Core Viewpoint - Intuit reported strong quarterly earnings, exceeding expectations and showing significant year-over-year growth in both earnings per share and revenue [1][3]. Financial Performance - The company achieved earnings of $11.65 per share, surpassing the Zacks Consensus Estimate of $10.89 per share, and up from $9.88 per share a year ago, representing a 17.8% increase [1] - Intuit's quarterly revenue reached $7.75 billion, exceeding the Zacks Consensus Estimate by 2.78% and up from $6.74 billion in the same quarter last year, indicating a year-over-year growth of 15.1% [3] Earnings Surprises - The earnings surprise for this quarter was 6.98%, following a previous quarter where the company delivered an earnings surprise of 28.68% [2] Market Performance - Intuit shares have increased approximately 5% since the beginning of the year, contrasting with a decline of 0.6% in the S&P 500 [4] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.58, with expected revenues of $3.51 billion, while the estimate for the current fiscal year is $19.26 on $18.28 billion in revenues [8] - The Zacks Rank for Intuit is currently 3 (Hold), indicating expected performance in line with the market in the near future [7] Industry Context - The Computer - Software industry, to which Intuit belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9]

Financial Data and Key Metrics Changes - The company reported revenue of $7.8 billion, up 15% year-over-year, with GAAP operating income of $3.7 billion, up 20% [20] - Non-GAAP operating income increased to $4.3 billion, up 17%, while GAAP diluted earnings per share rose to $10.02, up 19% [20][35] - Non-GAAP diluted earnings per share reached $11.65, up 18% [20] Business Segment Data and Key Metrics Changes - Consumer Group revenue grew 11% to $4 billion, with expectations of 10% growth for the year [20][21] - Protax Group revenue increased by 9% in Q3, with a full-year growth expectation of 3% to 4% [24] - Global Business Solutions Group revenue grew 19% in Q3, driven by a 20% increase in online ecosystem revenue [25] Market Data and Key Metrics Changes - Credit Karma revenue grew 31% in Q3, with credit cards contributing 14 points, personal loans 12 points, and auto insurance 3 points to growth [31][32] - Online ecosystem revenue for small businesses grew 17%, while revenue for QBO Advanced and Intuit Enterprise Suite saw approximately 40% growth [28] Company Strategy and Development Direction - The company is focusing on becoming a one-stop shop for consumers, businesses, and accountants through an AI-driven expert platform [38] - There is a strong emphasis on disrupting the assisted tax category and enhancing the customer experience through AI and automation [21][38] - The company plans to introduce new AI agents to automate tasks and improve customer engagement [66][68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the uncertain macro environment, citing the mission-critical nature of their offerings [36][37] - The company is optimistic about long-term growth, with a focus on double-digit revenue growth and operating income growth outpacing revenue growth [38] Other Important Information - The company has approximately $6.2 billion in cash and investments and $6.4 billion in debt, with a quarterly dividend of $1.04 per share, representing a 16% increase [34] - The company is raising its fiscal 2025 revenue growth guidance to 15% from a previous range of 12% to 13% [35] Q&A Session Summary Question: What has driven the strong growth in the consumer tax business? - Management highlighted the focus on customer experience, pricing, and faster access to money as key drivers of growth, with significant improvements in the platform leading to higher conversion rates [44][46] Question: Can you elaborate on the performance of TurboTax Live and the local strategy? - Management noted that breakthrough adoption of new customers and effective marketing strategies contributed to the outsized growth in TurboTax Live, while acknowledging areas for improvement in customer engagement [52][56] Question: How does the company view the impact of AI on pricing and operational efficiency? - Management discussed the launch of new AI agents that will enhance customer experience and operational efficiency, leading to potential pricing opportunities while also reducing overall customer costs [62][68] Question: What is the company's perspective on resilience in the current economic environment? - Management emphasized that over 90% of revenue is recurring and subscription-based, making the company more resilient than in previous years, with a strong focus on being a low-cost disruptor in the market [82][86]

