Intuit's Strong Q3 Results Highlight AI-Driven Growth and Market Disruption

Intuit forecasts strong quarterly profit after tax season boost

May 22 (Reuters) - Intuit (INTU.O), opens new tab forecast fourth-quarter revenue and profit above Wall Street estimates on Thursday, signaling growing demand for its artificial intelligence-driven financial management tools and sending its shares up more than 5% in extended trading. The tax filing season in the U.S. from January 27 to April 15 also helped the company report upbeat third-quarter results as many taxpayers used Intuit's software to file their federal income-tax returns. Intuit provides financial management and compliance products such as its tax-preparation software TurboTax, personal finance portal Credit Karma and accounting software QuickBooks. The company said it would launch AI agents, systems which can take actions for users, in the coming weeks and add these agents into its QuickBooks product portfolio. "These agents are going to be incorporated into the lineup... we are going to be revamping our lineup. There's going to be a new lineup, and as part of that, we will have price changes," CFO Sandeep Aujla told Reuters. In addition to the core portfolio, there will be options where customers can choose specific agents based on their needs, such as an accounting agent or a finance agent, and pay for them separately, he said. Intuit forecast fourth-quarter revenue between $3.72 billion and $3.76 billion, above analysts' average estimate of $3.51 billion, according to data compiled by LSEG. Adjusted profit per share expectations of $2.63 to $2.68 for the quarter ending July 31 also beat estimates of $2.59. Revenue for the third quarter ended April 30 rose 15% to $7.75 billion, beating estimates of $7.56 billion. The adjusted profit per share of $11.65 also exceeded estimates of $10.91. Intuit also lifted fiscal 2025 forecasts. The company expects revenue growth of about 15%, up from its prior forecast of 12% to 13%. The company said its total TurboTax Online units, number of individual online tax returns filed using the platform, are expected to decline about 1% in fiscal 2025, while the paying units are expected to grow 6%. (This story has been refiled to correct a typo in paragraph 1) Reporting by Jaspreet Singh in Bengaluru Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Technology

Intuit's AI Strategy, Upmarket Gains Fuel Analyst Optimism Following Strong Earnings - Intuit (NASDAQ:INTU)

