LLY · 10-Q · 2026Q2 · Full report
Income Tax Rate Changes
ELI LILLY & Co · 2026-08-05 · Importance 71 · Surprise 82 · In source text
The effective tax rate increased to 23.3% in the second quarter of 2026 from 16.5% in the comparable 2025 quarter. Quarterly income-tax expense increased to $2,152 million from $1,116 million. For the first six months, the effective tax rate rose to 19.9% from 17.7%, while income-tax expense increased to $3,606 million from $1,813 million. The increases were driven by nondeductible acquired IPR&D, a greater mix of earnings in higher-tax jurisdictions, and unfavorable tax effects from impairment, restructuring, and special charges.
Key facts
- Effective tax rate for the three months ended June 30, 2026: 23.3%, compared with 16.5% in 2025; increase primarily driven by nondeductible acquired IPR&D charges. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | negative | realized | — | Effective tax rate for the three months ended June 30, 2026: 23.3%, compared with 16.5% in 2025; increase primarily driven by… |