AVY · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

Avery Dennison Corp · 2026-11-03 · Importance 56 · Surprise 58 · In source text

The effective tax rate for the first nine months of 2026 increased to 29.1% from 27.3% in 2025. Income-tax provision rose 13.6% to $222.4 million from $195.7 million, exceeding the prior-year amount by $26.7 million. The increase in the rate primarily reflected a 2026 discrete charge from higher tax reserves related to a foreign court ruling affecting tax-group requirements, compared with a discrete benefit from a favorable foreign ruling on interest-expense deductibility in 2025.

Key facts

• Avery Dennison's effective tax rate for the first nine months of 2026 increased primarily due to a net discrete charge from increases in tax reserves related to a foreign court ruling impacting tax group requirements, compared with a discrete benefit from a favorable foreign tax ruling on interest-expense deductibility in the same period of 2025. source
• Avery Dennison's full-year 2026 effective tax rate outlook is in the high-twenty percent range. source

Impact estimates