compensation Expense
Stock-Based Compensation Expense
Stock-based compensation expense is measured based on grant date at fair value using the grant date closing stock price for restricted stock units and restricted stock awards and using the Black-Scholes option pricing model for stock options. The Company recognizes stock-based compensation expense related to restricted stock units, restricted stock awards, and stock options on a straight-line basis, net of estimated forfeitures, over the requisite service period of the awards, which is generally the vesting term of four years. The estimated forfeiture rate applied is based on historical forfeiture rates.
The Company grants performance share awards to executive officers and other members of senior management, which may include a market condition, a performance condition, or both. Stock-based compensation expense related to awards with a market condition are measured at fair value using a Monte Carlo simulation model and the expense related to these awards is recognized on a graded-vesting basis, net of estimated forfeitures, over the requisite service period of the awards, which is generally the vesting term. Stock-based compensation expense related to awards with a performance condition are measured based on the grant date closing stock price and the expense related to these awards is recognized based on the requisite service period elapsed, as well as the probability of achievement and estimated attainment of the performance condition as of the end of our reporting period.
Stock-based compensation expense related to the Company’s Amended and Restated 2004 Employee Stock Purchase Plan (“ESPP” or “2004 Employee Stock Purchase Plan”) is measured based on grant date at fair value using the Black-Scholes option pricing model. The Company recognizes stock-based compensation expense related to shares issued pursuant to the 2004 Employee Stock Purchase Plan on a straight-line basis over the offering period, which is 12 months. The ESPP allows employees to purchase shares of the Company's common stock at a 15 percent discount from the lower of the Company’s stock price on (i) the first day of the offering period or on (ii) the last day of the purchase period. The ESPP also allows employees to reduce their percentage election once during a six-month purchase period (December 15 and June 15 of each fiscal year), but not to increase that election until the next one-year offering period. The ESPP includes a reset provision for the purchase price if the stock price on the purchase date is less than the stock price on the offering date.
The Company, at times, grants unvested restricted shares to employee stockholders of certain acquired companies in lieu of cash consideration. These awards are generally subject to continued post-acquisition employment. Therefore, the Company accounts for them as post-acquisition stock-based compensation expense. The Company recognizes stock-based compensation expense equal to the grant date fair value of the restricted stock awards, based on the closing stock price on grant date, on a straight-line basis over the requisite service period of the awards, which is generally four years.
Income Taxes
Income Taxes
The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on temporary differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax laws is recognized in the condensed consolidated statements of operations in the period that includes the enactment date.
The Company’s tax positions are subject to income tax audits by multiple tax jurisdictions throughout the world. The Company recognizes the tax benefit of an uncertain tax position only if it is more likely than not that the position is sustainable upon examination by the taxing authority, solely based on its technical merits. The tax benefit recognized is measured as the largest amount of benefit which is greater than 50 percent likely to be realized upon settlement with the taxing authority. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in the income tax provision.
Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more likely than not expected to be realized based on the weighting of positive and negative evidence. Future realization of deferred tax assets ultimately depends on the existence of sufficient taxable income of the appropriate character (for example, ordinary income or capital gain) within the carryback or carryforward periods available under the applicable tax law. The Company regularly reviews the deferred tax assets for recoverability based on historical taxable income, projected future taxable income, the expected timing of the reversals of existing temporary differences and tax planning strategies. The Company’s judgments regarding future profitability may change due to many factors, including future market conditions and the ability to successfully execute its business plans. Should there be a change in the ability to recover deferred tax assets, the tax provision would increase or decrease in the period in which the assessment is changed.
Foreign Currency Translation
Foreign Currency Translation
The functional currency of the Company’s major foreign subsidiaries is generally the local currency. All assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenues and expenses are translated at the average exchange rate during the period. Equity transactions are translated using historical exchange rates. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are recorded as a separate component on the condensed consolidated statements of comprehensive income. Foreign currency transaction gains and losses are included in other income in the condensed consolidated statements of operations.
Warranties and Indemnification
Warranties and Indemnification
The Company’s arrangements generally include certain provisions for indemnifying customers against liabilities if its products or services infringe on a third party’s intellectual property rights. To date, the Company has not incurred any material costs as a result of such obligations and has not accrued any material liabilities related to such obligations in the accompanying condensed consolidated financial statements.
The Company has also agreed to indemnify its directors and executive officers for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by any of these persons in any action or proceeding to which any of those persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by the Company, arising out of that person’s services as the Company’s director or officer or that person’s services provided to any other company or enterprise at the Company’s request. The Company maintains director and officer insurance coverage that would generally enable the Company to recover a portion of any future amounts paid. The Company may also be subject to indemnification obligations by law with respect to the actions of its employees under certain circumstances and in certain jurisdictions.
New Accounting Pronouncements Pending Adoption
New Accounting Pronouncements Pending Adoption
In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), which requires additional operating segment disclosures in annual and interim consolidated financial statements. ASU 2023-07 is effective for annual periods beginning after December 15, 2023 and for interim periods beginning after December 15, 2024 on a retrospective basis, with early adoption permitted. The Company will adopt ASU 2023-07 in the fourth quarter of fiscal year 2025 and does not expect the additional required disclosures to have a material impact on its financial statements.
In December 2023, the FASB issued Accounting Standards Update No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation and modifies other income tax-related disclosures. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 on a retrospective or prospective basis. The Company is evaluating the effect that ASU 2023-09 will have on its financial statement disclosures.
In November 2024, the FASB issued Accounting Standards Update No. 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” (“ASU 2024-03”), which requires disaggregation of certain costs in a separate note to the financial statements, such as the amounts of employee compensation, depreciation and intangible asset amortization, included in each relevant expense caption in annual and interim consolidated financial statements. ASU 2024-03 is effective for annual periods beginning after December 15, 2026 and for interim periods beginning after December 15, 2027 on a retrospective or prospective basis, with early adoption permitted. The Company is evaluating the effect that ASU 2024-03 will have on its financial statement disclosures.
v3.24.3
Summary of Business and Significant Accounting Policies (Tables)
 9 Months Ended
Oct. 31, 2024
Accounting Policies [Abstract]  
Schedule of Property and Equipment Estimated Useful Lives
Property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful lives of those assets as follows:
Buildings and building improvements
10 to 40 years
Computers, equipment and software
3 to 5 years
Furniture and fixtures5 years
Leasehold improvements
Shorter of the estimated lease term or 10 years
v3.24.3
Revenues (Tables)
 9 Months Ended
Oct. 31, 2024
Revenue from Contract with Customer [Abstract]  
Summary of Subscription and Support and Geographic Location Revenue
Subscription and support revenues consisted of the following (in millions):
 Three Months Ended October 31,Nine Months Ended October 31,
 2024202320242023
Sales $2,119 $1,906 $6,188 $5,611 
Service 2,288 2,074 6,727 6,087 
Platform and Other 1,825 1,686 5,329 4,891 
Marketing and Commerce1,334 1,230 3,924 3,638 
Integration and Analytics (1) 1,313 1,245 4,060 3,562 
$8,879 $8,141 $26,228 $23,789 
(1) In the fourth quarter of fiscal 2024, the Company renamed the service offering previously referred to as Data to Integration and Analytics, which includes Mulesoft and Tableau.
