APH · 10-Q · 2026Q3 · Full report
Income Tax Rate Changes
AMPHENOL CORP /DE/ · 2026-10-30 · Importance 48 · Surprise 74 · In source text
The effective tax rate was 27.4% in third-quarter 2026 and 30.3% for the first nine months, compared with 23.5% and 21.6% in the 2025 periods. Discrete tax accruals of $60.0 million for the quarter and $229.0 million year to date affected the 2026 rates; the quarterly accruals primarily related to settlements of foreign tax matters. The nine-month results included $160.0 million of additional China tax obligations following reassessment of prior-year tax-rate assumptions, and a continued shift of income to higher-tax jurisdictions raised the adjusted effective tax rate to 27.0%, from 25.5% in the 2025 nine-month period. The company paid $230.0 million of China tax notices in the second quarter and recorded the additional $160.0 million accrual during the first nine months of 2026.
Key facts
- Amphenol recorded $160.0 million of additional China tax obligations in the first nine months of 2026 after reassessing certain prior-year tax-rate assumptions. source
- Amphenol received China tax payment notices totaling $230.0 million, accrued $130.0 million in the three months ended March 31, 2026 in addition to $100.0 million accrued in the three months ended December 31, 2025, and paid the $230.0 million in full in the second quarter of 2026. source
- Amphenol intends to repatriate most pre-2026 accumulated earnings, has accrued associated foreign and U.S. state and local taxes, and intends to indefinitely reinvest the remaining pre-2026 foreign earnings. source
- Income-tax-related accruals of $60.0 million and $229.0 million affected the three and nine months ended September 30, 2026; the quarterly accruals primarily related to settlements of foreign tax matters. source
- Effective tax rates were 27.4% and 30.3% for third-quarter and first-nine-month 2026, respectively, versus 23.5% and 21.6% in the comparable 2025 periods. source
- Amphenol increased its Adjusted Effective Tax Rate to 27.0% for the first nine months of 2026 due to the China tax matter and a continued shift of income to higher-tax jurisdictions. source
- H.R. 1 had no material impact on Amphenol’s effective tax rate for the three and nine months ended September 30, 2026; the Company continues evaluating its corporate tax provisions, whose future impact depends partly on regulatory guidance not yet released. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | negative | realized | -1.6% | Amphenol recorded $160.0 million of additional China tax obligations in the first nine months of 2026 after reassessing certain prior-year… |
| net_income | negative | realized | -1.3% | Amphenol received China tax payment notices totaling $230.0 million, accrued $130.0 million in the three months ended March 31, 2026 in… |
| cash | negative | realized | -0.5% | Amphenol received China tax payment notices totaling $230.0 million, accrued $130.0 million in the three months ended March 31, 2026 in… |
| liability | negative | realized | -0.3% | Amphenol recorded $160.0 million of additional China tax obligations in the first nine months of 2026 after reassessing certain prior-year… |