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Intuit (INTU) Down 13.1% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Intuit (INTU - Free Report) . Shares have lost about 13.1% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Intuit due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Intuit Inc. before we dive into how investors and analysts have reacted as of late.
Intuit's Q3 Earnings Beat on Consumer Growth & Higher Guidance
Intuit delivered third-quarter fiscal 2026 non-GAAP earnings per share (EPS) of $12.80, topping the Zacks Consensus Estimate of $12.48 by 2.56%. The bottom line jumped from $11.65 a year ago. Revenues totaled $8.56 billion, rising 10.4% year over year, and surpassing the Zacks Consensus Estimate of $8.52 billion.
The quarter reflected continued momentum across the platform. A notable highlight was QuickBooks Online Accounting revenues, which grew 22% in the quarter, supported by higher effective prices, customer growth and mix shift.
Results Show Solid Scale Across the Platform
Intuit’s third-quarter revenues underscore its ability to compound growth across both consumer and small-business ecosystems. Service revenues remained the primary contributor at $7.76 billion, rising 11.3% year over year, while product and other revenues totaled $799 million, up $16 million. Profitability also moved higher in dollars, even as margins tightened modestly. Non-GAAP operating income rose 8% year over year to $4.68 billion. The mix of higher operating spending alongside expanding revenues framed the quarter’s earnings profile.
Consumer Segment Stays Firm Through Tax Season
Intuit’s Consumer segment generated $5.27 billion of revenues, up 7.5% year over year, reflecting strength across core tax and adjacent money offerings. TurboTax revenues increased 7% to $4.36 billion, while Credit Karma revenue climbed 14.9% to $631 million. ProTax revenues were $278 million, flat year over year.
Drivers within the quarter were mixed but constructive. TurboTax benefited from growth in assisted tax and consumer money offerings, partially offset by lower revenues tied to fewer TurboTax federal units. Credit Karma’s growth was supported by higher revenues in its personal loan, credit card and insurance verticals. Segment operating income increased 6% to $4.26 billion.
Business Solutions Expand With Online and Desktop Mix
Intuit’s Global Business Solutions segment posted $3.29 billion of revenues, up 15.3% year over year, reflecting broad-based demand across its small- and mid-market offerings. Within the segment, Online Ecosystem revenues totaled $2.50 billion compared with $2.10 billion a year ago. The Desktop Ecosystem contributed $788 million compared with $746 million in the prior-year quarter.
The revenue mix continued to favor services. Segment service revenues increased 16.9% to $2.76 billion and product and other revenues grew 7.6% to $524 million. Operating income for Global Business Solutions rose to $2.52 billion from $2.19 billion, remaining about 77% of segment revenues and reflecting strong incremental profitability as the business scales.
Cost Base Rises on Marketing and Staffing
Intuit’s expense trajectory was a key swing factor in the quarter’s margin shape. Total operating expenses increased $324 million, or 11%, outpacing the 10% revenue gain. The increase was driven by higher marketing, staffing and outside services expenses.
More specifically, marketing expense rose $92 million, staffing expense increased $77 million and outside services expense climbed $65 million. Share-based compensation also increased $30 million year over year. The quarter showed the familiar tradeoff between investing to drive growth engines and preserving near-term margin leverage.
Capital Returns Remain a Key Shareholder Lever
Intuit paired operational momentum with continued capital returns. As of April 30, 2026, the company reported $6.8 billion in total cash and investments and $6.2 billion in debt. In the third quarter, it repurchased $1.6 billion of stock and received board approval for a new $8 billion repurchase authorization.
Shareholder returns also included a higher dividend. The board approved a quarterly dividend of $1.20 per share, payable July 17, 2026, representing a 15% increase year over year. Combined with ongoing buybacks, the quarter reinforced management’s focus on balancing investment in growth initiatives with disciplined capital allocation.
Lifts Full-Year Targets and Outlines Workforce Plan
Intuit raised its outlook for fiscal 2026, signaling confidence in the operating cadence heading into the final quarter. The company now expects revenues of $21.341 billion to $21.374 billion, representing growth of approximately 13% to 14%. Non-GAAP operating income is expected in the range of $8.784 billion to $8.804 billion, reflecting approximately 16% growth. Earnings guidance moved higher as well. Intuit guided non-GAAP EPS in the range of $23.80 to $23.85, reflecting growth of approximately 18%.
For the fourth quarter of fiscal 2026, management expects revenue growth of approximately 11% to 12% and non-GAAP EPS of $3.56 to $3.62. The company also announced a 17% workforce reduction, with estimated restructuring charges of $300 million to $340 million, largely recognized in the fourth quarter of fiscal 2026.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 31.14% due to these changes.
