Intuit Inc (NASDAQ:INTU) Beats Q4 Earnings Estimates Despite After-Hours Stock Dip

Intuit Inc (NASDAQ:INTU) reported fiscal fourth-quarter results that surpassed analyst expectations, though the market reaction in after-hours trading showed a decline of approximately 4.8%. The financial software company posted revenue of $3.83 billion for the quarter ending July 31, 2025, exceeding the consensus estimate of $3.82 billion. Non-GAAP earnings per share came in at $2.75, beating the projected $2.71 per share.

Financial Performance Overview

The company demonstrated robust growth across its business segments during the quarter. Total revenue increased by 20% year-over-year, with particularly strong performance in the Global Business Solutions Group, which saw revenue growth of 18%. Credit Karma continued its impressive trajectory with a 34% revenue increase to $649 million, while the Consumer Group grew 21% to $137 million.

For the full fiscal year 2025, Intuit delivered revenue of $18.83 billion, representing 16% growth compared to the previous year. GAAP earnings per share reached $13.67, a 31% increase, while non-GAAP EPS grew 19% to $20.15. The company's operating margin expansion was notable, with GAAP operating income increasing 36% to $4.9 billion.

Market Reaction and Outlook Analysis

Despite the earnings beat, the stock declined nearly 5% in after-hours trading. This reaction may reflect investor concerns about the company's forward guidance relative to expectations. Intuit provided fiscal 2026 revenue guidance of $20.997 billion to $21.186 billion, representing approximately 12-13% growth, which aligns closely with analyst estimates of $21.52 billion for the full year.

The company's first-quarter outlook calls for revenue growth of 14-15% and non-GAAP diluted EPS between $3.05 and $3.12. This compares to analyst estimates of $3.895 billion in revenue for Q1 2026. The guidance suggests continued growth but may have disappointed investors looking for more aggressive expansion targets.

Strategic Developments and Segment Performance

Intuit's performance was driven by several key factors. The company's AI-powered solutions showed significant traction, particularly in the TurboTax Live service, which grew 47% for the full year and now represents 41% of Consumer Group revenue. The Global Business Solutions segment demonstrated strong momentum with QuickBooks Online Accounting revenue growing 23% for the quarter.

The company also announced organizational changes, combining its Consumer, Credit Karma, and ProTax businesses into a single Consumer business effective August 1, 2025. This restructuring aims to create a more integrated consumer platform and will be reflected in the company's fiscal 2026 segment reporting.

Capital allocation remained aggressive, with $2.8 billion in stock repurchases during fiscal 2025 and a new $3.2 billion repurchase authorization approved by the board. The company also increased its quarterly dividend by 15% to $1.20 per share.

For more detailed earnings information and future estimates, readers can review the earnings and estimates page.

Disclaimer: This article is not investment advice. Readers should conduct their own research and consult with a qualified financial advisor before making investment decisions.