Double-Digit Revenue Growth Driven by
Focused on Driving Margin Expansion
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| (In millions, except per share data and percentages) | 2026 | 2025 | Change | 2026 | 2025 | Change | ||||||||||||||||
| Revenue | $ | 287.5 | $ | 250.8 | 15 | % | $ | 831.6 | $ | 729.3 | 14 | % | ||||||||||
| Gross margin | 40.7 | % | 39.5 | % | 39.6 | % | 38.7 | % | ||||||||||||||
| Operating income | $ | 20.8 | $ | 7.9 | NM | $ | 17.6 | $ | 9.8 | NM | ||||||||||||
| Operating margin | 7.2 | % | 3.1 | % | 2.1 | % | 1.3 | % | ||||||||||||||
| Net income | $ | 20.3 | $ | 7.5 | 171 | % | $ | 27.1 | $ | 17.8 | 52 | % | ||||||||||
| Earnings per diluted share | $ | 0.47 | $ | 0.18 | 161 | % | $ | 0.63 | $ | 0.42 | 50 | % | ||||||||||
| Non-GAAP Measures* | ||||||||||||||||||||||
| Adjusted gross margin | 41.0 | % | 39.8 | % | 39.9 | % | 39.2 | % | ||||||||||||||
| Adjusted EBITDA | $ | 51.5 | $ | 37.0 | 39 | % | $ | 135.2 | $ | 101.2 | 34 | % | ||||||||||
| Adjusted earnings per diluted share | $ | 0.61 | $ | 0.35 | 74 | % | $ | 1.49 | $ | 0.96 | 55 | % | ||||||||||
*Adjusted gross margin, adjusted EBITDA and adjusted earnings per diluted share include non-GAAP adjustments. A reconciliation from GAAP to non-GAAP metrics is provided in this earnings release.
NM - not meaningful.
Management Comments
“We delivered our fourth consecutive quarter of double-digit year-over-year revenue growth, with revenue above the midpoint of our guidance,” said Dr.
Financial Highlights
| Three Months Ended | Nine Months Ended | ||||||||||||||||
| 2026 | 2025 | Change | 2026 | 2025 | Change | ||||||||||||
| Sales by Application | |||||||||||||||||
| $ | 239,548 | $ | 214,697 | 12 | % | $ | 704,181 | $ | 607,593 | 16 | % | ||||||
| Advanced Solutions | 47,952 | 36,095 | 33 | % | 127,396 | 121,713 | 5 | % | |||||||||
| Total | $ | 287,500 | $ | 250,792 | 15 | % | $ | 831,577 | $ | 729,306 | 14 | % | |||||
Third quarter revenue of
GAAP gross margin of 40.7% and adjusted gross margin of 41.0% increased year over year, driven by lower product costs and
Business Outlook and Financial Guidance
“Our third quarter book-to-bill was approximately one as we continued to see improved industrial demand and executed on our strategic growth initiatives, driving adoption for our differentiated laser and photonics solutions that deliver measurable value to customers. As we move forward, we remain focused on driving profitable growth through innovation, technology differentiation, and operational excellence across our portfolio,” concluded
For the fourth quarter of 2026, IPG expects revenue of
As discussed in more detail in the "Safe Harbor" passage of this news release, actual results may differ from this guidance due to various factors including, but not limited to, trade policy changes and trade restrictions, product demand, order cancellations and delays, competition, tariffs and retaliatory tariffs, currency fluctuations and general economic conditions. The current uncertainty related to the trade environment and tariff policies increases the risks to the outlook that we have provided. This guidance is based upon current market conditions and expectations and is subject to the risks outlined in the Company's reports filed with the
Supplemental Financial Information
Additional supplemental financial information is provided in the unaudited Financial Data Workbook and Third Quarter 2026 Earnings Call Presentation available on the investor relations section of the Company's website at investor.ipgphotonics.com.
