KMB · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

KIMBERLY CLARK CORP · 2026-11-05 · Importance 45 · Surprise 64

The effective tax rate for third-quarter 2026 was 20.2%, down from 45.4% in the prior-year quarter; the nine-month rate was 27.5%, down from 30.6%. The declines primarily reflected prior-year incremental charges from the OBBBA valuation allowance on U.S. foreign tax credits and current-year benefits from certain tax initiatives. Adjusted effective tax rates were 19.5% for the quarter versus 26.5% and 22.3% for the nine months versus 22.6%. Lower tax expense contributed to continuing-operations income of $405 million for the quarter and $1.389 billion for the nine months.

Key facts

• The effective tax rate for the three and nine months ended September 30, 2026 was 20.2% and 27.5%, versus 45.4% and 30.6% in 2025; changes primarily reflected prior-year OBBBA-related valuation allowance charges and current-year tax initiative benefits. source
• Three-month 2026 adjusted effective tax rate was 19.5%, compared with 26.5% in 2025; the nine-month adjusted rate was 22.3%, compared with 22.6%. source