Key Takeaways
- Intuit delivered Q4 adjusted EPS of $4.03 on $4.35 billion revenue, surpassing analyst projections
- Shares declined 3.2% to close at $345.88 following the earnings announcement
- Fiscal 2027 revenue forecast of $23.3B-$23.5B fell short of the $23.7B analyst consensus
- Management admitted TurboTax is hemorrhaging DIY users to budget-friendly competitors
- A shift in accounting methodology will incorporate share-based compensation into non-GAAP metrics, affecting earnings comparisons
Shares of Intuit (INTU) finished Wednesday’s trading session at $345.88, declining 3.2% despite delivering quarterly performance that exceeded analyst forecasts. The downturn came after the software giant provided fiscal year revenue projections that disappointed Wall Street.
The company’s fourth-quarter results showed adjusted earnings reaching $4.03 per share with revenue totaling $4.35 billion. These figures outperformed the Street’s expectations of $3.58 per share on $4.27 billion revenue, marking a decisive quarterly win.
However, investors focused on what lies ahead.
For fiscal 2027, Intuit projected total revenue between $23.3 billion and $23.5 billion, representing 9% to 10% year-over-year expansion. This outlook trails the analyst consensus of $23.7 billion and represents a notable deceleration from the 14% revenue growth achieved in fiscal 2026.
The stock has plummeted approximately 48% throughout 2026, pressured by widespread fears that artificial intelligence will disrupt traditional software business models industry-wide.
TurboTax Faces Competitive Heat
Chief Executive Sasan Goodarzi didn’t mince words about a critical challenge: Intuit is watching valuable do-it-yourself TurboTax users defect to lower-priced alternatives, with cost being the decisive factor.
Leadership revealed plans to intentionally reduce average revenue per TurboTax customer to reclaim lost market position. Consequently, TurboTax revenue for fiscal 2027 is projected to expand merely 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 expansion and 38% customer base growth recorded in FY2026.
Goodarzi characterized this strategic pivot as a patient, long-term investment. The underlying thesis holds that more accessible pricing attracts additional customers who can subsequently be converted to premium financial services within the broader ecosystem.
Bright Spots Emerge Despite Headwinds
The earnings report wasn’t entirely discouraging. Intuit’s “Big Bets” portfolio—encompassing assisted tax services, financial management tools, and mid-market solutions—expanded 34% and now represents 30% of annual revenue.
The mid-market segment particularly impressed, delivering 39% revenue growth while QuickBooks Online Advanced and Intuit Enterprise Suite customer counts jumped 28%. Enterprise Suite annualized revenue exceeded $145 million in Q4, quadrupling from the previous year.
QuickBooks Capital demonstrated momentum with loan volume surging 54% in Q4 to reach $1.9 billion. Annual online payment volume crossed $225 billion, advancing roughly 30%.
The company’s total online paying customer base reached 8.9 million, representing 3% year-over-year growth, although leadership acknowledged this trailed the prior year’s growth rate by approximately two percentage points.
Intuit concluded 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.
Starting next year, Mailchimp will be disclosed as a standalone reporting segment. Mailchimp’s Q4 revenue edged slightly lower year-over-year, with management forecasting flat to 1% decline for FY2027.
Looking toward fiscal 2027, Intuit anticipates GAAP EPS between $20.12 and $20.36, with non-GAAP EPS ranging from $22.88 to $23.12. Significantly, the company announced it will begin incorporating share-based compensation into non-GAAP metrics, creating an estimated $5.81 headwind to FY2027 non-GAAP EPS.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
