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DATE
Thursday, August 21, 2025 at 4:30 p.m. ET
CALL PARTICIPANTS
Chief Executive Officer — Sasan Goodarzi
Chief Financial Officer — Sandeep Aujla
Vice President of Investor Relations — Kim Watkins
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TAKEAWAYS
Total Revenue Growth-- Full-year revenue increased 16%. Q4 revenue was $3.8 billion, up 20%.
Operating Income-- GAAP operating income was $339 million in Q4, compared to a loss of $151 million a year ago. Non-GAAP operating income increased 18% for FY2025; in Q4, it was $1 billion, up 39%.
Diluted Earnings Per Share-- Q4 GAAP diluted EPS was $1.35, compared to a 7¢ loss in the prior year. Non-GAAP diluted EPS reached $2.75, an increase of 38% in Q4.
Business Segment Performance-- Global Business Solutions Group revenue grew 18% in Q4, or 21% excluding Mailchimp. All-in ecosystem revenue rose 21% in Q4 and 20% for FY2025.
Mid-Market Expansion-- Online ecosystem revenue for QBO Advanced and Intuit Enterprise Suite, targeting mid-market, grew approximately 40% in both Q4 and FY2025.
Customer Growth-- Combined QBO Advanced and Intuit Enterprise Suite customers increased 23%. U.S. QBO customers, excluding self-employed, grew 8%.
Online Paying Customers-- Online paying customers expanded by 5%, reflecting softness in Mailchimp and international business areas.
Consumer Segment Highlights-- Consumer Group revenue reached $4.9 billion, up 10%. TurboTax Live revenue surged 47%, with customer growth of 24%.
Credit Karma Performance-- Credit Karma revenue advanced 32% for FY2025 and 34% in Q4.
Desktop Ecosystem-- Desktop ecosystem revenue rose 10% in Q4 and 5% for FY2025. QuickBooks Desktop Enterprise revenue grew in the mid-teens in Q4 and high single digits for FY2025.
Capital Allocation-- The company ended Q4 with $4.6 billion in cash and investments, $6 billion in debt, and repurchased $2.8 billion in stock during the year.
Dividend Update-- Board approved a quarterly dividend of $1.20 per share, a 15% year-over-year increase, payable October 17, 2025.
Fiscal 2026 Guidance-- Projected total company revenue of $20.997 billion to $21.186 billion, representing 12%-13% growth. GAAP diluted EPS guidance of $15.49-$15.69, up 13%-15%.
Segment 2026 Guidance-- Global Business Solutions Group guidance: 14%-15% revenue growth (15.5%-16.5% excluding Mailchimp). Consumer Group: 8%-9% growth; TurboTax revenue growth: 8%. Credit Karma revenue growth guidance: 10%-13%. ProTax revenue growth guidance: 2%-3%.
Mailchimp Outlook-- The company expects Mailchimp to exit FY2026 with double-digit revenue growth after a period of flat-to-down performance.
SUMMARY
Intuit(INTU -0.20%) delivered substantial revenue and earnings growth for FY2025, highlighting accelerating adoption in both mid-market and consumer segments, and provided explicit double-digit growth guidance for the Global Business Solutions Group and Credit Karma for FY2026. Management emphasized strong customer engagement with its new all-in-one AI-driven platform, noting repeat usage rates significantly above expectations and indicating a durable strategy focused on consolidating customer technology spend and expanding return on investment, with planned product enhancements and ecosystem integration detailed as catalysts for future monetization.
CEO Goodarzi said, "customer engagement in the millions and repeat usage rates significantly above our expectation" for the new AI platform, pointing to higher than anticipated early adoption.
CFO Aujla reported, GAAP operating income of $339 million versus a loss of $151 million last year in Q4, clearly marking a reversal in profitability trend.
Management did not incorporate monetization from newly launched AI agents in 2026 guidance, but cited "high expectations around monetization in the future" and highlighted untapped opportunity by noting customers spend “the billions of dollars that are actually spent by our customers on our platform on services that are not ours.”
CFO Aujla stated, "Global Business Solutions Group revenue grew 18% during the quarter or 21% excluding Mailchimp," with Mailchimp expected to reaccelerate gradually following go-to-market and product changes.
Sandeep Aujla reaffirms long-term growth targets, including "online paying ARPC growth of 10% to 20% and online paying customer growth of 5% to 10%" for the Global Business Solutions Group, and TurboTax Live revenue growth of 15%-20% (long-term expectations).
INDUSTRY GLOSSARY
QBO: QuickBooks Online, Intuit's cloud-based accounting software solution for small to large businesses.
Intuit Enterprise Suite (IES): Intuit's advanced software suite targeting mid-market customers, offering integrated business management, finance, and automation solutions.
ARPC: Average Revenue Per Customer, a key SaaS metric indicating prevailing monetization rates.
TAM: Total Addressable Market, representing the full revenue opportunity available to a product or business segment.
Full Conference Call Transcript
Sasan Goodarzi: Thank you, Kim, and thanks to all of you for joining us today. I am incredibly proud of our momentum and strong fiscal year 2025 results. Our full-year revenue grew 16% with another year of strong operating margin expansion. Our 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. Looking ahead to fiscal year 2026, we are confident in delivering another strong year of double-digit revenue growth and margin expansion. In the past year, we made significant progress powering prosperity for consumers, businesses, and accountants.
