Intuit earnings top estimates, shares fall on soft FQ3 outlook

Investing.com -- Intuit (NASDAQ: INTU) reported stronger-than-expected FQ2 results, though its outlook for the current quarter trailed analyst estimates.

The stock has fallen nearly 40% this year, with most of the decline driven by a broader software-sector selloff tied to AI disruption fears. At 04:10 ET, shares fell 2.6% as soft FQ3 guidance weighed on sentiment, though the stock had closed 3.5% higher ahead of the earnings report.

The company, which offers software products such as TurboTax and QuickBooks, as well as the personal finance platform Credit Karma, reported adjusted earnings per share (EPS) of $4.15 for the quarter, comfortably above the average analyst estimate of $3.68.

Revenue during the period jumped 17% year over year to $4.7 billion, also topping the $4.53 billion consensus forecast. Adjusted operating income increased 23% to $1.5 billion.

"We delivered an outstanding second quarter, driven by disciplined execution,” said Sasan Goodarzi, chairman and CEO of Intuit.

“We are defining a new category at the intersection of AI and human intelligence, one that delivers autonomous, done-for-you experiences, disrupts the traditional assisted tax segment, and provides mid-market enterprises with the AI-native ERP platform they need to win,” he added.

Intuit has struck several AI partnerships in recent months, most recently announcing a deal with Anthropic this week to bring customizable AI agents to mid-market businesses.

“We continue to view Intuit as a mission-critical platform for small businesses and believe it is positioning itself well to win in the AI era with its own internally developed AI and partnerships with leading LLMs,” William Blair analyst Arjun Bhatia said ahead of earnings.

Looking ahead, Intuit issued guidance for the third quarter of fiscal 2026, which ends April 30. The company expects adjusted EPS of $12.45 to $12.51, below the consensus estimate of $12.97.

For the same period last year, Intuit reported revenue of $3.96 billion. For the third quarter, Intuit said it expects revenue growth of “approximately 10%”, which implies revenue of about $4.36 billion, below analyst expectations of $4.53 billion.

For the full fiscal year 2026, Intuit continues to expect adjusted EPS of $22.98 to $23.18, representing growth of roughly 14% to 15%.

Full-year revenue forecast is also maintained in the range of $21 billion to $21.2 billion, implying growth of approximately 12% to 13%. Analysts’ consensus for FY26 adjusted EPS and revenue stands at $23.2 and $21.2 billion, respectively.

Intuit announced a quarterly dividend of $1.20 per share, payable April 17, 2026, marking a 15% increase from the same period last year.

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