OTIS · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

Otis Worldwide Corp · 2026-10-29 · Importance 25 · Surprise 32

The effective tax rate declined to 22.8% from 24.8% for the third quarter of 2026 and to 22.2% from 23.9% for the first nine months. The decrease primarily reflected a reduction in current tax liability following the filing of non-U.S. income tax returns. The nine-month rate also benefited from a reduction in a deferred tax liability related to mitigation of future repatriation costs and the absence of the prior-year increase in the estimated nondeductible TMA indemnity obligation payable to RTX.

Key facts

• Otis's effective tax rate decreased to 22.8% for the quarter and 22.2% for the nine months ended September 30, 2026, from 24.8% and 23.9%, respectively, in the same 2025 periods, primarily due to reduced current tax liability following non-U.S. income tax filings. source
• Otis anticipated some quarter-to-quarter variability in its tax rate from potential discrete items. source
• Otis's nine-month 2026 effective tax rate also decreased due to a reduction in deferred tax liability related to mitigating future repatriation costs and the absence of the increase in its estimated nondeductible TMA indemnity obligation payable to RTX. source