Intuit
INTU · NASDAQSoftware · Financial & Tax Technology
Since the Report − 7.3%
Close on Report DayAug 25
$358.91▼ 7.2%Report-Day Move
- Market Cap(Today)
- ≈ $91.0 B
- 1Y Return(At Report)
- − 49%
- P/E($24.27 · Trailing 12M)
- 13.7
- PEG(company guidance 2027)
- 0.60
- Net Margin(Trailing 12M)
- 21.3%
Intuit beat on both revenue and adjusted earnings in its fourth quarter and, for the first time, crossed $20 billion in full-year revenue. But its fiscal 2027 guidance for just 9-10% revenue growth landed well below this year's 14%, sending the stock down 7.2% after hours. The key question now is whether the deliberate price cut in TurboTax and rising AI competition will slow growth for good.
Revenue (Q4)
$4.35B
▲ 14% YoY
Adjusted EPS
$4.03
Est. $3.59 · ▲12%
GAAP EPS
$1.34
One-Time Tax Impact
Full-Year Revenue (FY26)
$21.4B
First Time Above $20B
Stock Reaction
▼ 7.2%
After Hours
FY27 Revenue Growth
9–10%
14% in FY26
Quarterly Revenue ($ Billion)
3.83
3.89
4.65
8.56
4.35
4.29–4.31
- Q4 25
- Q1 26
- Q2 26
- Q3 26
- Q4 26
- Q1 27E
- Full-Year Revenue Growth
- ▲ 14%
- Big Bets
- 30% of RevenueGrew 34%
- Credit Karma
- ▲ 20%Fastest Segment
Q1 FY27 Company Guidance
- Full-Year Revenue (FY27)23.28 – 23.51 billion
Midpoint 23.40 · Market Expectation 23.74Below Expectations ▼
- Revenue Growth (FY27)9% – 10%
Prior-Year Growth 14%Marked Slowdown ▼
- Adjusted EPS (FY27)22.88 – 23.12 $
New Method · SBC Now Included23–24% Growth ▲
- Revenue (Q1 FY27)4.29 – 4.31 billion
11% YoY GrowthDouble-Digit Growth
The blue band is the company's low–high range; its length shows how much room the company left itself. The black triangle and the line beneath it mark where the market expected, and the notch in the band is the range's midpoint. The triangle appears only where a market expectation is known. Axis is ±6.1% around the midpoint.
- Remaining Buyback Authorization
- $7.9B
- Quarterly Dividend
- ▲ $1.3815% Increase
- Diluted Shares
- 277M
“We surpassed $20 billion in revenue for the full year with growth fueled by our Big Bets which collectively grew 34 percent and represented 30 percent of full-year revenue.”
- Big Bets Grew 34%
- Revenue Crossed $20B
- AI Across the Platform
Summary
In its fourth fiscal quarter ended July 31, Intuit reported $4.35 billion in revenue, up 14% year over year and above the $4.27 billion market expectation. Adjusted earnings per share came in at $4.03, beating the expected $3.59 by roughly 12% and marking the fifth straight quarter of beats. For the full fiscal year revenue rose to $21.4 billion, crossing the $20 billion threshold for the first time, while adjusted earnings grew 20%. The company's next-generation businesses, which it calls its "Big Bets," collectively grew 34% and made up 30% of full-year revenue; Credit Karma rose 20% and the core business software segment climbed 16%. The numbers themselves pointed to a strong quarter.
Even so, the stock fell 7.2% in after-hours trading once the results were out; the problem was not the quarter but the future. Intuit guided fiscal 2027 to just 9-10% revenue growth, a marked slowdown from the 14% posted this year. The $23.28-$23.51 billion revenue range it set also fell short of the $23.74 billion the market expected. Management attributed the slowdown to weakness at Mailchimp, a declining desktop business, and a deliberate decision in TurboTax to accept lower revenue per customer up front in order to win customers. Its disclosure that it will no longer exclude share-based compensation from adjusted earnings starting in 2027 also made the guidance figures harder to compare with prior years.
