TLDR:
- Intuit’s Q1 FY26 revenue jumps 18%, but stock drops 2.03%.
- Strong AI-driven growth fuels Intuit’s impressive financial results.
- Intuit’s GAAP income soars 97%, with solid growth in key segments.
- Despite a stock dip, Intuit maintains a positive full-year growth outlook.
- Intuit reports 21% growth in consumer revenue, with TurboTax gains.
Intuit Inc. (INTU) stock experienced a 2.03% drop, closing at $637.44, following its announcement of first-quarter financial results for fiscal 2026.
Intuit Inc., INTU
The company reported impressive revenue and profit growth, fueled by its AI-driven expert platform strategy. Despite strong financial performance, market reactions to the report led to the stock decline.
Strong Revenue and Profit Growth in Q1 FY26
Intuit posted a total revenue of $3.9 billion for the first quarter, marking an 18% increase year-over-year. The company saw notable growth in its Global Business Solutions and Online Ecosystem segments, with revenues reaching $3.0 billion and $2.4 billion, respectively. Excluding Mailchimp, the growth in these areas stood at 20% and 25%, showcasing solid demand across its key platforms.
The company’s consumer-facing products also performed well, with consumer revenue growing 21% to $894 million. Intuit’s Credit Karma saw significant growth, increasing 27% to $651 million. Additionally, TurboTax and ProTax generated revenues of $198 million and $45 million, reflecting steady gains in these segments.
Operational Gains and Impressive Profit Margins
Intuit’s operational efficiency showed strong improvement in Q1 FY26. The company’s GAAP operating income surged by 97%, reaching $534 million, while non-GAAP operating income increased by 32%, reaching $1.3 billion. This strong growth helped drive GAAP diluted earnings per share to $1.59, a 127% rise compared to the previous year.
Despite market volatility, the company’s outlook remains optimistic. Intuit reported a solid cash balance of approximately $3.7 billion and continued its stock repurchase program, buying back $851 million in shares. The company’s decision to increase its quarterly dividend by 15% further underscores its financial strength.
Full-Year Guidance and Market Outlook
Looking ahead, Intuit has reaffirmed its fiscal year 2026 guidance. The company expects to achieve total revenue growth of 12 to 13%, with a target range of $20.997 billion to $21.186 billion. Additionally, Intuit forecasts GAAP diluted earnings per share to grow by 13 to 15%, reaching between $15.49 and $15.69.
For Q2 FY26, the company anticipates revenue growth of 14 to 15% and GAAP diluted earnings per share of $1.76 to $1.81. Non-GAAP earnings per share for the quarter are expected to range between $3.63 and $3.68. These projections reflect the company’s confidence in its business strategy, despite the stock’s recent dip.
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