Intuit shares fell 7.2% in after-hours trading following the release of conservative fiscal 2027 guidance that fell short of Wall Street expectations. The company cited a strategic pivot aimed at accelerating customer growth and market share gains, even at the expense of near-term profitability.
The guidance reflects deliberate reductions in revenue per customer for TurboTax and softer growth in the Mailchimp segment, alongside a declining desktop ecosystem. Intuit also announced accounting changes effective in fiscal 2027, including the removal of share-based compensation from adjusted earnings and the separation of Mailchimp into its own reporting segment under Global Business Solutions.
Fiscal 2027 adjusted diluted earnings per share (EPS) are projected at $22.88 to $23.12, compared with a consensus estimate of $27.30. Total revenue is forecast at $23.28 billion to $23.51 billion, below the $23.74 billion consensus. For the first quarter of fiscal 2027, adjusted EPS is guided at $2.44 to $2.48, versus a $4.02 estimate, with revenue expected between $4.29 billion and $4.31 billion against a $4.35 billion consensus.
Intuit reported fourth-quarter fiscal 2026 results that exceeded analyst expectations, with adjusted EPS of $4.03 surpassing the $3.59 estimate. Total revenue rose 14% year-over-year to $4.35 billion, ahead of the $4.27 billion consensus. Segment performance showed Global Business Solutions revenue up 14% to $3.4 billion, while the Online Ecosystem grew 17% to $2.6 billion. QuickBooks Online Accounting revenue increased 20%, driven by higher effective prices, customer growth, and a favorable mix shift.
Consumer revenue rose 14% to $930 million, with Credit Karma growing 16% to $743 million on strong performance in personal loans, auto insurance, and credit cards. TurboTax revenue grew 3% to $153 million, and ProTax revenue increased 6% to $34 million.
For the full fiscal 2026 year, Intuit reported adjusted EPS of $24.27, above the $23.83 consensus, with total revenue up 14% to $21.45 billion, exceeding the $21.37 billion estimate. CEO Sasan Goodarzi highlighted the company's achievement of surpassing $20 billion in annual revenue, attributing growth to its "Big Bets" initiative, which collectively grew 34% and represented 30% of full-year revenue.
