Profitable, and paying under 10% tax
175 companies above $1bn in revenue reported positive pretax income and an effective tax rate below 10%.
The effective rate is tax expense over pretax income, both as reported. It is not the cash the company sent to a tax authority, and the gap between the two is often the most interesting part of a filing.
Low rates arise several ways. Carried-forward losses from earlier years shelter current profit, which is simply the tax code working as intended for a company that has recovered. Foreign earnings taxed at lower rates reduce the blended figure. A one-off release of a valuation allowance or the settlement of a dispute can push a single year far below normal, or even negative.
Because of that last category, a single year at a low rate says very little. The rate over five years says a great deal, and where it stays low without losses to explain it, the structure is doing the work.
What this is usually called
The effective tax rate is tax expense over pretax income, and it differs from both the statutory rate and the cash tax rate. The reconciliation between them appears in the tax footnote as permanent and temporary differences. Losses carried forward are net operating loss carryforwards, and the balance-sheet asset they create is a deferred tax asset, written down by a valuation allowance when it may not be used.
The question, as a query
Below is the query as a reader would type it. Edit the numbers to move the threshold and the answer changes with them.
effective_tax_rate < 10% AND POSITIVE(pretax_income) AND revenue > 1b| Company | Revenue | Net income | Gross margin | Free cash flow |
|---|---|---|---|---|
| DISWalt Disney Co | $94.42B | $12.40B | Unavailable | $10.08B |
| IBMINTERNATIONAL BUSINESS MACHINES CORP | $67.54B | $10.59B | 58.2% | $12.10B |
| AVGOBroadcom Inc. | $63.89B | Unavailable | 67.8% | $26.91B |
| PFEPFIZER INC | $62.58B | $7.77B | 74.3% | $9.08B |
| HPQHP INC | $55.30B | $2.53B | 20.6% | Unavailable |
| COF BankCAPITAL ONE FINANCIAL CORP | $53.43B | $2.45B | Unavailable | $26.14B |
| EPDENTERPRISE PRODUCTS PARTNERS L.P. | $52.60B | $5.81B | 26.7% | Unavailable |
| UBERUber Technologies, Inc | $52.02B | $10.05B | Unavailable | $9.76B |
| TMOTHERMO FISHER SCIENTIFIC INC. | $44.56B | $6.70B | Unavailable | $6.29B |
| PAAPLAINS ALL AMERICAN PIPELINE LP | $44.26B | $1.44B | 8.7% | $2.29B |
| PAGPPLAINS GP HOLDINGS LP | $44.26B | $260.00M | 8.7% | $2.29B |
| GEVGE Vernova Inc. | $38.07B | $4.88B | 19.8% | Unavailable |
| CHSCPCHS INC | $35.46B | $597.92M | 3.2% | -$92.79M |
| AMDADVANCED MICRO DEVICES INC | $34.64B | $4.34B | 49.5% | $6.74B |
| MDLNMedline Inc. | $28.43B | $1.16B | 26.4% | $1.30B |
| BKRBaker Hughes Co | $27.73B | $2.59B | Unavailable | Unavailable |
| CCLCarnival Corp Ltd. | $26.62B | $2.76B | Unavailable | $2.61B |
| NEENEXTERA ENERGY INC | $25.80B | $6.84B | Unavailable | Unavailable |
| PCGPG&E Corp | $24.94B | Unavailable | Unavailable | -$3.07B |
| GPCGENUINE PARTS CO | $24.30B | $65.94M | 36.8% | $420.92M |
| AEPAMERICAN ELECTRIC POWER CO INC | $21.88B | Unavailable | Unavailable | Unavailable |
| LHXL3HARRIS TECHNOLOGIES, INC. /DE/ | $21.32B | $1.50B | 25.9% | $2.15B |
| GLPGLOBAL PARTNERS LP | $18.56B | $97.98M | 5.7% | Unavailable |
| RCLROYAL CARIBBEAN CRUISES LTD | $17.94B | $4.27B | 49.4% | $1.24B |
| MGMMGM Resorts International | $17.54B | $205.86M | Unavailable | $1.46B |
| TEVATEVA PHARMACEUTICAL INDUSTRIES LTD | $17.26B | $1.41B | 51.8% | Unavailable |
| SAHSONIC AUTOMOTIVE INC | $15.15B | $118.70M | 15.7% | Unavailable |
| SWKSTANLEY BLACK & DECKER, INC. | $15.13B | $401.90M | 30.3% | $687.90M |
| DASHDoorDash, Inc. | $13.72B | $935.00M | Unavailable | $2.17B |
| WDCWESTERN DIGITAL CORP | $12.92B | $9.42B | 48.9% | $3.51B |
| RNR InsurerRENAISSANCERE HOLDINGS LTD | $12.85B | $2.68B | Unavailable | Unavailable |
| AAAlcoa Corp | $12.83B | $1.16B | Unavailable | $567.00M |
| CYHCOMMUNITY HEALTH SYSTEMS INC | $12.48B | $509.00M | 85.1% | $208.00M |
| AESAES CORP | $12.23B | $910.00M | 18.1% | -$1.62B |
| BAHBooz Allen Hamilton Holding Corp | $11.22B | $851.00M | 52.7% | Unavailable |
| DKDelek US Holdings, Inc. | $10.72B | -$22.80M | 5.7% | $6.30M |
| AGCOAGCO CORP /DE | $10.08B | $726.50M | 25.5% | $740.20M |
| NCLHNorwegian Cruise Line Holdings Ltd. | $9.83B | $423.25M | 42.6% | -$1.17B |
| WECWEC ENERGY GROUP, INC. | $9.80B | Unavailable | 66.7% | Unavailable |
| SEBSEABOARD CORP /DE/ | $9.75B | Unavailable | 7.1% | $6.00M |
Showing the 40 largest by revenue of 175. Open the full list in the screener.
What this does not show
This is the accounting rate, not cash taxes paid. A company can report a normal expense while paying very little, and the reverse.
The measures behind this
Effective tax rate Income tax expense Pretax income
Related findings
Citing this
SequelSEC, “Profitable, and paying under 10% tax”, 29 October 2026. https://sequelsec.com/findings/effective-tax-rate-under-ten-percent
Figures are recomputed on every view from SEC filings, so a number quoted from this page should carry the date it was read.