VGM Scores
At this time, Intuit has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Intuit has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
View the Zacks #1 Rank List
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Intuit (INTU) Down 13.1% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Intuit (INTU - Free Report) . Shares have lost about 13.1% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Intuit due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Intuit Inc. before we dive into how investors and analysts have reacted as of late.
Intuit's Q3 Earnings Beat on Consumer Growth & Higher Guidance
Intuit delivered third-quarter fiscal 2026 non-GAAP earnings per share (EPS) of $12.80, topping the Zacks Consensus Estimate of $12.48 by 2.56%. The bottom line jumped from $11.65 a year ago. Revenues totaled $8.56 billion, rising 10.4% year over year, and surpassing the Zacks Consensus Estimate of $8.52 billion.
The quarter reflected continued momentum across the platform. A notable highlight was QuickBooks Online Accounting revenues, which grew 22% in the quarter, supported by higher effective prices, customer growth and mix shift.
Results Show Solid Scale Across the Platform
Intuit’s third-quarter revenues underscore its ability to compound growth across both consumer and small-business ecosystems. Service revenues remained the primary contributor at $7.76 billion, rising 11.3% year over year, while product and other revenues totaled $799 million, up $16 million. Profitability also moved higher in dollars, even as margins tightened modestly. Non-GAAP operating income rose 8% year over year to $4.68 billion. The mix of higher operating spending alongside expanding revenues framed the quarter’s earnings profile.
Consumer Segment Stays Firm Through Tax Season
Intuit’s Consumer segment generated $5.27 billion of revenues, up 7.5% year over year, reflecting strength across core tax and adjacent money offerings. TurboTax revenues increased 7% to $4.36 billion, while Credit Karma revenue climbed 14.9% to $631 million. ProTax revenues were $278 million, flat year over year.
Drivers within the quarter were mixed but constructive. TurboTax benefited from growth in assisted tax and consumer money offerings, partially offset by lower revenues tied to fewer TurboTax federal units. Credit Karma’s growth was supported by higher revenues in its personal loan, credit card and insurance verticals. Segment operating income increased 6% to $4.26 billion.
Business Solutions Expand With Online and Desktop Mix
Intuit’s Global Business Solutions segment posted $3.29 billion of revenues, up 15.3% year over year, reflecting broad-based demand across its small- and mid-market offerings. Within the segment, Online Ecosystem revenues totaled $2.50 billion compared with $2.10 billion a year ago. The Desktop Ecosystem contributed $788 million compared with $746 million in the prior-year quarter.
The revenue mix continued to favor services. Segment service revenues increased 16.9% to $2.76 billion and product and other revenues grew 7.6% to $524 million. Operating income for Global Business Solutions rose to $2.52 billion from $2.19 billion, remaining about 77% of segment revenues and reflecting strong incremental profitability as the business scales.
Cost Base Rises on Marketing and Staffing
Intuit’s expense trajectory was a key swing factor in the quarter’s margin shape. Total operating expenses increased $324 million, or 11%, outpacing the 10% revenue gain. The increase was driven by higher marketing, staffing and outside services expenses.
More specifically, marketing expense rose $92 million, staffing expense increased $77 million and outside services expense climbed $65 million. Share-based compensation also increased $30 million year over year. The quarter showed the familiar tradeoff between investing to drive growth engines and preserving near-term margin leverage.
Capital Returns Remain a Key Shareholder Lever
Intuit paired operational momentum with continued capital returns. As of April 30, 2026, the company reported $6.8 billion in total cash and investments and $6.2 billion in debt. In the third quarter, it repurchased $1.6 billion of stock and received board approval for a new $8 billion repurchase authorization.
Shareholder returns also included a higher dividend. The board approved a quarterly dividend of $1.20 per share, payable July 17, 2026, representing a 15% increase year over year. Combined with ongoing buybacks, the quarter reinforced management’s focus on balancing investment in growth initiatives with disciplined capital allocation.
Lifts Full-Year Targets and Outlines Workforce Plan
Intuit raised its outlook for fiscal 2026, signaling confidence in the operating cadence heading into the final quarter. The company now expects revenues of $21.341 billion to $21.374 billion, representing growth of approximately 13% to 14%. Non-GAAP operating income is expected in the range of $8.784 billion to $8.804 billion, reflecting approximately 16% growth. Earnings guidance moved higher as well. Intuit guided non-GAAP EPS in the range of $23.80 to $23.85, reflecting growth of approximately 18%.
For the fourth quarter of fiscal 2026, management expects revenue growth of approximately 11% to 12% and non-GAAP EPS of $3.56 to $3.62. The company also announced a 17% workforce reduction, with estimated restructuring charges of $300 million to $340 million, largely recognized in the fourth quarter of fiscal 2026.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 31.14% due to these changes.
VGM Scores
At this time, Intuit has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Intuit has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.