Overview
Since the Report − 8.8%
Revenue grew 14.0% year over year, EPS beat the estimate by 12.0%; the stock fell 7.2% in its first reaction.
- RevenueQ4
- $4.35B
- ▲ 14% YoY
- EPSAdjusted
- $4.03
- Est. $3.59 · ▲12%
Verdict
HOLDOnly one of Intuit's three tests opened: adjusted earnings came in 12% above the estimate, revenue 1.97% above, and the fiscal 2027 guidance midpoint 1.5% below; score 57, view hold. Full-year revenue crossed $20 billion for the first time, but the 9-10% growth outlook landed well below this year's 14% and the stock fell 7.2% after hours. The question now is whether the deliberate price cut in TurboTax and rising AI competition will slow growth for good.
Close on Report DayAug 25
$358.91▼ 7.2%Report-Day Move
- Market Cap(Today)
- ≈ $87.4 B
- 1Y Return(At Report)
- − 49%
- P/E(At Today's Price · $24.27 · Trailing 12M)
- 13.5
- PEG(Company Guidance 2027)
- 0.59
- Net Margin(Trailing 12M)
- 21.3%
Earnings Summary
In 30 Seconds- Revenue of $4.35B beat estimates by 2%, and adjusted EPS of $4.03 beat by 12%.
- Fiscal 2027 guidance calls for 9-10% revenue growth, well below this year's 14%.
- The stock fell 7.2% after hours as the slower growth outlook took center stage.
The Numbers
GAAP EPS
$1.34
One-Time Tax Impact
Full-Year Revenue (FY26)
$21.4B
First Time Above $20B
Stock Reaction
▼ 7.2%
After Hours
FY27 Revenue Growth
9–10%
14% in FY26
Quarterly Revenue ($ Billion)
3.83
Q4 25 · $3.83 B
3.89
Q1 26 · $3.89 B · QoQ + 1.4%
4.65
Q2 26 · $4.65 B · QoQ + 19.7%
8.56
Q3 26 · $8.56 B · QoQ + 84.0%
4.35
Q4 26 · $4.35 B · QoQ − 49.1% · YoY + 13.7%
4.29–4.31
Q1 27E · 4.29–4.31 · QoQ − 1.1% · YoY + 10.8%
- Q4 25
- Q1 26
- Q2 26
- Q3 26
- Q4 26
- Q1 27E
Q1 FY27 Company Guidance
- Full-Year Revenue (FY27)23.28 – 23.51 billion23.28 billion23.51 billion23.28 – 23.51 billion
Midpoint 23.40 · Market Expectation 23.74Midpoint 1.5% Below Estimate ▼
- Revenue Growth (FY27)9% – 10%9%10%
Prior-Year Growth 14%Marked Slowdown 4.5 pts ▼
- Adjusted EPS (FY27)22.88 – 23.12 $22.88 $23.12 $22.88 – 23.12 $
New Method · SBC Now Included23–24% Growth ▲
- Revenue (Q1 FY27)4.29 – 4.31 billion4.29 billion4.31 billion4.29 – 4.31 billion
11% YoY GrowthDouble-Digit Growth · 11% YoY ▲
How to Read the Chart
The blue band is the company's low-high range; its length shows how much room the company left itself. The black triangle and the line beneath it mark where the market expected, and the notch in the band is the range's midpoint. The triangle appears only where a market expectation is known. When the company gave a single number rather than a range and no market expectation is known, that row gets no band at all: there is no length to measure and no position to compare. Axis is ±6.1% around the midpoint.
Segment and KPI Data
Revenue by Segment
- Global Business Solutions$3.40 BShare 78.5%▲ 14.0% YoY
Reported as $3.4B in the release
- Credit Karma$743 MShare 17.2%▲ 16.0% YoY
- TurboTax$153 MShare 3.5%▲ 3.0% YoY
- ProTax$34.0 MShare 0.8%▲ 6.0% YoY
Key Metrics
Online Ecosystem Revenue
$2.60 B
▲ 17.0% YoYPress Release
TurboTax Units (FY26)
39.0 M units
▼ 2.0% YoYPress Release
Share Repurchases (FY26)
$5.50 B
▲ 96.0% YoYPress Release
Remaining Buyback Authorization
$7.90 B
Press Release
Quarterly Dividend
$1.38
▲ 15.0% YoYPress Release
Shares are computed over the segment total: $4.33 B. Source: Press Release.
Metrics come only from the company's own filings; each one names the document it was taken from.
“We surpassed $20 billion in revenue for the full year with growth fueled by our Big Bets which collectively grew 34 percent and represented 30 percent of full-year revenue.”
- Big Bets Grew 34%
- Revenue Crossed $20B
- AI Across the Platform
Summary and Review
Summary
In the quarter ended July 31, Intuit's revenue was $4.35 billion against a $4.27 billion expectation, a gap of 1.97%. Adjusted EPS was $4.03 versus $3.59 expected, a gap of 12%. The fiscal 2027 guidance midpoint is $23.40 billion against $23.74 billion, a gap of −1.5%. The earnings test is open; revenue and guidance sit inside the ±2% band, in line. That is the hold band; score 57. Full-year revenue of $21.4 billion crossed $20 billion for the first time.
