Intuit (INTU) Announces Strong Third-Quarter Earnings Results And Raises Full-Year Guidance

Intuit Inc. (INTU) today announced its financial results for the fiscal quarter, revealing a mixed performance. The company reported earnings per share of $10.02, falling short of analysts’ expectations of $10.93, marking a miss of approximately 9%. However, Intuit exceeded revenue estimates, generating $7.754 billion, which is a 2.5% increase compared to expectations of $7.568 billion.

Key Highlights:

• Intuit reported a total revenue of $7.8 billion for Q3 FY25, a 15% increase year-over-year.
• Consumer Group revenue reached $4.0 billion, up 11%, while Global Business Solutions Group revenue grew 19% to $2.8 billion.
• Credit Karma revenue surged 31% to $579 million.
• GAAP diluted earnings per share increased by 19% to $10.02, and non-GAAP diluted earnings per share rose by 18% to $11.65.
• The company raised its full-year guidance for FY25, expecting revenue growth of approximately 15%, up from previous guidance of 12-13%.

Summary: Intuit Inc. announced strong financial results for the third quarter of fiscal 2025, with total revenue reaching $7.8 billion, reflecting a 15% year-over-year increase. The Consumer Group, which includes popular products like TurboTax, generated $4.0 billion, while the Global Business Solutions Group reported a 19% increase in revenue to $2.8 billion. Notably, Credit Karma’s revenue surged by 31% to $579 million, underscoring the company’s diverse growth across its segments. CEO Sasan Goodarzi remarked, “We have exceptional momentum with outstanding performance across our platform,” emphasizing the positive impact of their AI-driven solutions.

In light of these impressive results, Intuit raised its full-year guidance for fiscal 2025, now projecting revenue growth of approximately 15%, an increase from the previous estimate of 12-13%. The company also reported significant growth in earnings per share, with GAAP diluted earnings per share rising to $10.02 and non-GAAP diluted earnings per share reaching $11.65. CFO Sandeep Aujla noted, “Reflecting this strength across our platform, we are raising our full-year guidance across all total company metrics for fiscal 2025,” indicating a strong outlook for the company’s continued growth trajectory.

Intuit Inc. (INTU) has recently experienced a notable uptick in its stock price, with a 16.02% increase over the past month, reflecting strong investor sentiment despite a slight dip of 0.53% over the last year. The company’s price-to-earnings ratio stands at a lofty 62.12, indicating that investors are willing to pay a premium for its earnings potential, which is supported by an impressive two-year compound annual growth rate (CAGR) of 18.44% in earnings per share. Additionally, Intuit’s revenue growth has been robust, with a two-year CAGR of 12.01%, showcasing its ability to expand its market presence. The company’s free cash flow growth of 18.41% further underscores its operational efficiency and financial health. With a return on invested capital of 15.21% and a net profit margin of 13.18%, Intuit demonstrates strong profitability metrics that appeal to long-term investors. However, the recent six-month decline of 2.43% suggests some volatility, which could be a point of concern for potential investors. Overall, Intuit’s solid fundamentals and recent price momentum position it as a compelling player in the tech sector, though market fluctuations warrant careful observation.

Intuit Inc. provides financial management and compliance products and services for consumers, small businesses, self-employed, and accounting professionals in the United States, Canada, and internationally. The company operates in four segments: Small Business & Self-Employed, Consumer, Credit Karma, and ProConnect. The Small Business & Self-Employed segment provides QuickBooks online services and desktop software solutions comprising QuickBooks Online Advanced, a cloud-based solution; QuickBooks Enterprise, a hosted solution; QuickBooks Self-Employed solution; QuickBooks Commerce, a solution for product-based businesses; QuickBooks Online Accountant and QuickBooks Accountant Desktop Plus solutions; and payroll solutions, such as online payroll processing, direct deposit of employee paychecks, payroll reports, electronic payment of federal and state payroll taxes, and electronic filing of federal and state payroll tax forms. This segment also offers payment-processing solutions, including credit and debit cards, Apple Pay, and ACH payment services; QuickBooks Cash business bank account; and financial supplies and financing for small businesses. The Consumer segment provides TurboTax income tax preparation products and services; and personal finance. The Credit Karma segment offers consumers with a personal finance platform that provides personalized recommendations of home, auto, and personal loans, as well as credit cards and insurance products. The ProConnect segment provides Lacerte, ProSeries, and ProFile desktop tax-preparation software products; and ProConnect Tax Online tax products, electronic tax filing service, and bank products and related services. It sells products and services through various sales and distribution channels, including multi-channel shop-and-buy experiences, websites and call centers, mobile application stores, and retail and other channels. The company was founded in 1983 and is headquartered in Mountain View, California.