Intuit Gears Up to Report Q2 Earnings: What's in the Offing?

Core Viewpoint - Intuit (INTU) is set to report its second-quarter fiscal 2025 results on February 25, with expectations of revenue growth and mixed dynamics affecting performance [1][4]. Revenue Expectations - For the second quarter of fiscal 2025, Intuit anticipates revenues to grow between 13% and 14% year-over-year, projecting a range of $3.812 billion to$3.845 billion, with the Zacks Consensus Estimate at $3.83 billion, indicating a growth of 12.993$2.55 to $2.61, with the consensus estimate at$2.59 per share, reflecting a year-over-year decline of 1.52% [3]. Performance Factors - Intuit's fundamentals remain solid, but several factors may pressure results, including a projected single-digit decline in Consumer Group revenues due to changes in retail promotions [4][5]. - The Online Ecosystem revenue growth accelerated to 20% in the first quarter of fiscal 2025, driven by customer growth and a shift towards higher-end offerings, with QuickBooks Advanced and Enterprise Suite showing robust 42% growth [6]. - Credit Karma reported a 29% revenue growth in the first quarter, but sustainability of this growth is uncertain due to macroeconomic conditions [7]. - Mailchimp is experiencing higher churn among smaller customers, which may impact near-term growth despite management's efforts to enhance products [8]. Long-term Outlook - Intuit's long-term strategy is compelling, focusing on an AI-driven platform and a total addressable market (TAM) exceeding $300 billion, although current valuations may reflect much of the optimism [9]. Uncertainty Factors - The transition of the Desktop Ecosystem and promotional changes introduce uncertainty for the second-quarter results, despite management's confidence in full-year targets [10]. Earnings Prediction Model - The current model does not predict a definitive earnings beat for Intuit, with an Earnings ESP of 0.00% and a Zacks Rank of 3 [11][12].