Total Revenue by Geographic Locations
Revenues by geographical region consisted of the following (in millions):
 Three Months Ended October 31,Nine Months Ended October 31,
 2024202320242023
Americas$6,220 $5,862 $18,483 $17,113 
Europe2,228 1,998 6,557 5,923 
Asia Pacific996 860 2,862 2,534 
$9,444 $8,720 $27,902 $25,570 
Schedule of Change in Unearned Revenue
The change in unearned revenue was as follows (in millions):
Three Months Ended October 31,Nine Months Ended October 31,
2024202320242023
Unearned revenue, beginning of period$15,222 $14,237 $19,003 $17,376 
Billings and other (1)7,620 6,876 22,158 20,536 
Contribution from contract asset63 167 189 218 
Revenue recognized over time(9,023)(8,249)(26,446)(24,264)
Revenue recognized at a point in time(421)(471)(1,456)(1,306)
Unearned revenue from business combinations11 4 24 4 
Unearned revenue, end of period$13,472 $12,564 $13,472 $12,564 
(1) Other includes, for example, the impact of foreign currency translation.
Summary of Remaining Performance Obligation
Remaining performance obligation consisted of the following (in billions):
 CurrentNoncurrentTotal
As of October 31, 2024$26.4 $26.7 $53.1 
As of January 31, 2024$27.6 $29.3 $56.9 
v3.24.3
Investments (Tables)
 9 Months Ended
Oct. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Schedule of Marketable Securities
At October 31, 2024, marketable securities consisted of the following (in millions):
Amortized
Cost		Unrealized
Gains		Unrealized
Losses		Fair Value
Corporate notes and obligations$2,511 $7 $(25)$2,493 
U.S. treasury securities410 0 (5)405 
Mortgage-backed obligations125 0 (6)119 
Asset-backed securities1,018 2 (4)1,016 
Municipal securities96 0 (1)95 
Commercial paper527 0 0 527 
Covered bonds27 0 (1)26 
Other79 0 0 79 
Total marketable securities$4,793 $9 $(42)$4,760 
At January 31, 2024, marketable securities consisted of the following (in millions):
Amortized
Cost		Unrealized
Gains		Unrealized
Losses		Fair Value
Corporate notes and obligations$3,014 $9 $(45)$2,978 
U.S. treasury securities583 0 (8)575 
Mortgage-backed obligations244 1 (9)236 
Asset-backed securities1,381 5 (7)1,379 
Municipal securities139 0 (3)136 
Commercial paper213 0 0 213 
Covered bonds81 0 (3)78 
Other127 1 (1)127 
Total marketable securities$5,782 $16 $(76)$5,722 
Schedule of Short-Term and Long-Term Marketable Securities
The contractual maturities of the investments classified as marketable securities were as follows (in millions):
 As of
 October 31, 2024January 31, 2024
Due within 1 year$2,019 $2,523 
Due in 1 year through 5 years2,740 3,180 
Due in 5 years through 10 years1 19 
$4,760 $5,722 
Schedules of Strategic Investments
Strategic investments by form and measurement category as of October 31, 2024 were as follows (in millions):
 Measurement Category
 Fair ValueMeasurement AlternativeOtherTotal
Equity securities$72 $4,543 $137 $4,752 
Debt securities and other investments 0 0 93 93 
Balance as of October 31, 2024
$72 $4,543 $230 $4,845 
Strategic investments by form and measurement category as of January 31, 2024 were as follows (in millions):
 Measurement Category
 Fair ValueMeasurement AlternativeOtherTotal
Equity securities$80 $4,557 $130 $4,767 
Debt securities and other investments0 0 81 81 
Balance as of January 31, 2024
$80 $4,557 $211 $4,848 
The components of losses on strategic investments, net were as follows (in millions):
3Three Months Ended October 31,Nine Months Ended October 31,
2024202320242023
Unrealized gains (losses) recognized on publicly traded equity securities, net$8 $(2)$(11)$0 
Unrealized gains recognized on privately held equity securities, net18 14 167 65 
Impairments on privately held equity and debt securities(242)(98)(432)(355)
Unrealized losses, net(216)(86)(276)(290)
Realized gains (losses) on sales of securities, net(1)14 59 48 
Losses on strategic investments, net $(217)$(72)$(217)$(242)
v3.24.3
Fair Value Measurement (Tables)
 9 Months Ended
Oct. 31, 2024
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table presents information about the Company’s assets that were measured at fair value as of October 31, 2024 and indicates the fair value hierarchy of the valuation (in millions):
DescriptionQuoted Prices in
Active Markets
for Identical Assets
(Level 1)		Significant Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Fair Value
Cash equivalents (1):
Time deposits$0 $1,267 $0 $1,267 
Money market mutual funds3,377 0 0 3,377 
Cash equivalent securities 0 1,114 0 1,114 
Marketable securities:
Corporate notes and obligations0 2,493 0 2,493 
U.S. treasury securities0 405 0 405 
Mortgage-backed obligations0 119 0 119 
Asset-backed securities0 1,016 0 1,016 
Municipal securities0 95 0 95 
Commercial paper0 527 0 527 
Covered bonds0 26 0 26 
Other0 79 0 79 
Strategic investments:
Equity securities72 0 0 72 
Total assets$3,449 $7,141 $0 $10,590 
(1) Included in “cash and cash equivalents” in the accompanying condensed consolidated balance sheets in addition to $2.2 billion of cash, as of October 31, 2024.
