Intuit(US:INTU)2025-11-20 21:16Financial Performance - Net income for the three months ended October 31, 2025, was $446 million, a significant increase from $197 million in the same period of 2024, representing a growth of 126.4%[12] - Comprehensive income for the three months ended October 31, 2025, was $445 million, compared to $197 million in the same period of 2024, indicating a growth of 125.9%[12] - Basic net income per share rose to $1.60 for the three months ended October 31, 2025, compared to $0.70 for the same period in 2024, representing a 128.6% increase[33] - Diluted net income per share for the three months ended October 31, 2025, was $1.59, compared to $0.70 in the same period of 2024, marking a 127% increase[33] - Total net revenue for the three months ended October 31, 2025, was $3,885 million, a 18.3% increase from $3,283 million in the same period of 2024[143] - Global Business Solutions segment revenue reached $2,991 million, up 17.6% from $2,544 million year-over-year[143] - Consumer segment revenue increased to $894 million, a 21% rise compared to $739 million in the prior year[143] - Operating income for the total segments was $2,918 million, reflecting a 20.1% increase from $2,430 million in the previous year[143] Cash Flow and Liquidity - Total cash provided by operating activities increased to $637 million, compared to $362 million for the same period in 2024, marking a 76% increase[17] - Cash and cash equivalents increased to $3,506 million from $2,884 million, marking a rise of 21.5%[14] - Cash and cash equivalents at the end of the period were $6,943 million, down from $8,034 million a year earlier, reflecting a decrease of 13.6%[18] - The total cash, cash equivalents, restricted cash, and restricted cash equivalents were valued at $6,943 million as of October 31, 2025[58] - Total cash and cash equivalents, investments, and funds receivable amounted to $7,612 million as of October 31, 2025, compared to $11,627 million on July 31, 2025[57] Assets and Liabilities - Total current assets decreased to $10,421 million as of October 31, 2025, down from $14,107 million at July 31, 2025, reflecting a decline of 26.1%[14] - Total liabilities decreased to $13,869 million as of October 31, 2025, compared to $17,248 million at July 31, 2025, a reduction of 19.3%[14] - The company reported a total stockholders' equity of $19,322 million as of October 31, 2025, down from $19,710 million at July 31, 2025, a decrease of 2.0%[14] - Total assets decreased from $36,958 million on July 31, 2025, to $33,191 million on October 31, 2025, representing a decline of approximately 10.5%[14] - Total current liabilities decreased from $10,370 million on July 31, 2025, to $7,519 million on October 31, 2025, a reduction of approximately 27.5%[14] Investments and Future Plans - The company plans to continue investing significantly in product development, marketing, and sales capabilities, including artificial intelligence[9] - The company expects total service revenue as a percentage of total revenue to grow over the long term[9] - The company anticipates generating significant cash from operations in the future[9] Shareholder Returns - The company declared dividends of $1.20 per share, totaling $343 million for the quarter[15] - During the three months ended October 31, 2025, the company repurchased 1.2 million shares for $851 million[115] - Share-based compensation expense for the three months ended October 31, 2025, totaled $543 million, up from $511 million in the same period of 2024[121] Revenue Recognition - The company recognized revenue of $590 million from deferred revenue during the three months ended October 31, 2025, compared to $524 million in the same period of 2024, indicating a growth of 12.6%[34] - As of October 31, 2025, the deferred revenue balance related to performance obligations to be satisfied after 12 months was $3 million, down from $4 million as of July 31, 2025[35] Debt and Financing - The company reported a net cash used in financing activities of $(4,372) million, a significant change from $761 million provided in the same period last year[17] - As of October 31, 2025, the total principal balance of debt was $6.18 billion, an increase from $6.01 billion as of July 31, 2025[86] - The net carrying value of debt was $6.14 billion as of October 31, 2025, compared to $5.97 billion on July 31, 2025[86] - The company was compliant with all covenants governing its debt facilities as of October 31, 2025[90][93][96] Accounting and Compliance - The company is evaluating the impact of new accounting standards on its consolidated financial statements, effective for fiscal years beginning after December 15, 2025[43] - The company is currently evaluating the impact of pending accounting standards on its consolidated financial statements and related disclosures[43] Segment Performance - Intuit combined its Consumer, Credit Karma, and ProTax businesses into a single Consumer segment effective August 1, 2025, to better serve customer needs[22] - The company reported a significant seasonal pattern in its Consumer segment, with higher net revenues typically concentrated from November through April due to tax preparation services[24] - Unallocated corporate items, including share-based compensation, totaled $2,384 million, compared to $2,159 million in the previous year[143]