Conference Call Reminder
The Company will hold a conference call today,
Contact
Senior Director, Investor Relations
508-597-4713
efedotoff@ipgphotonics.com
About IPG Photonics Corporation
Innovation is at the heart of IPG Photonics. As a global leader in laser technology, we apply light to transform the world. From manufacturing to medical and beyond, our breakthrough laser solutions power our customers’ success and expand what's possible. Discover more at www.ipgphotonics.com.
Safe Harbor Statement
Information and statements provided by IPG and its employees, including statements in this press release, that relate to future plans, events or performance are forward-looking statements. These statements involve risks and uncertainties. Any statements in this press release that are not statements of historical fact are forward-looking statements, including those statements related to strength of our technology, disciplined execution, and continued progress in expanding our presence in attractive, higher-growth markets, the expected timing of the closing of our acquisition of Lumibird Medical and the expectation that the acquisition will increase revenue in Advanced Solutions and strengthen our reach and accelerate growth across medical markets, strategic growth initiatives, driving adoption for our differentiated laser and photonics solutions that deliver measurable value to customers, driving profitable growth through innovation, technology differentiation, and operational excellence across our portfolio, revenue, adjusted gross margin and adjusted operating expenses outlook, adjusted earnings per diluted share and adjusted EBITDA guidance, including the expected impact of tariffs, and the impact of the U.S. dollar on our guidance for the fourth quarter of 2026. Factors that could cause actual results to differ materially include risks and uncertainties, including risks associated with the strength or weakness of business conditions in industries and geographic markets that IPG serves, particularly the effect of downturns in the markets IPG serves; uncertainties and adverse changes in the general economic conditions of markets; inability to manage risks associated with international customers and operations; changes in trade controls and tariff policies; IPG's ability to penetrate new applications for fiber lasers and increase market share; the rate of acceptance and penetration of IPG's products; foreign currency fluctuations; high levels of fixed costs from IPG's vertical integration; the appropriateness of IPG's manufacturing capacity for the level of demand; competitive factors, including declining average selling prices; the effect of acquisitions and investments; inventory write-downs; asset impairment charges; intellectual property infringement claims and litigation; interruption in supply of key components; manufacturing risks; government regulations and trade sanctions; and other risks identified in IPG's SEC filings. Readers are encouraged to refer to the risk factors described in IPG's Annual Report on Form 10-K (filed with the SEC for the fiscal year ended December 31, 2025), IPG's Quarterly Report on Form 10-Q (filed with the SEC for the quarter ended June 30, 2026), and other reports filed with the SEC, as applicable. Actual results, events and performance may differ materially. Readers are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date hereof. IPG undertakes no obligation to update the forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||
| (In thousands, except per share data) | |||||||||||||
| Net sales | $ | 287,500 | $ | 250,792 | $ | 831,577 | $ | 729,306 | |||||
| Cost of sales | 170,446 | 151,787 | 502,500 | 446,916 | |||||||||
| Gross profit | 117,054 | 99,005 | 329,077 | 282,390 | |||||||||
| Operating expenses: | |||||||||||||
| Sales and marketing | 23,934 | 23,771 | 72,286 | 73,753 | |||||||||
| Research and development | 31,335 | 30,358 | 95,648 | 88,631 | |||||||||
| General and administrative | 37,502 | 35,092 | 110,139 | 102,782 | |||||||||
| Settlement of litigation matters | — | — | 13,334 | — | |||||||||