The following table presents information about the Company’s assets that were measured at fair value as of January 31, 2024 and indicates the fair value hierarchy of the valuation (in millions):
DescriptionQuoted Prices in
Active Markets
for Identical Assets
(Level 1)		Significant Other
Observable Inputs (Level 2)		Significant
Unobservable
Inputs
(Level 3)		Fair Value
Cash equivalents (1):
Time deposits$0 $1,337 $0 $1,337 
Money market mutual funds4,447 0 0 4,447 
Cash equivalent securities0 493 0 493 
Marketable securities:
Corporate notes and obligations0 2,978 0 2,978 
U.S. treasury securities0 575 0 575 
Mortgage-backed obligations0 236 0 236 
Asset-backed securities0 1,379 0 1,379 
Municipal securities0 136 0 136 
Commercial paper0 213 0 213 
Covered bonds0 78 0 78 
Other0 127 0 127 
Strategic investments:
Equity securities80 0 0 80 
Total assets$4,527 $7,552 $0 $12,079 
(1) Included in “cash and cash equivalents” in the accompanying condensed consolidated balance sheets in addition to $2.2 billion of cash, as of January 31, 2024.
v3.24.3
Leases and Other Commitments (Tables)
 9 Months Ended
Oct. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Summary of Maturities of Operating Lease Liabilities
As of October 31, 2024, the maturities of lease liabilities under noncancellable operating and finance leases were as follows (in millions):
Operating Leases Finance Leases
Fiscal Period:
Remaining three months of fiscal 2025$167 $91 
Fiscal 2026637 359 
Fiscal 2027565 246 
Fiscal 2028505 69 
Fiscal 2029415 24 
Thereafter1,080 8 
Total minimum lease payments3,369 797 
Less: Imputed interest(377)(43)
Total$2,992 $754 
Summary of Maturities of Finance Lease Liabilities
As of October 31, 2024, the maturities of lease liabilities under noncancellable operating and finance leases were as follows (in millions):
Operating Leases Finance Leases
Fiscal Period:
Remaining three months of fiscal 2025$167 $91 
Fiscal 2026637 359 
Fiscal 2027565 246 
Fiscal 2028505 69 
Fiscal 2029415 24 
Thereafter1,080 8 
Total minimum lease payments3,369 797 
Less: Imputed interest(377)(43)
Total$2,992 $754 
v3.24.3
Intangible Assets Acquired Through Business Combinations and Goodwill (Tables)
 9 Months Ended
Oct. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Summary of Intangible Assets Acquired From Business Combinations
Intangible assets acquired through business combinations were as follows (in millions):
Intangible Assets, GrossAccumulated AmortizationIntangible Assets, NetWeighted
Average
Remaining Useful Life (Years)
January 31, 2024Additions and retirements, netOctober 31, 2024January 31, 2024Expense and retirements, netOctober 31, 2024January 31, 2024October 31, 2024October 31, 2024
Acquired developed technology$4,624 $102 $4,726 $(3,208)$(600)$(3,808)$1,416 $918 1.6
Customer relationships6,674 8 6,682 (2,985)(632)(3,617)3,689 3,065 4.1
Other (1)303 0 303 (130)(37)(167)173 136 2.7
Total$11,601 $110 $11,711 $(6,323)$(1,269)$(7,592)$5,278 $4,119 3.5
(1) Included in Other are in-place leases, trade names, trademarks and territory rights.
Schedule of Expected Future Amortization Expense for Purchased Intangible Assets
The expected future amortization expense for intangible assets as of October 31, 2024 was as follows (in millions):
Fiscal Period:
Remaining three months of fiscal 2025$353 
Fiscal 20261,392 
Fiscal 20271,024 
Fiscal 2028639 
Fiscal 2029496 
Thereafter215 
Total amortization expense$4,119 
Schedule of Goodwill
The changes in the carrying amounts of goodwill, which is generally not deductible for tax purposes, were as follows (in millions):
Balance as of January 31, 2024$48,620 
Acquisition of Spiff323 
Other acquisitions and adjustments (1)150 
Balance as of October 31, 2024$49,093 
(1) Adjustments include the effect of foreign currency translation
v3.24.3
Debt (Tables)
 9 Months Ended
Oct. 31, 2024
Debt Disclosure [Abstract]  
Schedule of Debt Components
The components of the Company's borrowings were as follows (in millions):
InstrumentDate of IssuanceMaturity DateContractual Interest Rate
Outstanding Principal as of October 31, 2024
Carrying Value as of October 31, 2024Carrying Value as of January 31, 2024
2024 Senior Notes (1)July 2021July 20240.625 %0 0 999 
2028 Senior NotesApril 2018April 20283.70 1,500 1,495 1,495 
2028 Senior Sustainability NotesJuly 2021July 20281.50 1,000 995 994 
2031 Senior NotesJuly 2021July 20311.95 1,500 1,491 1,490 
2041 Senior NotesJuly 2021July 20412.70 1,250 1,236 1,235 
2051 Senior NotesJuly 2021July 20512.90 2,000 1,979 1,978 
2061 Senior NotesJuly 2021July 20613.05 1,250 1,236 1,235 
Total carrying value of debt8,500 8,432 9,426 
Less current portion of debt0 (999)
Total noncurrent debt$8,432 $8,427 
(1) The Company repaid in full the 2024 Senior Notes in the second quarter of fiscal 2025.