Wall Street analysts rerated Intuit Inc INTU after the company reported its third-quarter results on Thursday. Intuit reported third-quarter revenue of $7.75 billion, up 15%, beating analyst estimates of $7.56 billion. The QuickBooks and TurboTax parent company reported third-quarter adjusted earnings of $11.65 per share, beating analyst estimates of $10.91 per share. Also Read: Intuit Under-performance Has Stemmed From Valuation Reset, Analyst Upgrades Stock Intuit expects fourth-quarter revenue of $3.72 billion-$3.76 billion. The company expects adjusted earnings of $2.63-$2.68 per share. Piper Sandler analyst Arvind Ramnani reiterated Intuit with a Overweight and raised the price target from $785 to $825. JP Morgan analyst Mark Murphy maintained Intuit with an Overweight and raised the price target from $660 to $770. Goldman Sachs analyst Kash Rangan reiterated Intuit with a Buy and raised the price target from $750 to $860. RBC Capital analyst Rishi Jaluria maintained Intuit with a Outperform and raised the price target from $760 to $850. Stifel analyst Brad Reback reiterated Intuit with a Buy and raised the price target from $725 to $850. Piper Sandler: Intuit's third-quarter results came in well ahead of expectations, with revenues of $7.75 billion ($186 million above) and EPS of $11.65 (+$0.70), Ramnani noted. Growth was driven by Consumer growth of +11% (+9% a year ago), Credit Karma +31% (+8% a year ago), and GBS Online Ecosystem growth of 20% (+20% a year ago; Desktop Ecosystem +18% from +14% last year), the analyst noted. The company continues to make progress toward the "done for you experiences," which is powered by AI and automation and now expects TurboTax Live customer growth of +24% for the year and annual TurboTax Live revenue growth of +47%, in part due to an AI-enhanced interface, he said. JP Morgan: Murphy continues to respect and see long-term potential across Intuit's multiple franchises and remains constructive on the company's positive long-term, fundamental trends, particularly as it drives upmarket and infuses AI across its platform. In the third-quarter results, the analyst expressed a positive tone and an expectation for healthy results despite the firm's assessment of pedestrian IRS tax filing data. Intuit met and exceeded his expectations with a strong beat and raise, a relatively rare dynamic this earnings season wherein maintained fiscal guidance frameworks have been more common. Overall, Murphy's enthusiasm remains highest for the QuickBooks franchise and its upmarket momentum, and this segment remains a durable, on-track, high-growth phenomenon at scale. At the same time, the seasonal TurboTax and volatile Credit Karma businesses provided more fireworks in this particular quarter. Goldman Sachs: Intuit's solid third-quarter results, outperforming consensus on revenue (+2%), Consumer (+1%), CK (+25%), and FCFM (+600bps), Rangan noted. The analyst said the stock surge after hours reinforced confidence in the company's long-term growth profile. Coming out of Intuit's tax-heavy quarter, he gave credence to the accelerating momentum in the Assisted category, with TTO Live Revenue growing +47% and now accounting for ~40% of Consumer. Rangan noted this validates TurboTax's strategic initiatives around product-led growth and refined GTM motion, solidifying its market positioning across the assisted tax landscape and driving adoption as a price disruptor. The analyst further underlined Intuit's continued strength upmarket with QBO Advanced and IES +40% YoY, underscoring its ability to capture share in the much larger and relatively uncontested Mid-Market opportunity (>$89 billion). Looking ahead, the analyst noted additional upsides from Intuit's expanding AI roadmap, which introduced AI agents that can unlock incremental upsell and cross-sell opportunities across the product portfolio. As Intuit's growth algorithm increasingly shifts from higher volume toward higher ARPC, Rangan remained constructive on the company's ability to unlock larger TAMs and pave a longer runway for durable mid-teens+ topline growth and 35%+ FCFM. He added that Intuit stands out as a rare asset straddling both consumer and business ecosystems while supplemented by AI prioritization. RBC Capital: Intuit reported a strong quarterly result driven by lower-quality Credit Karma followed by smaller beats from Consumer and SMB, Jaluria noted. The analyst said that TurboTax Live customers grew 24%, and revenue increased by 47%, driven by the continued success of the assist tax strategy. He noted Intuit experienced strong monetization across complex and straightforward filers, resulting in a 13% increase in average revenue per return. The company optimized its marketing ROI by focusing on higher-quality customers, reducing "pay nothing" customers to 8 million (down from 10 million+ last year). Stifel: Intuit delivered strong results across the board that sent the stock up ~8% after hours as the company's move upmarket gains steam, Reback noted. Consumer Tax grew a better-than-expected 11% as TurboTaxLive grew 47%, and within GBS' 19% growth, IES/QBOA gained 40% Y/Y, the analyst said. Management also highlighted a slate of upcoming Agentic offerings with the QB business that should help drive further ARPU gains and increase customer retention, as per the analyst. The lone issue remains Mailchimp as management continues to work through execution challenges, Reback said. However, the analyst noted that the online services segment continues to post strong results powered by the Money platform and Payroll. Overall, Reback noted results point to momentum in share gains across the assisted tax category that he expects to continue for the foreseeable future, as well as resiliency within the GBS segment (ex. Mailchimp), which should enable the company to sustain near-term low teens total revenue growth over the coming years. INTU Price Action: INTU stock was up 8.1% at $720.13 on Friday. Read Next: Microsoft Clears Major Hurdle As FTC Ends Effort To Block Activision Merger Photo: Shutterstock INTUIntuit Inc$720.138.12%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentumNot AvailableGrowth43.47Quality82.75Value12.11Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Intuit Stock Is Rising Friday: What's Going On? - Intuit (NASDAQ:INTU)

Intuit Inc. INTU stock is trading higher on Friday after the company reported better-than-expected third-quarter financial results. The Details: Intuit reported adjusted earnings per share of $11.65, beating the consensus estimate of $10.91. In addition, the company reported sales of $7.75 billion, beating the consensus estimate of $7.56 billion and representing a 15% year-over-year climb. Consumer Group revenue increased 11%, Global Business Solutions Group grew 19%, Online Ecosystem climbed 20%, Credit Karma rose 31% and ProTax Group grew 9% year-over-year. "We have exceptional momentum with outstanding performance across our platform. We're redefining what's possible with AI by becoming a one-stop shop of AI-agents and AI-enabled human experts to fuel the success of consumers and small and mid-market businesses," said Sasan Goodarzi, Intuit's CEO. "We had an outstanding year in tax, including a significant acceleration in TurboTax Live revenue growth as we disrupt the assisted tax category." Outlook: The company sees fourth-quarter earnings per share between $2.64 and $2.68, versus the consensus estimate of $2.59. Furthermore, it sees sales from $3.72 billion to $3.76 billion, versus the consensus estimate of $3.51 billion. Intuit raised its fiscal-year 2025 guidance. It now sees adjusted earnings per share from $20.07 to $20.12, versus the consensus estimate of $19.34. It previously saw adjusted earnings per share between $19.16 and $19.36. Intuit now expects sales from $18.72 billion to $18.76 billion, versus the consensus estimate of $18.35 billion. It previously saw sales from $8.16 billion to $18.35 billion. Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments. Piper Sandler analyst Arvind Ramnani reiterated an Overweight rating on Intuit and raised the price target from $785 to $825. Jefferies analyst Brent Thill maintained a Buy rating on Intuit and raised the price target from $735 to $850. Evercore ISI Group analyst Kirk Materne maintained a Outperform rating on Intuit and raised the price target from $685 to $785. Related Link: JetBlue Adds Transatlantic Routes From Boston, But Stock Slips - Here's Why INTU Price Action: At the time of writing, Intuit stock is trading 7.84% higher at $718.29, according to data from Benzinga Pro. Image: via Shutterstock INTUIntuit Inc $717.087.66% Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock Rankings Edge Rankings Momentum Not Available Growth 43.47 Quality 82.75 Value 12.11 Price Trend Short Medium Long Overview Market News and Data brought to you by Benzinga APIs