We launched a transformative all-in-one business platform with a virtual team of AI agents and AI-enabled human experts that can manage lead to cash for customers. We accelerated our innovation to mid-market with the introduction of Intuit Enterprise Suite and new go-to-market capabilities and delivered breakthrough adoption of TurboTax Live as we disrupt the assisted tax category. Looking ahead, we are doubling down in these key areas. Starting with our business platform, we are making great progress delivering done-for-you experiences with expertise for our customers. Last month, we launched a transformative virtual team of AI agents that complete jobs on behalf of our customers, dramatically improving how businesses run and grow.
Combined with our AI-enabled human expert, these agents are automating workflows and proactively delivering real-time insights to improve cash flow and fuel growth. Our redesigned user interface and new business feed highlight these real-time insights and tasks completed by agents on behalf of the customer. We are seeing strong traction since the launch last month, with customer engagement in the millions and repeat usage rates significantly above our expectation, demonstrating the value that we are providing to our customers. We are well-positioned to consolidate on our customers' tech stack and spend and significantly increase their ROI, where AI and human intelligence are doing the work to fuel their success.
With an all-in-one platform, we have all the pieces to help our customers grow, save time, and save money while fueling Intuit Inc.'s growth. Turning to mid-market, we continue to make strong progress serving large and more complex customers, which represent an $89 billion TAM. We are focused on fueling the success of customers with $2 million to $100 million in annual revenue, with our all-in-one platform, including QBO Advanced, Intuit Enterprise Suite, and an ecosystem of connected services. Our comprehensive set of offerings is aimed at helping businesses achieve their growth goals, such as boosting productivity and improving profitability by automating complex tasks, workflows, and functions, delivering insights and recommendations.
Many customers tell us they are overdigitized, with their data trapped in a number of disparate applications. This means they are spending too much time and money managing their business and not getting the benefits and return on their investments. Our data shows customers on our platform are spending billions per year on disparate apps. We are well-positioned to consolidate our customers' data and spend on Intuit Inc.'s platform to help fuel their growth and save money, all in one place. With quarterly product releases for Intuit Enterprise Suite, we aim to rapidly penetrate our existing TAM while expanding into new verticals. Our July product release was designed to supercharge customers' growth and profitability.
The launch included improved multi-entity capabilities, a new AI-driven done-for-you setup experience that dramatically reduces the amount of time it takes customers to get up and running, and new features that give customers a holistic view of their business KPIs with streamlined intercompany transactions and allocation. We also launched AI agents in Intuit Enterprise Suite, including accounting, payments, finance, and project management agents automating daily tasks, reducing hours of work to just minutes. Our done-for-you experiences are reducing manual work by up to 60% for customers when setting up projects. A recent Forrester study estimated that customers can see nearly a 300% return on investment over three years when using Intuit Enterprise Suite.
As we evolve our go-to-market strategy for mid-market, we are strengthening our partnership with the largest tech-forward accounting firms. We are helping accountants serve their business customers more efficiently and grow their practices profitably. In Q4, we continued to see strong growth in IES deals through accountants. This quarter, we signed a partnership with a rapidly growing top 25 accounting and technology advisory firm. This particular firm serves more than 14,000 business clients, representing a meaningful opportunity to acquire new customers over time. We have many other partnerships of similar scale in the pipeline. I am pleased with the momentum we are seeing with Intuit Enterprise Suite.
The total number of new build customers in Q4 was up nearly 2x versus Q3, with successful adoption by some very large customers, including one customer with over 200 entities that is also using payroll and payments. As we head into fiscal year 2026, we are nearing the one-year mark of launching Intuit Enterprise Suite, and I am proud of the progress we have made with both our product and our go-to-market strategy, which positions us to penetrate the $89 billion mid-market TAM. Turning to our consumer platform, we delivered an outstanding year. Consumer group revenue grew 10%, more than a two-point acceleration from last year.
This was driven by breakthrough adoption of TurboTax Live, which grew 47%, well above our long-term expectation of 15% to 20% revenue growth. This is the power of bringing data, AI, and human intelligence together to provide better experiences for customers. Credit Karma grew 32% this year and also drove a point of tax revenue growth as we delivered a seamless customer experience across TurboTax and Credit Karma. Our results also demonstrate the incredible opportunity to win as one consumer platform, to drive year-round engagement and increase monetization by serving a broader set of needs from building credit to building wealth.
The learnings we gained this year are fueling our investments and innovation to deliver durable double-digit growth across our consumer platform. We have significant momentum across the company, and I cannot be more excited about our opportunity ahead to accelerate growth. Our strategy and relentless focus on execution are working. We are leveraging data, data services, AI, and human intelligence to become the all-in-one platform for consumers, businesses, and accountants. Now let me hand it over to Sandeep.
Sandeep Aujla: Thank you, Sasan. We delivered strong results in fiscal 2025 across the company, including total revenue growth of 16%, a more than two-point acceleration from fiscal 2024, and GAAP and non-GAAP operating income growing 36% and 18%, respectively. Our disciplined approach to managing the business allowed us to achieve strong margin expansion while driving breakthrough adoption in assisted tax, introducing transformative AI agents across our business solutions, and building our mid-market go-to-market capabilities.
