MNST · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

Monster Beverage Corp · 2026-11-06 · Importance 23 · Surprise 22 · In source text

The effective combined federal, state and foreign tax rate increased to 24.6% from 23.9% in the third quarter of 2026, and the tax provision rose $20.0 million to $185.1 million. The rate increase primarily reflected a lower stock-based compensation deduction and a larger share of income from higher-tax jurisdictions. A lower valuation allowance on foreign tax credit carryforwards partially offset those drivers. For the nine months, the effective rate increased to 24.2% from 23.9% and the provision rose 20.0% to $549.4 million.

Key facts

• Nine-month 2026 income tax provision was $549.4 million, up $91.4 million from $458.0 million in 2025; the effective tax rate increased to 24.2% from 23.9%. source
• Three-month income tax provision was $185.1 million in 2026, up $20.0 million from $165.1 million in 2025; the effective tax rate increased to 24.6% from 23.9%. source
• As of September 30, 2026, Monster Beverage Corp had approximately $3.6 million of unrecognized tax benefits recorded as liabilities and $1.1 million of accrued interest and penalties related to unrecognized tax benefits. source
• The three-month 2026 effective tax rate increase was primarily due to a lower stock-based compensation deduction and increased income from higher-tax jurisdictions, partly offset by a lower valuation allowance on foreign tax credit carryforwards. source

Impact estimates