Our overall read is that the quarter itself was solid, but the story now centers on the growth-slowdown question. The company beat comfortably, and its profitability and cash generation are strong; over the year it repurchased $5.5 billion in stock, raised the dividend 15%, and still holds $7.9 billion in buyback authorization. Analysts also remain largely constructive, with an average target near $405, about 13% above the close. Still, guidance dropping to 9-10% growth and the pressure of AI competition on tax and accounting software are the most critical uncertainties ahead. We therefore rate the quarter as strong execution paired with a real forward-growth question — 72 points and "hold."
Full Review
ClaudeThe Quarter Beat; the Tension Is in the Future.
The raw figures for the fourth quarter were strong. Revenue rose 14% year over year to $4.35 billion, topping the $4.27 billion market expectation. Adjusted earnings per share came in at $4.03, roughly 12% above the expected $3.59 and the fifth consecutive beat. For the full fiscal year revenue crossed the $20 billion threshold for the first time, reaching $21.4 billion. In other words there is no break in the company's track record; what unsettled the market was the far more cautious picture management painted for next year.
Growth Slows From 14% to 9-10%.
The real driver of the stock's reaction was the fiscal 2027 outlook. Intuit said revenue would grow only 9-10%, well below both this year's 14% and the strong double-digit pace investors had grown used to. The $23.28-$23.51 billion revenue range it gave also came in under the $23.74 billion the market expected. Management tied the slowdown to flat-to-declining revenue at Mailchimp, a shrinking desktop product ecosystem, and a strategic decision on the TurboTax side. For a company that trades on a growth story, a decelerating pace is the most sensitive point for its multiple, and the market priced it in quickly.
A Deliberate Revenue Sacrifice in TurboTax.
The most striking strategic message in the guidance was about TurboTax. The company said it would deliberately lower revenue per customer up front in order to win more customers and grow market share. This is a choice that suppresses revenue growth in the near term while aiming to broaden the user base over the long run. The logic is defensible; but for investors the question is how long the sacrifice will last and whether the customer gains it is meant to buy actually materialize. Management frames this not as weakness but as an aggressive share-grab, yet the market is cautious for now.
AI Is Both Opportunity and Threat.
Behind Intuit's steep decline over the past year sits the fear that AI could rival traditional software in areas like tax and accounting. The company positions this as an opportunity on its own side, stressing that the AI agents embedded in its products add customer value and that the 34% growth in the "Big Bets" segment shows it is working. But the same technology could erode TurboTax's pricing power by opening the door to free or very cheap alternatives. The deliberate price cut in TurboTax can be read, in part, as a reflection of that competitive pressure. The next few quarters will show which way this balance tips.
Capital Returns Strong, Balance Sheet Solid.
Despite the questions on the growth side, Intuit's cash generation and capital returns remain strong. Over the fiscal year the company repurchased $5.5 billion in stock, nearly double the prior year. It raised the quarterly dividend 15% to $1.38 per share and still holds $7.9 billion in unused buyback authorization. Its operating margin is around 42% on an adjusted basis, so the profitability of the business is still high. This strong financial profile makes it possible to return cash to shareholders even in a lower-growth scenario, and it can provide a floor in a sharp sell-off.
Strengths
5- Revenue and adjusted earnings both beat; fifth straight quarterly beat.
- Full-year revenue crossed the $20 billion threshold for the first time, reaching $21.4 billion.
- The Big Bets segment grew 34% and made up 30% of full-year revenue.
- $5.5 billion in buybacks over the year, a 15% dividend hike, and $7.9 billion in remaining authorization.
- Adjusted operating margin strong at 42%; cash generation is high.
Risks
6- 2027 revenue growth slows to 9-10%, well below this year's 14%.
- The new-year revenue guide fell short of the $23.74 billion market expectation.
- The deliberate cut in revenue per customer at TurboTax weighs on near-term growth.
- Mailchimp is guided flat-to-lower and the desktop ecosystem is expected to decline.
- AI competition threatens pricing power in tax and accounting software.
- The stock has lost roughly half its value over the past year; confidence is fragile.
What to Watch
3- Q1 FY27 results ~Nov 2026; 11% revenue growth guided.
- The 2027 tax season (Jan-Apr) will be the first big test of the TurboTax pricing strategy.
- Whether Big Bets and Credit Karma sustain their growth pace will be watched.
Upcoming Earnings
To Understand This