Our fourth-quarter results include revenue of $3.8 billion, up 20%, GAAP operating income of $339 million versus a loss of $151 million last year, non-GAAP operating income of $1 billion, up 39%, GAAP diluted earnings per share of $1.35 versus a diluted loss per share of 7¢ last year, and non-GAAP diluted earnings per share of $2.75, up 38%. Now turning to the business segments. Global Business Solutions Group revenue grew 18% during the quarter or 21% excluding Mailchimp, and 16% for the full year or 18% excluding Mailchimp. All-in ecosystem revenue grew 21% in Q4 and 20% for the full year or 25% excluding Mailchimp.
This demonstrates the power of our all-in-one platform and that the innovation we are delivering is resonating with our customers, particularly as we move upmarket. We are making progress consolidating data and spending with us to help fuel their growth. Robust growth in online ecosystem revenue was driven by strength across both online accounting and online services, 23% in Q4, and 22% in fiscal 2025. Growth for the quarter and year was driven by higher effective prices, customer growth, and mix shift. Online services revenue grew 19% in Q4 or 29% excluding Mailchimp. Growth in Q4 was driven by money, which includes payments, capital, and bill pay, as well as payroll.
For fiscal 2025, online services revenue grew 19% or 29% excluding Mailchimp, driven by money and payroll. Within money, revenue growth in the quarter reflects payments revenue growth, which was driven by customer growth, an increase in total payment volume per customer, and higher effective prices, as well as QuickBooks Capital revenue growth. Total online payment volume growth in Q4 was 18%, relatively consistent with the range we have seen over the last several quarters. Within payroll, revenue growth in the quarter reflects customer growth, higher effective prices, and mix shift. Within Mailchimp, the revenue was down slightly versus a year ago, in line with our expectations for the quarter.
We remain focused to ensure the offering resonates with both mid-market and small businesses, and we are confident in delivering an all-in-one business platform that integrates the power of Mailchimp and QuickBooks. We expect Mailchimp to exit fiscal 2026 growing double digits. The overall addressable market for the business platform is over $180 billion, roughly half of which is mid-market, and we are well-positioned to win as an all-in-one platform. Online ecosystem revenue grew 21% in Q4 and 20% for the year. This includes approximately 40% growth for both the quarter and the year in online ecosystem revenue for QBO Advanced and Intuit Enterprise Suite that serve mid-market.
Online ecosystem revenue for small businesses and the rest of the base grew a strong 18% for both the quarter and the year. Our Online Ecosystem revenue growth reflects the progress we are making with our strategy of serving both small and mid-market businesses with more complex needs. We had an exceptional year, driving 23% growth in combined QBO Advanced and Intuit Enterprise Suite customers, and 8% growth in US QBO customers excluding self-employed. Overall, online paying customers grew 5%, reflecting the headwinds we saw in our Mailchimp and international businesses, both areas where we have game plans to accelerate growth in the future.
Online ecosystem ARPC growth accelerated more than three points in fiscal 2025 to 14%, reflecting our progress serving more complex customers. We feel great about the customer growth and ARPC expansion we saw this year, with larger and more complex mid-market customers in our base. Turning to desktop, desktop ecosystem revenue grew 10% in Q4 and 5% for the full year. QuickBooks Desktop Enterprise revenue grew in the mid-teens in Q4 and high single digits in fiscal 2025. Turning to our consumer platform, Consumer Group revenue of $4.9 billion grew 10% in fiscal 2025. This outstanding tax performance reflects breakthrough adoption of TurboTax Live with revenue growth of 47%, a 30-point acceleration from last year, and customer growth of 24%.
We saw strong customer growth in full-service consumer and business tax offerings, both outpacing overall TurboTax Live customer growth. The learnings we gained this year will help fuel durable growth in the future. In our ProTax Group, revenue was $621 million in fiscal 2025, up 4%. Credit Karma revenue grew 34% in Q4 and 32% in fiscal 2025. On a product basis in Q4, personal loans accounted for 15 points of growth, credit cards accounted for 13 points, and auto insurance accounted for five points. As Sasan mentioned earlier, Credit Karma drove a point of revenue growth in fiscal 2025 as we delivered a seamless customer experience across TurboTax and Credit Karma.
I am proud of the progress the team made innovating on behalf of our members and partners this year, and I am excited about the opportunity ahead. Shifting to a balance sheet and capital allocation, our financial principles guide our decisions. They remain a long-term commitment and are unchanged. We finished the quarter with approximately $4.6 billion in cash and investments and $6 billion in debt on our balance sheet. We repurchased $748 million of stock during the fourth quarter and $2.8 billion during fiscal 2025. Depending on market conditions and other factors, our aim is to be in the market each quarter. The board approved a quarterly dividend of $1.2 per share payable on October 17, 2025.
This represents a 15% increase versus last year. Now shifting to fiscal 2026 and Q1 guidance. Our fiscal 2026 guidance includes total company revenue of $20.997 billion to $21.186 billion, growth of 12% to 13%. Our guidance includes Global Business Solutions Group revenue growth of 14% to 15%, or 15.5% to 16.5% revenue growth excluding Mailchimp. Our guidance also includes overall consumer group revenue growth of 8% to 9%, including TurboTax growth of 8%, Credit Karma growth of 10% to 13%, and ProTax growth of 2% to 3%. This guidance reflects the segment reporting change we shared today in our press release and fact sheet.
