Financial software firm Intuit late Thursday beat Wall Street's targets for its fiscal fourth quarter and gave roughly in-line guidance. Intuit stock fell in extended trading.
The Mountain View, Calif.-based company earned an adjusted $2.75 a share on sales of $3.83 billion in the quarter ended July 31. Analysts polled by FactSet had expected earnings of $2.66 a share on sales of $3.74 billion. On a year-over-year basis, Intuit earnings increased 38% while sales rose 20%.
For its current quarter ending Oct. 31, Intuit forecast adjusted earnings of $3.08 a share on sales of $3.76 billion. That's based on the midpoint of its guidance. Wall Street had been modeling earnings of $3.07 a share on sales of $3.8 billion for the fiscal first quarter. In the same quarter last year, Intuit earned an adjusted $2.50 a share on sales of $3.28 billion.
For the full fiscal 2026, Intuit predicted adjusted earnings of $23.08 a share on sales of $21.09 billion, based on the midpoint of its outlook. Analysts had been expecting earnings of $23.02 a share on sales of $21.1 billion. In the just-finished fiscal 2025, Intuit earned an adjusted $20.15 a share, up 19%, on sales of $18.83 billion, up 16%.
Intuit has a reputation for giving conservative guidance.
Intuit's products include TurboTax, QuickBooks, Credit Karma and Mailchimp.
In after-hours trading on the stock market today, Intuit stock dropped more than 5% to 659. During the regular session Thursday, Intuit stock dipped a fraction to close at 697.76.
Intuit Stock Round-Trips From Breakout
On May 23, Intuit stock broke out of a cup base at a buy point of 714.78, according to IBD MarketSurge charts. It climbed to a record high of 813.70 before retreating. Intuit stock flashed a sell signal on Aug. 7 when it dived below its 50-day moving average line.
Intuit stock has come under pressure, along with other software stocks, from the threat posed by artificial intelligence to upend its business.
The company is adding AI capabilities, branded Intuit Assist, to its software applications.
"Our virtual team of AI agents and AI-enabled human experts are powering success for consumers and businesses," Chief Executive Sasan Goodarzi said in a news release. "We could not be more excited about the opportunity ahead."
Heading into the earnings report, Mizuho Securities rated Intuit stock one of its "top picks." Analyst Siti Panigrahi said Intuit offers "durable double-digit growth and consistent shareholder returns."
Further, Intuit is "positioned as an AI winner with Intuit Assist and AI agents," he said. Panigrahi has an outperform rating on Intuit stock with a price target of 875.
Intuit stock is on the IBD Tech Leaders list.
Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
