Intuit (INTU) Stock Falls on Weak Q3 Guidance Despite Strong Q2 Beat

TLDR

• Intuit posted adjusted EPS of $4.15 vs. estimates of $3.68, with revenue up 17% to $4.65 billion
• Q3 guidance came in below Wall Street estimates: $12.45–$12.51 EPS vs. $12.97 expected
• CEO Sasan Goodarzi says AI is a partner, not a threat, citing new deal with Anthropic
• Stock fell ~4% in premarket Friday after dropping nearly 40% year-to-date
• Intuit declared a quarterly dividend of $1.20 per share, a 15% increase year-over-year

Intuit beat Wall Street expectations for its fiscal second quarter, but soft guidance for Q3 sent the stock lower.

The company reported adjusted earnings of $4.15 per share, well above the analyst estimate of $3.68. Revenue came in at $4.65 billion, up 17% year over year, topping the $4.53 billion consensus.

Adjusted operating income rose 23% to $1.5 billion.

Despite the strong quarter, Intuit’s guidance for Q3 — its most important period due to tax season — fell short. The company expects adjusted EPS of $12.45 to $12.51, below the Wall Street estimate of $12.97.

Q3 revenue is expected to grow around 10% from the prior year, implying roughly $4.36 billion — again below analyst expectations of $4.53 billion.

The stock dropped about 4% in premarket trading Friday following the report, after closing 3.5% higher the day before.

AI Partnerships, Not Competition

Intuit stock is down nearly 40% this year, largely due to broader fears that AI tools could replace tax and accounting software.

Goodarzi pushed back on that view. He told Barron’s that customers filing taxes want to use a company they trust, and that AI firms don’t want to take on the legal liability that comes with tax preparation.

Intuit announced a partnership with Anthropic this week to bring custom AI agents to mid-market businesses on its platform. It had previously announced a similar deal with OpenAI.

Full-Year Outlook Held Steady

Intuit kept its full fiscal year 2026 guidance unchanged. The company expects adjusted EPS of $22.98 to $23.18, representing growth of roughly 14% to 15%.

Full-year revenue guidance remains in the range of $21 billion to $21.2 billion, implying 12% to 13% growth.

Goodarzi noted that Intuit typically doesn’t update full-year guidance until after Q3, given how critical that quarter is to its business.

Intuit also declared a quarterly dividend of $1.20 per share, payable April 17, 2026 — a 15% increase from the same period last year.

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