Schedule of Future Principal Payments
The contractual future principal payments for all borrowings as of October 31, 2024 were as follows (in millions):
Fiscal Period:
Remaining three months of fiscal 2025$0 
Fiscal 20260 
Fiscal 20270 
Fiscal 20280 
Fiscal 20292,500 
Thereafter6,000 
Total principal outstanding$8,500 
v3.24.3
Restructuring (Tables)
 9 Months Ended
Oct. 31, 2024
Restructuring and Related Activities [Abstract]  
Summary of Restructuring Activities
The following tables summarize the activities related to the Company’s restructuring initiatives for the three and nine months ended October 31, 2024 and 2023 (in millions):
Three Months Ended October 31, 2024Nine Months Ended October 31, 2024
Workforce ReductionOffice Space ReductionsTotalWorkforce ReductionOffice Space ReductionsTotal
Liability, beginning of the period$69 $0 $69 $118 $2 $120 
Charges47 9 56 117 46 163 
Payments(39)0 (39)(156)(2)(158)
Non-cash items0 (9)(9)(2)(46)(48)
Liability, end of the period$77 $0 $77 $77 $0 $77 
Three Months Ended October 31, 2023Nine Months Ended October 31, 2023
Workforce ReductionOffice Space ReductionsTotalWorkforce ReductionOffice Space ReductionsTotal
Liability, beginning of the period$117 $0 $117 $607 $0 $607 
Charges47 8 55 436 379 815 
Payments(103)(25)(128)(963)(27)(990)
Non-cash items0 20 20 (19)(349)(368)
Liability, end of the period$61 $3 $64 $61 $3 $64 
v3.24.3
Stockholders' Equity (Tables)
 9 Months Ended
Oct. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Summary of Share-based Compensation, Stock Options, Activity
Stock option activity for the nine months ended October 31, 2024 was as follows:
 Options Outstanding
 Outstanding
Stock
Options
(in millions)		Weighted-
Average
Exercise Price		Aggregate
Intrinsic Value (in millions)
Balance as of January 31, 202412 $185.77 
Exercised(3)173.21 
Balance as of October 31, 20249 $192.60 $965 
Vested or expected to vest9 $192.30 $952 
Exercisable as of October 31, 20247 $181.72 $762 
Schedule of Restricted Stock Activity
Restricted stock activity for the nine months ended October 31, 2024 was as follows:
 Restricted Stock Outstanding
 Outstanding
(in millions)		Weighted-Average Grant Date Fair ValueAggregate
Intrinsic
Value (in millions)
Balance as of January 31, 202428 $202.95 
Granted - restricted stock units and awards11 301.35 
Granted - performance-based stock units1 290.64 
Canceled(2)223.64 
Vested and converted to shares(10)201.53 
Balance as of October 31, 202428 $245.96 $8,181 
Expected to vest24 $7,051 
Summary of Share-based Payment Arrangement, Expensed and Capitalized, Amount
The aggregate expected stock-based compensation expense remaining to be recognized as of October 31, 2024 was as follows (in millions):
Fiscal Period:
Remaining three months of fiscal 2025$844 
Fiscal 20262,536 
Fiscal 20271,697 
Fiscal 20281,057 
Fiscal 2029151 
Total stock-based compensation expense$6,285 
Summary of Repurchases Under Share Repurchase Program
The Company repurchased the following under its Share Repurchase Program (in millions, except average price per share):
20242023
SharesAverage price per shareAmountSharesAverage price per shareAmount
Three months ended April 307 $293.00 $2,168 11 $188.17 $2,143 
Three months ended July 3118 $246.14 $4,288 9 $211.83 $1,913 
Three months ended October 315 $257.00 $1,228 9 $209.33 $1,924 
Summary of Dividends Declared
The Company announced the following dividends (in millions, except dividend per share):
Record DatePayment DateDividend per ShareAmount
March 14, 2024April 11, 2024$0.40 $388 
July 9, 2024July 25, 2024$0.40 $388 
September 18, 2024October 8, 2024$0.40 $385 
v3.24.3
Net Income Per Share (Tables)
 9 Months Ended
Oct. 31, 2024
Earnings Per Share [Abstract]  
Schedule of Reconciliation of Denominator Used in Calculation of Basic and Diluted Earnings Per Share
A reconciliation of the denominator used in the calculation of basic and diluted net income per share is as follows (in millions):
3Three Months Ended October 31,Nine Months Ended October 31,
 2024202320242023
Numerator:
Net income$1,527 $1,224 $4,489 $2,690 
Denominator:
Weighted-average shares outstanding for basic net income per share956 972 963 976 
Effect of dilutive securities:
Employee stock awards9 9 12 9 
Weighted-average shares outstanding for diluted net income per share965 981 975 985 
Schedule of Shares Excluded From Diluted Earnings Per Share The effects of these potentially outstanding shares were not included in the calculation of diluted net income per share because the effect would have been anti-dilutive (in millions):
 Three Months Ended October 31,Nine Months Ended October 31,
 2024202320242023
Employee stock awards10 12 9 16 
v3.24.3
Summary of Business and Significant Accounting Policies - Narrative (Details)
 3 Months Ended 9 Months Ended
Oct. 31, 2024
USD ($)
Jan. 31, 2024
USD ($)
Oct. 31, 2024
USD ($)
Oct. 31, 2023
USD ($)
Oct. 31, 2024
USD ($)
segment
Oct. 31, 2023
USD ($)
Concentration Risk [Line Items]            
Number of operating segments | segment         1  
Capitalized contract cost, amortization term (in years) 4 years   4 years   4 years  
Capitalized contract cost, renewals and success fees, amortization term (in years)         2 years  
Impairments of costs to obtain revenue contracts     $ 0 $ 0 $ 0 $ 0
Offering period         12 months  
Discount for ESPP         15.00%  
Purchase period         6 months  
Stock options and restricted stock            
Concentration Risk [Line Items]            
Vesting period (in years)         4 years  
Restricted stock            
Concentration Risk [Line Items]            
Award requisite service period         4 years  
Foreign currency derivative contracts | Derivatives not designated as hedging instruments            
Concentration Risk [Line Items]            
Notional amount of foreign currency derivative contracts $ 9,400,000,000 $ 8,600,000,000 $ 9,400,000,000   $ 9,400,000,000  
Assets | Geographic concentration risk | Non-US            
Concentration Risk [Line Items]            
Concentration risk percentage 13.00% 16.00%        
Assets | Geographic concentration risk | Untied States            
Concentration Risk [Line Items]            
Concentration risk percentage 85.00% 82.00%        
Strategic investments | Investment concentration risk | Two privately held investments            
Concentration Risk [Line Items]            
Concentration risk percentage 13.00% 16.00%        
v3.24.3
Summary of Business and Significant Accounting Policies - Schedule of Property and Equipment Estimated Useful Lives (Details)
Oct. 31, 2024
Furniture and fixtures  
Property, Plant and Equipment [Line Items]  
Property and equipment, estimated useful lives 5 years
Minimum | Buildings and building improvements  
Property, Plant and Equipment [Line Items]  
Property and equipment, estimated useful lives 10 years
Minimum | Computers, equipment and software  
Property, Plant and Equipment [Line Items]  
