Shares of Intuit Inc (NASDAQ:INTU, ETR:ITU) climbed over 9% on Friday morning after the financial software maker reported stronger-than-expected quarterly earnings and lifted its full-year guidance, fueled by robust gains in its tax and credit segments.
The maker of TurboTax and QuickBooks posted fiscal third-quarter revenue of $7.88 billion, beating analysts’ average estimate of $7.56 billion, according to LSEG data.
Adjusted earnings per share rose 18% from a year earlier to $11.65, well above the $10.96 consensus.
“We're redefining what's possible with AI,” CEO Sasan Goodarzi said, highlighting the company’s investment in AI-driven tax and business solutions for consumers and small businesses.
Intuit raised its full-year revenue forecast to a range of $18.72 billion to $18.76 billion, up from its prior outlook of $18.16 billion to $18.35 billion. Adjusted earnings guidance was also lifted to between $20.07 and $20.12 a share, compared to $19.16 to $19.36 previously.
The upbeat results were driven by an 11% year-over-year gain in the Consumer Group, which includes TurboTax, and a 31% surge in Credit Karma revenue.
Jefferies analysts noted TurboTax Live’s accelerated adoption and said Credit Karma has “shaken off macro concerns” with consistent growth of over 29% in the past three quarters.
“While not immune to macroeconomic challenges affecting small and medium-sized businesses, Intuit is better positioned than others due to resilient tax and small biz segments, tailwinds from Live expert offerings, US-centric revenue mix, high-30s operating margins, cash flows that fund buybacks, and dividends that grow double-digits,” analysts noted.
Intuit also returned $754 million to shareholders through buybacks and declared a 16% higher dividend of $1.04 per share.