Summary
Intuit's fiscal 2025 second quarter delivered broad growth. Total revenue rose 17.0% to $3.96 billion from $3.39 billion in the prior-year quarter. GAAP operating income climbed 60.7% to $593 million, and net income rose 33.4% to $471 million. Diluted earnings per share reached $1.67, up 33.6% from $1.25. Operating margin expanded to 15.0% from 10.9%, a gain of 4.1 percentage points. Through the first six months of fiscal 2025, revenue reached $7.25 billion, up 13.9%, while year-to-date operating income of $864 million rose 27.8% and year-to-date net income of $668 million rose 12.5%. Year-to-date diluted earnings per share of $2.36 was up 12.4%.
The Global Business Solutions segment did the heavy lifting. Segment revenue rose 19%, with Online Ecosystem revenue up 21%. QuickBooks Online Accounting revenue rose 22% and Online Services revenue rose 19%. Credit Karma was the fastest grower, with revenue up 36% on strength in credit cards, personal loans, and auto insurance. Consumer Group revenue rose 3%, and ProTax revenue slipped 1%. Segment profitability followed the same split. Global Business Solutions segment operating income rose 22% and Credit Karma segment operating income rose 163%, while Consumer segment operating income fell 13% and ProTax segment operating income fell 2%.
Cash generation was the standout. Operating cash flow for the quarter was $1.07 billion, up 74.4% from $613 million, and year-to-date operating cash flow of $1.43 billion rose 177.3% from $516 million. Capital expenditures fell to $31 million in the quarter, down 50.8% from $63 million, and to $64 million year to date, down 56.5%. Deferred revenue, current portion, stood at $1.02 billion, up 15.6% from $887 million. The company reported roughly $2.5 billion in cash and investments and $6.3 billion in debt as of January 31, 2025. It entered a $4.5 billion revolving credit facility on January 30, 2025 to fund the 5-Day Early refund offering, and that facility expires April 30, 2025. Intuit also repurchased $721 million of stock, leaving $3.6 billion on its repurchase authorization, and its board approved a quarterly dividend of $1.04 per share payable April 18, 2025, a 16% increase per share from the same period last year.
Management reiterated full fiscal year 2025 guidance for revenue growth of approximately 12 to 13 percent, operating income growth of approximately 28 to 30 percent, and diluted earnings per share growth of approximately 18 to 20 percent. For the third quarter of fiscal 2025, the company guided to revenue growth of approximately 12 to 13 percent. Full-year segment guidance calls for Global Business Solutions growth of 16 to 17 percent, Consumer Group growth of 7 to 8 percent, ProTax growth of 3 to 4 percent, and Credit Karma growth of 5 to 8 percent.
Costs are rising alongside revenue. Total operating expenses for the quarter rose 13%, driven by $110 million more in marketing, $54 million more in staffing, $41 million more in outside services, $18 million more in sales-related expenses, and $14 million more in share-based compensation. The reorganization plan that began in July 2024 carried total estimated costs of approximately $236 million, with a $13 million charge recorded in the first six months of fiscal 2025. Intuit also amended a cloud services agreement in December 2024, extending it through 2032 with a total minimum purchase commitment of $3.5 billion. The risk list is familiar and long: competition, execution on AI and generative AI products, reliance on third-party relationships, cybersecurity and fraud, an evolving regulatory environment, and the seasonality of the Consumer and ProTax businesses, which concentrate revenue between November and April.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2025 | Q1 FY2025 | QoQ | Q2 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $3.96B | $3.28B | +20.7% | $3.39B | +17.0% |
| Research & development | $716.0M | $704.0M | +1.7% | $678.0M | +5.6% |
| Sales & marketing | $1.20B | $962.0M | +25.2% | $1.02B | +18.0% |
| General & administrative | $389.0M | $394.0M | -1.3% | $344.0M | +13.1% |
| Total operating expenses | $3.37B | $3.01B | +11.9% | $3.02B | +11.7% |
| Operating income (loss) | $593.0M | $271.0M | +118.8% | $369.0M | +60.7% |
| Operating margin | 15.0% | 8.3% | +6.7 pp | 10.9% | +4.1 pp |
| Net income (loss) | $471.0M | $197.0M | +139.1% | $353.0M | +33.4% |
| Net margin | 11.9% | 6.0% | +5.9 pp | 10.4% | +1.5 pp |
| Diluted EPS | $1.67 | $0.70 | +$0.97 | $1.25 | +$0.42 |
Risks
Intuit faces intense competition, and competitors may use AI to reduce demand for its products or beat it to market. The MD&A says AI and GenAI are transforming financial technology, with disruptive start-ups, emerging ecosystems, and mega-platforms creating a more dynamic and highly competitive environment.