GAAP diluted earnings per share of $15.49 to $15.69, growth of 13% to 15%, and non-GAAP diluted earnings per share of $22.98 to $23.18, growth of 14% to 15%. We expect a GAAP tax rate of approximately 23% in fiscal 2026. Our guidance for the first quarter of fiscal 2026 includes total company revenue growth of 14% to 15%, GAAP earnings per share of $1.19 to $1.26, and non-GAAP earnings per share of $3.05 to $3.12. You can find our full fiscal 2026 and Q1 guidance details in a press release and on our fact sheet. We are also reiterating our long-term growth expectations for each of our businesses. First, Global Business Solutions Group.
With the momentum we see in online ecosystem revenue growth, we are reiterating our long-term revenue growth expectations for the Global Business Solutions Group of 15% to 20%. This includes online paying ARPC growth of 10% to 20% and online paying customer growth of 5% to 10%. Second, TurboTax. We had a strong tax season, and we see significant runway ahead to penetrate our TAM, particularly in assisted tax, which we expect to be the key driver of future growth. We are reiterating the TurboTax long-term revenue growth rate of 6% to 10% in this interim period, with TurboTax Live revenue expected to grow 15% to 20%. Finally, Credit Karma.
We are reiterating our long-term revenue growth expectations of 10% to 15%, reflecting the current size and scale of the business, our focus on delivering year-round benefits that lead to engagement, monetization, and TurboTax growth. With that, I will turn it back over to Sasan.
Sasan Goodarzi: We are well on our way to becoming the global tech leader for enabling financial success for consumers, businesses, and accountants. Given our early bets on AI, our low penetration of our large $300 billion TAM, and the significant investments we have made in the last decade in data, data services, AI, and AI-enabled human intelligence, we are well-positioned to power prosperity for our customers and deliver sustained double-digit revenue growth with margin expansion. We look forward to unpacking why Intuit Inc. continues to have a very bright future with the best years yet to come at our Investor Day next month. With that, let's open it up to your questions.
Operator: Certainly. Thank you, Mr. Goodarzi. Ladies and gentlemen, at this time, we will go first this afternoon to Siti Panigrahi at Mizuho. Thank you.
Siti Panigrahi: Sasan, that's a great end to fiscal 2025. Mainly, I want to focus on the small business, your global business group, the 18% growth excluding Mailchimp. But as you look at fiscal 2026, what are the areas you are more excited about, and what did you learn in the fiscal 2025 execution? And if I could add one more to this, there's concern about this lead generation with the slowdown in SEO search.
Sasan Goodarzi: Would love to hear your views in terms of what you are seeing in your QuickBooks business. Yeah. Sure. Thank you for the question. You know, first of all, there are three things I would point out that give us confidence for the business group as we head into the year that we are in. One, the customer growth that we saw in the U.S. at 8%, the customer growth that we saw in mid-market at 23% is quite strong, and we are excited about what that will mean moving forward as we address some of the headwinds that you heard Sandeep talk about around Mailchimp and International. So that's one area that we are very excited about.
I would say the second is just the fact that we now have an all-in-one platform. We have all the pieces in one place to help a customer from lead to cash. And when you look at the fact that we just launched our new business feeds with a virtual team of AI agents and AI-enabled human agents, and the fact that we have several million customers that are already engaging, that gives us a lot of confidence as we look ahead durably relative to the growth that we can drive, particularly penetration of services. And the third is mid-market.
I mean, when you look at mid-market holistically, 40% growth in the context of the overall 20% growth that we had in online for the year, and the acceleration that we have with our product launches and our go-to-market capabilities, that gives us not only confidence for '26 but really beyond durably in terms of what's possible. So that's on the business group front. In terms of AI search, it actually plays into our favor. And let me just share a couple of stats. You know, one, this is across, by the way, our platform, not just QuickBooks. Our traffic is actually up quite significantly this year. And AI search is 1% of our overall traffic.
And the top 25% brands actually have a 10x visibility in AI search. So when you look at brands like QuickBooks and Credit Karma and TurboTax and Mailchimp, it actually plays into our favor. And then the last couple of things I would say is Credit Karma is not at all reliant on SEO search at all because we have 100 million folks that are in-app. And so less than 1% is SEO search, so that's not really impacted at all. And last but not least, the final thought I would leave you with is the essence of us being an AI-driven expert platform company and an AI company.
We have actually been all over this in terms of thinking through how we think about tagging our content, how we show up, so that not only do we show up in the AI apps, but over time, when it becomes a bigger part of our search, today, it's only 1%, we play a far bigger role. And maybe I lied. Let me make one last point. The majority of our growth comes from recommendations. And search overall is actually less than 15% of our overall portfolio as a whole. So I just wanted to make sure that point landed as well.
Siti Panigrahi: Thank you. Thanks for that color.
Sasan Goodarzi: Thank you, Siti.
Operator: Thank you. We will go next now to Keith Weiss of Morgan Stanley.
Keith Weiss: Excellent. Thank you, guys, for taking the question. And congratulations on a really strong overall FY 2025, a lot of the pieces coming together. Looking forward into FY '26, really, one question, but in two parts. I think on one side of the equation, you guys released a lot of really interesting functionality with new agents a couple of weeks back. What should our expectations be for monetization around those agents? Is it still too early? Or what should the time frame be that we should be thinking about those ramping up into the revenue base? And then on the other side of the equation, Mailchimp has been a drag through FY '25.
