Intuit Tops Q2 Earnings, Reaffirms FY26 Growth Outlook Amid AI Push

Core Insights - Intuit (INTU) reported strong second-quarter fiscal 2026 results, with non-GAAP EPS of $4.15, exceeding the Zacks Consensus Estimate of $3.66, marking a 25% increase year over year [1] - The company achieved revenues of $4.65 billion, up 17% year over year, surpassing the Zacks Consensus Estimate of $4.53 billion, indicating robust demand across its small business and consumer ecosystems [2] Financial Performance - Global Business Solutions generated $3.2 billion in revenues, an 18% year-over-year increase, with Online Ecosystem revenue growing 25% year over year [4] - The Consumer segment reported $1.5 billion in revenues, a 15% increase year over year, with Credit Karma revenue up 23% and TurboTax growing 12% [5] - Non-GAAP operating income rose 23% year over year to $1.55 billion, reflecting improved cost efficiency and scale benefits [5] Balance Sheet and Capital Allocation - As of January 31, 2026, Intuit had approximately $3.0 billion in cash and investments, with total debt around $6.2 billion [6] - The company repurchased $961 million of stock during the quarter, with $3.5 billion remaining under its existing authorization [6] Guidance and Outlook - Intuit reaffirmed its full-year fiscal 2026 guidance, projecting revenues between $20.997 billion and $21.186 billion, representing approximately 12% to 13% growth, and non-GAAP EPS between $22.98 and $23.18, up 14% to 15% [7] - For fiscal 2026, Global Business Solutions revenue is expected to grow about 14%–15%, while the Consumer segment is forecasted to grow 8%–9% [8] - Fiscal third-quarter guidance anticipates roughly 10% revenue growth and non-GAAP EPS between $12.45 and $12.51, which is below the Zacks Consensus Estimate of $12.91 [9][10]