STX · 10-K · 2026A · Full report

Income Tax Rate Changes

Seagate Technology Holdings plc · 2026-08-04 · Importance 89 · Surprise 82

The income tax provision increased to $506 million in fiscal 2026 from $44 million in fiscal 2025, a $462 million increase. The effective tax rate rose to 13.73% from 2.91%. Fiscal 2026 results reflected Pillar Two global minimum tax effects, tax benefits from Singapore and Thailand incentive programs, a discrete benefit from releasing valuation allowances related to the OBBBA, and excess tax benefits from share-based compensation.

Key facts

• Provision for income taxes recorded was $506 million for fiscal year 2026 and $44 million for fiscal year 2025. source
• Our fiscal year 2026 provision for income taxes includes a discrete tax benefit related to the release of certain valuation allowances in connection with the OBBBA in July 2025 and net excess tax benefits related to share-based compensation expense. source
• As of July 3, 2026, we had a $43 million liability for unrecognized tax benefits, none of which is expected to be settled within one year. source
• Effective tax rate was 13.73% for fiscal year 2026 and 2.91% for fiscal year 2025. source