That was the one part of the equation. But you guys sound really confident we are going to come back to double-digit growth. Any inklings you could give us on what's driving that confidence in getting that business back to a double-digit growth rate so it's no longer a drag on this overall GBS revenues anymore?
Sasan Goodarzi: Yeah. Absolutely, Keith. So let me take your first question, which is just around our launch of our all-in-one platform with the virtual team of AI agents and human experts. A couple of things I would say, we have high expectations around monetization in the future. We have not assumed anything really in our guidance for this year. So that's first and foremost. Second, it's actually thus far above our expectations in terms of engagement. As I mentioned earlier, we just launched this in July, and we have a couple of million that have been engaging with the AI agents. It's actually quite significant after one month of launch.
And the repeat engagement, the discovery of our apps is actually above our expectations. What we are really focused on right now is just making the experience and the adoption of our services. And we are giving our teams time to make that because that's the first step. You want engagement and repeat engagement and discovery, which is above our expectations. The second is monetization.
So we think it's going to play a very big role because when you look at the billions of dollars that are actually spent by our customers on our platform on services that are not ours, we are quite confident that we can consolidate not only the tech stack but the tech spend, which is where the monetization comes in. So we have expectations for the future, not this year. We did not count on it in our guidance just to be prudent. The second thing is you are absolutely right. Mailchimp is a drag on our growth, and we expect to exit this fiscal year fourth quarter double digits.
And what you should expect, by the way, is a slow ramp throughout the year. And there are two things that we see today that give us confidence. One is our sales playbook and the number of sales folks that we have added is starting to really pay off going after larger customers in the mid-market. And that will be a big driver of growth in the future. Two, the product improvements that we have already made, but a lot more that are coming. We are actually seeing green shoots. We have the highest customer satisfaction that we have had ever since we acquired the business based on the launches that we have had.
So those things are green shoots that give us confidence that as we look into our trajectory, we would exit double digits in the fourth quarter.
Keith Weiss: Awesome. Thank you, guys.
Sasan Goodarzi: Thank you, Keith.
Operator: Thank you. We will go next now to Kirk Materne at Evercore ISI.
Kirk Materne: You know, I guess, Carl, for you, there's a lot of things going positively right now with Xtend or some of the partners contributing. I was just kind of wondering, are there any crosscurrents out there that are sort of offsetting that to what you would have thought maybe at the beginning of the year, obviously tariffs with Europe? Just anything you could give us some context on because it seems like you have some really nice momentum in some of your early state.
Sasan Goodarzi: Hey, Kirk. Was that question for us?
Kirk Materne: K.
Sasan Goodarzi: We will. So can we open his line?
Kim Watkins: We can come back to Kirk.
Operator: We will circle back around to Mr. Materne. We will go next now to Alex Markgraff of KeyBanc Capital Markets.
Alex Markgraff: Thanks for taking my question. Sasan, can you maybe talk about or just sort of outline the product and go-to-market priorities around IES in '26? Just thinking about some of the momentum behind the business and potential acceleration in '26.
Sasan Goodarzi: Yeah. Absolutely. There are really, I would say, threefold. One, we are very focused on the several hundred thousand customers that are in our base, up to about 800,000 folks in our base that are eligible for either QBO Advanced and/or Intuit Enterprise Suite. And so we are very focused on continuing to mine those customers, and that's a big part of what's driving the growth that we are experiencing now. Two, we really most recently started creating a flywheel effect in having discussions with our accountant partners. Those are sort of more long-term opportunities, but that is a really big opportunity for us, not just in FY '26, but I would say beyond.
Now that we are getting traction with Intuit Enterprise Suite and Advanced, but particularly Intuit Enterprise Suite across multiple verticals. And I would say last but not least, an important reminder for all of us that we are one year in with Intuit Enterprise Suite. And we just had our largest launch in July because we are due for quarterly product releases. And really, our focus is to do two things. One, to be able to accelerate penetrating our existing addressable market. But to actually start opening up our total addressable market. And we are, of course, very excited about adding Ashley being on board and accelerating our progress.
But those are the key, I would say, product and go-to-market priorities.
Alex Markgraff: Thank you.
Sasan Goodarzi: Yep. Very welcome.
Operator: Thank you. We will go next now to Arjun Bhatia of William Blair.
Arjun Bhatia: Yes. Perfect. Thank you so much. Sasan, for you on some of the agenda capabilities and the AI that you are launching, it seems very interesting. I am curious how you think about AI readiness amongst your base. Clearly, you are getting good engagement already, but how ready are your customers to kind of implement these agents? And does that require some work on your end? Or is it fairly sort of plug-and-play kind of thinking through what we might expect in 2026 and 2027? Thank you.
Sasan Goodarzi: Yeah. Actually, I love your question because it's sort of very customer-back, and I think it's important as we think about serving whether it's consumers, small or large businesses. The first thing I would say is, you know, people are using AI apps in their life, but they do not really care about AI. What they care about is, help me grow my business. Help me get customers. Help me understand where I should focus my marketing dollars. Help me understand what financial decisions. And that's what's most important. And so let me bring that to life by just sharing an experience that is part of what we have launched with you.
