CPAY · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

CORPAY, INC. · 2026-11-05 · Importance 41 · Surprise 48 · From source text

The third-quarter income-tax provision declined to $120.0 million from $143.3 million, and the effective tax rate fell to 23.9% from 34.0%. The lower quarterly rate primarily reflected an improved geographic mix of earnings and excess tax benefits from stock-option exercises. For the first nine months, the tax provision increased 8.4% to $364.3 million, below the 21.4% increase in revenue. The company reported that the OBBBA and Pillar Two rules had no material effect on the consolidated financial statements for the three and nine months ended September 30, 2026.

Key facts

• The income tax provision was $364.3 million and the effective tax rate was 26.9% for the nine months ended September 30, 2026, compared with $336.0 million and 29.4% in the comparable prior period. source
• The OBBBA and Pillar Two directive did not materially affect Corpay’s consolidated financial statements for the three and nine months ended September 30, 2026; Corpay continues to evaluate potential effects in future periods. source
• Corpay’s effective tax rate was 23.9% in the third quarter of 2026, compared with 34.0% in the comparable 2025 period; the change primarily reflected an improved geographic earnings mix and excess tax benefits from stock-option exercises. source
• The year-over-year effective tax rate change was primarily driven by the PayByPhone sale gain, improved geographic mix of earnings, and excess tax benefits from stock option exercises. source

Impact estimates