Intuit Second-Quarter Earnings Beat, Guidance Soft
Intuit second-quarter earnings beat, but weaker third-quarter guidance tied to tax-season marketing and support costs pressured shares and trimmed margins.
KEY TAKEAWAYS
- Second-quarter revenue about $4.7B; non-GAAP EPS $4.15, both ahead of expectations.
- Q3 non-GAAP EPS guidance $12.45-$12.51 fell below Street consensus near $12.97.
- Company blamed elevated tax-season marketing and customer-support spending for softer near-term profitability.
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Intuit reported fiscal second-quarter results on Feb. 26, 2026, with earnings beating expectations. However, the company issued softer third-quarter profit guidance, citing elevated tax-season marketing and customer-support spending that will weigh on near-term profitability and margins.
Second-Quarter Results and Segment Performance
Intuit said total revenue for fiscal Q2, ended Jan. 31, 2026, was $4.65 billion to $4.7 billion, up 17% year over year and about 2.75% above consensus. Non-GAAP diluted earnings per share (EPS) rose 25% to $4.15, beating the consensus of $3.66. GAAP diluted EPS increased 49% to $2.48 but missed the reported GAAP consensus of $3.74. GAAP operating income grew 44% to $855 million, while non-GAAP operating income rose 23% to $1.5 billion.
Segment revenue included $3.2 billion for Global Business Solutions, up 18%, and $2.5 billion for the Online Ecosystem, up 21%. Consumer revenue reached $1.5 billion. Credit Karma generated $616 million, TurboTax $581 million, and ProTax $290 million. Excluding Mailchimp, Global Business Solutions grew 21% and the Online Ecosystem 25%. Credit Karma’s growth reflected strength in personal loans, credit cards, and auto insurance. Online Services revenue rose 18%, driven by money and payroll products, while international online revenue increased 9% on a constant-currency basis.
The company reported an effective GAAP tax rate near 20% for the quarter and first half of fiscal 2026, with an adjusted rate around 24% excluding discrete items. Share-based compensation expense totaled $521 million, up from $498 million a year earlier. "We delivered a very strong second quarter of fiscal 2026," said Chief Financial Officer Sandeep Aujla.
Q3 Guidance and Tax-Season Spending
For the quarter ending April 30, 2026, Intuit projected roughly 10% revenue growth. It guided GAAP diluted EPS between $10.56 and $10.62 and non-GAAP diluted EPS of $12.45 to $12.51, below the Street consensus near $12.97. The company attributed the softer profit outlook to higher seasonal marketing and customer-support expenses during the U.S. tax-filing window, which overlaps with the quarter.
Shares fell about 1.27% in post-market trading following the announcement, reflecting investor focus on the compressed near-term profitability outlook despite the revenue beat.
Full-Year Outlook Reiterated
Intuit reaffirmed its full-fiscal-2026 guidance, targeting revenue between $20.997 billion and $21.186 billion, representing 12–13% growth. It expects GAAP operating income of $5.782 billion to $5.859 billion and non-GAAP operating income of $8.611 billion to $8.688 billion. GAAP diluted EPS guidance remains $15.49 to $15.69, with non-GAAP diluted EPS at $22.98 to $23.18.
The company anticipates Global Business Solutions growth of 14–15% for the year, with Mailchimp returning to double-digit growth sometime beyond fiscal 2026. Consumer revenue is projected to rise 8–9%, implicitly including about 8% growth in TurboTax. Intuit noted the IRS Direct File program has remained limited in scope as of early 2026, with no material impact on guidance.