Property and equipment, estimated useful lives 3 years
Maximum | Buildings and building improvements  
Property, Plant and Equipment [Line Items]  
Property and equipment, estimated useful lives 40 years
Maximum | Computers, equipment and software  
Property, Plant and Equipment [Line Items]  
Property and equipment, estimated useful lives 5 years
Maximum | Leasehold improvements  
Property, Plant and Equipment [Line Items]  
Property and equipment, estimated useful lives 10 years
v3.24.3
Revenues - Summary of Subscription and Support and Geographic Location Revenue (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Disaggregation of Revenue [Line Items]        
Total revenues $ 9,444 $ 8,720 $ 27,902 $ 25,570
Americas        
Disaggregation of Revenue [Line Items]        
Total revenues $ 6,220 $ 5,862 $ 18,483 $ 17,113
Untied States | Geographic concentration risk | Revenue        
Disaggregation of Revenue [Line Items]        
Concentration risk percentage 93.00% 93.00% 93.00% 93.00%
Europe        
Disaggregation of Revenue [Line Items]        
Total revenues $ 2,228 $ 1,998 $ 6,557 $ 5,923
Asia Pacific        
Disaggregation of Revenue [Line Items]        
Total revenues 996 860 2,862 2,534
Subscription and support        
Disaggregation of Revenue [Line Items]        
Total revenues 8,879 8,141 26,228 23,789
Sales        
Disaggregation of Revenue [Line Items]        
Total revenues 2,119 1,906 6,188 5,611
Service        
Disaggregation of Revenue [Line Items]        
Total revenues 2,288 2,074 6,727 6,087
Platform and Other        
Disaggregation of Revenue [Line Items]        
Total revenues 1,825 1,686 5,329 4,891
Marketing and Commerce        
Disaggregation of Revenue [Line Items]        
Total revenues 1,334 1,230 3,924 3,638
Integration and Analytics        
Disaggregation of Revenue [Line Items]        
Total revenues $ 1,313 $ 1,245 $ 4,060 $ 3,562
v3.24.3
Revenues - Schedule of Change in Unearned Revenue (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Jan. 31, 2024
Revenue from Contract with Customer [Abstract]          
Customer contract assets $ 948   $ 948   $ 758
Unearned Revenue [Roll Forward]          
Unearned revenue, beginning of period 15,222 $ 14,237 19,003 $ 17,376  
Billings and other 7,620 6,876 22,158 20,536  
Contribution from contract asset 63 167 189 218  
Unearned revenue from business combinations 11 4 24 4  
Unearned revenue, end of period 13,472 12,564 13,472 12,564  
Revenue recognized over time          
Unearned Revenue [Roll Forward]          
Revenue recognized (9,023) (8,249) (26,446) (24,264)  
Revenue recognized at a point in time          
Unearned Revenue [Roll Forward]          
Revenue recognized $ (421) $ (471) $ (1,456) $ (1,306)  
v3.24.3
Revenues - Summary of Remaining Performance Obligation (Details) - USD ($)
$ in Billions
Oct. 31, 2024
Jan. 31, 2024
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Current $ 26.4 $ 27.6
Noncurrent 26.7 29.3
Total $ 53.1 $ 56.9
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-11-01    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Noncurrent remaining performance obligation, recognition period 13 months  
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-11-01    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Noncurrent remaining performance obligation, recognition period 36 months  
v3.24.3
Investments - Schedule of Marketable Securities (Details) - USD ($)
$ in Millions
Oct. 31, 2024
Jan. 31, 2024
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost $ 4,793 $ 5,782
Unrealized Gains 9 16
Unrealized Losses (42) (76)
Fair Value 4,760 5,722
Corporate notes and obligations    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 2,511 3,014
Unrealized Gains 7 9
Unrealized Losses (25) (45)
Fair Value 2,493 2,978
U.S. treasury securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 410 583
Unrealized Gains 0 0
Unrealized Losses (5) (8)
Fair Value 405 575
Mortgage-backed obligations    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 125 244
Unrealized Gains 0 1
Unrealized Losses (6) (9)
Fair Value 119 236
Asset-backed securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 1,018 1,381
Unrealized Gains 2 5
Unrealized Losses (4) (7)
Fair Value 1,016 1,379
Municipal securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 96 139
Unrealized Gains 0 0
Unrealized Losses (1) (3)
Fair Value 95 136
Commercial paper    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 527 213
Unrealized Gains 0 0
Unrealized Losses 0 0
Fair Value 527 213
Covered bonds    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 27 81
Unrealized Gains 0 0
Unrealized Losses (1) (3)
Fair Value 26 78
Other    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 79 127
Unrealized Gains 0 1
Unrealized Losses 0 (1)
Fair Value $ 79 $ 127
v3.24.3
Investments - Schedule of Short-Term and Long-Term Marketable Securities (Details) - USD ($)
$ in Millions
Oct. 31, 2024
Jan. 31, 2024
Investments, Debt and Equity Securities [Abstract]    
Due within 1 year $ 2,019 $ 2,523
Due in 1 year through 5 years 2,740 3,180
Due in 5 years through 10 years 1 19
Fair value of marketable securities $ 4,760 $ 5,722
v3.24.3
Investments - Schedule of Strategic Investments (Details) - USD ($)
$ in Millions
Oct. 31, 2024
Jan. 31, 2024
Investment Holdings [Line Items]    
Strategic investments $ 4,845 $ 4,848
Variable Interest Entity, Not Primary Beneficiary    
Investment Holdings [Line Items]    
Strategic investments 439 382
Equity securities    
Investment Holdings [Line Items]    
Strategic investments 4,752 4,767
Debt securities and other investments    
Investment Holdings [Line Items]    
Strategic investments 93 81
Fair Value    
Investment Holdings [Line Items]    
Strategic investments 72 80
Fair Value | Equity securities    
Investment Holdings [Line Items]    
Strategic investments 72 80
Fair Value | Debt securities and other investments    
Investment Holdings [Line Items]    
Strategic investments 0 0
Measurement Alternative    
Investment Holdings [Line Items]    
Strategic investments 4,543 4,557
Measurement Alternative | Equity securities    
Investment Holdings [Line Items]    
Strategic investments 4,543 4,557
Measurement Alternative | Debt securities and other investments    
Investment Holdings [Line Items]    
Strategic investments 0 0
Other    
Investment Holdings [Line Items]    
Strategic investments 230 211
Other | Equity securities    
Investment Holdings [Line Items]    
Strategic investments 137 130
Other | Debt securities and other investments    
Investment Holdings [Line Items]    
Strategic investments $ 93 $ 81
v3.24.3
Investments - Components of Gains and Losses on Strategic Investments (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Investment Holdings [Line Items]        
Unrealized gains (losses) recognized, net $ (216) $ (86) $ (276) $ (290)
Realized gains (losses) on sales of securities, net (1) 14 59 48
Losses on strategic investments, net (217) (72) (217) (242)
