Software company Intuit (INTU) reported better-than-expected fiscal fourth quarter results driven by robust demand for its AI-powered platform and diversified fintech offerings. However, the stock dropped over 6% in the after-hours trading due to the projected slower revenue growth for Fiscal 2026 compared to Fiscal 2025.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
INTU reported Q4 revenue of $3.8 billion, up 20% year-over-year and slightly ahead of the $3.75 billion consensus estimate. Also, adjusted earnings per share (EPS) came in at $2.75, topping the $2.66 analyst forecast and rising 38% year-over-year. The beat reflects strong execution across Intuit’s business segments, particularly in Credit Karma, TurboTax Live, and QuickBooks Online.
Particularly, Credit Karma was the standout performer, surging 34% year-over-year. This growth was fueled by strong demand for personal loans, credit cards, and auto insurance products.
CEO Sasan Goodarzi credited the company’s “virtual team of AI agents and AI-enabled human experts” for driving success across consumer and business segments.
Impressive Capital Deployment Activities
Intuit announced that its board of directors approved a quarterly cash dividend of $1.20 per share, reflecting a 15% increase compared to last year. The dividend will be paid on October 17, 2025, to shareholders of record as of the close of business on October 9, 2025.
Also, the board approved a new $3.2 billion buyback plan, lifting INTU’s total share repurchase authorization to $5.3 billion.
Fiscal 2026 Outlook Signals Positive Momentum
Looking ahead, Intuit expects Fiscal 2026 revenue between $20.997 billion and $21.186 billion, reflecting 12% to 13% growth. Also, adjusted EPS is expected to rise between 14% and 15% to $22.98 and $23.18. This includes the analyst’s expectations of $22.99 per share.
Segment-wise, INTU projects Global Business Solutions to witness 14% to 15% growth. Also, revenue for Credit Karma is expected to rise 10% to 13%. TurboTax and Consumer Group are likely to witness an over 8% jump.
For fiscal Q1, Intuit anticipates revenue growth of 14% to 15%. Adjusted EPS is expected to be between $3.05 and $3.12, compared with the consensus estimate of $3.07.
Is INTU a Good Stock to Buy?
Overall, Wall Street has a Strong Buy consensus rating on Intuit stock based on 21 Buys and one Hold. The average INTU stock price target of $846.29 indicates about 21.29% upside potential from current levels. However, it’s worth noting that estimates will likely change following today’s earnings report.
Source link
