Financial technology platform Intuit (NASDAQ: INTU) reported Q3 CY2025 results beating Wall Street’s revenue expectations, with sales up 18.3% year on year to $3.89 billion. Guidance for next quarter’s revenue was better than expected at $4.53 billion at the midpoint, 1.3% above analysts’ estimates. Its non-GAAP profit of $3.34 per share was 8.1% above analysts’ consensus estimates.

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StockStory’s Take

Intuit’s third quarter results were marked by strong momentum across its core business segments, exceeding Wall Street's expectations for both revenue and non-GAAP profit. Management attributed this performance to increasing adoption of its AI-driven expert platform, success in serving both small and mid-market businesses, and substantial growth in online payments. CEO Sasan Goodarzi noted that the company’s strategy of integrating artificial intelligence (AI) with human expertise was a key differentiator, highlighting that customers using the platform saved significant time and improved cash flow. The quarter also saw robust growth in the consumer business and Credit Karma, with management pointing to several product innovations and expanded partnerships as contributors to the company’s positive results.

Looking ahead, Intuit’s guidance is underpinned by its continued investment in AI-enabled ‘done-for-you’ experiences and expansion into new customer segments. Management emphasized the scaling of its platform into mid-market enterprises and the deepening of partnerships with accounting firms, expecting these strategies to drive further customer acquisition and revenue growth. CFO Sandeep Aujla explained that Intuit’s asset-light approach to expanding its expert locations, combined with efficient marketing spend and product experimentation, positions the company to sustain margin improvement. Goodarzi added, “We are well on our way to becoming the system of intelligence enabling financial success for consumers, businesses, and accountants.”

Key Insights from Management’s Remarks

Management linked the quarter’s outperformance to rapid adoption of AI agents, increased platform usage among mid-market clients, and product enhancements across key business lines.

• AI agent adoption surges: Intuit’s AI-powered agents, including solutions for accounting, payroll, and payments, are now leveraged by 2.8 million customers. These tools are credited with saving users substantial time—for instance, the accounting agent can save up to twelve hours per month—while the payments agent accelerates cash collection by an average of five days. Management believes these productivity gains are fueling customer retention and driving up platform engagement.

• Mid-market expansion accelerates: The Intuit Enterprise Suite and QuickBooks Online Advanced, targeted at larger and more complex businesses, saw online ecosystem revenue grow approximately 40% in the quarter. Management highlighted increased awareness, tailored platform innovation, and new partnerships with national accounting firms as catalysts for deeper mid-market penetration.

• Consumer platform momentum: The consumer segment delivered 21% revenue growth, with TurboTax revenue up 27% and Credit Karma up 15%. Management attributed this to the integration of AI-driven assistants that offer personalized financial insights and a growing local expert presence, now expanding to 600 locations. The company’s focus on delivering comprehensive, year-round financial solutions is resonating with both existing and new users.

• Mailchimp stabilization and recovery: While Mailchimp revenue was slightly down as expected, management reported early success in the mid-market and rising retention rates. Efforts to re-accelerate growth include scaling the mid-market sales team, improving onboarding, and boosting marketing to attract smaller customers. Double-digit growth is targeted as these initiatives ramp.

• Margin leverage from AI efficiencies: The company continues to generate operating margin improvement by deploying AI across internal processes, from sales and customer success to back-office functions. Management noted that disciplined capital allocation and ongoing productivity gains have supported the recent margin expansion, and expect these trends to persist as AI adoption deepens.

Drivers of Future Performance

Intuit’s outlook is driven by further investment in AI-powered solutions, deeper mid-market expansion, and continued growth in consumer and partner channels.

• AI-driven platform innovation: Management anticipates that ongoing investment in AI will result in more ‘done-for-you’ features, deeper automation, and personalized insights for customers across business and consumer segments. These capabilities are expected to improve customer satisfaction, retention, and cross-sell opportunities, supporting both revenue growth and operating efficiency.

• Mid-market and partner channel scaling: The company is prioritizing awareness campaigns, industry-specific platform enhancements, and expanded partnerships with large accounting firms to accelerate adoption among mid-market clients. Management expects these efforts to contribute more meaningfully to revenue growth in the second half of the year and beyond, citing a growing pipeline of partnership opportunities.

• Sustained margin discipline and risks: Intuit plans to maintain its margin focus through a combination of AI-driven productivity gains and selective investment in local expert locations and marketing. However, management acknowledged that competitive dynamics, macroeconomic uncertainty, and the pace of adoption in key segments (such as Mailchimp and Credit Karma) present ongoing risks to execution.

Catalysts in Upcoming Quarters

Looking ahead, our team will monitor (1) the pace of mid-market adoption and new customer wins from accounting firm partnerships, (2) the rollout and monetization of new AI-driven agents and platform features, and (3) the progress toward double-digit growth and improved retention in Mailchimp. Continued integration across consumer platforms and execution on local expert expansion will also be important markers of Intuit’s strategic progress.

Intuit currently trades at $650.34, in line with $646 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free for active Edge members).

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