Intuit (Intuit (INTU)) reported its fiscal fourth-quarter earnings after the bell on Tuesday, and while the headline numbers looked good, the market wasn't impressed. Shares slid 7.6% in after-hours trading to $331.07, a classic case of "beat now, pay later" as investors focused on the company's softer outlook.
For the quarter, Intuit posted revenue of $4.35 billion, edging past analyst expectations of $4.27 billion. Adjusted earnings came in at $4.03 per share, comfortably above the $3.58 per share that Wall Street had penciled in. Total revenue grew 14% year-over-year, with all three main segments pulling their weight:
- Global Business Solutions: $3.4 billion, up 14%
- Consumer: $930 million, up 14%
- Online Ecosystem: $2.6 billion, up 17%
The company also showed it's serious about returning cash to shareholders. Intuit ended the quarter with $7.2 billion in cash and investments, $7.7 billion in debt, and had repurchased $5.5 billion of its own stock during the fiscal year. There's still $7.9 billion left on the buyback authorization, so more repurchases are likely on the way.
CEO Sasan Goodarzi struck an optimistic tone, framing the company's strategy around AI. "Our strategy is to win as an AI-driven expert platform by creating a financial system of intelligence that increasingly does the work for consumers, businesses and accountants and helps them accomplish the outcomes that matter most," he said. "Looking ahead, we're focused on scaling our Big Bets, accelerating customer growth, and making deliberate choices to create a stronger foundation for durable long-term growth."
But the guidance is where things get tricky. For the fiscal first quarter, Intuit expects revenue between $4.29 billion and $4.31 billion, below the $4.36 billion analysts were looking for. The company also guided for adjusted earnings of $2.44 to $2.48 per share, a far cry from the $4.04 per share consensus. That's a big gap, and it's likely the main reason for the after-hours selloff.
Looking further out, Intuit sees fiscal 2027 revenue of $23.28 billion to $23.51 billion, versus estimates of $23.74 billion. Full-year adjusted earnings are expected to be $22.88 to $23.12 per share, compared to the $27.31 per share analysts had modeled. However, the company noted that the earnings guidance includes a $5.81 per share impact from share-based compensation expenses, so the numbers may not be directly comparable to analyst estimates.
In a structural change, Intuit also announced that Mailchimp will become a separate reportable segment starting in fiscal 2027. That's a notable shift for the marketing automation platform, which Intuit acquired in 2021.
Executives were scheduled to discuss the quarter in more detail on an earnings call at 4:30 p.m. ET, where investors will likely press for more color on the guidance and what it means for the company's growth trajectory.
