Key Highlights
- Intuit reported adjusted earnings per share of $4.15, surpassing analyst estimates of $3.68, with revenue growing 17% to $4.65 billion
- Q3 earnings guidance of $12.45–$12.51 per share fell short of Wall Street’s $12.97 expectation
- CEO Sasan Goodarzi maintains AI firms serve as partners rather than threats, pointing to recent Anthropic partnership
- Stock dropped roughly 4% during Friday’s premarket session, adding to a steep 40% decline year-to-date
- Quarterly dividend increased to $1.20 per share, reflecting a 15% annual boost
Intuit posted strong fiscal second-quarter performance that topped Wall Street estimates, but investors sent shares downward following the company’s cautious third-quarter projections.
The maker of TurboTax and QuickBooks software reported adjusted earnings of $4.15 per share, handily beating consensus expectations of $3.68. The company generated $4.65 billion in revenue, representing a 17% annual increase and surpassing analyst forecasts of $4.53 billion.
Adjusted operating income surged 23% to $1.5 billion for the quarter.
CEO Sasan Goodarzi characterized the performance as “an outstanding second quarter, driven by disciplined execution.”
Despite the solid quarterly performance, Intuit’s third-quarter forecast — particularly important because it covers the peak tax season — fell below expectations. The company guided for adjusted earnings per share of $12.45 to $12.51, significantly below the Street’s $12.97 estimate.
Management expects third-quarter revenue growth of approximately 10% year-over-year, implying roughly $4.36 billion — below consensus forecasts of $4.53 billion.
The stock declined about 4% in Friday’s premarket trading, erasing Thursday’s 3.5% regular session advance.
Positioning AI as Partner Rather Than Threat
Intuit stock has suffered a nearly 40% decline so far this year amid investor anxiety that artificial intelligence could undermine traditional tax preparation and accounting software businesses.
Goodarzi pushed back against this pessimistic view. Speaking with Barron’s, he stressed that consumers favor established, trustworthy brands and that AI developers have no interest in accepting the legal liabilities inherent in tax preparation services.
Goodarzi argued that firms such as Anthropic and OpenAI “do not have, nor do they want to have, the capability” that Intuit possesses — expertise that requires years to develop.
The company revealed a strategic partnership with Anthropic this week to provide specialized AI agents for mid-sized companies leveraging its platform. This arrangement builds upon an earlier collaboration with OpenAI.
Jefferies analyst Brent Thill observed that Intuit’s strong first-half performance “makes reiterated FY26 guide look conservative” and kept his Buy recommendation, adding that “INTU’s moat in AI remains misunderstood.”
Full-Year Guidance Held Steady
Intuit left its fiscal 2026 full-year outlook untouched. Management continues to forecast adjusted earnings per share of $22.98 to $23.18, implying growth of roughly 14% to 15%.
The company still anticipates full-year revenue of $21 billion to $21.2 billion, representing 12% to 13% growth.
Goodarzi noted that the company traditionally avoids adjusting annual guidance until the third quarter wraps up, considering that period’s outsized impact on yearly results.
Wolfe Research analyst Alex Zukin said the results “reiterate our positive view on growth durability,” though he trimmed his price target to $550 from $685 while maintaining an Outperform rating.
William Blair analyst Arjun Bhatia described Intuit as a “mission-critical platform for small businesses” that is effectively positioning itself to capitalize on the artificial intelligence transformation.
Intuit declared a quarterly dividend of $1.20 per share, payable April 17, 2026 — a 15% boost from the same period last year.