Even so, the stock fell 7.2% after hours; the problem was the future, not the quarter. Intuit guided fiscal 2027 to just 9-10% revenue growth, well below this year's 14%. Management blamed weakness at Mailchimp, a declining desktop business and lower revenue per customer in TurboTax. Share-based compensation will no longer be excluded from adjusted earnings from 2027. That made the guidance harder to compare with prior years. The fifth straight beat never reached the price.
Our read: the quarter is solid, but the growth slowdown now sits at the center of the story. Cash generation is strong; the company repurchased $5.5 billion in stock, raised the dividend 15% and holds $7.9 billion in buyback authorization. Analysts stay constructive, with an average target near $405, about 13% above the close. Still, growth dropping to 9-10% and AI pressure on tax software are the critical uncertainties. Those reservations pull the score to mid-band, 57.
Full Review
The quarter beat; the tension is in the future.
The raw figures for the fourth quarter were strong. Revenue rose 14% year over year to $4.35 billion, topping the $4.27 billion market expectation by 1.97%. That gap sits just under the 2% threshold, so the revenue test counts as in line rather than open. Adjusted earnings per share came in at $4.03, 12% above the expected $3.59 and the fifth consecutive beat. The earnings test is open. For the full fiscal year revenue crossed the $20 billion threshold for the first time, reaching $21.4 billion; adjusted earnings grew 20%. The Big Bets collectively grew 34% and made up 30% of full-year revenue. Credit Karma rose 20% and the core business software segment 16%. So there is no break in the company's track record. What unsettled the market was the far more cautious picture management painted for next year.
Growth slows from 14% to 9-10%.
The real driver of the stock's reaction was the fiscal 2027 outlook. Intuit said revenue would grow only 9-10%. That is well below both this year's 14% and the strong double-digit pace investors had grown used to. The $23.28-$23.51 billion revenue range has a midpoint of $23.40 billion, 1.5% under the $23.74 billion the market expected. The guidance test is therefore not closed but in line, at the lower edge of the band. Management tied the slowdown to flat-to-declining revenue at Mailchimp, a shrinking desktop product ecosystem and a strategic decision on the TurboTax side. First-quarter revenue was guided to $4.29-$4.31 billion, which implies 11% growth. For a company that trades on a growth story, a decelerating pace is the most sensitive point for its multiple. The market priced it in quickly.
A deliberate revenue sacrifice in TurboTax.
The most striking strategic message in the guidance was about TurboTax. The company said it would deliberately lower revenue per customer up front in order to win more customers and grow market share. This is a choice that suppresses revenue growth in the near term. Over the long run it aims to broaden the user base. The logic is defensible. But for investors the question is twofold: how long the sacrifice lasts and whether the customer gains it is meant to buy actually materialize. Management frames this not as weakness but as an aggressive share-grab. The market is cautious for now. The 2027 tax season, January through April, will be the first big test of the strategy. If revenue falls without customer counts rising, the sacrifice becomes a price cut; if they rise, it counts as an investment.
AI is both opportunity and threat.
Behind Intuit's steep decline over the past year sits the fear that AI could rival traditional software in areas like tax and accounting. The stock has lost roughly half its value in a year. The company positions this as an opportunity on its own side. It stresses that the AI agents embedded in its products add customer value. It points to the 34% growth in the Big Bets segment as proof. But the same technology could open the door to free or very cheap alternatives. That would erode TurboTax's pricing power. The deliberate price cut in TurboTax can be read, in part, as a reflection of that competitive pressure. The next few quarters will show which way this balance tips. If growth holds at 9-10%, the opportunity side has won; if it slips below, the threat side has.
Capital returns strong, balance sheet solid.
Despite the questions on the growth side, Intuit's cash generation and capital returns remain strong. Over the fiscal year the company repurchased $5.5 billion in stock, nearly double the prior year. It raised the quarterly dividend 15% to $1.38 per share. It still holds $7.9 billion in unused buyback authorization. Operating margin is around 42% on an adjusted basis, so the profitability of the business is still high. That profile makes it possible to return cash to shareholders even in a lower-growth scenario, and it can provide a floor in a sharp sell-off. The average analyst target is $405, about 13% above the close. The line to watch next quarter is clear: does revenue reach the $4.29-$4.31 billion range, meaning 11% growth. If it does, the 9-10% full-year guide is conservative; if not, the slowdown is deeper than forecast.
Looking Ahead
Strengths and Risks
5 Strengths · 6 RisksStrengths
5- Revenue and adjusted earnings both beatFifth straight quarterly beat.
- Full-year revenue crossed the $20 billion threshold for the first time, reaching $21.4 billion.
- The Big Bets segment grew 34% and made up 30% of full-year revenue.
- $5.5 billion in buybacks over the year, a 15% dividend hike, and $7.9 billion in remaining authorization.
- Adjusted operating margin strong at 42%Cash generation is high.
Risks
6- 2027 revenue growth slows to 9-10%, well below this year's 14%.
- The new-year revenue guide fell short of the $23.74 billion market expectation.
- The deliberate cut in revenue per customer at TurboTax weighs on near-term growth.
- Mailchimp is guided flat-to-lower and the desktop ecosystem is expected to decline.
- AI competition threatens pricing power in tax and accounting software.
- The stock has lost roughly half its value over the past yearConfidence is fragile.
What to Watch
3- Q1 FY27 results ~Nov 2026; 11% revenue growth guided.
- The 2027 tax season (Jan-Apr) will be the first big test of the TurboTax pricing strategy.
- Whether Big Bets and Credit Karma sustain their growth pace will be watched.
Upcoming Earnings
To Understand This