Goodwill and Intangible Assets, net
Goodwill
As of January 31, 2026 and 2025, goodwill was $5,487 million and $5,448 million, respectively. No goodwill impairments were recorded during fiscal 2026, 2025 and 2024.
Intangible Assets, net
Intangible assets consisted of the following:
| | | | | | | | | | | | | | | | | |
| | As of January 31, 2026 |
| Gross | | Accumulated Amortization | | Net |
| (dollars in millions) |
| Purchased developed technology | $ | 214 | | | $ | (179) | | | $ | 35 | |
| Customer relationships | 116 | | | (106) | | | 10 | |
| Capitalized internal-use software costs | 72 | | | (32) | | | 40 | |
| Trade name | 21 | | | (20) | | | 1 | |
| Other | 7 | | | (2) | | | 5 | |
| | $ | 430 | | | $ | (339) | | | $ | 91 | |
| | | | | |
| | | | | | | | | | | | | | | | | |
| | As of January 31, 2025 |
| Gross | | Accumulated Amortization | | Net |
| (dollars in millions) |
| Purchased developed technology | $ | 239 | | | $ | (179) | | | $ | 60 | |
| Customer relationships | 116 | | | (85) | | | 31 | |
| Capitalized internal-use software costs | 54 | | | (19) | | | 35 | |
| Trade name | 21 | | | (16) | | | 5 | |
| Other | 10 | | | (3) | | | 7 | |
| | $ | 440 | | | $ | (302) | | | $ | 138 | |
The weighted-average remaining useful lives of the Company’s acquired intangible assets are as follows: | | | | | | | | | | | | | | | | | | | |
| | Weighted-Average Remaining Useful Life | | | | |
| As of January 31, | | | | | | | | |
| 2026 | | 2025 | | | | | | | | |
| Purchased developed technology | 2.1 years | | 1.9 years | | | | | | | | |
| Customer relationships | 0.9 years | | 1.6 years | | | | | | | | |
| Trade name | 0.3 years | | 1.3 years | | | | | | | | |
As of January 31, 2026, estimated remaining amortization expense for the intangible assets by fiscal year was as follows:
| | | | | |
| Remaining Amortization |
| (dollars in millions) |
| 2027 | $ | 45 | |
| 2028 | 24 | |
| 2029 | 17 | |
| 2030 | 4 | |
| 2031 | 1 | |
| |
| Total | $ | 91 | |
Amortization expense of intangible assets was $83 million, $85 million and $87 million in fiscal 2026, 2025 and 2024, respectively.
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.