Intuit Inc (NASDAQ:INTU) Surpasses Q1 Earnings and Revenue Estimates

Intuit Inc (NASDAQ:INTU) delivered a robust start to its fiscal year, surpassing analyst expectations for both revenue and earnings in its first quarter. The financial technology platform's results, driven by strength across its small business and consumer segments, were met with a positive after-hours market response, signaling investor approval of the company's performance and reiterated full-year guidance.

Earnings and Revenue Performance Versus Estimates

The company's first-quarter results for fiscal 2026, which ended October 31, demonstrated significant momentum. Intuit reported revenue of $3.89 billion, an 18% increase compared to the same period last year. This figure came in ahead of the analyst consensus estimate of approximately $3.84 billion.

On the profitability front, the company’s non-GAAP earnings per share (EPS) saw an even more substantial beat. Intuit reported EPS of $3.34, a 34% year-over-year increase that comfortably exceeded the $3.16 per share that analysts had projected.

The key financial highlights from the quarter include:

• Total Revenue: $3.89 billion, up 18% year-over-year.
• GAAP EPS: $1.59, up 127%.
• Non-GAAP EPS: $3.34, up 34%.
• GAAP Operating Income: $534 million, up 97%.
• Non-GAAP Operating Income: $1.26 billion, up 32%.

Market Reaction and Price Action

Following the earnings release, Intuit's stock climbed more than 3% in after-hours trading. This positive movement indicates that investors were pleased not only with the quarterly beat but also with the company's confidence in its full-year prospects. The after-hours gain helps offset some of the stock's recent weakness, as shares had declined approximately 6% over the past month leading up to the report.

Forward-Looking Guidance Versus Estimates

A key point of focus for investors was the company's outlook for the upcoming second quarter and the full fiscal year. Intuit provided mixed guidance for Q2, with its revenue projection slightly below analyst expectations, while its EPS forecast was stronger.

For the second quarter, Intuit anticipates:

• Revenue growth of 14-15%, implying a range of approximately $4.51 billion to $4.55 billion. The midpoint of this range, $4.53 billion, is just below the analyst estimate of $4.56 billion.
• Non-GAAP EPS between $3.63 and $3.68, a range whose midpoint of $3.655 is above the consensus estimate.

More significantly, the company reiterated its full-year fiscal 2026 guidance, which aligns with or exceeds current market expectations. Intuit expects:

• Revenue between $20.997 billion and $21.186 billion, representing growth of 12-13%.
• Non-GAAP EPS between $22.98 and $23.18, indicating growth of 14-15%.

Business Segment Breakdown

The strong quarterly performance was broad-based, with notable contributions from Intuit's core segments:

• Global Business Solutions: Revenue grew 18% to $3.0 billion, with the QuickBooks Online ecosystem rising 21% to $2.4 billion. This growth was fueled by higher effective prices, customer growth, and strength in money and payroll offerings.
• Consumer Group: Revenue increased 21% to $894 million, powered by a 27% surge in Credit Karma revenue to $651 million. The TurboTax business also saw a 6% increase in revenue.

Capital Allocation and Strategic Position

Intuit continues to return capital to shareholders, repurchasing $851 million of stock in the quarter and announcing a 15% increase in its quarterly dividend to $1.20 per share. CEO Sasan Goodarzi attributed the strong results to the company's "AI-driven expert platform strategy," which aims to create a system of intelligence to serve consumers, small businesses, and accountants.

For a more detailed look at Intuit's historical earnings and future analyst estimates, you can review the data here.

Disclaimer: This article is for informational purposes only and is not intended as investment advice. The information contained herein is based on sources believed to be reliable, but its accuracy cannot be guaranteed. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.