Publicly traded equity securities        
Investment Holdings [Line Items]        
Unrealized gains (losses) recognized, net 8 (2) (11) 0
Privately held equity securities        
Investment Holdings [Line Items]        
Unrealized gains (losses) recognized, net 18 14 167 65
Upward adjustments 22 14 182 65
Downward adjustments 245 98 435 354
Privately held equity and debt securities        
Investment Holdings [Line Items]        
Impairments on privately held equity and debt securities $ (242) $ (98) $ (432) $ (355)
v3.24.3
Fair Value Measurement (Details) - USD ($)
$ in Millions
Oct. 31, 2024
Jan. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities $ 4,760 $ 5,722
Equity securities 72 80
Total assets 10,590 12,079
Corporate notes and obligations    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 2,493 2,978
U.S. treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 405 575
Mortgage-backed obligations    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 119 236
Asset-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 1,016 1,379
Municipal securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 95 136
Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 527 213
Covered bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 26 78
Other    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 79 127
Quoted Prices in Active Markets for Identical Assets (Level 1)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Equity securities 72 80
Total assets 3,449 4,527
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate notes and obligations    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed obligations    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Covered bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Significant Other Observable Inputs (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Equity securities 0 0
Total assets 7,141 7,552
Significant Other Observable Inputs (Level 2) | Corporate notes and obligations    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 2,493 2,978
Significant Other Observable Inputs (Level 2) | U.S. treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 405 575
Significant Other Observable Inputs (Level 2) | Mortgage-backed obligations    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 119 236
Significant Other Observable Inputs (Level 2) | Asset-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 1,016 1,379
Significant Other Observable Inputs (Level 2) | Municipal securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 95 136
Significant Other Observable Inputs (Level 2) | Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 527 213
Significant Other Observable Inputs (Level 2) | Covered bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 26 78
Significant Other Observable Inputs (Level 2) | Other    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 79 127
Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Equity securities 0 0
Total assets 0 0
Significant Unobservable Inputs (Level 3) | Corporate notes and obligations    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Significant Unobservable Inputs (Level 3) | U.S. treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Significant Unobservable Inputs (Level 3) | Mortgage-backed obligations    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Significant Unobservable Inputs (Level 3) | Asset-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Significant Unobservable Inputs (Level 3) | Municipal securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Significant Unobservable Inputs (Level 3) | Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Significant Unobservable Inputs (Level 3) | Covered bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Significant Unobservable Inputs (Level 3) | Other    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Significant Unobservable Inputs (Level 3) | Fair value, non-recurring | Privately held equity securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments, fair value 4,800 4,800
Time deposits | Cash and cash equivalents    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 1,267 1,337
Time deposits | Cash and cash equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
Time deposits | Cash and cash equivalents | Significant Other Observable Inputs (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 1,267 1,337
Time deposits | Cash and cash equivalents | Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
Money market mutual funds | Cash and cash equivalents    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 3,377 4,447
Money market mutual funds | Cash and cash equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 3,377 4,447
Money market mutual funds | Cash and cash equivalents | Significant Other Observable Inputs (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
Money market mutual funds | Cash and cash equivalents | Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
Cash equivalent securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 2,200 2,200
Cash equivalent securities | Cash and cash equivalents    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 1,114 493
Cash equivalent securities | Cash and cash equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
Cash equivalent securities | Cash and cash equivalents | Significant Other Observable Inputs (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 1,114 493
Cash equivalent securities | Cash and cash equivalents | Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents $ 0 $ 0
v3.24.3
Leases and Other Commitments - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Jan. 31, 2024
Commitments and Contingencies Disclosure [Abstract]          
Operating lease cost $ 162 $ 163 $ 513 $ 823  
Accrued compensation $ 2,000   $ 2,000   $ 2,500
v3.24.3
Leases and Other Commitments - Summary of Maturities of Lease Liabilities (Details)
$ in Millions
Oct. 31, 2024
USD ($)
Operating Leases  
Remaining three months of fiscal 2025 $ 167
Fiscal 2026 637
Fiscal 2027 565
Fiscal 2028 505
Fiscal 2029 415
Thereafter 1,080
Total minimum lease payments 3,369
Less: Imputed interest (377)
Total 2,992
Finance Leases  
Remaining three months of fiscal 2025 91
Fiscal 2026 359
Fiscal 2027 246
Fiscal 2028 69
Fiscal 2029 24
Thereafter 8
Total minimum lease payments 797
Less: Imputed interest (43)
Total $ 754
v3.24.3
Business Combinations - Narrative (Details) - USD ($)
$ in Millions
 1 Months Ended 9 Months Ended
Feb. 29, 2024
Oct. 31, 2024
Jan. 31, 2024
Business Acquisition [Line Items]      
Goodwill   $ 49,093 $ 48,620
Weighted Average Remaining Useful Life (Years)   3 years 6 months  
Developed technology      
Business Acquisition [Line Items]      
Weighted Average Remaining Useful Life (Years)   1 year 7 months 6 days  
Customer relationships      
Business Acquisition [Line Items]      
Weighted Average Remaining Useful Life (Years)   4 years 1 month 6 days  
Spiff, Inc.      
