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Intuit's TurboTax Live: Can Assisted Tax Sustain the Momentum?
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Key Takeaways
Intuit's TurboTax Live revenues jumped 37% in FY26, reaching 53% of total TurboTax revenues.
Assisted tax makes up 88%-90% of TurboTax's market, leaving substantial room for Live expansion.
Live growth may slow to the mid-teens in FY27 as DIY-to-Live upgrades moderate.
Intuit’s (INTU - Free Report) TurboTax Live enters fiscal 2027 with strong momentum. Revenues grew 37%, and customers increased 38% in fiscal 2026, while Live reached 53% of total TurboTax revenues. The shift toward assisted tax is clearly becoming an important growth driver for Intuit.
The opportunity remains substantial. Assisted tax represents roughly 88%-90% of TurboTax’s total addressable market, leaving significant room for expansion. Intuit is also combining AI with human expertise, aiming to improve expert productivity while maintaining the trust and accountability that customers value.
There are encouraging signs that Intuit can expand beyond its existing customer base. New-to-the-franchise TurboTax Live customers grew 15% in fiscal 2026, and the company plans to invest in local outreach, referrals, digital discoverability and competitive pricing. Its broader ecosystem also provides an advantage, with customers using both TurboTax and Credit Karma generating roughly twice the average revenues.
The key concern is that Live growth is expected to slow to the mid-teens in fiscal 2027 from 37% in fiscal 2026, as DIY-to-Live upgrades moderate. Intuit also expects overall TurboTax growth of just 2%-3% while accepting lower tax ARPC to rebuild its DIY customer funnel. This makes the next phase more dependent on winning new customers.
Still, the long-term picture remains positive. A huge assisted-tax market, growing new-to-franchise adoption, AI-driven efficiency and Intuit’s powerful consumer ecosystem give TurboTax Live multiple avenues for continued expansion. Fiscal 2027 may bring slower growth, but the underlying opportunity remains compelling.
How INTU’s Competitors Fared?
H&R Block (HRB - Free Report) remains a key TurboTax Live competitor. In the fourth quarter of 2026, U.S. assisted tax preparation revenues rose to $714.2 million from $686 million, while quarterly EBITDA reached $420.5 million. For fiscal 2026, assisted-tax revenues increased 6.1%, supported by higher pricing and company-owned volumes.
Thomson Reuters (TRI - Free Report) competes more heavily in professional tax software. In the second quarter of 2026, Tax, Audit & Accounting Professionals revenues reached $311 million, rising 12% at constant currency and 8% organically. Segment adjusted EBITDA increased 9% to $120 million, reflecting continued demand for tax, audit and AI-enabled professional solutions across its broad global customer base today.
INTU’s Price Performance, Valuation and Estimates
Shares of Intuit have rallied 10.8% over the past three months, outperforming the broader industry and the S&P 500 composite.
Image Source: Zacks Investment Research
In terms of forward 12-month Price/Sales (P/S), Intuit is currently trading at 3.99X, which is at a discount to the industry average of 6.36X.
Image Source: Zacks Investment Research
Intuit’s estimate revisions reflect a negative trend. The Zacks Consensus Estimate for fiscal 2027 EPS has been revised down 2.8% to $26.37 over the past week. The consensus estimate for 2027 calls for 8.7% growth year over year.
View the Zacks #1 Rank List
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Intuit's TurboTax Live: Can Assisted Tax Sustain the Momentum?
Key Takeaways
Intuit’s (INTU - Free Report) TurboTax Live enters fiscal 2027 with strong momentum. Revenues grew 37%, and customers increased 38% in fiscal 2026, while Live reached 53% of total TurboTax revenues. The shift toward assisted tax is clearly becoming an important growth driver for Intuit.
The opportunity remains substantial. Assisted tax represents roughly 88%-90% of TurboTax’s total addressable market, leaving significant room for expansion. Intuit is also combining AI with human expertise, aiming to improve expert productivity while maintaining the trust and accountability that customers value.
There are encouraging signs that Intuit can expand beyond its existing customer base. New-to-the-franchise TurboTax Live customers grew 15% in fiscal 2026, and the company plans to invest in local outreach, referrals, digital discoverability and competitive pricing. Its broader ecosystem also provides an advantage, with customers using both TurboTax and Credit Karma generating roughly twice the average revenues.
The key concern is that Live growth is expected to slow to the mid-teens in fiscal 2027 from 37% in fiscal 2026, as DIY-to-Live upgrades moderate. Intuit also expects overall TurboTax growth of just 2%-3% while accepting lower tax ARPC to rebuild its DIY customer funnel. This makes the next phase more dependent on winning new customers.
Still, the long-term picture remains positive. A huge assisted-tax market, growing new-to-franchise adoption, AI-driven efficiency and Intuit’s powerful consumer ecosystem give TurboTax Live multiple avenues for continued expansion. Fiscal 2027 may bring slower growth, but the underlying opportunity remains compelling.
How INTU’s Competitors Fared?
H&R Block (HRB - Free Report) remains a key TurboTax Live competitor. In the fourth quarter of 2026, U.S. assisted tax preparation revenues rose to $714.2 million from $686 million, while quarterly EBITDA reached $420.5 million. For fiscal 2026, assisted-tax revenues increased 6.1%, supported by higher pricing and company-owned volumes.
Thomson Reuters (TRI - Free Report) competes more heavily in professional tax software. In the second quarter of 2026, Tax, Audit & Accounting Professionals revenues reached $311 million, rising 12% at constant currency and 8% organically. Segment adjusted EBITDA increased 9% to $120 million, reflecting continued demand for tax, audit and AI-enabled professional solutions across its broad global customer base today.
INTU’s Price Performance, Valuation and Estimates
Shares of Intuit have rallied 10.8% over the past three months, outperforming the broader industry and the S&P 500 composite.
Image Source: Zacks Investment Research
In terms of forward 12-month Price/Sales (P/S), Intuit is currently trading at 3.99X, which is at a discount to the industry average of 6.36X.
Image Source: Zacks Investment Research
Intuit’s estimate revisions reflect a negative trend. The Zacks Consensus Estimate for fiscal 2027 EPS has been revised down 2.8% to $26.37 over the past week. The consensus estimate for 2027 calls for 8.7% growth year over year.
Image Source: Zacks Investment Research
Currently, Intuit carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.