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TurboTax's Strong FY26 Run: Can Intuit's Growth Engines Keep Firing?
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Key Takeaways
INTU's TurboTax revenues rose 7% in Q3 FY2026 to $4.4 billion, led by assisted tax and money offerings.
TurboTax Live revenues are expected to grow 36% to $2.8 billion, with customers up 38%.
Pricing pressure hit DIY filers under $50,000, while Credit Karma users generated about 30% higher ARPU.
Intuit’s (INTU - Free Report) TurboTax remains the cornerstone of its Consumer segment, spanning DIY and assisted income-tax preparation solutions in the United States and Canada. The platform continues to evolve from a traditional self-filing tax software product into a broader, service-led ecosystem that combines assisted tax preparation, faster refund access and integrated financial tools.
TurboTax delivered solid revenue growth in third-quarter fiscal 2026, with revenues rising 7% year over year to $4.4 billion, while revenues for the first nine months increased 7% to $5.14 billion. Growth was driven by assisted tax and consumer money offerings, partly offset by lower TurboTax federal units. For fiscal 2026, TurboTax revenues are expected to rise about 7%, supported by 11% ARPU growth, although total online units are projected to decline 2% and e-file share to fall by about 1 point.
TurboTax Live, Intuit’s official TurboTax service that combines TurboTax’s DIY tax-filing software with access to a tax expert has become the key growth driver. In the third quarter fiscal 2026, new assisted customers rose 29%, supported by local expert channels that boosted customer acquisition. For fiscal 2026, revenues are expected to grow 36% to $2.8 billion and customers are expected to increase 38%, making it about 53% of total TurboTax revenues.
TurboTax’s integration with Credit Karma is becoming increasingly important, as customers using both platforms generate about 30% higher ARPU, while adoption of fast-money offerings and simplified filing tools is helping deepen engagement and customer monetization.
However, TurboTax faced pressure in the price-sensitive DIY segment, particularly among filers earning under $50,000, where Intuit acknowledged losing share on pricing. Yet, TurboTax issuccessfully transitioning from a traditional DIY tax software product to a more service-led, higher-margin platform, strengthening its long-term growth profile within Intuit’s Consumer business.
How Are INTU’s Peers Fairing?
Paychex’s (PAYX - Free Report) tax-related business, included in its Management Solutions segment (payroll processing, tax filing and compliance), delivered strong momentum in third-quarter fiscal 2026, with revenues rising 23% year over year to $1.4 billion. Growth was driven by higher client volumes, increased revenue per client and sustained demand for payroll tax compliance services, supported by the Paycor acquisition.
H&R Block (HRB - Free Report) reported third-quarter fiscal 2026 revenues of $2.4 billion, up 5.3% year over year, driven by higher pricing and volume in U.S. assisted tax preparation. Adjusted EPS rose 11.9% to $6.02, and the company raised its FY2026 revenue outlook to $3.91-$3.92 billion.
INTU’s Price Performance, Valuation and Estimates
Shares of Intuit have declined 21.8% over the past three months, underperforming both the broader industry and the S&P 500 Index.
Image Source: Zacks Investment Research
In terms of forward 12-month Price/Sales (P/S), Intuit is currently trading at 3.75X, which is at a discount to the industry average of 7.03X.
Image Source: Zacks Investment Research
Intuit’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for fiscal 2026 EPS has been revised upward marginally to $23.19 over the past week. The consensus estimate for 2026 calls for 15.1% growth year over year.
View the Zacks #1 Rank List
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TurboTax's Strong FY26 Run: Can Intuit's Growth Engines Keep Firing?
Key Takeaways
Intuit’s (INTU - Free Report) TurboTax remains the cornerstone of its Consumer segment, spanning DIY and assisted income-tax preparation solutions in the United States and Canada. The platform continues to evolve from a traditional self-filing tax software product into a broader, service-led ecosystem that combines assisted tax preparation, faster refund access and integrated financial tools.
TurboTax delivered solid revenue growth in third-quarter fiscal 2026, with revenues rising 7% year over year to $4.4 billion, while revenues for the first nine months increased 7% to $5.14 billion. Growth was driven by assisted tax and consumer money offerings, partly offset by lower TurboTax federal units. For fiscal 2026, TurboTax revenues are expected to rise about 7%, supported by 11% ARPU growth, although total online units are projected to decline 2% and e-file share to fall by about 1 point.
TurboTax Live, Intuit’s official TurboTax service that combines TurboTax’s DIY tax-filing software with access to a tax expert has become the key growth driver. In the third quarter fiscal 2026, new assisted customers rose 29%, supported by local expert channels that boosted customer acquisition. For fiscal 2026, revenues are expected to grow 36% to $2.8 billion and customers are expected to increase 38%, making it about 53% of total TurboTax revenues.
TurboTax’s integration with Credit Karma is becoming increasingly important, as customers using both platforms generate about 30% higher ARPU, while adoption of fast-money offerings and simplified filing tools is helping deepen engagement and customer monetization.
However, TurboTax faced pressure in the price-sensitive DIY segment, particularly among filers earning under $50,000, where Intuit acknowledged losing share on pricing. Yet, TurboTax issuccessfully transitioning from a traditional DIY tax software product to a more service-led, higher-margin platform, strengthening its long-term growth profile within Intuit’s Consumer business.
How Are INTU’s Peers Fairing?
Paychex’s (PAYX - Free Report) tax-related business, included in its Management Solutions segment (payroll processing, tax filing and compliance), delivered strong momentum in third-quarter fiscal 2026, with revenues rising 23% year over year to $1.4 billion. Growth was driven by higher client volumes, increased revenue per client and sustained demand for payroll tax compliance services, supported by the Paycor acquisition.
H&R Block (HRB - Free Report) reported third-quarter fiscal 2026 revenues of $2.4 billion, up 5.3% year over year, driven by higher pricing and volume in U.S. assisted tax preparation. Adjusted EPS rose 11.9% to $6.02, and the company raised its FY2026 revenue outlook to $3.91-$3.92 billion.
INTU’s Price Performance, Valuation and Estimates
Shares of Intuit have declined 21.8% over the past three months, underperforming both the broader industry and the S&P 500 Index.
Image Source: Zacks Investment Research
In terms of forward 12-month Price/Sales (P/S), Intuit is currently trading at 3.75X, which is at a discount to the industry average of 7.03X.
Image Source: Zacks Investment Research
Intuit’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for fiscal 2026 EPS has been revised upward marginally to $23.19 over the past week. The consensus estimate for 2026 calls for 15.1% growth year over year.
Image Source: Zacks Investment Research
Currently, Intuit carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.