| Impairment charges | 231 | — | 17,805 | — | |||||||||
| Restructuring charges | — | 425 | — | 425 | |||||||||
| Loss on foreign exchange | 3,275 | 1,504 | 2,293 | 7,013 | |||||||||
| Total operating expenses | 96,277 | 91,150 | 311,505 | 272,604 | |||||||||
| Operating income | 20,777 | 7,855 | 17,572 | 9,786 | |||||||||
| Other income, net: | |||||||||||||
| Interest income, net | 7,688 | 7,283 | 21,720 | 22,728 | |||||||||
| Other (expense) income, net | (50 | ) | 516 | 2,683 | 2,026 | ||||||||
| Total other income | 7,638 | 7,799 | 24,403 | 24,754 | |||||||||
| Income before provision for income taxes | 28,415 | 15,654 | 41,975 | 34,540 | |||||||||
| Provision for income taxes | 8,142 | 8,191 | 14,876 | 16,714 | |||||||||
| Net income | $ | 20,273 | $ | 7,463 | $ | 27,099 | $ | 17,826 | |||||
| Net income per common share: | |||||||||||||
| Basic | $ | 0.48 | $ | 0.18 | $ | 0.64 | $ | 0.42 | |||||
| Diluted | $ | 0.47 | $ | 0.18 | $ | 0.63 | $ | 0.42 | |||||
| Weighted average common shares outstanding: | |||||||||||||
| Basic | 42,531 | 42,199 | 42,416 | 42,427 | |||||||||
| Diluted | 42,840 | 42,556 | 42,904 | 42,659 | |||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||
| 2026 | 2025 | |||||||
| (In thousands, except share data) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 710,688 | $ | 403,790 | ||||
| Short-term investments | 215,304 | 435,538 | ||||||
| Accounts receivable, net | 191,150 | 181,734 | ||||||
| Inventories | 337,890 | 313,416 | ||||||
| Prepaid income taxes | 33,145 | 43,196 | ||||||
| Prepaid expenses and other current assets | 54,460 | 45,766 | ||||||
| Total current assets | 1,542,637 | 1,423,440 | ||||||
| Long-term investments | — | 76,533 | ||||||
| Deferred income taxes, net | 122,235 | 123,889 | ||||||
| 70,281 | 71,735 | |||||||
| Intangible assets, net | 42,777 | 49,933 | ||||||
| Property, plant and equipment, net | 648,326 | 637,516 | ||||||
| Other assets | 45,787 | 41,234 | ||||||
| Total assets | $ | 2,472,043 | $ | 2,424,280 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 48,782 | $ | 39,288 | ||||
| Accrued expenses and other current liabilities | 204,874 | 184,849 | ||||||
| Income taxes payable | 3,858 | 9,900 | ||||||
| Total current liabilities | 257,514 | 234,037 | ||||||
| Other long-term liabilities and deferred income taxes | 59,581 | 62,113 | ||||||
| Total liabilities | 317,095 | 296,150 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity: | ||||||||
| Common stock, 42,508,140 shares issued and outstanding, respectively, at 56,964,939 and 42,127,067 shares issued and outstanding, respectively, at | 6 | 6 | ||||||
and | (1,558,277 | ) | (1,555,629 | ) | ||||
| Additional paid-in capital | 1,097,673 | 1,077,172 | ||||||
| Retained earnings | 2,672,063 | 2,644,964 | ||||||
| Accumulated other comprehensive loss | (56,517 | ) | (38,383 | ) | ||||
| Total stockholders' equity | 2,154,948 | 2,128,130 | ||||||
| Total liabilities and stockholders' equity | $ | 2,472,043 | $ | 2,424,280 | ||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||||
| Nine Months Ended | ||||||||
| 2026 | 2025 | |||||||
| (In thousands) | ||||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 27,099 | $ | 17,826 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 47,377 | 46,799 | ||||||
| Impairment charges | 17,805 | — | ||||||
| Provisions for inventory, warranty & bad debt | 33,594 | 31,766 | ||||||
| Other | 25,081 | 21,119 | ||||||
| Changes in assets and liabilities that provided (used) cash: | ||||||||
| Accounts receivable and accounts payable | 1,535 | 18,787 | ||||||
| Inventories | (60,189 | ) | (52,005 | ) | ||||
| Other | (13,771 | ) | (37,757 | ) | ||||
| Net cash provided by operating activities | 78,531 | 46,535 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchases of and deposits on property, plant and equipment | (54,437 | ) | (60,907 | ) | ||||
| Proceeds from sales of property, plant and equipment | 2,204 | 605 | ||||||
| Purchases of investments | (360,732 | ) | (866,402 | ) | ||||
| Purchases of equity investment | (8,000 | ) | — | |||||
