Quarterly report [Sections 13 or 15(d)]

Income Taxes

v3.25.4
Income Taxes
6 Months Ended
Nov. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

Note J: Income Taxes

 

The Company’s effective income tax rate was 24.0% and 23.4% for the three and six months ended November 30, 2025, respectively, compared to 24.0% and 23.6% for the three and six months ended November 30, 2024, respectively. Both periods were impacted by the recognition of discrete tax impacts related to employee stock-based compensation payments.

 

On July 4, 2025, the One Big Beautiful Bill Act (the “Act”) was enacted into law. The most significant provisions applicable to the Company relate to accelerated tax deductions for qualified property and research expenditures. As a result, the Company’s deferred tax liabilities will be impacted in fiscal 2026 by the deductibility of previously capitalized research expenditures and accelerated tax depreciation. The Act is not expected to have a material impact on the Company’s effective tax rate.