Intuit’s second quarter was marked by strong revenue growth and margin expansion, but the market reacted negatively to the results, reflecting concerns about the company’s forward outlook. Management attributed the solid performance to robust customer adoption of its AI-enabled business platform and new features in products like TurboTax Live and Credit Karma. CEO Sasan Goodarzi emphasized that “years of investments in data, data services, AI and human intelligence, coupled with strong execution against our AI-driven expert platform strategy fueled these outstanding results.” The company also highlighted successful expansion into mid-market business customers and increased engagement in its virtual team of AI agents.
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Intuit (INTU) Q2 CY2025 Highlights:
- Revenue: $3.83 billion vs analyst estimates of $3.75 billion (20.3% year-on-year growth, 2.1% beat)
- Adjusted EPS: $2.75 vs analyst estimates of $2.66 (3.4% beat)
- Adjusted Operating Income: $1.02 billion vs analyst estimates of $1.01 billion (26.5% margin, 0.9% beat)
- Revenue Guidance for Q3 CY2025 is $3.76 billion at the midpoint, below analyst estimates of $3.82 billion
- Adjusted EPS guidance for the upcoming financial year 2026 is $23.08 at the midpoint, in line with analyst estimates
- Operating Margin: 8.8%, up from -4.7% in the same quarter last year
- Billings: $3.89 billion at quarter end, up 21.2% year on year
- Market Capitalization: $185 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Intuit’s Q2 Earnings Call
- Sitikantha Panigrahi (Mizuho) asked how management is addressing Mailchimp headwinds and leveraging AI search trends; CEO Sasan Goodarzi said strong U.S. and mid-market customer growth offsets international and Mailchimp pressures, and AI search currently has minimal impact but is a long-term focus.
- Keith Weiss (Morgan Stanley) questioned when AI agent monetization would impact revenues; Goodarzi replied that while customer engagement is high, monetization is not embedded in near-term guidance, with benefits expected further out.
- Alexander Wexler Markgraff (KeyBanc Capital Markets) requested details on Intuit Enterprise Suite priorities; Goodarzi highlighted mining the 800,000 eligible customers, expanding accountant partnerships, and broadening the product’s reach within one year of launch.
- Taylor Anne McGinnis (UBS) asked about the durability of recent online ecosystem acceleration; CFO Sandeep Aujla attributed it to mid-market scaling and recent product launches, but cautioned that guidance assumes reduced pricing uplift versus last year.
- Brent John Thill (Jefferies) pressed for a timeline on Mailchimp’s return to growth; Aujla explained that small business product improvements are underway, but revenue recovery will lag by several quarters due to subscription dynamics.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be monitoring (1) the pace of AI agent adoption and monetization across core business segments, (2) Mailchimp’s progress in improving small business usability and returning to growth, and (3) continued momentum in mid-market customer acquisition and deeper product engagement. Execution on these fronts—especially driving Mailchimp’s turnaround and demonstrating tangible AI-driven revenue gains—will be critical to Intuit’s ability to deliver on its strategic objectives.
Intuit currently trades at $662.13, down from $697.75 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).
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