Intuit CEO Calls It A 'Breakthrough Adoption Year' As TurboTax Live Revenue Jumps -- Stock Pops 8% After Hours - H&R Block (NYSE:HRB), Goldman Sachs Group (NYSE:GS)

Intuit Inc. INTU posted a strong third-quarter performance fueled by explosive growth in its TurboTax Live business. What Happened: During the earnings call on Thursday, the company's CEO, Sasan Goodarzi, called it a "breakthrough adoption year" for its tax-prep product, TurboTax Live, highlighting the significant traction that the product has gained across consumer and business segments during the year. The company reported a 47% year-over-year increase in TurboTax Live revenue and a 24% rise in customers using its AI-enabled service, helping push its overall Consumer Group revenue, which the product is a part of, to $4 billion. "We saw adoption within our base," Goodarzi said during the call, referring to Intuit's nearly 100 million customers and users worldwide. See Also: Peter Schiff Says A President Shouldn't 'Sell White House Tours' And Pocket The Proceeds As Trump Prepares To Have Dinner With Memecoin Holders Goodarzi emphasized that AI played a critical role in simplifying the user experience, saying that the company reduced the average return preparation time by 12% and enabled over half of its customers to finish their annual tax filings in under an hour. Despite the strong traction, Intuit sees room for improvement. Gudari notes areas where friction still exists, particularly for users migrating from traditional assisted tax providers. "There's still so much that we can do to make the end-to-end experience seamless," he says. Why It Matters: TurboTax Live, which blends AI with human experts, brings significant disruption to the traditionally human-led tax preparation market, which has long been dominated by the likes of H&R Block Inc. HRB, which has already been working with Microsoft Corp.'s Azure OpenAI to streamline tax preparation process for nearly two years. Get StartedEarn 7.2% -- No Matter What the Fed Does Markets expect rate cuts -- but your earnings don't have to suffer. Lock in 7.2% until 2028 from ten individual bonds. Get Started Early this week, Goldman Sachs Group Inc. GS analyst Kash Rangan called the tax-heavy third quarter a "validation opportunity" for the company. He also said that Intuit is seeing "product market fit" in the assisted tax filing segment, while calling it a "price disrupter." The company released its third quarter results on Thursday, reporting $7.75 billion in revenue, beating consensus estimates of $7.56 billion. It posted a profit of $11.65 per share, which came in ahead of estimates at $10.91. Price Action: The stock was up 0.92% on Thursday, trading at $666.07 per share, and is up 8.03% after hours following its robust third quarter performance. According to Benzinga's Edge Stock Rankings, the stock has a favorable price trend in the short, medium, and long term. Click here for more insights and to see how it compares with peers and competitors such as H&R Block. Photo Courtesy: Tada Images on Shutterstock.com Read More: Trump May Not Be Able To Fire Jerome Powell, Supreme Court Signals: Fed A 'Uniquely Structured, Quasi-Private Entity' GSThe Goldman Sachs Group Inc$600.001.10%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum82.17Growth76.16Quality38.48Value-Price TrendShortMediumLongOverviewHRBH&R Block Inc$57.60-0.98%INTUIntuit Inc$719.108.96%Market News and Data brought to you by Benzinga APIs

Why Intuit's 15% Revenue Growth and AI Innovation Make It a Market Standout | Investing.com UK