The IRS has stated it will make its free direct filing system, piloted in 2024, a permanent option in 2025 and will explore expanding eligibility, including partnering with more states. The legacy IRS Free File Program also enables free commercial tax software, and government-funded direct competitors could cause Intuit to lose customers and revenue.
Intuit hosts sensitive customer data including tax return information and financial data, and cyberattacks are increasingly using AI to create more automated, targeted, and coordinated methods. A security incident could be amplified by its single identity ecosystem across products, and Credit Karma is subject to a 2014 FTC order requiring biennial independent security assessments for 20 years.
Intuit's tax, payroll, payments, lending, and personal financial management businesses face increasing and sophisticated fraudulent activity. A loss of confidence by customers or government agencies could lead tax authorities to refuse to allow Intuit to process tax returns electronically, significantly harming revenue and earnings.
The EU AI Act went into force in August 2024, and California enacted laws on AI transparency, privacy, and fairness. Compliance may add significant costs and require changes to business practices, while uncertainty around AI-related intellectual property and cybersecurity may limit Intuit's ability to develop and deploy AI.
Intuit faces intense global competition for employees with software as a service, fintech, data science, AI, and data security skills, especially in California and India. Equity awards may become less effective if its stock price decreases or grows slower than talent competitors, and higher compensation costs may not be offset by productivity or revenue.
Intuit increasingly uses third-party distribution platforms like Apple's App Store and Google's Play Store, whose owners have wide discretion to change pricing, terms, and policies. It also relies on sole-source or limited-source partners, including financial institutions and credit reporting bureaus, and disruption could prevent delivery of critical services.
Adverse macroeconomic conditions such as inflation, rising interest rates, bank failures, and reduced consumer spending could delay purchases and reduce Credit Karma partner activity. Because most revenue is U.S.-derived, U.S. economic conditions have an even greater impact, and high unemployment or tax code changes could decrease tax returns filed.
Intuit provides capital to qualified small businesses and has credit arrangements with financial institutions to fund a portion of that capital. Its credit decisioning, pricing, loss forecasting, and scoring models may contain errors, and adverse macroeconomic conditions could increase borrower defaults and harm collections and financial results.
As of January 31, 2025, Intuit had $6.3 billion of indebtedness outstanding, and in February 2025 it began issuing commercial paper with $1.8 billion outstanding as of February 25, 2025. Covenants restrict subsidiary indebtedness and require specified financial ratios, and a breach could cause outstanding debt to be declared immediately due.
Tax products have rigid development timetables and must incorporate late tax law and form changes, increasing the risk of errors or launch delays. Errors could cause compliance issues for taxpayers, trigger the accuracy guarantee, require patches or product suspensions, and harm revenue and reputation.
Evolving privacy and data protection regulations, including GDPR and a growing number of U.S. state laws, impose limits on collection, processing, storage, transfer, and use of data. Cross-border transfer uncertainty and AI-related privacy frameworks could require operational changes, increase costs, and expose Intuit to fines or claims.
Consumer and ProTax revenue is heavily concentrated from November through April, typically resulting in higher net revenues in the second and third quarters ending January 31 and April 30. Unanticipated changes to federal and state tax filing deadlines may further exacerbate the impact of this seasonality.
SaaS KPIs
All quarters →Total Customers
Summary, forecast, risks and KPIs are extracted from INTUIT INC.'s SEC filings for Q2 FY2025 (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 2, 2026.