Key Takeaways
- Adjusted earnings per share reached $4.15, well above analyst estimates of $3.68, while revenues grew 17% to $4.65 billion
- Guidance for the third quarter projects EPS of $12.45–$12.51, falling short of Wall Street’s $12.97 expectation
- CEO Sasan Goodarzi positions AI firms as partners rather than threats, announcing new collaboration with Anthropic
- Stock price dropped approximately 4% during premarket hours Friday, adding to a year-to-date decline approaching 40%
- Quarterly dividend increased to $1.20 per share, reflecting a 15% rise from the same period last year
Despite posting second-quarter fiscal results that exceeded Wall Street expectations, Intuit shares experienced a decline following the release of cautious projections for the upcoming quarter.
The TurboTax parent company reported adjusted earnings of $4.15 per share, substantially outpacing analyst predictions of $3.68. Revenue totaled $4.65 billion, representing a 17% year-over-year jump and surpassing consensus estimates of $4.53 billion.
Operating income on an adjusted basis climbed 23% to $1.5 billion.
CEO Sasan Goodarzi called the performance an “outstanding second quarter, driven by disciplined execution.”
Yet investor enthusiasm quickly faded as the company’s forecast for the third quarter — a critical period encompassing peak tax season — fell below expectations. Management guided for adjusted earnings per share in the range of $12.45 to $12.51, missing the Street’s $12.97 consensus.
Third-quarter revenue is expected to grow approximately 10% year-over-year, implying roughly $4.36 billion — below the $4.53 billion analysts had anticipated.
In premarket trading Friday, shares declined about 4%, erasing Thursday’s 3.5% regular-session advance.
AI Partnerships: Collaboration Over Competition
Intuit stock has suffered a steep decline of nearly 40% since the beginning of the year, weighed down by mounting fears that artificial intelligence technologies could upend the tax preparation and financial software sectors.
CEO Goodarzi pushed back against this concern. Speaking with Barron’s, he stressed that consumers gravitate toward established, trusted brands and that AI developers have no interest in shouldering the legal liabilities inherent in tax preparation.
Goodarzi argued that firms like Anthropic and OpenAI “do not have, nor do they want to have, the capability” that Intuit has built over years — infrastructure requiring substantial investment and time.
Earlier this week, Intuit announced a strategic partnership with Anthropic to create specialized AI agents designed for mid-sized companies leveraging its software ecosystem. This arrangement complements an existing alliance with OpenAI.
Jefferies analyst Brent Thill observed that Intuit’s strong performance during the first half “makes reiterated FY26 guide look conservative” and reaffirmed his Buy rating, adding that “INTU’s moat in AI remains misunderstood.”
Full-Year Guidance Holds Steady
Management left its full fiscal year 2026 guidance unchanged. The company still expects adjusted earnings per share between $22.98 and $23.18, translating to growth of approximately 14% to 15%.
Revenue for the full year is projected to land between $21 billion and $21.2 billion, reflecting expansion of 12% to 13%.
Goodarzi noted that the company historically avoids updating its annual forecast until after the conclusion of the third quarter, given how significantly that period influences overall yearly results.
Wolfe Research analyst Alex Zukin said the results “reiterate our positive view on growth durability,” although he lowered his price target to $550 from $685 while maintaining an Outperform rating.
William Blair analyst Arjun Bhatia described Intuit as a “mission-critical platform for small businesses” that is strategically positioning itself to capitalize on the artificial intelligence transformation.
Additionally, the company declared a quarterly dividend of $1.20 per share, payable April 17, 2026 — marking a 15% increase from the comparable quarter a year ago.
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