TLDR
- Intuit delivered adjusted EPS of $4.15, crushing analyst expectations of $3.68, while revenue jumped 17% to $4.65 billion
- Third quarter forecast disappointed: EPS guidance of $12.45–$12.51 fell short of the $12.97 analyst consensus
- CEO Sasan Goodarzi emphasizes AI represents partnership opportunity, highlighting new Anthropic collaboration
- Shares declined approximately 4% in premarket trading Friday, extending year-to-date losses to nearly 40%
- Company announced quarterly dividend of $1.20 per share, marking a 15% year-over-year increase
Intuit delivered a solid fiscal second quarter performance that exceeded Wall Street projections, yet shares retreated on disappointing third quarter guidance.
The financial software giant posted adjusted earnings of $4.15 per share, significantly surpassing the $3.68 analyst consensus. Revenue reached $4.65 billion, marking a 17% year-over-year increase and beating the $4.53 billion estimate.
Adjusted operating income climbed 23% to reach $1.5 billion.
CEO Sasan Goodarzi characterized the performance as an “outstanding second quarter, driven by disciplined execution.”
However, the company’s third quarter outlook — its most critical period given tax filing season — came in below expectations. Management projects adjusted EPS between $12.45 and $12.51, missing the $12.97 Wall Street consensus.
Third quarter revenue is anticipated to increase approximately 10% year-over-year, suggesting around $4.36 billion — once again trailing analyst projections of $4.53 billion.
Shares declined roughly 4% in Friday’s premarket session following the earnings release, after gaining 3.5% in the previous day’s regular trading.
AI Partnerships, Not Competition
Intuit stock has tumbled nearly 40% year-to-date, driven primarily by market concerns that artificial intelligence solutions could displace traditional tax and accounting software.
Goodarzi countered this narrative. In comments to Barron’s, he emphasized that taxpayers prefer working with trusted brands, and AI companies aren’t interested in assuming the legal responsibilities inherent in tax preparation.
He explained that Anthropic and OpenAI “do not have, nor do they want to have, the capability” Intuit has developed — and noted that building such capabilities requires substantial time investment.
The company unveiled a partnership with Anthropic this week, designed to deliver custom AI agents to mid-market businesses using its platform. This follows a previously announced collaboration with OpenAI.
Jefferies analyst Brent Thill suggested Intuit’s robust first-half results “makes reiterated FY26 guide look conservative” and maintained his Buy rating, noting that “INTU’s moat in AI remains misunderstood.”
Full-Year Outlook Held Steady
Intuit maintained its full fiscal year 2026 projections without changes. Management anticipates adjusted EPS ranging from $22.98 to $23.18, reflecting approximately 14% to 15% growth.
Full-year revenue guidance remains between $21 billion and $21.2 billion, indicating 12% to 13% expansion.
Goodarzi pointed out that Intuit traditionally waits until after the third quarter to revise full-year guidance, considering the outsized importance of that period to overall business 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 is strategically positioning itself for success in the AI era.
Intuit additionally 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.
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