Financial Data and Key Metrics Changes - The company reported revenue of $7.8 billion, up 15% year-over-year, with GAAP operating income of $3.7 billion, up 20% [20] - Non-GAAP operating income increased to $4.3 billion, up 17%, while GAAP diluted earnings per share rose to $10.02, up 19% [20][34] - The guidance for fiscal 2025 was raised, expecting total revenue growth of 15%, up from prior guidance of 12% to 13% [34] Business Line Data and Key Metrics Changes - Consumer Group revenue grew 11% to $4 billion, with expectations of 10% growth for the year [20][21] - TurboTax Live customers are expected to grow by 24%, leading to a 47% increase in TurboTax Live revenue [21] - Global Business Solutions Group revenue increased by 19%, driven by a 20% growth in online ecosystem revenue [24] Market Data and Key Metrics Changes - Credit Karma revenue grew 31%, with credit cards contributing 14 points, personal loans 12 points, and auto insurance 3 points to the growth [31] - The online ecosystem revenue for small businesses grew 17%, while mid-market offerings saw approximately 40% growth [28] Company Strategy and Development Direction - The company is focusing on becoming a one-stop shop for consumers, businesses, and accountants through an AI-driven expert platform [38] - There is a strong emphasis on automating tasks and workflows, particularly in the mid-market segment, which represents a $89 billion total addressable market [14] - The company plans to introduce new AI agents to enhance customer experiences and streamline operations [12][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the uncertain macro environment, citing the mission-critical nature of their offerings [36][37] - The company is optimistic about sustaining double-digit revenue growth and expanding operating income faster than revenue [41] Other Important Information - The company has approximately $6.2 billion in cash and investments and $6.4 billion in debt, with a quarterly dividend of $1.04 per share, representing a 16% increase [33] - The company is committed to leveraging AI to enhance productivity and operational efficiency [36] Q&A Session Summary Question: What has driven the recent growth in the consumer tax business? - Management highlighted a focus on improving customer experience, pricing, and access to funds as key drivers of growth [44][46] Question: Can you elaborate on the performance of TurboTax Live and the local strategy? - Management noted that breakthrough adoption of new customers and improved engagement with existing customers contributed significantly to growth [52][54] Question: How does the company view its pricing power in the current macro environment? - Management indicated that over 90% of revenue is recurring and subscription-based, enhancing resilience and pricing power [80][81] Question: What is the outlook for reclaiming customers who have left the ecosystem? - Management acknowledged opportunities to reclaim customers through superior experience and pricing, although this remains a smaller part of growth [88][90]

Financial Performance Summary - Total segment revenue increased from $14368 million in FY'23 to $16285 million in FY'24, and further to $18723 million - $18760 million in FY'25[2] - Non-GAAP operating income increased from $5503 million in FY'23 to $6402 million in FY'24, and further to $7543 million - $7563 million in FY'25[2] - GAAP diluted EPS increased from $842 in FY'23 to $1043 in FY'24, and further to $1319 - $1324 in FY'25[2] - Non-GAAP diluted EPS increased from $1440 in FY'23 to $1694 in FY'24, and further to $2007 - $2012 in FY'25[2] Segment Revenue Analysis - Global Business Solutions revenue increased from $8038 million in FY'23 to $9533 million in FY'24, and further to $11052 million - $11073 million in FY'25, representing a year-over-year growth of 18% in FY'24 and 16% in FY'25[2] - Consumer revenue increased from $4135 million in FY'23 to $4445 million in FY'24, and further to $4868 million - $4876 million in FY'25, representing a year-over-year growth of 7% in FY'24 and 10% in FY'25[2] - Credit Karma revenue increased from $1634 million in FY'23 to $1708 million in FY'24, and further to $2185 million - $2191 million in FY'25, representing a year-over-year growth of 5% in FY'24 and 28% in FY'25[2] - ProTax revenue increased from $561 million in FY'23 to $599 million in FY'24, and further to $618 million - $620 million in FY'25, representing a year-over-year growth of 7% in FY'24 and 3% in FY'25[2] Segment Operating Margin - Total segment operating margin was 71% in FY'23 and FY'24, and increased to 78% in FY'25[4] - Global Business Solutions operating margin was 73% in FY'23, 75% in FY'24, and 77% in FY'25[4]