So, for instance, one of the things you could see in our business feed is, it will show the customer that they had 10 unpaid invoices and that we, in essence, based on their past permission, executed a follow-up to go get that money for the customer. And then we actually, when they click on it, they see how their cash flow has improved. Or in the flow of the customer, we will send them a notification and let them know that, hey, they are eligible for a line of credit based on the sales growth that they are seeing, and we will show them that sales growth.
So really, what the AI agents are giving us the ability to do is to help customers make decisions. And I think that's really what customers care about. It's less about is it an AI agent? But the fact that in moments of truth, we are actually helping them get paid, pay others, get access to a line of credit, understand what decisions they can make to drive growth. Which really, I will end with the last point, and that is the Forrester study that we very intentionally shared in our script. And that is that what we are really after is helping customers consolidate their data, their tech stack, and their spend all in one place.
And when we do that, there is a 300% ROI over a three-year period. Because in essence, when the data is all in one place with our AI agents, we have the ability to help them make better decisions to drive revenue growth or profitability through our business feed and AI agents doing the work. And when everything is in one place, we can drive, we are automating tasks. We are automating workflows. And it delivers efficiency. And last but not least, when we consolidate their tech stack, they actually spend more with us, but overall, they spend less.
And so that's the way I would think about it relative to our customers and what we are experiencing as we are engaging our customers with these new experiences.
Arjun Bhatia: Arjun, one other thing I would add to it, this is where we were super deliberate in how we introduced the GenTick experiences and incorporated them into the lineup. So we expose our customers to them as opposed to having the customers go to and pick a separate offering to add on. So that delivery decision is also what is helping customers see the productivity, see the better business outcomes. And that's actually leading to conversations around what's the next set of agentic expenses we involve because the customers are showing high receptivity to it, as Sasan mentioned, significantly higher repeat usage than even our own internal expectations.
Sasan Goodarzi: Alright. Perfect. Very helpful. Thank you so much.
Arjun Bhatia: Thank you.
Operator: Thank you. We will go next now to Kirk Materne of Evercore ISI.
Kirk Materne: Yes. Thanks. And sorry about earlier. Sasan, I was wondering if you could actually just talk a little bit about Credit Karma. Obviously, a fantastic year for that business. I think there's some concern, obviously, with that business that it can be potentially more cyclical than other parts of your business. But the double-digit guide for next year against what are very tough comps seems to give some indication that you guys feel good about how that's sort of operating.
Just curious if you could add a little bit more color to serve the confidence in the guide and maybe sort of some of the new product lines that are coming to make that perhaps a little bit less cyclical than it was perhaps before you bought it in the early days? Thanks.
Sasan Goodarzi: Yeah. Sure, Kirk. You know, first, let me just start with the strategic nature of why we, again, acquired Credit Karma because it's just important to reground there. And that is what we are really ultimately after is to create one consumer platform, so we can help customers with benefit delivery on an ongoing basis. And by the time it's tax time, we have really an opportunity to do people's taxes for them right through the Credit Karma platform.
So that's an important element because a lot of the innovation this year and a lot of what we already talked about, which is the contribution it had to tax, is a very important part of the go-forward, which is engaging customers year-round. So one element is just tax and the confidence that gives us overall in the consumer platform. The other is because of all of our data and AI investments, we are actually taking share. Because when you look at our credit card and personal loan performance, the majority of this is actually great execution, and where our share is increasing.
And the primary reason why the share is increasing is because of all of our data and AI investments. Because we engage customers in-app and we engage them at the right moment of truth, knowing when they are seeking a financial product, and we put choice in front of them, and they are able to interact with us to better understand what is right for them. So that's an important element, which is share gains that give us confidence. And it's been several quarters in a row where our execution is really outpacing what we even anticipated. Which leads to the last thing that you asked about, which is cyclicality.
I mean, we have been investing heavily in things that aren't as cyclical. One is tax, that I talked about, which is the whole reason why we acquired the platform. But two is insurance. Three is prime customers that really, when you look at the cyclicality of Credit Karma, the primary driver in the last several years was personal loans by those that are actually subprime or near prime, which is why we have been really focused on prime customers because they have a different set of needs. And so a lot of innovation around prime customers in insurance, as I mentioned a moment ago. And then last but not least is just around money.
We are investing heavily to not only provide immediate and instant access to people's money when it's refund time, how do we then engage those customers year-round when it comes to their money? And so it's a holistic set of those areas of innovation that gives us confidence not just in Credit Karma, but just across our consumer platform as we look ahead.
Kirk Materne: Super. Thanks, Sasan. Congrats on a great year.
Sasan Goodarzi: Yeah. Thank you.
Operator: Thank you. We will go next now to Taylor McGinnis of UBS.
Taylor McGinnis: Yes. Hi. Thanks so much for taking my question. So if I look at the global solution business performance, excluding Mailchimp, it was really strong in 4Q, and it looks like that was driven by an acceleration in online. So first, can you maybe talk through the drivers of that performance? And how durable you think some of those trends could be as we go into 2026? And then secondly, as we look ahead into the guidance excluding Mailchimp, it implies a little bit of a deceleration. So maybe you could just walk us through how we should think about what that implies for desktop versus online and some of the assumptions there. Thank you.