| Proceeds from maturities of investments | 663,124 | 633,731 | ||||||
| Deposit received from buyer for assets held for sale | 2,000 | — | ||||||
| Other | 111 | 69 | ||||||
| Net cash provided by (used in) investing activities | 244,270 | (292,904 | ) | |||||
| Cash flows from financing activities: | ||||||||
| Payments for taxes related to net share settlement of equity awards less proceeds from issuance of common stock under employee stock option and purchase plans | (11,053 | ) | (4,316 | ) | ||||
| Purchase of treasury stock net of excise tax, at cost | (2,648 | ) | (46,603 | ) | ||||
| Net cash used in financing activities | (13,701 | ) | (50,919 | ) | ||||
| Effect of changes in exchange rates on cash, cash equivalents and cash held for sale | (1,727 | ) | 23,274 | |||||
| Net increase (decrease) in cash, cash equivalents and cash held for sale | 307,373 | (274,014 | ) | |||||
| Cash and cash equivalents — Beginning of period | 403,790 | 620,040 | ||||||
| Cash, cash equivalents and cash held for sale — End of period | $ | 711,163 | $ | 346,026 | ||||
| Supplemental disclosures of cash flow information: | ||||||||
| Cash paid for interest | $ | 54 | $ | 136 | ||||
| Cash paid for income taxes, net of refunds | $ | 9,273 | $ | 44,258 | ||||
SUPPLEMENTAL SCHEDULE OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) | ||||||||
Use of Non-GAAP Adjusted Financial Information
We refer to certain financial measures that are not recognized under
We define adjusted gross profit as reported gross profit, adjusted for non-recurring, infrequent, or unusual charges, including acquisition and integration charges and amortization of acquisition-related intangibles.
We define adjusted gross margin as adjusted gross profit divided by total revenue.
We define adjusted operating expense and resultant adjusted operating income as reported operating expenses and resultant operating income, adjusted for non-recurring, infrequent, or unusual charges, including impairment charges, settlement and fees of litigation matters, restructuring charges, acquisition and integration charges, amortization of acquisition-related intangibles, foreign exchange gains/losses and gain/loss on disposal of assets/divestiture.
We define EBITDA as net income plus interest expense (income), provision for income taxes, depreciation expense, and amortization expense.
We define adjusted EBITDA as EBITDA adjusted for non-recurring, infrequent, or unusual charges, and other adjustments that the Company believes appropriate, including stock-based compensation, restructuring charges, impairment charges, settlement and fees of litigation matters, acquisition and integration charges, foreign exchange gains/losses and gain/loss on disposal of assets/divestiture.
We define adjusted net income as reported net income, adjusted for non-recurring, infrequent, or unusual charges, and other adjustments that the Company believes appropriate, including impairment charges, settlement and fees of litigation matters, restructuring charges, amortization of acquisition-related intangibles, acquisition and integration charges, foreign exchange gains/losses and gain/loss on disposal of assets/divestiture, certain discrete tax items and non-GAAP income tax reconciling adjustments.
We define adjusted EPS as adjusted net income divided by the weighted-average diluted shares outstanding.
We define adjusted tax rate as the GAAP tax rate, adjusted for discrete tax items and the net impact of non-GAAP adjustments.
Management believes that these non-GAAP financial measures provide additional means of evaluating period-over-period operating performance. Specifically, these non-GAAP financial measures provide management with additional means to understand and evaluate the operating results and trends in our ongoing business by eliminating certain non-cash expenses and other items that management believes might otherwise make comparisons of our ongoing business with prior periods more difficult, obscure trends in ongoing operations, or reduce management’s ability to make useful forecasts.
