Key Highlights
- Intuit delivered Q4 adjusted EPS of $4.03 with revenue reaching $4.35 billion, surpassing analyst projections
- Shares declined 3.2% to close at $345.88 following the earnings announcement
- Fiscal 2027 revenue projection of $23.3B to $23.5B fell below Wall Street’s $23.7B consensus estimate
- Management admitted TurboTax DIY customers are migrating to budget-friendly competitors due to pricing concerns
- The company announced it will incorporate share-based compensation into non-GAAP metrics, affecting future EPS comparisons
Shares of Intuit (INTU) finished Wednesday’s trading session at $345.88, marking a 3.2% decline, despite delivering quarterly performance that exceeded analyst predictions. The downturn came as the software giant’s future revenue projections disappointed investors.
The financial software company posted fourth-quarter adjusted earnings of $4.03 per share alongside revenue of $4.35 billion. Wall Street analysts had projected earnings of $3.58 per share on $4.27 billion in revenue, making the quarterly performance a solid beat.
However, the company’s forward-looking guidance created concern among shareholders.
For fiscal year 2027, Intuit projected total revenue between $23.3 billion and $23.5 billion, representing 9% to 10% year-over-year growth. This forecast trails the analyst consensus of $23.7 billion and marks a significant deceleration from the 14% revenue expansion achieved in fiscal 2026.
The stock has plummeted approximately 48% throughout 2026, pressured by widespread industry concerns regarding artificial intelligence’s potential to disrupt traditional software offerings.
TurboTax Faces Competitive Pricing Challenges
Chief Executive Officer Sasan Goodarzi candidly addressed a critical challenge: Intuit has been hemorrhaging valuable DIY TurboTax users to lower-priced alternatives, with pricing being the primary catalyst.
The leadership team announced plans to intentionally reduce average revenue per TurboTax customer in an effort to recapture market position. Consequently, TurboTax revenue for FY2027 is projected to expand by merely 2% to 3%.
TurboTax Live, previously a robust growth engine, is anticipated to decelerate to mid-teens percentage growth in FY2027, a marked slowdown from the 37% revenue increase and 38% customer expansion recorded in FY2026.
Goodarzi characterized this pricing strategy as a long-term investment. The underlying concept is that more affordable entry options will attract additional customers who can subsequently be converted to premium financial products within the ecosystem.
Bright Spots Within Quarterly Results
Despite the challenges, several metrics demonstrated positive momentum. Intuit’s “Big Bets” initiatives, encompassing assisted tax services, money management, and mid-market solutions, surged 34% and now represent 30% of annual revenue.
The mid-market segment particularly excelled, with revenue jumping 39% while QuickBooks Online Advanced and Intuit Enterprise Suite customers increased 28%. Enterprise Suite annualized revenue exceeded $145 million in Q4, representing a four-fold increase compared to the previous year.
QuickBooks Capital facilitated $1.9 billion in loan volume during Q4, marking a 54% increase. Annual online payment volume surpassed $225 billion, reflecting approximately 30% growth.
The company’s total online paying customer base reached 8.9 million, up 3% year over year, although management noted this growth rate trailed the prior year’s pace by roughly two percentage points.
Intuit concluded the quarter holding $7.2 billion in cash and investments. The company executed $5.5 billion in share buybacks throughout the year and increased its quarterly dividend 15% to $1.38 per share.
Beginning next fiscal year, Mailchimp will be reported as a distinct operating segment. Mailchimp’s Q4 revenue experienced a slight year-over-year decline, with management forecasting flat to 1% negative growth for FY2027.
Looking ahead to fiscal 2027, Intuit anticipates GAAP EPS ranging from $20.12 to $20.36 and non-GAAP EPS between $22.88 and $23.12. The company disclosed that incorporating share-based compensation into non-GAAP reporting will create approximately a $5.81 impact on FY2027 non-GAAP earnings per share.
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