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Deferred Costs
 6 Months Ended
Jul. 31, 2025
Revenue from Contract with Customer [Abstract]  
Deferred Costs Deferred Costs
Deferred costs, which consist of deferred sales commissions, were $840 million and $828 million as of July 31, 2025, and January 31, 2025, respectively. Amortization expense for the deferred costs was $72 million and $62 million for the three months ended July 31, 2025, and 2024, respectively, and $140 million and $121 million for the six months ended July 31, 2025, and 2024, respectively. There was no impairment loss in relation to the costs capitalized for the periods presented.
Contract Balances and Performance Obligations
Contract Balances
Contract assets and unearned revenue balances were as follows (in millions):
Condensed Consolidated Balance Sheets Location
July 31, 2025January 31, 2025
Contract assets:
Contract assets, current
Trade and other receivables, net$460 $373 
Contract assets, noncurrent
Other assets45 44 
Total contract assets
$505 $417 
Unearned revenue (1):
Unearned revenue, current
Unearned revenue$3,852 $4,467 
Unearned revenue, noncurrent
Unearned revenue, noncurrent65 80 
Total unearned revenue
$3,917 $4,547 
(1)Included in this balance are amounts related to professional services that are subject to cancellation and pro-rated refund rights of $73 million and $83 million as of July 31, 2025, and January 31, 2025, respectively.
Revenues of $1.7 billion and $1.6 billion were recognized during the three months ended July 31, 2025, and 2024, respectively, that were included in the unearned revenue balances as of April 30, 2025, and 2024, respectively. Revenues of $3.1 billion and $2.8 billion were recognized during the six months ended July 31, 2025, and 2024, respectively, that were included in the unearned revenue balances as of January 31, 2025, and 2024, respectively.
Transaction Price Allocated to the Remaining Performance Obligations
As of July 31, 2025, approximately $25.4 billion of revenues are expected to be recognized from remaining performance obligations for subscription contracts. We expect to recognize revenues on approximately $7.9 billion and $14.1 billion of these remaining performance obligations over the next 12 and 24 months, respectively, with the balance recognized thereafter. Revenues from remaining performance obligations for professional services contracts as of July 31, 2025, were not material.