Key Highlights
- Intuit delivered adjusted earnings of $4.15 per share versus analyst expectations of $3.68, while revenue climbed 17% to $4.65 billion
- Fiscal Q3 outlook disappointed: EPS guidance of $12.45–$12.51 fell short of the $12.97 Street consensus
- CEO Sasan Goodarzi emphasizes AI as collaborative force, highlighting new Anthropic collaboration
- Shares declined approximately 4% in early Friday trading after tumbling nearly 40% over the past year
- Company announced $1.20 quarterly dividend per share, marking a 15% year-over-year increase
Intuit surpassed analyst projections for its fiscal second-quarter performance, yet weaker-than-anticipated guidance for the upcoming quarter pressured shares lower.
The software giant posted adjusted earnings of $4.15 per share, significantly exceeding the $3.68 analyst consensus. Revenue reached $4.65 billion, representing a 17% year-over-year increase and surpassing the $4.53 billion Street estimate.
Adjusted operating income climbed 23% to $1.5 billion.
CEO Sasan Goodarzi characterized the results as an “outstanding second quarter, driven by disciplined execution.”
However, the company’s fiscal third-quarter outlook — its most critical reporting period given the tax filing season — disappointed investors. Management projected adjusted EPS in the range of $12.45 to $12.51, trailing the Street’s $12.97 estimate.
Revenue for Q3 is anticipated to increase approximately 10% year-over-year, suggesting around $4.36 billion — notably below the $4.53 billion analyst forecast.
Shares fell roughly 4% in premarket activity Friday morning, following a 3.5% gain in the previous session.
AI Viewed as Ally, Not Adversary
Intuit stock has declined nearly 40% year-to-date, driven primarily by investor concerns that artificial intelligence solutions could disrupt traditional tax and accounting software providers.
Goodarzi challenged this narrative. Speaking with Barron’s, he emphasized that taxpayers prefer working with established, trusted brands, and that AI companies aren’t interested in assuming the legal responsibilities associated with tax preparation services.
He explained that Anthropic and OpenAI “do not have, nor do they want to have, the capability” that Intuit has developed — noting it requires years of investment to build such infrastructure.
The company revealed a strategic partnership with Anthropic this week, aimed at deploying customized AI agents for mid-market enterprises using its platform. This follows a similar arrangement announced previously with OpenAI.
Jefferies analyst Brent Thill suggested Intuit’s impressive first-half showing “makes reiterated FY26 guide look conservative” and maintained a Buy rating, noting that “INTU’s moat in AI remains misunderstood.”
Annual Forecast Remains Unchanged
Intuit maintained its full fiscal year 2026 projections without revision. Management continues to anticipate adjusted EPS between $22.98 and $23.18, indicating year-over-year growth of approximately 14% to 15%.
Full-year revenue guidance stays in the $21 billion to $21.2 billion range, representing 12% to 13% expansion.
Goodarzi explained that the company typically refrains from updating annual guidance until after its fiscal third quarter concludes, given the substantial impact that period has on overall performance.
Wolfe Research’s Alex Zukin stated the results “reiterate our positive view on growth durability,” though he reduced his price target to $550 from $685 while keeping an Outperform rating.
William Blair analyst Arjun Bhatia described Intuit as a “mission-critical platform for small businesses” that continues positioning itself strategically for the AI-driven future.
The company also announced a quarterly dividend of $1.20 per share, scheduled for payment on April 17, 2026 — representing a 15% increase compared to the prior-year period.
