TLDR

  • Intuit reported adjusted earnings per share (EPS) of $4.15, exceeding analysts’ $3.68 forecast, while revenue climbed 17% to $4.65 billion
  • Third-quarter (Q3) guidance fell short of Wall Street projections: adjusted EPS is expected to range from $12.45 to $12.51, compared to the $12.97 consensus
  • CEO Sasan Goodarzi stated that AI is a partner rather than a threat, referencing the company’s recent partnership with Anthropic
  • The stock declined by approximately 4% in premarket trading on Friday, following a nearly 40% drop since the start of the year
  • Intuit announced a quarterly dividend of $1.20 per share, marking a 15% rise from the same quarter last year

Intuit surpassed Wall Street’s fiscal second-quarter expectations, yet weaker-than-expected Q3 guidance pushed its stock price down.

The firm reported adjusted earnings of $4.15 per share—well above analysts’ $3.68 forecast. Revenue reached $4.65 billion, a 17% year-over-year increase that exceeded the $4.53 billion consensus estimate.

Adjusted operating income increased by 23% to $1.5 billion.

INTU Stock Card

CEO Sasan Goodarzi described the quarter as an “exceptional second quarter, fueled by disciplined execution.”

Despite the robust quarter, Intuit’s Q3 guidance—its most critical period because of tax season—missed the mark. The company projects adjusted EPS between $12.45 and $12.51, which is below Wall Street’s $12.97 estimate.

Q3 revenue is forecast to rise approximately 10% from the previous year, translating to roughly $4.36 billion—once more below analysts’ $4.53 billion expectation.

The stock fell by roughly 4% in premarket trading on Friday after the report was released, following a 3.5% gain in the previous day’s closing session.

AI Partnerships, Not Competition

The stock has declined nearly 40% so far this year, largely driven by widespread concerns that AI tools might replace tax and accounting software.

Goodarzi pushed back against this perspective. He told Barron’s that tax-filing customers prefer to use a trusted company, and that AI firms are unwilling to assume the legal liability associated with tax preparation.

He noted that Anthropic and OpenAI “lack, and have no desire to acquire, the capabilities” Intuit has developed—and that building such capabilities takes significant time.

Intuit revealed a partnership with Anthropic this week to integrate custom AI agents for mid-market businesses on its platform. The company had previously announced a comparable collaboration with OpenAI.

Jefferies analyst Brent Thill stated that Intuit’s strong first-half performance “renders its repeated FY26 guidance appear conservative” and reaffirmed a Buy rating, noting that “INTU’s AI moat is still misunderstood.”

Full-Year Outlook Held Steady

Intuit maintained its full fiscal year 2026 guidance without changes. The firm projects adjusted EPS in the range of $22.98 to $23.18, reflecting a roughly 14% to 15% growth rate.

Full-year revenue guidance stays within the $21 billion to $21.2 billion range, indicating a 12% to 13% growth rate.

Goodarzi pointed out that Intuit usually refrains from updating full-year guidance until after Q3, given the quarter’s critical importance to its operations.

Wolfe Research’s Alex Zukin stated that the results “reinforce our optimistic stance on growth sustainability,” while reducing his price target from $685 to $550 but keeping an Outperform rating.

William Blair analyst Arjun Bhatia described Intuit as a “mission-critical platform for small businesses” that is positioning itself effectively for the AI age.

Intuit also announced a quarterly dividend of $1.20 per share, payable on April 17, 2026—representing a 15% increase from the same quarter in the prior year.