Intuit (NASDAQ:INTU) reported fourth-quarter earnings and revenue that exceeded Wall Street expectations on Thursday, yet its shares dropped more than 5% in extended trading, amid concerns over slower growth in its Global Business Solutions Group (GBSG) division.
The maker of TurboTax and QuickBooks posted Q4 earnings of $2.75 per share, above analysts’ consensus of $2.66. Revenue reached $3.8 billion, surpassing forecasts of $3.74 billion.
Looking ahead, Intuit projected FY26 earnings of $22.98 to $23.18 per share and revenue between $20 billion and $21.2 billion, slightly below some investor expectations of $22.99 per share on $21.1 billion revenue.
“We expected management to take a conservative stance with its initial FY26 guide, especially within GBSG, given less pricing tailwinds and what we view as a somewhat more economically sensitive Payments/Payroll business,” Stifel analysts said.
“The net result implies a >100bps decel in year-over-year growth for GBSG to 14-15% from 16.2%,” they added.
Jefferies analysts noted that Intuit “started with the typical conservative guide.”
“We remind investors that INTU has a history of beating initial guide, with FY25 also starting at 12-13% and ending +15.6%. Tough comps warrant conservatism,” they said.
CEO Sasan Goodarzi highlighted that fiscal 2025 had been “exceptional,” with revenue growing 20% in Q4 and 16% for the full year, emphasizing the contribution of artificial intelligence tools in strengthening Intuit’s platforms.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.