TLDRs;
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Intuit stock falls 5 percent after hours despite earlier session gains.
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Higher marketing and support costs weigh on quarterly profit outlook.
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AI partnerships with OpenAI and Anthropic now serve over 3 million clients.
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Revenue grows 17 percent with TurboTax and QuickBooks performing strongly.
Shares of Intuit Inc. (NASDAQ:INTU) fell sharply in after-hours trading Thursday, dropping 5.3% to $373.48 following the release of the company’s latest quarterly outlook. Earlier in the session, Intuit shares had climbed roughly 3.5%, reflecting optimism around tax-season activity and strong revenue performance. The sudden reversal came as investors digested guidance that signaled higher-than-expected spending in marketing, customer support, and AI-driven services.
Tax-Season Spending Pressures Profits
The third quarter is a critical period for Intuit, with the bulk of revenue for TurboTax and ProTax occurring between November and April. CFO Sandeep Aujla told Reuters that the company expects adjusted EPS in the range of $12.45 to $12.51, slightly below Wall Street’s consensus. The miss is largely attributed to elevated marketing and customer support expenses, which Intuit is investing in to expand adoption of its assisted tax services and QuickBooks offerings.
“This period really showcases our consumer business,” Aujla explained. “We are investing strategically in both human support and AI-driven tools to ensure our clients have seamless tax experiences.”
AI Expansion and New Partnerships
Intuit is aggressively integrating artificial intelligence into its core services. Multi-year agreements with OpenAI and Anthropic are enabling over 3 million clients to interact with AI-powered tax and finance assistants. CEO Sasan Goodarzi emphasized that Intuit is creating “a new category at the intersection of AI and human intelligence,” positioning the company to differentiate itself from competitors like H&R Block and Oracle’s NetSuite.
While these partnerships expand capabilities, they also contribute to higher costs. The company pays for the AI technology but does not share revenue with the providers, a decision that underscores Intuit’s commitment to long-term control over its AI platform.
Solid Revenue Amid Volatility
Despite the after-hours drop, Intuit reported impressive revenue growth for the quarter ending Jan. 31, climbing 17% to $4.651 billion. Global Business Solutions revenue jumped 18% to $3.2 billion, while Consumer revenue reached $1.5 billion, up 15%. TurboTax contributed $581 million, a 12% increase from the prior year. The company also raised its quarterly dividend by 15% to $1.20 per share and returned $961 million through share buybacks.
Analysts remain generally positive about Intuit’s long-term prospects, noting that the company’s core business provides flexibility to absorb increased spending. William Blair analyst Arjun Bhatia called Intuit a “mission-critical platform for small businesses,” highlighting its AI investments and strong market positioning.
Investor Focus Ahead
Looking ahead, investors are monitoring whether the recent selling pressure continues or stabilizes. Early tax-season activity, including conversions to assisted tax products and QuickBooks adoption, will be critical in assessing whether Intuit’s higher spending translates into sustainable growth. With the federal filing deadline set for April 15 and the IRS having launched the 2026 tax season on Jan. 26, all eyes are on consumer activity and Intuit’s ability to convert its AI investments into long-term value.
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