Intuit (INTU) impresses Wall Street:
Intuit, whose leading brands include QuickBooks, TurboTax, and Credit Karma, reported impressive results for the third fiscal quarter ending April 2025, and beat all estimates.
The company's revenue surged to $7.75 billion, a 15.1% growth compared to last year, while adjusted earnings per share climbed to $11.65, 5.9% higher than estimates and an 18% jump compared to the same period last year.
CEO Sasan Goodarzi's remarks left no room for doubt:
“We are enjoying outstanding momentum and excellent performance across the platform.
We are redefining what's possible with artificial intelligence, becoming a one-stop shop of AI agents and professionals with AI, to drive success for consumers and small and medium businesses.
This year was exceptional in the tax domain, including significant acceleration in TurboTax Live revenue growth, as we disrupt the filing category with assistance.”
Key highlights from the quarter Adjusted net income: $11.65 per share Beat estimates: $10.93 (consensus), $11.00 (Earnings Whisper) Revenue: $7.75 billion Record revenue: Credit Karma with a 31% increase to $579 million
Breakdown by segments
Consumer Group: Revenue of $4.0 billion, 11% growth TurboTax Live revenue is expected to jump 47% this year and cross the $2 billion mark, representing about 40% of the segment's revenue. Decline in Pay-nothing customers to about 8 million (compared to over 10 million), a conscious step to forgo customers with low ARPR.
Global Business Solutions: Revenue rose to $2.8 billion, a 19% increase The QuickBooks Online ecosystem grew by 21%, primarily due to price increases, customer growth, and a shift to higher-priced offerings The online ecosystem recorded a 20% increase
Credit Karma: Revenue of $579 million, a 31% increase, especially in credit cards, personal loans, and auto insurance
Profit and cash flow details GAAP operating income: $3.7 billion, a 20% increase Adjusted operating income: $4.3 billion, a 17% increase Cash and assets: $6.2 billion Debt: $6.4 billion Share repurchase: $754 million Quarterly dividend approved: $1.04 per share, a 16% increase (payment on July 18, 2025)
Outlook for next quarter (Q4 FY25) Revenue: $3.723–$3.76 billion (17%-18% growth) Adjusted earnings per share: $2.63–$2.68 (consensus: $2.52) GAAP earnings per share: $0.84–$0.89
Updated annual guidance (FY25) Intuit raised its full-year guidance: Revenue: $18.723–$18.76 billion (~15% growth) GAAP operating income: $4.898–$4.918 billion (~35% growth) Non-GAAP operating income: $7.543–$7.563 billion (~18% growth) GAAP earnings per share: $13.19–$13.24 Non-GAAP earnings per share: $20.07–$20.12 (~18%-19% increase)
Guidance by segments: Global Business Solutions: ~16% growth (online ~20%) Consumer Group: ~10% growth (compared to 7%-8% in previous guidance) Credit Karma: Growth forecast updated to 28% (!), compared to 5%-8% in original guidance ProTax Group: 3%-4% growth