PFE · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

PFIZER INC · 2026-08-04 · Importance 71 · Surprise 82

The second-quarter 2026 tax benefit was $407 million, compared with a tax provision in the second quarter of 2025, and the effective tax rate increased to 62.4% from 4.6%. For the first six months, the effective tax rate was 2.1%, compared with a benefit rate of 0.8% in the prior-year period. The OBBBA reduced the U.S. tax rate on foreign earnings under GILTI, now NCTI, from 13.125% to 12.6% beginning in fiscal 2026 and provided permanent domestic R&D expensing and bonus depreciation.

Key facts

• Effective tax rate on continuing operations for three months ended June 28, 2026: 62.4%; for three months ended June 29, 2025: 4.6%. source
• Our effective tax rates for GAAP Reported income/(loss) from continuing operations were 62.4% and 2.1% for the three and six months ended June 28, 2026, respectively. source
• The income tax provision—non-GAAP items adjustment for the three months ended June 28, 2026 was $(1,116) million. source
• Our effective tax rates for GAAP Reported income/(loss) from continuing operations were 4.6% and (0.8)% for the three and six months ended June 29, 2025, respectively. source
• Our effective tax rates for non-GAAP Adjusted income were 14.1% and 15.5% for the three and six months ended June 28, 2026, respectively. source
• Our effective tax rates for non-GAAP Adjusted income were 13.2% and 10.3% for the three and six months ended June 29, 2025, respectively. source