Financial Performance - Total net revenue for Q3 Fiscal 2025 reached $7,754 million, a 15.1% increase from $6,737 million in Q3 Fiscal 2024[12] - Service revenue contributed $6,971 million, up 15.3% from $6,048 million year-over-year[12] - Net income for the quarter was $2,820 million, representing a 17.9% increase compared to $2,389 million in the same quarter last year[12] - Basic net income per share increased to $10.09, up from $8.53 in Q3 Fiscal 2024, reflecting a 18.3% growth[12] - Total net revenue for the nine months ended April 30, 2025, reached $15,000 million, up 14.5% from $13,101 million in the prior year[152] - Operating income for the three months ended April 30, 2025, was $3,720 million, reflecting a 19.8% increase from $3,105 million in the same quarter of 2024[152] - Net income for the nine months ended April 30, 2025, was $3,488 million, compared to $2,983 million for the same period in 2024, representing a 16.9% increase[21] - Operating income for the nine months ended April 30, 2025, was $4,584 million, compared to $3,781 million for the same period in 2024, marking a 21.2% increase[12] Assets and Equity - Total assets as of April 30, 2025, were $36,593 million, an increase from $32,132 million as of July 31, 2024[16] - Intuit's total stockholders' equity increased to $20,125 million from $18,436 million, reflecting a strong financial position[16] - Total stockholders' equity as of April 30, 2025, was $20,125 million, an increase from $18,757 million as of April 30, 2024, indicating a year-over-year growth of 7.3%[19] - Total current assets as of April 30, 2025, were $13,965 million, an increase from $9,678 million as of July 31, 2024[16] Cash Flow and Investments - Cash and cash equivalents rose to $5,443 million, compared to $3,609 million at the end of the previous fiscal year[16] - The net cash provided by operating activities for the nine months ended April 30, 2025, was $5,826 million, up from $4,467 million in the same period of 2024, representing a growth of 30.4%[21] - Cash, cash equivalents, restricted cash, and restricted cash equivalents at the end of the period on April 30, 2025, totaled $10,184 million, up from $6,481 million a year earlier, reflecting a significant increase of 57.5%[22] - The company reported a net cash used in financing activities of $1,652 million for the nine months ended April 30, 2025, compared to $851 million in 2024[22] Expenses and Costs - Total costs and expenses for the quarter were $4,034 million, a 11.1% increase from $3,632 million in Q3 Fiscal 2024[12] - Research and development expenses for the three months ended April 30, 2025, were $707 million, an increase from $671 million in the same period of 2024[12] - Share-based compensation expense for the nine months ended April 30, 2025, was $1,478 million, slightly higher than $1,421 million for the same period in 2024[21] Stock and Dividends - The company repurchased $754 million worth of stock under its stock repurchase programs during the three months ended April 30, 2025[17] - Dividends declared per share increased to $1.04 for the three months ended April 30, 2025, compared to $0.90 for the same period in 2024[19] - Cash dividends declared during the nine months ended April 30, 2025 totaled $3.12 per share, amounting to $891 million[125] Segment Performance - Global Business Solutions segment reported net revenue of $2,849 million for the three months ended April 30, 2025, a 19.4% increase from $2,387 million in the prior year[152] - Consumer segment net revenue increased to $4,048 million for the three months ended April 30, 2025, compared to $3,653 million in the same period of 2024, marking an 11.5% growth[152] - Credit Karma segment net revenue for the three months ended April 30, 2025, was $579 million, up 30.8% from $443 million in the same quarter of 2024[152] Future Outlook and Investments - The company expects to continue investing significantly in product development and marketing, particularly in artificial intelligence[10] - The company anticipates long-term growth in total service revenue as a percentage of total revenue[10] Legal and Compliance - The company is currently involved in various legal proceedings, including a settlement agreement with state attorneys general for $141 million related to marketing practices[135] - The company is evaluating the impact of new accounting standards on its consolidated financial statements, effective for fiscal years beginning after December 15, 2023[44] Miscellaneous - No customer accounted for 10% or more of total net revenue in the three or nine months ended April 30, 2025[43] - The company reorganized technology and customer success functions across segments to enhance overall platform management[28]

Intuit Reports Strong Third-Quarter Results and Raises Full-Year Guidance Consumer Group Revenue Grew 11 percent; Global Business Solutions Group Revenue Grew 19 percent MOUNTAIN VIEW, Calif. - May 22, 2025 - Intuit Inc. (Nasdaq: INTU), the global financial technology platform that makes Intuit TurboTax, Credit Karma, QuickBooks, and Mailchimp, announced financial results for the third quarter of fiscal 2025, which ended April 30. "We have exceptional momentum with outstanding performance across our platfor ...

