Fair Value Measurements
The following tables present information about our financial instruments that are measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value:
As of January 31, 2026
Fair ValueLevel 1Level 2Level 3
(in thousands)
Financial Assets:
Money market funds$724,236 $724,236 $— $— 
Treasury bills16,876 — 16,876 — 
Agency bonds22,298 — 22,298 — 
Cash equivalents763,410 724,236 39,174 — 
Agency bonds1,095,471 — 1,095,471 — 
U.S. government agency securities5,383,887 — 5,383,887 — 
Treasury bills64,673 — 64,673 — 
Marketable securities6,544,031 — 6,544,031 — 
Privately held debt securities included in strategic investments3,968 — — 3,968 
Total financial assets$7,311,409 $724,236 $6,583,205 $3,968 
As of January 31, 2025
Fair ValueLevel 1Level 2Level 3
(in thousands)
Financial Assets:
Money market funds$825,044 $825,044 $— $— 
Treasury bills17,965 — 17,965 — 
Agency bonds
23,992 — 23,992 — 
Cash equivalents867,001 825,044 41,957 — 
Commercial paper20,841 — 20,841 — 
Agency bonds1,174,484 — 1,174,484 — 
Corporate and other debt securities720,795 — 720,795 — 
U.S. government agency securities4,415,930 — 4,415,930 — 
Treasury bills110,279 — 110,279 — 
Marketable securities6,442,329 — 6,442,329 — 
Publicly held equity securities included in strategic investments35,280 35,280 — — 
Privately held debt securities included in strategic investments4,450 — — 4,450 
Total financial assets$7,349,060 $860,324 $6,484,286 $4,450 
We classify our highly liquid money market funds and publicly held equity securities within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. We classify our commercial paper, agency bonds, corporate and other debt securities, U.S. government agency securities, treasury bills, and certificates of deposit within Level 2 since they are valued using inputs other than quoted prices that are directly or indirectly observable in the market, including readily available pricing sources for the identical underlying security, which may not be actively traded. We classify our privately held debt securities as Level 3 due to the lack of relevant observable market data over fair value inputs.

Historical Timeline

Fiscal YearFiled
2026Feb 27, 2026Showing above
2025Feb 28, 2025
2024Mar 4, 2024
2023Mar 3, 2023
2022Mar 7, 2022
2021Mar 18, 2021
2020Mar 20, 2020

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.