Sandeep Aujla: Yep. Hey, Taylor. It's Sandeep. In terms of the Q4, the acceleration that you correctly pointed out was across both accounting and services. On the accounting side, as we continue to scale in the mid-market, that aided as well as us introducing a new lineup in early July. So those are the two factors that drove the accounting side. And on the services side, it was driven by our investments and innovation we have been driving across our money portfolio, including innovations such as making all invoices payable, which is something we rolled out in Q4, and that is continuing to see good momentum.
So again, these are things that are very durable, and they will continue to pay off into the new fiscal year. In terms of your question on how to think about the guidance excluding Mailchimp, the area I would point to that is a key factor there between what we delivered in '25 and our guidance for fiscal 2026 is less pricing. This is something that I discussed in Q4 as well, if you remember, is that once you look outside of our accounting platform, in desktop and in services, we had less pricing heading into fiscal 2026 than what we took in '25.
So the core momentum in the business remains strong, and the delta is driven by less pricing actions.
Taylor McGinnis: Thank you so much.
Sandeep Aujla: Absolutely.
Operator: Thank you. We will go next now to Brad Zelnick of Deutsche Bank.
Brad Zelnick: I was on mute. You would think that I would figure that out by now. Thanks a lot for taking the question. Can you maybe just help expand a little bit on improvements that underpin the confidence in the 15% to 20% TTL growth next year after such a fantastic year? Thanks.
Sasan Goodarzi: Yes. Hey, Brad. Let me maybe kick us off. It really, I would say, comes down to two big things. One is mid-market. $90 billion TAM. We are just scratching the surface with our penetration in that addressable market. Customers grew 23%. When you look at overall online growth, which was 20%, up to now $8 billion, over $8 billion. 40% growth in mid-market. So that gives us a lot of confidence for years to come, not just FY 2026.
The other one is, with the launch that we had, which was sort of our all-in-one launch, with a virtual team of AI agents and an AI-enabled human expert, we now have all of our apps in one place to help customers manage from lead to cash. In fact, one of the reasons I mentioned earlier that we like where we are on a couple of million customers engaging, discovery and repeat engagement is actually higher than what we had anticipated for only a month in. Is that customers are actually surprised that we have all the apps that we have today. Because now it's all in one place.
They visibly see it in one place when we are actually continuing to do more and more of the work for them. And there is a significant services adoption opportunity within that, Brad. And so those are the two big things that give us a lot of confidence looking ahead because large TAM, low penetration, I just think our product launches are positioned well for durable growth for years to come.
Brad Zelnick: Sasan, that was really helpful. And shame on me, I did not speak very clearly. I actually meant to say TurboTax Live, and I abbreviated it TTL. But that was still very helpful. Thank you.
Sasan Goodarzi: Well, you know what? There's nothing like answering questions that did not get asked. No. Let me at least, and Sandeep was listening, let me let him answer that question.
Sandeep Aujla: No worries, Brad. You got cut off for the first part. So we were debating the 15 to 20. So no. On TurboTax Live, look. We had a phenomenal year in fiscal 2025 and made tremendous progress across showing up local, across making sure we extended our brand equity towards the assisted category, and that showed up in the timing of our brand spend. Delivering a better together experience with Credit Karma with many of those customers coming over and picking the method. And across all of those, we had outstanding outcomes, but we also had tremendous learnings.
Which gives us the confidence that as we execute that playbook in the year ahead, and execute even better, that we continue to drive strong momentum in the assisted tax category, and that's where the confidence in the 15% to 20% comes.
Brad Zelnick: Thank you both. Really helpful.
Operator: Thank you. We will go next now to Kash Rangan of Goldman Sachs.
Kash Rangan: Yeah. I am with the Brad guys. I thought I had to TurboTax Live. So but I love your explanation for the QuickBooks Online, though. But, Sasan, it's not a mundane topic, maybe back to the essentials of how Intuit Inc. goes to market with its QuickBooks business. I think people have been a little apprehensive about AI searches, AI overviews taking over from regular paid search, that sort of thing. What can you give us a primer?
How is the go-to-market engine of QuickBooks and other products that do depend upon ads, Internet ads work in this new era, and how do you take advantage of or how do you make sure that you are not at a personal disadvantage, and how do you take advantage of AI search taking over relative to normal paid search? Thank you so much.
Sasan Goodarzi: Yeah. Thank you, Kash, for the question. You know, first of all, I would just start with the fundamental premise that as an AI company, we are all over all things AI. Inclusive of search and how you show up in search, whether it's across any platform. So that's really important in terms of just clarity, visibility, and focus on search. The second thing I would say is generally, we have not been overly reliant on search. I mean, specifically in the business group, our traffic was actually up double digits this past year. And less than 15% of that traffic was actually driven by search.
That's just important context to understand the elements of where our traffic comes from because we have intentionally over the years actually invested in many different channels to drive search down because of where customers are. So that's just, again, important to understand. With all of that said, as I mentioned earlier, AI search today is 1% of our overall search. But we have been doing a lot of work to ensure that over time, we actually show up with where customers are, no matter what platform they are on, whether it's social, whether it's search. And last but not least, the way to think about our business is almost in simplistic terms sort of three dimensions.
