Key Highlights
- Intuit delivered Q4 adjusted EPS of $4.03 and revenue of $4.35 billion, surpassing Wall Street projections
- Shares declined 3.2% to close at $345.88 following the earnings announcement
- Fiscal 2027 revenue forecast of $23.3B to $23.5B fell short of analyst consensus at $23.7B
- Management admitted TurboTax is hemorrhaging DIY users to budget-friendly competitors over pricing concerns
- A shift in accounting policy will incorporate share-based compensation into non-GAAP metrics, impacting future EPS comparisons
Shares of Intuit (INTU) retreated 3.2% to finish Wednesday’s session at $345.88, despite delivering quarterly results that exceeded analyst forecasts. The selloff came as the software giant’s revenue projections for the coming fiscal year disappointed investors on Wall Street.
The company posted fourth-quarter adjusted earnings of $4.03 per share alongside revenue totaling $4.35 billion. Wall Street had been anticipating $3.58 per share with revenue of $4.27 billion, making the quarterly performance a decisive win.
However, investor enthusiasm quickly evaporated when attention turned to future expectations.
For fiscal 2027, Intuit projects total revenue between $23.3 billion and $23.5 billion, representing growth of 9% to 10%. This outlook trails the $23.7 billion analysts had penciled in and marks a deceleration from the 14% revenue expansion achieved in fiscal 2026.
The stock has plummeted approximately 48% throughout 2026, pressured by mounting worries that artificial intelligence could disrupt traditional software business models across the industry.
TurboTax Faces Competitive Headwinds
CEO Sasan Goodarzi didn’t sugarcoat the challenge: Intuit is hemorrhaging valuable do-it-yourself TurboTax users to budget-friendly alternatives, with price sensitivity driving the exodus.
Leadership outlined plans to intentionally reduce TurboTax’s average revenue per user in an effort to reclaim lost market position. Consequently, TurboTax revenue for fiscal 2027 is projected to expand a modest 2% to 3%.
TurboTax Live, previously a powerhouse growth engine, is anticipated to decelerate to mid-teens percentage growth in FY2027, a significant slowdown from the 37% revenue increase and 38% customer expansion recorded in FY2026.
Goodarzi positioned this strategy as a long-term investment. The rationale centers on attracting more users through affordable entry options, then cross-selling them into premium financial services throughout the ecosystem.
Bright Spots Amid the Challenges
Despite the headwinds, several business segments delivered impressive performance. Intuit’s “Big Bets” initiativesāencompassing assisted tax services, money solutions, and mid-market offeringsāsurged 34% and now represent 30% of annual revenue.
The mid-market division particularly shined, posting 39% revenue growth while QuickBooks Online Advanced and Intuit Enterprise Suite customer counts jumped 28%. Enterprise Suite’s annualized revenue exceeded $145 million in the fourth quarter, quadrupling from the previous year.
QuickBooks Capital loan originations climbed 54% during Q4 to reach $1.9 billion. Annual online payment volume crossed $225 billion, representing approximately 30% year-over-year growth.
The company’s online paying customer base expanded to 8.9 million, marking 3% annual growth, though executives noted this trailed the prior year’s growth rate by roughly two percentage points.
Intuit closed the quarter holding $7.2 billion in cash and investments. The company executed $5.5 billion in share buybacks throughout the year and boosted its quarterly dividend 15% to $1.38 per share.
Beginning next year, Intuit will report Mailchimp as a standalone segment. Mailchimp’s Q4 revenue dipped slightly year-over-year, with management projecting flat to a 1% decline for fiscal 2027.
Looking ahead to fiscal 2027, Intuit anticipates GAAP EPS ranging from $20.12 to $20.36 and non-GAAP EPS between $22.88 and $23.12. Management also announced that share-based compensation will now be incorporated into non-GAAP reporting, creating an estimated $5.81 headwind to FY2027 non-GAAP EPS.
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