In addition, management understands that some investors and financial analysts find this information helpful in analyzing our financial and operational performance and comparing this performance to our peers and competitors. However, these non-GAAP financial measures have limitations as an analytical tool and are not intended to be an alternative to financial measures prepared in accordance with GAAP. In addition, it should be noted that these non-GAAP financial measures may be different from non-GAAP measures used by other companies. Management may, however, utilize other measures to illustrate performance in the future. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of our non-GAAP financial measures to their most directly comparable GAAP measures has been provided below. These non-GAAP measures exclude (i) amortization of acquisition-related intangibles, (ii) restructuring charges, (iii) acquisition and integration costs, (iv) impairment charges, (v) foreign exchange gains/losses, (vi) interest income, (vii) benefit (provision) from income taxes, (viii) depreciation, (ix) amortization, (x) stock-based compensation, (xi) gain/loss on disposal of assets/divestiture, (xii) settlement and fees of litigation matters, (xiii) certain discrete tax items, and (xiv) non-GAAP income tax reconciling adjustments.
We have not provided a quantitative reconciliation of forward-looking Non-GAAP adjusted earnings per diluted share and adjusted EBITDA to their most directly comparable GAAP financial measures because we are unable to estimate with reasonable certainty the ultimate timing or amount of certain significant items without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing and/or amount of various items that would impact adjusted earnings per diluted share and adjusted EBITDA. This includes items that have not yet occurred, are out of the Company’s control, cannot be reasonably predicted and/or for which there would not be any meaningful adjustment or difference. For the same reasons, the Company is unable to address the probable significance of the unavailable information.
Our non-GAAP tax provision for the fiscal third quarter of 2026 is 23%. The difference between our GAAP income tax provision and our non-GAAP income tax provision is presented as non-GAAP income tax reconciling adjustments.
SUPPLEMENTAL SCHEDULE OF NON-GAAP MEASURES (UNAUDITED) | ||||||||||||||||
| Reconciliation of Gross Profit to Adjusted Gross Profit, Adjusted Gross Margin | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| (in thousands, except percentages) | ||||||||||||||||
| Gross profit | $ | 117,054 | $ | 99,005 | $ | 329,077 | $ | 282,390 | ||||||||
| Gross margin | 40.7 | % | 39.5 | % | 39.6 | % | 38.7 | % | ||||||||
| Amortization of acquisition-related intangibles | 720 | 851 | 2,360 | 2,928 | ||||||||||||
| Acquisition and integration charges | — | — | — | 482 | ||||||||||||
| Adjusted gross profit | $ | 117,774 | $ | 99,856 | $ | 331,437 | $ | 285,800 | ||||||||
| Adjusted gross margin | 41.0 | % | 39.8 | % | 39.9 | % | 39.2 | % | ||||||||
Reconciliation of Operating Expenses to Adjusted Operating Expenses
| Three Months Ended | Nine Months Ended | |||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||
| (in thousands) | ||||||||||||
| Operating expenses | $ | 96,277 | $ | 91,150 | $ | 311,505 | $ | 272,604 | ||||
| Less: | ||||||||||||
| Amortization of acquisition-related intangibles | 1,231 | 1,551 | 3,701 | 4,570 | ||||||||
| Acquisition and integration charges | 151 | 246 | 987 | 1,823 | ||||||||
| Impairment charges | 231 | — | 17,805 | — | ||||||||
| Restructuring charges | 149 | 425 | 500 | 425 | ||||||||
| Settlement and fees of litigation matters | — | — | 14,435 | — | ||||||||
