Intuit NASDAQ: INTU reported fiscal third-quarter revenue growth of 10% and raised its full-year outlook, while management outlined plans to reduce the company’s full-time workforce by 17% and adjust its approach to lower-income, price-sensitive tax filers.
Chairman and CEO Sasan Goodarzi said the company delivered “strong overall results” in the quarter as it continued to execute on its AI-driven expert platform strategy. He said several growth areas, including assisted tax, the money portfolio and mid-market offerings, grew more than 30%.
At the same time, Goodarzi said Intuit faced headwinds in the most price-sensitive segment of do-it-yourself TurboTax filers. “We lost on price,” he said, referring to filers earning less than $50,000 a year. Goodarzi said the company plans to evolve its business model with “the right lineups and price points” for simple filers while using its broader consumer platform to monetize beyond tax preparation.
Third-Quarter Results Beat Guidance
CFO Sandeep Aujla said Intuit exceeded the high end of its guidance for revenue, operating income and earnings per share in the third quarter of fiscal 2026.
- Revenue was $8.6 billion, up 10% from a year earlier.
- GAAP operating income was $4.0 billion, compared with $3.7 billion last year.
- Non-GAAP operating income was $4.7 billion, compared with $4.3 billion last year.
- GAAP diluted earnings per share were $11.09, up from $10.02 a year earlier.
- Non-GAAP diluted earnings per share were $12.80, compared with $11.65 last year.
Aujla said the results reflected a disciplined approach to managing the business, including continued AI efficiencies.
TurboTax Live Growth Offsets DIY Pressure
Consumer revenue grew 8% in the quarter, driven by TurboTax revenue growth of 7% and Credit Karma growth of 15%. Pro Tax revenue was in line with last year.
Goodarzi said total IRS filers are expected to decline by about 30 basis points this season, creating a gap of roughly 2 million units compared with macro expectations. He called it the most significant industry-wide contraction since the post-COVID tax season and said the decline affected both existing and new customers across demographics.
Despite the softer filing environment, management said TurboTax Online paying units are expected to grow 2% for the year, driven by share gains among higher average revenue per user filers. TurboTax average revenue per user is expected to increase 11% as customers continue to demand assistance and faster access to refunds.
Goodarzi emphasized the strength of TurboTax Live, the company’s assisted tax product. Intuit expects TurboTax Live customers to grow 38% this year and TurboTax Live revenue to grow 36%, well above the company’s long-term expectation of 15% to 20% revenue growth for the offering. Aujla said TurboTax Live is expected to represent 53% of total TurboTax revenue this year.
Goodarzi said the company’s local expert strategy contributed to TurboTax Live acquisition, with 36% of customers acquired through local channels being new to TurboTax. Aujla added that TurboTax Live retention increased by 2 percentage points.
On the lower end of the DIY segment, Goodarzi said Intuit will move from a complexity-based model to a more value-based approach. In response to a question from Morgan Stanley analyst Keith Weiss, he said some filers earning less than $50,000 with a W-2 could fall into a free SKU, while others may pay depending on the value they seek. He said the company also sees opportunities to monetize those users through offerings outside tax, including Credit Karma and Fast Money.
Credit Karma and Fast Money Boost Consumer Platform
Management pointed to increasing overlap between TurboTax and Credit Karma as evidence of the consumer platform’s broader potential. Goodarzi said average revenue per user is about 30% higher for customers using both TurboTax and Credit Karma compared with customers using TurboTax alone.
He also said more than 35% of TurboTax customers adopted Fast Money offerings, and Intuit expects 26% revenue growth across its consumer money portfolio this year. Aujla said the company expects to deliver more than $25 billion in refunds through Fast Money offerings this year.
Credit Karma revenue rose 15% in the quarter. Aujla said personal loans contributed 9 percentage points of that growth, auto insurance contributed 5 points and home loans contributed 1 point.
Business Platform Growth Led by Mid-Market and Payments
Global Business Solutions Group revenue grew 15% in the quarter, or 17% excluding Mailchimp. Online ecosystem revenue grew 19%, or 22% excluding Mailchimp.
Aujla said online ecosystem revenue for QuickBooks Online Advanced and Intuit Enterprise Suite grew 38%, reflecting continued momentum in the mid-market segment. Online ecosystem revenue for small businesses and the rest of the base grew 16%.
QuickBooks Online accounting revenue increased 22%, driven by higher effective prices, customer growth and mix shift. Online services revenue grew 15%, or 22% excluding Mailchimp. Aujla said that growth was driven by money offerings, including payments, capital and Bill Pay, as well as payroll.
Total online payment volume, including Bill Pay, grew 30% in the quarter. Excluding Bill Pay, online payment volume increased 18%.
Goodarzi said Intuit is scaling its direct sales team by about 30% and that total Intuit Enterprise Suite contracts grew 37% quarter over quarter. He also said the company plans to launch an expanded AI-driven expert platform lineup in August, including capabilities for businesses and accountants to operate from a single “control tower.”
Aujla said Mailchimp revenue was down slightly from a year earlier, as the company focuses on improving churn and acquisition among smaller customers while building momentum in SMS and mid-market offerings.
Workforce Reduction and Updated Guidance
Goodarzi said Intuit is reducing its full-time workforce by 17% to simplify its organizational structure and become “faster, leaner, and more focused.” He said the decision is intended to reduce management layers, eliminate coordination-heavy roles, address duplication from the integration of TurboTax and Credit Karma, and resize Mailchimp investment relative to its growth opportunities.
Aujla said guidance for GAAP metrics includes $300 million in restructuring charges related to the workforce changes. He said the company remains committed to annual earnings-per-share growth of at least the mid-teens over the coming years.
For fiscal 2026, Intuit now expects total revenue of $21.341 billion to $21.374 billion, representing growth of 13% to 14%. The company expects Global Business Solutions Group revenue growth of about 16%, Consumer Group revenue growth of about 10%, TurboTax growth of about 7%, Credit Karma growth of about 19% and Pro Tax growth of about 4%.
Intuit guided for GAAP diluted earnings per share of $15.79 to $15.84, or about 16% growth, and non-GAAP diluted earnings per share of $23.80 to $23.85, or about 18% growth. For the fourth quarter, the company expects total revenue growth of 11% to 12%, GAAP earnings per share of $0.73 to $0.79 and non-GAAP earnings per share of $3.56 to $3.62.
Aujla said Intuit ended the quarter with about $6.8 billion in cash and investments and $6.2 billion in debt. The company repurchased $1.6 billion of stock during the third quarter, more than double the same period last year, and its board approved a quarterly dividend of $1.20 per share, payable July 17, 2026, representing a 15% increase from last year.
About Intuit NASDAQ: INTU
Intuit Inc NASDAQ: INTU is a financial software company headquartered in Mountain View, California, that develops and sells cloud-based financial management and compliance products for individuals, small businesses, self-employed workers and accounting professionals. Founded in 1983 by Scott Cook and Tom Proulx, the company has grown from desktop tax and accounting software into a diversified provider of online financial tools. As of my latest update, Sasan Goodarzi serves as Chief Executive Officer.
Intuit's product portfolio includes QuickBooks, its flagship accounting and business-management platform that offers bookkeeping, payroll, payments and invoicing capabilities; TurboTax, a tax-preparation and filing service aimed at individual taxpayers; and Mint, a consumer personal-finance and budgeting app.
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