v3.26.1
Income Taxes
6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 16 - Income Taxes

The effective income tax rates for the three and six months ended June 30, 2026 and 2025 are as follows:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Effective tax rate

 

 

27.0

%

 

 

19.4

%

 

 

24.1

%

 

 

18.4

%

 

Our effective income tax rate was 27.0% and 19.4% in the second quarter of 2026 and 2025, respectively. The increase in the effective income tax rate is primarily attributable to the establishment of valuation allowances against certain tax credits. The second quarter 2026 effective income tax rate was higher than the U.S. statutory federal tax rate for this same reason. The second quarter 2025 effective income tax rate was lower than the U.S. statutory federal tax rate primarily due to foreign earnings that are taxed at lower rates.

 

Our effective income tax rate was 24.1% and 18.4% in the six months ended June 30, 2026 and 2025, respectively. The increase in the effective income tax rate is primarily attributable to the establishment of valuation allowances against certain tax credits. The effective income tax rate in the first six months of 2026 was higher than the U.S. statutory federal income tax rate for this same reason. The effective income tax rate in the first six months of 2025 was lower than the U.S. statutory federal income tax rate primarily due to foreign earnings that are taxed at lower rates and tax benefits recorded upon the vesting of restricted stock units.