MPWR · 10-Q · 2026Q3 · Full report
Income Tax Rate Changes
MONOLITHIC POWER SYSTEMS, INC. · 2026-11-03 · Importance 63 · Surprise 64 · In source text
The third-quarter 2026 effective tax rate increased to 26.1% from 12.6% in the comparable 2025 quarter, and income tax expense rose to $95.6 million from $25.8 million. The nine-month effective tax rate increased to 22.9% from 19.2%, while tax expense rose to $213.9 million from $106.6 million. The company attributed the higher comparable-period rates primarily to tax adjustments from U.S. federal tax law changes enacted in 2025, which had reduced the effective tax rate that year.
Key facts
- The effective tax rate was 22.9% for the nine months ended September 30, 2026 and 19.2% for the comparable 2025 period; the increase was primarily due to 2025 U.S. federal tax law changes that reduced the effective rate that year. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | negative | realized | — | The effective tax rate was 22.9% for the nine months ended September 30, 2026 and 19.2% for the comparable 2025 period; the increase was… |