Intuit Inc (NASDAQ:INTU) shares are surging today following exceptional third-quarter results that beat expectations across all key metrics. The TurboTax and QuickBooks parent company delivered revenue growth of 15%, raised full-year guidance significantly, and demonstrated robust momentum in its AI-powered services, particularly TurboTax Live and Credit Karma. Intuit delivered a standout third quarter that exceeded expectations across virtually every metric, prompting CEO Sasan Goodarzi to declare it "an exceptional quarter with revenue growth of 15%, driven by outstanding performance across our platform." The results reflect the company's successful integration of artificial intelligence across its product suite and strong execution during the critical tax season. Revenue jumped to $7.75 billion from $6.74 billion in the prior year, representing 15% growth that significantly outpaced analyst expectations of $7.57 billion. Non-GAAP earnings per share of $11.65 beat estimates by $0.72, demonstrating the company's ability to drive both top-line growth and operational efficiency. GAAP operating income surged 20% to $3.7 billion, while non-GAAP operating income grew 17% to $4.3 billion. The Consumer Group, which includes TurboTax, posted revenue of $4.0 billion, up 11% year-over-year. The standout performer was TurboTax Live, where AI agents and experts support customers through the tax preparation process. This "done-for-you" service is expected to see revenue growth of 47% for the full year, with customer growth of 24%. CEO Goodarzi highlighted that their "done-for-you experiences drove a 12% reduction in the average time a customer spent on their return with more than half of our do-it-yourself and do-it-with-me customers completing their return in under one hour." Global Business Solutions Group demonstrated consistent strength with 19% revenue growth to $2.8 billion, driven by 20% growth in Online Ecosystem revenue (24% excluding Mailchimp). QuickBooks Online Accounting revenue rose 21%, while online payment volume grew 18%, indicating healthy momentum in the small business segment. Perhaps most impressive was Credit Karma's remarkable turnaround, with 31% revenue growth in Q3 reaching $579 million. This dramatic improvement from previous quarters prompted management to raise full-year Credit Karma revenue growth guidance from 5-8% to 28%, signaling sustained momentum in the credit and financial services vertical. Intuit shares are trading at $721.00 in premarket, up $54.93 or 8.25% from the previous close of $666.07. This represents a significant move higher for a stock with a market capitalization of approximately $186 billion, reflecting strong investor enthusiasm for the company's results and forward-looking guidance. The premarket surge extends Intuit's year-to-date gains to over 14%, significantly outperforming the S&P 500's decline of 0.67%. Over the past three years, Intuit has delivered impressive returns of 84.80% compared to the S&P 500's 49.74%, demonstrating consistent outperformance driven by the company's successful digital transformation and market leadership in financial software. Management's confidence was evident in significantly raised full-year guidance. Intuit now expects fiscal 2025 revenue growth of 15%, up from previous guidance of 12-13%. The company also raised adjusted earnings per share guidance to $20.07-$20.12 (18-19% growth) from previous expectations of 13-14% growth. For Q4 2025, management provided strong guidance calling for revenue of $3.72-$3.76 billion versus analyst expectations of $3.54 billion. A key driver of the optimistic outlook is Intuit's aggressive deployment of AI technology across its platform. CEO Goodarzi announced a "refreshed end-to-end platform that completes key jobs all in one place with a virtual team of AI agents doing much of the work side by side with our customers." The company plans to introduce new product lineups and pricing in the coming weeks, suggesting potential for additional revenue streams from AI-enhanced services. The company's strategic positioning appears particularly strong given over 90% of revenue is subscription-based, providing predictable recurring income. Management characterizes Intuit as a "price disruptor" in the market, suggesting pricing power that could drive future margin expansion. *** Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

Jefferies lifts Intuit stock price target to $850, maintains buy By Investing.com

