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Intuit Q2 Earnings Surpass Estimates, Revenues Increase Y/Y

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Intuit (INTU - Free Report) reported fiscal second-quarter 2025 non-GAAP earnings of $3.32 per share, which beat the Zacks Consensus Estimate by 28.68%. The bottom line jumped 26% from the year-ago quarter.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Revenues of $3.96 billion beat the consensus mark by 3.67% and increased 17% year over year.

Intuit Inc. Price, Consensus and EPS Surprise

Intuit Inc. Price, Consensus and EPS Surprise

Intuit Inc. price-consensus-eps-surprise-chart | Intuit Inc. Quote

Quarter Details

Global Business Solutions Group revenues (67.39% of total revenues) grew 19% year over year to $2.67 billion.

Within the segment, total Online Ecosystem revenues climbed 21% year over year to $2.04 billion. 

QuickBooks Online Accounting revenues were up 22% year over year to $1 billion, driven primarily by higher effective prices, customer growth, and mix-shift to INTU’s full-service offering. 

Online Services revenues, which include payroll, payments, time tracking and capital, jumped 19% year over year to $1.03 billion. This was driven by strong performances of Mailchimp, payroll and Money, which includes payments, capital and bill pay.

Total international online revenues increased 9% year over year on a constant-currency basis.

Total Desktop Ecosystem revenues rose 14% year over year during the reported quarter to $633 million.

Revenues from Consumer Group (12.84% of total revenues) increased 3% to $509 million. 

Further, ProTax Group's professional tax revenues (6.86% of total revenues) rose 1% year over year to $272 million.

The Credit Karma business contributed $511 million to Intuit’s fiscal second-quarter total revenues, which increased 36% year over year, driven by strength in credit cards, personal loans, and auto insurance.

INTU’s non-GAAP operating income climbed 26% to $1.26 billion. Non-GAAP operating margin increased 230 basis points to 31.8% year over year.

Balance Sheet and Cash Flow

As of Jan. 31, 2025, Intuit’s cash and investments were $2.5 billion compared with $3.4 billion as of Oct. 31, 2024. The company exited the fiscal second quarter with a long-term debt of $5.76 billion.

Intuit repurchased $721 million of stock during the fiscal second quarter. The company entered into a $4.5 billion revolving credit facility on Jan. 30, 2025, that it is using to fund its 5-Day Early
refund offering. This facility expires on April 30, 2025.

INTU announced that its board approved a quarterly dividend of $1.04 per share to be paid on April 18, 2025. The newly approved dividend represents a year-over-year increase of 16%.

Outlook

For the fiscal third quarter of 2025, INTU expects revenues to grow between 12% and 13% on a year-over-year basis. Revenues are expected to be in the range of $7.55-$7.60 billion. Non-GAAP earnings for the quarter are estimated in the range of $10.89-$10.95 per share.

Intuit projects fiscal 2025 revenues in the band of $18.16-$18.347 billion, indicating 12-13% growth.

Further in its business segments, the Global Business Solutions segment revenues are expected in the range of $11.01-$11.106 billion, suggesting growth of 16-17% on a year-over-year basis. Consumer Group revenues are expected in the range of $4.739-$4.784 billion, indicating 7-8% growth. Credit Karma revenues are expected in the band of $1.795-$1.837 billion, suggesting 5-8% growth. ProTax revenues are forecasted between $615 million and $620 million, suggesting 3-4% growth.

The company anticipates non-GAAP operating income between $7.241 billion and $7.316 billion.

Intuit expects fiscal 2025 non-GAAP earnings per share between $19.16 and $19.36.

Zacks Rank & Key Picks

Intuit carries a Zacks Rank #3 (Hold) at present. Shares of INTU have lost 7.2% in the year-to-date period.

Some better-ranked stocks from the broader Computer and Technology sector are Cogent Communications (CCOI - Free Report) , Cambium Networks (CMBM - Free Report) and Definitive Healthcare (DH - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Cogent Communications, Cambium Networks and Definitive Healthcare are set to report their respective fourth-quarter 2024 results on Feb. 27.

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