J · 8-K · 20260804PR052563
Income Tax Rate Changes
JACOBS SOLUTIONS INC. · 2026-08-04 · Importance 65 · Surprise 82 · In source text
The Q3 GAAP effective tax rate increased to 43.4% from 21.9%, a 2,150-basis-point year-over-year increase. GAAP income tax expense rose to $104.6 million from $53.8 million even though earnings before taxes declined slightly to $241.2 million from $245.1 million. The company attributed the temporarily higher GAAP rate to the PA Consulting acquisition transaction. The adjusted effective tax rate increased 160 basis points to 26.4% from 24.8%, reducing the benefit from adjusted earnings growth.
Key facts
- U.S. GAAP effective tax rate from continuing operations in Q3 2026: 43.4% (Q3 2025: 21.9%) source
- Adjusted effective tax rate from continuing operations in Q3 2026: 26.4% (Q3 2025: 24.8%) source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | negative | realized | — | U.S. GAAP effective tax rate from continuing operations in Q3 2026: 43.4% (Q3 2025: 21.9%) |
| net_income | negative | realized | — | Adjusted effective tax rate from continuing operations in Q3 2026: 26.4% (Q3 2025: 24.8%) |