INCOME TAXES

9 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

Income tax expense and the effective income tax rate were as follows:

	Three Months Ended December 31,						Nine Months Ended December 31,
	2025			2024			2025			2024
Income tax expense	$	145,768		$	127,208		$	263,835		$	237,327
Effective income tax rate	23.3		%	21.8		%	22.9		%	22.6		%

The tax provisions during the three and nine months ended December 31, 2025, and 2024, were computed using the estimated effective income tax rate applicable to each of the domestic and foreign taxable jurisdictions for the current fiscal year, and prior fiscal year, respectively, and were adjusted for discrete items that occurred within the periods presented above.

During the three months ended December 31, 2025, the net change in the effective income tax rate, compared to the prior period, was primarily due to jurisdictional mix of worldwide income before income taxes, as well as non-recurring tax benefits for audit settlements in the prior period and reduced tax benefits from net discrete items, including a change in return-to-provision adjustments and stock-based compensation; partially offset by changes in valuation allowances on tax attributes.

During the nine months ended December 31, 2025, the net change in the effective income tax rate, compared to the prior period, was primarily due to jurisdictional mix of worldwide income before income taxes, as well as reduced tax benefits from net discrete items, including for stock-based compensation and reserve adjustments; partially offset by changes in valuation allowances on tax attributes.

Changes in Tax Law. The Company has evaluated and is currently monitoring the impact of recent tax law changes on its condensed consolidated financial statements for the following:

•On July 4, 2025, H.R. 1, also known as the One Big Beautiful Bill Act (OBBBA), was signed into law. The OBBBA includes, among other provisions, changes to US corporate income tax law, including restoration of accelerated depreciation on capital expenditures, deductible research and development expenses, and modifications to the international tax framework. The OBBBA has multiple effective dates, with certain provisions effective in the current fiscal year and others effective in fiscal year ending March 31, 2027. The Company has estimated the tax effects of OBBBA, which did not have a material impact on its condensed consolidated financial statements during the current period, while providing cash tax benefits in the current fiscal year due to accelerated tax deductions.

•Various jurisdictions in which the Company operates have enacted legislation in response to Pillar Two model rules (Pillar Two) that were previously released by the Organization for Economic Co-operation and Development (commonly known as OECD). The impact of the Pillar Two legislation during the current period did not have a material impact on the Company’s condensed consolidated financial statements. The Company will continue to monitor Pillar Two developments and reflect the impact of legislative changes in future periods.