What Happened?
Shares of tax and accounting software provider, Intuit (NASDAQ: INTU) jumped 7.6% in the afternoon session after the company reported an impressive "beat and raise" quarter as it upped its full-year EPS guidance and provided revenue guidance for the next quarter that exceeded Wall Street's estimates, sending a clear signal of improved confidence in its business momentum.
Adding to the positive, its revenue (fiscal Q3 2025), EPS, and adjusted operating income topped analysts' expectations during the quarter. The outperformance was driven by standout growth in its Global Business Solutions Group, where revenue rose 19%, powered by gains in its Online Ecosystem and QuickBooks Online offerings.
Zooming out, we think this was a good "beat-and-raise" print with some key areas of upside.
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What The Market Is Telling Us
Intuit’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 9 months ago when the stock dropped 8.3% on the news that the company reported weak second-quarter earnings results. Its gross margin declined, and its billings missed Wall Street's estimates.
The company also provided underwhelming long-term guidance ahead of its investor day session. FY25 growth projection for the Consumer segment was lowered to 6-10% (from prior 8-12%). Similarly, Credit Karma revenue forecast was revised to 10-15% (from the prior 20-25%), while the SBSE ( Small Business and Self Employed) unit was unchanged at 15-20%. Overall, it was a challenging quarter, given the weak outlook.
Intuit is up 15.3% since the beginning of the year, and at $717.98 per share, has set a new 52-week high. Investors who bought $1,000 worth of Intuit’s shares 5 years ago would now be looking at an investment worth $2,545.
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