Business Acquisition [Line Items]      
Consideration transferred $ 419    
Cash 374    
Goodwill 323    
Intangible assets $ 52    
Spiff, Inc. | Developed technology      
Business Acquisition [Line Items]      
Weighted Average Remaining Useful Life (Years) 9 years    
Spiff, Inc. | Customer relationships      
Business Acquisition [Line Items]      
Weighted Average Remaining Useful Life (Years) 5 years    
v3.24.3
Intangible Assets Acquired Through Business Combinations and Goodwill - Summary of Intangible Assets Acquired From Business Combinations (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Finite-lived Intangible Assets [Roll Forward]        
Intangible assets, gross, beginning balance     $ 11,601  
Additions and retirements, net     110  
Intangible assets, gross, ending balance $ 11,711   11,711  
Accumulated amortization, beginning balance     (6,323)  
Expense and retirements, net     (1,269)  
Accumulated amortization, ending balance (7,592)   (7,592)  
Intangible assets, net, beginning balance     5,278  
Intangible assets, net, ending balance 4,119   $ 4,119  
Weighted Average Remaining Useful Life (Years)     3 years 6 months  
Amortization of intangible assets 354 $ 468 $ 1,300 $ 1,400
Developed technology        
Finite-lived Intangible Assets [Roll Forward]        
Intangible assets, gross, beginning balance     4,624  
Additions and retirements, net     102  
Intangible assets, gross, ending balance 4,726   4,726  
Accumulated amortization, beginning balance     (3,208)  
Expense and retirements, net     (600)  
Accumulated amortization, ending balance (3,808)   (3,808)  
Intangible assets, net, beginning balance     1,416  
Intangible assets, net, ending balance 918   $ 918  
Weighted Average Remaining Useful Life (Years)     1 year 7 months 6 days  
Customer relationships        
Finite-lived Intangible Assets [Roll Forward]        
Intangible assets, gross, beginning balance     $ 6,674  
Additions and retirements, net     8  
Intangible assets, gross, ending balance 6,682   6,682  
Accumulated amortization, beginning balance     (2,985)  
Expense and retirements, net     (632)  
Accumulated amortization, ending balance (3,617)   (3,617)  
Intangible assets, net, beginning balance     3,689  
Intangible assets, net, ending balance 3,065   $ 3,065  
Weighted Average Remaining Useful Life (Years)     4 years 1 month 6 days  
Other        
Finite-lived Intangible Assets [Roll Forward]        
Intangible assets, gross, beginning balance     $ 303  
Additions and retirements, net     0  
Intangible assets, gross, ending balance 303   303  
Accumulated amortization, beginning balance     (130)  
Expense and retirements, net     (37)  
Accumulated amortization, ending balance (167)   (167)  
Intangible assets, net, beginning balance     173  
Intangible assets, net, ending balance $ 136   $ 136  
Weighted Average Remaining Useful Life (Years)     2 years 8 months 12 days  
v3.24.3
Intangible Assets Acquired Through Business Combinations and Goodwill - Schedule of Expected Future Amortization Expense for Purchased Intangible Assets (Details) - USD ($)
$ in Millions
Oct. 31, 2024
Jan. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]    
Remaining three months of fiscal 2025 $ 353  
Fiscal 2026 1,392  
Fiscal 2027 1,024  
Fiscal 2028 639  
Fiscal 2029 496  
Thereafter 215  
Total amortization expense $ 4,119 $ 5,278
v3.24.3
Intangible Assets Acquired Through Business Combinations and Goodwill - Schedule of Goodwill (Details)
$ in Millions
 9 Months Ended
Oct. 31, 2024
USD ($)
Goodwill [Roll Forward]  
Goodwill, beginning balance $ 48,620
Other acquisitions and adjustments 150
Goodwill, ending balance 49,093
Spiff, Inc.  
Goodwill [Roll Forward]  
Acquisition of Spiff $ 323
v3.24.3
Debt - Carrying Value of Borrowings (Details) - USD ($)
$ in Millions
Oct. 31, 2024
Jan. 31, 2024
Debt Instrument [Line Items]    
Outstanding Principal as of October 31, 2024 $ 8,500  
Total carrying value of debt 8,432 $ 9,426
Less current portion of debt 0 (999)
Total noncurrent debt $ 8,432 8,427
Senior Notes | 2024 Senior Notes    
Debt Instrument [Line Items]    
Contractual Interest Rate 0.625%  
Outstanding Principal as of October 31, 2024 $ 0  
Total carrying value of debt $ 0 999
Senior Notes | 2028 Senior Notes    
Debt Instrument [Line Items]    
Contractual Interest Rate 3.70%  
Outstanding Principal as of October 31, 2024 $ 1,500  
Total carrying value of debt $ 1,495 1,495
Senior Notes | 2028 Senior Sustainability Notes    
Debt Instrument [Line Items]    
Contractual Interest Rate 1.50%  
Outstanding Principal as of October 31, 2024 $ 1,000  
Total carrying value of debt $ 995 994
Senior Notes | 2031 Senior Notes    
Debt Instrument [Line Items]    
Contractual Interest Rate 1.95%  
Outstanding Principal as of October 31, 2024 $ 1,500  
Total carrying value of debt $ 1,491 1,490
Senior Notes | 2041 Senior Notes    
Debt Instrument [Line Items]    
Contractual Interest Rate 2.70%  
Outstanding Principal as of October 31, 2024 $ 1,250  
Total carrying value of debt $ 1,236 1,235
Senior Notes | 2051 Senior Notes    
Debt Instrument [Line Items]    
Contractual Interest Rate 2.90%  
Outstanding Principal as of October 31, 2024 $ 2,000  
Total carrying value of debt $ 1,979 1,978
Senior Notes | 2061 Senior Notes    
Debt Instrument [Line Items]    
Contractual Interest Rate 3.05%  
Outstanding Principal as of October 31, 2024 $ 1,250  
Total carrying value of debt $ 1,236 $ 1,235
v3.24.3
Debt - Narrative (Details)
Oct. 31, 2024
USD ($)
$ / shares
Jan. 31, 2024
USD ($)
$ / shares
Dec. 30, 2020
USD ($)
Revolving Credit Facility      
Line of Credit Facility [Line Items]      
Maximum borrowing capacity $ 5,000,000,000   $ 3,000,000,000
Outstanding borrowings for line of credit $ 0   $ 0
Closing trading price      
Line of Credit Facility [Line Items]      
Long-term debt measurement input | $ / shares 100 100  
Senior Notes | Significant Other Observable Inputs (Level 2)      
Line of Credit Facility [Line Items]      
Senior Notes fair value $ 6,700,000,000 $ 7,800,000,000  
v3.24.3
Debt - Future Principal Payments (Details)
$ in Millions
Oct. 31, 2024
USD ($)
Debt Disclosure [Abstract]  
Remaining three months of fiscal 2025 $ 0
Fiscal 2026 0
Fiscal 2027 0
Fiscal 2028 0
Fiscal 2029 2,500
Thereafter 6,000
Total principal outstanding $ 8,500
v3.24.3
Restructuring - Summary of Restructuring Activities (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Restructuring Reserve [Roll Forward]        
Charges [1],[2] $ 56 $ 55 $ 163 $ 815
The Plan        
Restructuring Reserve [Roll Forward]        
Liability, beginning of the period 69 117 120 607
Charges 56 55 163 815
Payments (39) (128) (158) (990)
Non-cash items (9) 20 (48) (368)
