Intuit (INTU) Stock: Drops 5.5% Despite FY25 Revenue Surge and Record AI Growth
TLDR
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Intuit Shares Slide 5.5% Despite Record FY25 Growth Across Core Segments
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AI Expansion Fuels Intuit’s FY25 Gains, But Stock Still Takes a Hit
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Intuit Revenue Hits $18.8B, Yet FY26 Outlook Triggers Market Jitters
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TurboTax Live Surges 47%, but Intuit’s FY26 Forecast Rattles Investors
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Platform Overhaul, AI Push Mark FY25, but Intuit Stock Drops on Cautious Guide
Intuit (INTU) shares fell 5.5% in after-hours trading, dropping from around $698 to $659 following the company’s FY25 earnings release.
Intuit (INTU)
Despite strong financial results and record-breaking growth across several business units, the stock reacted negatively. The results included solid revenue gains and notable expansion in AI-driven services across its platform.
Revenue Growth Across All Segments
Intuit reported full-year revenue of $18.8 billion, marking a 16% increase compared to the previous fiscal year. The Global Business Solutions Group generated $11.1 billion, growing 16% year-over-year, while the Online Ecosystem grew 20% to $8.3 billion. Credit Karma also saw robust performance, with revenue up 32% to $2.3 billion.
The Consumer Group recorded 10% growth, reaching $4.9 billion, with TurboTax Live showing a 47% jump to $2.0 billion. QuickBooks Online Accounting posted a 22% yearly increase, driven by pricing and user expansion. Online Services excluding Mailchimp posted 29% growth, showcasing healthy demand.
Intuit closed the year with a GAAP operating income of $4.9 billion, up 36%, and non-GAAP income at $7.6 billion, rising 18%. Earnings per share reached $13.67 on a GAAP basis and $20.15 non-GAAP. Cash and investments stood at $4.6 billion, while total debt was $6.0 billion.
AI Expansion and Platform Consolidation
The company emphasized the growing impact of AI-powered solutions and expert-assisted tools in driving platform-wide performance. Adoption of AI agents increased across tax and business services, contributing to margin expansion and new customer engagement. This included improvements in mid-market offerings and tax assistance tools.
In a structural change, Intuit merged its Consumer, Credit Karma, and ProTax divisions into one Consumer business on August 1, 2025. This move supports the company’s vision for a unified consumer platform and aims to streamline reporting for FY26. This consolidation is expected to align products and user experiences.
TurboTax Live now contributes 41% of the Consumer Group’s revenue, and online tax customers grew in value despite fewer total returns. ProTax revenue grew modestly by 4%, while Credit Karma maintained growth in loans, credit cards, and insurance. These improvements reflect shifting customer behaviors and increased demand for digital services.
FY26 Outlook and Market Response
Intuit projected FY26 revenue between $20.997 billion and $21.186 billion, reflecting 12% to 13% growth. GAAP EPS is expected to range between $15.49 and $15.69, while non-GAAP EPS should reach $22.98 to $23.18. Segment guidance includes 14% to 15% growth in Global Business Solutions and 8% to 9% growth in the Consumer division.
TurboTax is forecasted to grow 8% in FY26, with Credit Karma expected to grow 10% to 13% and ProTax by 2% to 3%. For Q1 FY26, the company guided 14% to 15% revenue growth with GAAP EPS of $1.19 to $1.26. Non-GAAP EPS should land between $3.05 and $3.12.
The post Intuit (INTU) Stock: Drops 5.5% Despite FY25 Revenue Surge and Record AI Growth appeared first on CoinCentral.
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