| Loss on foreign exchange | 3,275 | 1,504 | 2,293 | 7,013 | ||||||||
| Adjusted operating expenses | $ | 91,240 | $ | 87,424 | $ | 271,784 | $ | 258,773 | ||||
Reconciliation of Operating Income to Adjusted Operating Income
| Three Months Ended | Nine Months Ended | |||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||
| (in thousands) | ||||||||||||
| Operating income | $ | 20,777 | $ | 7,855 | $ | 17,572 | $ | 9,786 | ||||
| Amortization of acquisition-related intangibles | 1,951 | 2,402 | 6,061 | 7,498 | ||||||||
| Acquisition and integration charges | 151 | 246 | 987 | 2,305 | ||||||||
| Impairment charges | 231 | — | 17,805 | — | ||||||||
| Restructuring charges | 149 | 425 | 500 | 425 | ||||||||
| Settlement and fees of litigation matters | — | — | 14,435 | — | ||||||||
| Loss on foreign exchange | 3,275 | 1,504 | 2,293 | 7,013 | ||||||||
| Adjusted operating income | $ | 26,534 | $ | 12,432 | $ | 59,653 | $ | 27,027 | ||||
Reconciliation of Net income to Adjusted EBITDA
| Three Months Ended | Nine Months Ended | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| (in thousands) | ||||||||||||||||
| Net income | $ | 20,273 | $ | 7,463 | $ | 27,099 | $ | 17,826 | ||||||||
| Interest income, net | (7,688 | ) | (7,283 | ) | (21,720 | ) | (22,728 | ) | ||||||||
| Provision for income taxes | 8,142 | 8,191 | 14,876 | 16,714 | ||||||||||||
| Depreciation | 12,986 | 12,392 | 38,447 | 36,120 | ||||||||||||
| Amortization | 2,976 | 3,240 | 8,930 | 10,679 | ||||||||||||
| EBITDA | $ | 36,689 | $ | 24,003 | $ | 67,632 | $ | 58,611 | ||||||||
| Impairment charges | 231 | — | 17,805 | — | ||||||||||||
| Stock based compensation | 11,022 | 10,780 | 31,597 | 32,834 | ||||||||||||
| Restructuring charges | 149 | 425 | 500 | 425 | ||||||||||||
| Acquisition and integration charges | 151 | 246 | 987 | 2,305 | ||||||||||||
| Settlement and fees of litigation matters | — | — | 14,435 | — | ||||||||||||
| Loss on foreign exchange | 3,275 | 1,504 | 2,293 | 7,013 | ||||||||||||
| Adjusted EBITDA | $ | 51,517 | $ | 36,958 | $ | 135,249 | $ | 101,188 | ||||||||
Reconciliation of GAAP to Non-GAAP Net Income, and GAAP to Non-GAAP Net Income per Share, Diluted
| Three Months Ended | Nine Months Ended | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| (in thousands, except per share data) | ||||||||||||||||
| Net income | $ | 20,273 | $ | 7,463 | $ | 27,099 | $ | 17,826 | ||||||||
| Impairment charges | 231 | — | 17,805 | — | ||||||||||||
| Amortization of acquisition-related intangibles | 1,951 | 2,402 | 6,061 | 7,498 | ||||||||||||
| Restructuring charges | 149 | 425 | 500 | 425 | ||||||||||||
| Acquisition and integration charges | 151 | 246 | 987 | 2,305 | ||||||||||||
| Settlement and fees of litigation matters | — | — | 14,435 | — | ||||||||||||
| Loss on foreign exchange | 3,275 | 1,504 | 2,293 | 7,013 | ||||||||||||
| Certain discrete tax items | 949 | 3,414 | 84 | 8,303 | ||||||||||||
| Tax impact of non-GAAP adjustments | (711 | ) | (613 | ) | (5,337 | ) | (2,471 | ) | ||||||||
| Adjusted net income | $ | 26,268 | $ | 14,841 | $ | 63,927 | $ | 40,899 | ||||||||
| Adjusted net earnings per diluted share | $ | 0.61 | $ | 0.35 | $ | 1.49 | $ | 0.96 | ||||||||
| Weighted average diluted shares outstanding | 42,840 | 42,556 | 42,904 | 42,659 | ||||||||||||
Reconciliation of GAAP to Non-GAAP Effective Tax Rate
| Three Months Ended | Nine Months Ended | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Tax rate | 29 | % | 52 | % | 35 | % | 48 | % | ||||||||
| Discrete tax items | (3 | ) | % | (22 | ) | % | — | % | (24 | ) | % | |||||
| Net impact of non-GAAP adjustments | (3 | ) | % | (3 | ) | % | (11 | ) | % | (3 | ) | % | ||||
| Adjusted tax rate | 23 | % | 27 | % | 24 | % | 21 | % | ||||||||