Liability, end of the period 77 64 77 64
The Plan | Workforce Reduction        
Restructuring Reserve [Roll Forward]        
Liability, beginning of the period 69 117 118 607
Charges 47 47 117 436
Payments (39) (103) (156) (963)
Non-cash items 0 0 (2) (19)
Liability, end of the period 77 61 77 61
The Plan | Office Space Reductions        
Restructuring Reserve [Roll Forward]        
Liability, beginning of the period 0 0 2 0
Charges 9 8 46 379
Payments 0 (25) (2) (27)
Non-cash items (9) 20 (46) (349)
Liability, end of the period $ 0 $ 3 $ 0 $ 3
[1] Amounts include amortization of intangible assets acquired through business combinations, as follows:
Three Months Ended October 31,Nine Months Ended October 31,
2024202320242023
Cost of revenues$131 $245 $600 $743 
Sales and marketing223 223 669 668 
[2] Amounts include stock-based compensation expense, as follows:
 Three Months Ended October 31,Nine Months Ended October 31,
 2024202320242023
Cost of revenues$135 $109 $386 $324 
Research and development278 238 814 735 
Sales and marketing312 275 911 815 
General and administrative95 71 267 223 
Restructuring 0 0 2 16 
v3.24.3
Stockholders' Equity - Share-based Compensation, Stock Options, Activity (Details)
$ / shares in Units, shares in Millions, $ in Millions
 9 Months Ended
Oct. 31, 2024
USD ($)
$ / shares
shares
Outstanding Stock Options  
Beginning balance (in shares) | shares 12
Exercised (in shares) | shares (3)
Ending balance (in shares) | shares 9
Outstanding Stock Options, Vested or expected to vest (in shares) | shares 9
Outstanding Stock Options, Exercisable (in shares) | shares 7
Options Outstanding Weighted-Average Exercise Price  
Beginning balance (in dollars per share) | $ / shares $ 185.77
Exercised (in dollars per share) | $ / shares 173.21
Ending balance (in dollars per share) | $ / shares 192.60
Weighted-Average Exercise Price, Vested or expected to vest (in dollars per share) | $ / shares 192.30
Weighted-Average Exercise Price, Exercisable (in dollars per share) | $ / shares $ 181.72
Aggregate Intrinsic Value  
Balance | $ $ 965
Vested or expected to vest | $ 952
Exercisable | $ $ 762
v3.24.3
Stockholders' Equity - Schedule of Restricted Stock Activity (Details)
$ / shares in Units, shares in Millions, $ in Millions
 9 Months Ended
Oct. 31, 2024
USD ($)
$ / shares
shares
Restricted stock  
Restricted Stock Outstanding  
Beginning balance (in shares) 28
Granted (in shares) 11
Canceled (in shares) (2)
Vested and converted to shares (in shares) (10)
Ending balance (in shares) 28
Expected to vest (in shares) 24
Restricted Stock Outstanding, Weighted-Average Exercise Price  
Beginning balance (in dollars per share) | $ / shares $ 202.95
Granted (in dollars per share) | $ / shares 301.35
Canceled (in dollars per share) | $ / shares 223.64
Vested and converted to shares (in dollars per share) | $ / shares 201.53
Ending balance (in dollars per share) | $ / shares $ 245.96
Restricted Stock Outstanding, Aggregate Intrinsic Value  
Aggregate Intrinsic Value, Outstanding | $ $ 8,181
Aggregate Intrinsic Value, Expected to vest | $ $ 7,051
Performance shares  
Restricted Stock Outstanding  
Granted (in shares) 1
Restricted Stock Outstanding, Weighted-Average Exercise Price  
Granted (in dollars per share) | $ / shares $ 290.64
v3.24.3
Stockholders' Equity - Share-based Payment Arrangement Expensed and Capitalized, Amount (Details)
$ in Millions
Oct. 31, 2024
USD ($)
Share-Based Payment Arrangement [Abstract]  
Remaining three months of fiscal 2025 $ 844
Fiscal 2026 2,536
Fiscal 2027 1,697
Fiscal 2028 1,057
Fiscal 2029 151
Total stock-based compensation expense $ 6,285
v3.24.3
Stockholders' Equity - Narrative (Details) - Share Repurchase Program - USD ($)
$ in Billions
 1 Months Ended
Feb. 29, 2024
Feb. 28, 2023
Oct. 31, 2024
Aug. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Authorized amount of stock repurchase $ 30.0     $ 10.0
Increased authorized amount of stock repurchase $ 10.0 $ 10.0    
Common Stock        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Common stock authorized repurchase amount     $ 10.6  
v3.24.3
Stockholders' Equity - Summary of Repurchases Under Share Repurchase Program (Details) - Share Repurchase Program - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended
Oct. 31, 2024
Jul. 31, 2024
Apr. 30, 2024
Oct. 31, 2023
Jul. 31, 2023
Apr. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Shares (in shares) 5 18 7 9 9 11
Average price per share (in dollars per share) $ 257.00 $ 246.14 $ 293.00 $ 209.33 $ 211.83 $ 188.17
Amount $ 1,228 $ 4,288 $ 2,168 $ 1,924 $ 1,913 $ 2,143
v3.24.3
Stockholders' Equity - Summary of Dividends Declared (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended
Oct. 31, 2024
Jul. 31, 2024
Apr. 30, 2024
Share-Based Payment Arrangement [Abstract]      
Dividends declared (in dollars per share) $ 0.40 $ 0.40 $ 0.40
Payments of dividends $ 385 $ 388 $ 388
v3.24.3
Income Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Income Tax Disclosure [Abstract]        
Provision for income taxes $ 219 $ 263 $ 961 $ 615
Income before provision for income taxes $ 1,746 $ 1,487 $ 5,450 $ 3,305
Effective tax rate     18.00% 19.00%
v3.24.3
Net Income Per Share - Reconciliation of Denominator Used in Calculation of Basic and Diluted Earnings Per Share (Details) - USD ($)
shares in Millions, $ in Millions
 3 Months Ended 9 Months Ended
Oct. 31, 2024
Jul. 31, 2024
Apr. 30, 2024
Oct. 31, 2023
Jul. 31, 2023
Apr. 30, 2023
Oct. 31, 2024
Oct. 31, 2023
Numerator:                
Net income $ 1,527 $ 1,429 $ 1,533 $ 1,224 $ 1,267 $ 199 $ 4,489 $ 2,690
Denominator:                
Weighted-average shares outstanding for basic net income per share (in shares) 956     972     963 976
Dilutive effect of employee stock awards (in shares) 9     9     12 9
Weighted-average shares outstanding for diluted net income per share (in shares) 965     981     975 985
v3.24.3
Net Income Per Share - Shares Excluded from Diluted Earnings Per Share (Details) - shares
shares in Millions
 3 Months Ended 9 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Employee stock awards        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Anti-dilutive securities excluded (in shares) 10 12 9 16
v3.24.3
Legal Proceedings and Claims (Details)
 1 Months Ended
Sep. 30, 2019
lawsuit
Slack Litigation  
Loss Contingencies [Line Items]  
Number of claims filed 7
v3.24.3
Subsequent Events (Details) - Subsequent Event
$ in Millions
 1 Months Ended
Nov. 30, 2024
USD ($)
Zoomin Software Ltd.  
Subsequent Event [Line Items]  
Total cash consideration $ 344
Own Data Company Ltd.  
Subsequent Event [Line Items]  
Total cash consideration $ 1,900
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage 10.00%