Income Taxes

3 Months Ended

Mar. 31, 2026

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The provision for income taxes was $70.1 million and $56.1 million for the three months ended March 31, 2026 and 2025, respectively. The effective income tax rate was 24.0% and 21.0% for the three months ended March 31, 2026, and 2025, respectively.

The increase in the effective income tax rate in the current period was primarily due to the unfavorable impact of stock-based compensation, partially offset by the favorable release of reserves upon the resolution of the related inquiries.

The Company had gross unrecognized tax benefits of $292.6 million on March 31, 2026 and $301.6 million on December 31, 2025.

Recent legislative developments in the U.S. and internationally have introduced significant changes to tax frameworks, including modifications impacting business provisions, international taxation, and global minimum tax requirements. These changes have various effective dates, with some provisions already in effect and others to be implemented over the coming years. While these evolving legislative measures have not had a material impact on the Company’s consolidated financial results in the current period, the Company is actively monitoring and assessing their potential effects. The Company will continue to evaluate and reflect the impact of these legislative changes in its future financial statements as appropriate.