Key Takeaways
- Intuit delivered adjusted EPS of $4.15, crushing the $3.68 consensus, while revenue climbed 17% to $4.65 billion
- Third-quarter EPS forecast of $12.45–$12.51 missed analyst expectations of $12.97
- CEO Sasan Goodarzi emphasizes AI companies are collaborators, not competitors, highlighting new Anthropic alliance
- Shares declined approximately 4% in premarket trading Friday, extending a nearly 40% year-to-date loss
- Company announced quarterly dividend of $1.20 per share, marking a 15% year-over-year increase
Intuit delivered impressive fiscal second-quarter results that surpassed analyst projections, yet shares tumbled after the company issued conservative third-quarter guidance.
The financial software giant posted adjusted earnings of $4.15 per share, significantly exceeding the Street’s $3.68 forecast. Revenue reached $4.65 billion, marking a 17% year-over-year increase and beating the consensus estimate of $4.53 billion.
Adjusted operating income jumped 23% to reach $1.5 billion.
CEO Sasan Goodarzi described the results as an “outstanding second quarter, driven by disciplined execution.”
However, the company’s third-quarter outlook — crucial given the tax filing season — disappointed investors. Intuit projected adjusted EPS between $12.45 and $12.51, missing Wall Street’s $12.97 forecast.
For Q3 revenue, management anticipates approximately 10% growth compared to last year, suggesting around $4.36 billion — trailing analyst projections of $4.53 billion.
Shares fell roughly 4% in premarket activity Friday, reversing a 3.5% gain from Thursday’s regular session.
Embracing AI as an Ally, Not an Adversary
Intuit stock has plummeted nearly 40% year-to-date, pressured by widespread concerns that artificial intelligence could disrupt the tax preparation and accounting software industry.
Goodarzi challenged this narrative. In remarks to Barron’s, he emphasized that taxpayers prefer working with trusted brands and that AI companies aren’t interested in assuming the legal responsibilities associated with tax filing.
According to Goodarzi, companies like Anthropic and OpenAI “do not have, nor do they want to have, the capability” that Intuit has developed — capabilities that require significant time to establish.
The company unveiled a collaboration with Anthropic this week to deliver customized AI agents for mid-market businesses using its platform. This follows a previously announced partnership with OpenAI.
Jefferies analyst Brent Thill commented that Intuit’s robust first-half results “makes reiterated FY26 guide look conservative” and maintained a Buy rating, noting that “INTU’s moat in AI remains misunderstood.”
Annual Forecast Remains Unchanged
Intuit maintained its full fiscal year 2026 outlook without revisions. The company continues to project adjusted EPS between $22.98 and $23.18, indicating approximately 14% to 15% growth.
Full-year revenue expectations remain at $21 billion to $21.2 billion, representing 12% to 13% expansion.
Goodarzi explained that the company typically refrains from updating annual guidance until after the third quarter concludes, given the quarter’s significance to overall performance.
Wolfe Research analyst 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 characterized Intuit as a “mission-critical platform for small businesses” that is strategically positioning itself for the artificial intelligence revolution.
The company also 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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