EL · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

ESTEE LAUDER COMPANIES INC · 2026-11-02 · Importance 45 · Surprise 64

The effective tax rate declined to 32.5% in the September 2026 quarter from 56.9% a year earlier, a decrease of 2,440 basis points. The filing attributed the decrease primarily to a more favorable estimated full-year geographic mix of earnings. This benefit was partly offset by an estimated increase in unrecognized tax benefits, primarily related to transfer-pricing matters affecting multiple tax jurisdictions.

Key facts

• ESTEE LAUDER COMPANIES INC effective income tax rate was 32.5% for the three months ended September 30, 2026, compared with 56.9% for the prior-year period, a decrease of 2,440 basis points. source
• ESTEE LAUDER COMPANIES INC says additional valuation allowances on deferred tax assets could be material if future financial performance is negatively impacted. source
• ESTEE LAUDER COMPANIES INC's lower effective tax rate primarily reflected a more favorable estimated full-year geographical mix of earnings, partly offset by an estimated increase in unrecognized tax benefits mainly related to transfer pricing matters across multiple jurisdictions. source