Core Viewpoint - Intuit (INTU) is expected to report third-quarter fiscal 2025 results on May 22, with projected revenue growth of 12% to 13% year-over-year, amounting to $7.55-$7.60 billion, and non-GAAP earnings estimated at $10.89-$10.95 per share, reflecting a potential decline in earnings compared to previous quarters [1][2]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for revenues stands at $7.54 billion, indicating an 11.98% year-over-year growth [2]. - The consensus for earnings is $10.89 per share, suggesting a year-over-year decline of 10.22% [2]. Recent Performance and Guidance - Following a strong fiscal second-quarter performance with 17% revenue growth, Intuit maintained its full-year guidance of 12-13% revenue growth, indicating continued but potentially moderated momentum for the fiscal third quarter [3]. Strategic Acquisitions - The recent acquisition of GoCo enhances Intuit's Human Capital Management capabilities, aligning with its focus on mid-market businesses, although it may not significantly impact upcoming results due to integration costs [4]. Tax Season Impact - Tax season performance is critical for third-quarter results, as it typically captures the majority of TurboTax revenues, with early-season momentum noted in the assisted category [5]. Credit Karma Segment - The Credit Karma segment experienced 36% growth in the fiscal second quarter but faces challenging year-over-year comparisons in the third quarter, with minimal immediate revenue impact expected from recent financial education expansions [6]. Global Business Solutions Group - The Global Business Solutions Group delivered 19% growth in the fiscal second quarter, with Online Services revenues reflecting robust demand for payments and payroll solutions [7]. Margin Expansion - Margin expansion is anticipated as AI-driven efficiencies continue to take hold, with previous fiscal second-quarter results indicating annual efficiencies ahead of schedule [8]. Growth Thesis - Recent strategic acquisitions and product expansions reinforce Intuit's growth thesis, although near-term performance may reflect a normalization from exceptional recent growth rates [9].

Core Insights - Intuit is expected to announce earnings on May 22, 2025, with historical data indicating a 69% chance of a positive one-day return following earnings announcements [1][7] - Consensus forecasts predict earnings per share of $10.91 and revenues of $7.56 billion for the upcoming quarter, compared to $9.88 EPS and $6.74 billion in revenues for the same quarter last year [2] - Intuit's current market capitalization stands at $188 billion, with $17 billion in revenue, $4.1 billion in operating profit, and $3.0 billion in net income over the past twelve months [3] Historical Performance - Over the past five years, Intuit has recorded 16 earnings data points, with 11 positive and 5 negative one-day returns, resulting in a median positive return of 2.2% and a median negative return of -3.8% [7] - The likelihood of a positive one-day return drops to 67% when analyzing data from the last three years instead of five [7] Trading Strategies - Traders can utilize historical trends to establish positions before earnings announcements and adjust trades based on immediate market reactions and subsequent medium-term performance [6] - A strategy involving the correlation between short-term and medium-term returns can be employed, particularly if a strong correlation exists between 1D and 5D returns [5][6]

Core Insights - Intuit (INTU) is expected to report quarterly earnings of $10.89 per share, reflecting a 10.2% increase year over year, with revenues forecasted at $7.54 billion, a 12% year-over-year increase [1] Revenue Projections - Analysts estimate 'Net revenue- Consumer' to reach $3.97 billion, indicating an 8.6% year-over-year change [4] - 'Net revenue- Small Business & Self-Employed' is projected at $2.86 billion, suggesting a 20% increase from the previous year [4] - 'Net revenue- Credit Karma' is expected to be $430.66 million, reflecting a decrease of 2.8% year over year [4] - 'Net revenue- ProTax' is forecasted at $273.84 million, indicating a 7.8% year-over-year increase [5] - 'Net revenue- Small Business & Self-Employed- Total Online Ecosystem' is projected to be $2.14 billion, suggesting a 22.2% increase from the prior year [5] - 'Net revenue- Small Business & Self-Employed- Total Desktop Ecosystem' is expected to reach $723.63 million, reflecting a 14.3% year-over-year change [6] - 'Net revenue- Small Business & Self-Employed- Online Ecosystem- QuickBooks Online Accounting' is projected at $1.06 billion, indicating a 22.9% increase [6] - 'Net revenue- Small Business & Self-Employed- Desktop Ecosystem- Desktop Services and Supplies' is estimated at $309.72 million, suggesting a 4.6% year-over-year change [7] - 'Net revenue- Small Business & Self-Employed- Online Ecosystem- Online Services' is expected to be $1.08 billion, reflecting a 20.5% increase [7] - 'Net revenue- Small Business & Self-Employed- Desktop Ecosystem- QuickBooks Desktop Accounting' is projected at $411.32 million, indicating a 22.1% increase [8] - 'Net revenue- Service' is expected to reach $6.67 billion, suggesting a 10.3% year-over-year change [8] - 'Net revenue- Product and other' is forecasted at $770.35 million, indicating an 11.8% year-over-year increase [9] Stock Performance - Over the past month, Intuit shares have returned +14.5%, outperforming the Zacks S&P 500 composite's +13.1% change [10]

Intuit (INTU) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended April 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on May 22, 2025, might help the stock move higher if these key numbers are better than expectatio ...