On Friday, Jefferies analyst Brent Thill adjusted the price target for Intuit stock, raising it to $850 from the previous $735, while reiterating a Buy rating. The revision follows Intuit's consistent performance, with the company surpassing revenue expectations across all segments for three consecutive quarters. According to InvestingPro data, Intuit boasts impressive gross profit margins of nearly 80% and has achieved a robust revenue growth of 13.7% over the last twelve months. Intuit has increased its fiscal year 2025 guidance to a year-over-year growth of 15%, an uptick from the earlier forecast of 12-13%. This change is largely attributed to the success of TurboTax Live, which has significantly gained market share in the assisted tax category. Additionally, Credit Karma, a part of Intuit's portfolio, has demonstrated robust growth between 29% and 36% year-over-year in the first three quarters, demonstrating resilience amidst macroeconomic concerns. With a market capitalization of $186 billion and strong financial health metrics from InvestingPro, Intuit maintains its position as a prominent player in the software industry. The Small and Medium Business (SMB) segment performed as expected, with stability in Mailchimp revenue counterbalancing emerging strength in the mid-market sector. Looking ahead to fiscal year 2026, Intuit has hinted at the introduction of new products featuring advanced agentic AI, which are anticipated to command higher prices. Thill's commentary underscores the reasons for maintaining a Buy rating and increasing the price target, citing Intuit's strong performance and promising outlook with innovative product offerings on the horizon. In other recent news, Intuit Inc (NASDAQ:INTU). reported impressive third-quarter financial results for fiscal 2025, surpassing both earnings and revenue forecasts. The company achieved a non-GAAP earnings per share of $11.65, exceeding the expected $10.9, and reported revenue of $7.8 billion, surpassing the anticipated $7.56 billion. This marks a 15% year-over-year revenue increase, driven by strong performances across its Consumer and Global Business Solutions Groups. The company also raised its fiscal 2025 guidance, projecting a 15% total revenue growth, up from the previous estimate of 12-13%. Intuit's strategic focus on AI innovations and expanding its customer base were noted as key growth drivers. Additionally, Credit Karma, a part of Intuit, showed a notable 31% revenue increase. The company's fiscal outlook remains positive, with expectations of continued growth in operating income and revenue, bolstered by AI-driven efficiency gains. Analysts have responded positively to these developments, reflecting confidence in Intuit's strategic direction and growth prospects.

Intuit stock price target raised to $850 at RBC Capital By Investing.com

On Friday, RBC Capital analysts increased the price target for Intuit (NASDAQ:INTU) to $850, up from the previous $760, while retaining an Outperform stock rating. According to InvestingPro data, 20 analysts have recently revised their earnings estimates upward, with targets ranging from $560 to $875. The revision followed Intuit's announcement of robust quarterly results, buoyed by a strong tax season, which saw the company's shares climb 8% in after-hours trading. The company's financial performance for the third fiscal quarter of 2025 outpaced market expectations, largely due to the lower-quality revenue from its Credit Karma segment. Despite this, Intuit's profitability exceeded consensus predictions, with impressive gross profit margins of 80.26% and trailing twelve-month revenue of $18.18 billion. Following these results, Intuit has upgraded its revenue and earnings per share (EPS) guidance for the fiscal year 2025, with projections for the fourth fiscal quarter also surpassing analyst forecasts. Intuit reported revenue of $7.754 billion, marking a 15% increase year-over-year, which was higher than the consensus estimate of $7.568 billion. Non-GAAP earnings per share were $11.65, compared to the consensus estimate of $10.93. The positive figures and raised guidance have contributed to the improved sentiment from RBC Capital regarding Intuit's stock. The analyst from RBC Capital highlighted the company's strong tax season and the momentum in its Global Business Solutions (GBS) as key factors in the solid quarter. The raised price target to $850 from the previous $760 reflects confidence in Intuit's continued performance and market position. Intuit's after-hours stock price movement, with an 8% increase, underscores the market's positive reception to the company's quarterly results and the updated guidance for the remainder of the fiscal year. The updated price target and rating from RBC Capital provide a clear indication of the firm's optimistic outlook on Intuit's financial trajectory. InvestingPro analysis suggests the stock is currently trading above its Fair Value, with an overall financial health score of "GREAT." For detailed insights and 18 additional ProTips about Intuit, including comprehensive valuation metrics and growth indicators, check out the Pro Research Report available on InvestingPro. In other recent news, Intuit Inc. reported impressive financial results for the third quarter of fiscal 2025, exceeding both earnings and revenue expectations. The company achieved a non-GAAP earnings per share of $11.65, surpassing the forecasted $10.9, while revenue reached $7.8 billion, above the expected $7.56 billion. Intuit's revenue increased by 15% year-over-year, and non-GAAP EPS grew by 18%, driven by AI-driven innovations and product expansions. Jefferies analyst Brent Thill raised the price target for Intuit stock to $850 from $735, maintaining a Buy rating due to Intuit's strong performance and promising outlook. Intuit also raised its fiscal year 2025 guidance, projecting a 15% revenue growth, up from the previous estimate of 12-13%. Credit Karma, a part of Intuit's portfolio, showed robust growth with a 31% revenue increase, contributing to the overall positive performance. The company's strategic focus on AI and expanding its customer base played a significant role in these results. Looking ahead, Intuit plans to introduce new products featuring advanced AI, which are expected to command higher prices.