Summary
Intuit opened fiscal 2026 with a sharp acceleration in profitability. Total revenue for the first quarter ended October 31, 2025 reached $3.885 billion, up 18.3% from the prior-year quarter. GAAP operating income climbed to $534 million, up 97%. Net income rose to $446 million, up 126.4%. Diluted earnings per share came in at $1.59, up 127.1%. The operating margin expanded to 13.7%, up 5.5 percentage points. On a non-GAAP basis, operating income was $1.258 billion, up 32%, and diluted earnings per share was $3.34, up 34%. Operating cash flow was $637 million, up 76%. Capital expenditures were $38 million, up 15.2%. Deferred revenue was $1.045 billion, up 17.2%.
The quarter reflected continued execution on the AI-driven expert platform strategy. Intuit launched a set of AI agents that act as a virtual team for customers, automating workflows and delivering real-time insights. The company also introduced AI agents in Intuit Enterprise Suite for accounting, payments, finance, and project management. These innovations build on GenOS, the company's proprietary generative AI operating system. Segment performance was broad. Global Business Solutions and Consumer both grew. Management pointed to strength in Online Ecosystem, Credit Karma, and QuickBooks Online Accounting. Credit Karma benefited from personal loans, credit cards, and auto insurance. TurboTax and ProTax also contributed.
Guidance remains unchanged. Intuit reiterated its full fiscal year 2026 outlook. The company expects revenue growth of approximately 12 to 13 percent. Non-GAAP operating income growth is projected at approximately 14 to 15 percent. Non-GAAP diluted earnings per share growth is expected at approximately 14 to 15 percent. For the second quarter of fiscal 2026, Intuit guided to revenue growth of approximately 14 to 15 percent. Second-quarter non-GAAP diluted earnings per share is expected in the range of $3.63 to $3.68. The company also reiterated full-year segment revenue guidance, including Global Business Solutions growth of 14 to 15 percent and Consumer growth of 8 to 9 percent.
Capital allocation continued. Intuit repurchased $851 million of stock during the quarter, leaving $4.4 billion on its share repurchase authorization. The board approved a quarterly dividend of $1.20 per share, payable January 16, 2026, which represents a 15 percent increase per share compared to the same period last year. Operating cash flow helped fund these returns, though financing activities used cash, largely due to the net change in funds receivable and funds payable and amounts due to customers.
Several risks and structural factors deserve attention. Intuit's Consumer segment is highly seasonal. TurboTax and ProTax revenue is typically concentrated from November through April, so the first fiscal quarter usually generates minimal revenue from those offerings. Effective August 1, 2025, the company combined its Consumer, Credit Karma, and ProTax businesses into a single Consumer segment, recasting prior-period amounts. Management highlighted risks tied to AI innovation and deployment, competition, regulatory scrutiny, cybersecurity and fraud, reliance on third-party relationships, and talent retention. The effective tax rate for the first quarter was approximately 20%, or 24% excluding discrete items. The One Big Beautiful Bill Act, enacted July 4, 2025, reinstates immediate expensing of domestic research and development expenditures starting in fiscal 2026, which is expected to significantly reduce deferred tax assets and income tax payable. Intuit's liquidity remains substantial, with a $1.5 billion unsecured revolving credit facility and a $1.5 billion commercial paper program available, though no amounts were outstanding under either at quarter end.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2026 | Q4 FY2025 | QoQ | Q1 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $3.88B | $3.83B | +1.4% | $3.28B | +18.3% |
| Research & development | $843.0M | $801.0M | +5.2% | $704.0M | +19.7% |
| Sales & marketing | $1.08B | $1.25B | -13.5% | $962.0M | +12.5% |
| General & administrative | $422.0M | $424.0M | -0.5% | $394.0M | +7.1% |
| Total operating expenses | $3.35B | $3.49B | -4.0% | $3.01B | +11.3% |
| Operating income (loss) | $534.0M | $339.0M | +57.5% | $271.0M | +97.0% |
| Operating margin | 13.8% | 8.8% | +4.9 pp | 8.3% | +5.5 pp |
| Net income (loss) | $446.0M | $381.0M | +17.1% | $197.0M | +126.4% |
| Net margin | 11.5% | 9.9% | +1.5 pp | 6.0% | +5.5 pp |
| Diluted EPS | $1.59 | $1.35 | +$0.24 | $0.70 | +$0.89 |
Risks
Intuit faces intense competition that it expects to continue intensifying, and competitors may use AI to reduce demand for its products or services. Free and low-cost offerings also pressure its tax, accounting, payments, and consumer finance platform businesses, and MD&A says AI is creating a more dynamic and highly competitive environment.
Federal and state taxing authorities, including the IRS direct file system and the legacy IRS Free File Program, are or could become publicly funded direct competitors. Expansion of eligibility or state partnerships could cause Intuit to lose customers and revenue in its consumer tax business.
Intuit continues to build and invest in AI and GenAI, but flawed algorithms, biased or insufficient datasets, latency or failures, and evolving AI laws such as the EU AI Act and state frameworks could increase costs, limit deployment, or harm reputation. The legal and regulatory landscape for AI remains rapidly evolving and uncertain.
Intuit hosts sensitive tax, financial, and identity data, and cyberattacks and fraud are becoming more sophisticated, including through AI. A single identity across multiple Intuit products can expose increased customer data, and the company is subject to a 2014 FTC order requiring biennial independent security assessments for 20 years.
Much of Intuit's future success depends on skilled employees in SaaS, fintech, data science, AI, and cybersecurity, and competition for these workers is intense especially in California and India. Equity awards may become less effective if the stock price decreases or increases more slowly than at talent competitors.
Adverse macroeconomic conditions, including inflation, rising interest rates, reduced consumer confidence, and bank failures, could reduce Credit Karma partner activity, payments volume, and tax returns filed. Because the majority of revenue is derived from U.S. sales, U.S. economic conditions have an even greater impact on Intuit.
Intuit provides capital to small and mid-market businesses and purchases some or all of those loans, exposing it to borrower repayment risk and potential model errors. QuickBooks Capital cost of revenue rose $23 million in Q1 FY2026 due to increased loan volume.
Intuit's tax offerings have significant seasonal patterns, with revenue historically concentrated from November through April, causing quarterly fluctuations. Unanticipated changes to federal and state tax filing deadlines or tax forms could further exacerbate the impact of seasonality.
Increasing and changing regulation of Intuit's businesses, including data privacy, AI, lending, payments, and tax preparation, may require business practice changes and add significant costs. The EU AI Act went into force in February 2025, and states such as Utah, Colorado, and California are applying or considering AI legal frameworks.
SaaS KPIs
All quarters →Total Customers
Summary, forecast, risks and KPIs are extracted from INTUIT INC.'s SEC filings for Q1 FY2026 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.