Intuit (Intuit (INTU)) reported fiscal third-quarter earnings that beat expectations on Wednesday, but the stock still took a beating — down 11.45% in after-hours trading to $339.48. The culprit? A 17% workforce reduction that spooked investors despite solid numbers.
For the quarter ended April 30, Intuit posted revenue of $8.56 billion, edging past the $8.53 billion consensus estimate. Adjusted earnings came in at $12.80 per share, well above the $12.28 analysts were looking for. Revenue grew 10% year-over-year, with the Online Ecosystem segment leading the way at 19% growth to $2.5 billion. Global Business Solutions brought in $3.3 billion (up 15%), and Consumer segment revenue hit $5.3 billion (up 8%).
Intuit ended the quarter with $6.8 billion in cash and investments and $6.2 billion in debt, after repurchasing $1.6 billion of its own stock. The board also authorized a fresh $8 billion buyback program during the quarter.
CEO Sasan Goodarzi struck an optimistic tone: “The powerful combination of Intuit’s proprietary data, domain-specific AI platform capabilities, and AI-powered human expertise is setting the standard for trusted financial intelligence. As we look ahead, we are further scaling our growth engines and architecting an organization that operates with greater velocity to deliver durable long-term growth.”
But the big news was the restructuring. Intuit plans to cut 17% of its workforce to simplify its organizational structure, expecting $300 million to $340 million in related charges. That move overshadowed the earnings beat and drove the after-hours selloff.
Looking ahead, Intuit guided for fiscal fourth-quarter revenue growth of 11% to 12%, with adjusted earnings of $3.56 to $3.62 per share — above the $3.20 consensus. For the full year, the company now expects revenue of $21.34 billion to $21.37 billion (versus estimates of $21.23 billion) and raised its adjusted EPS guidance to $23.80-$23.85 per share, up from $22.98-$23.18 and ahead of the $23.20 estimate.
Intuit will discuss the quarter in more detail on its earnings call at 4:30 p.m. ET. For now, investors are weighing a beat against a big workforce shake-up.