One dimension is one to many, which is how we drive campaigns to help customers that are solopreneurs, that just started their business, to be aware that we are an all-in-one platform, and we can help them grow. The other is much more one-to-one for our mid-market, and the one-to-one is our accountant channel, which is a large driver of growth. And then one-to-one with businesses. And third, this is the power of our platform. You know, we do not have to spend money on payments. Do not have to spend money on payroll. We do not have to spend money on FMS because we are a platform where it's all in one place.
And when we draw a customer in with one benefit, we can then, our AI agents can do the work to help customers whether to get paid, whether it's to help them with payroll. As you heard Sandeep talk about earlier, we are very intentional about what we make available in our SKUs to provide the capability and availability to our customers. But that's really the way to think about how we go to market. The way to think about search. How important it is to our business. And last but not least, we benefit because we are a top brand from AI searches as they grow over time.
Sandeep Aujla: One thing also that Kash, to keep in mind is a cash, and I think it's an important consideration. That search and AI traffic is not apples to apples. The AI traffic tends to be much higher consideration and converts automatically better through the funnel. So that's a very important area that we are very cognizant of and making sure we are investing to get more of that AI because it just makes the funnel automatically more efficient.
Kash Rangan: Awesome. Thank you, Sandeep. And, Sasan, I am so glad that I stuck my neck out a few weeks ago and investors asked me about this. I said, anybody working for Sasan will have figured this out. Otherwise, they will not have a job. So I am so glad you are on top of it. Thank you so much.
Sasan Goodarzi: Well, thank you for your confidence, my friend. I will pass it on to the team.
Operator: Thank you. We will go next now to Steve Enders of Citi.
Steve Enders: Okay. Great. Thanks for taking the questions here. I guess I just want to ask on just maybe SMB health and maybe what you are seeing out there from a macro perspective. Have you seen any change in terms of what you are seeing from that perspective? Either in your underlying data or from customers coming through? Just maybe what have you seen from a deal environment perspective?
Sasan Goodarzi: Yes. Sure. A couple of things I would say. You know, when you talk about businesses, you have to do it while talking about consumers. Right? Because businesses spend with businesses, but consumers spend with businesses. So I will just start with consumers first. And, you know, generally, what we see across our well over 100 million customers is, you know, balances on things like credit cards are up 4% year over year. But please understand that, you know, the last several years, it's been up double digits. And credit scores, depending on your credit band, could be down about 10 points. And so consumers, it's a good job market, but they are very intentional about where they spend money.
And they are stretched. When it comes to businesses that we see on our platform, revenues are generally flat, but profits and cash flows are actually up year over year. Now that's across, you know, 10 million customers. There are sectors that are performing far better, and then there are sectors that aren't performing well. And as you know, we are not concentrated in any particular sector, but sectors like real estate, advertising, manufacturing, depending on what you manufacture, are down. Whereas other sectors are up. So net-net, profits are up, cash flows are up across the millions of customers that we serve.
Steve Enders: Okay. Perfect. Thanks for taking the question.
Sasan Goodarzi: Very welcome.
Operator: Thank you. We will go next now to Alex Zukin of Wolfe Research.
Alex Zukin: Hey, guys. Thanks for taking the question, and congrats. Sasan, maybe for you, kind of following up on the prior question about just the general kind of macro picture for your customer base. If you think about how over the course of the next twelve to eighteen months, you think about all of the functionality and the products and as well as in AI functionality starting to mix shift your customers with a more kind of simplistic yet holistic offering into higher tiers of service. How much is it how much push is it versus pull? How does the agentic functionality unlock that opportunity for you?
And it seems like there's an opportunity, at least seemingly with AI search yielding better and in-app selling and cross-selling also driving more efficiency in the go-to-market to also do that in a more margin-positive way. So maybe just comment on both of those aspects, if you can.
Sasan Goodarzi: Yeah. Yeah. Actually, I love your question. So a couple of things I would say. One, every customer that we talk to, and I talk to, and accountants, they are overwhelmed with the number of apps that they have. They are overspending money on a bunch of different apps that is requiring them to spend more time than ever trying to figure out what is going on in their business. And even more important than all of that is their data is trapped in a bunch of different apps.
And so it really is our opportunity and our biggest impact that we are having right now is with our all-in-one platform, and that's why that Forrester study was so important that we shared in the script. To consolidate data, consolidate the tech stack, and consolidate spend. And because by doing that, that 300% return on investment is driven by when you consolidate data on our platform, our AI agents can do far better work to help customers with revenue growth and profitability growth. When we consolidate the tech stack, we can automate tasks and workflows to drive a lot more efficiency all in one place versus a bunch of different apps.
Last but not least, when you sort of add up what a customer pays to have a bunch of different apps versus what they would pay us, by the way, pay us, end up paying us more, they end up saving money. So we have proof, substantial proof that works. And I think to your question, it's a push and a pull. There's an element of with our AI agents and AI-enabled human experts, we are ultimately, what we are seeing and what we are looking to accelerate is how customers start doing more of their work on our platform versus using different apps. But we will also be working on how do you create a push.
Because, ultimately, you are working against human inertia, and although you have a lot of different apps, although you are spending a lot of money, the human inertia, they just change. Is hard. And so one of the things that we will continue to look at is what we include in our lineup and what we need to do to motivate, inspire, and drive consolidation because now we have everything in one place. It is a push and a pull, and that's really how we are thinking about our ongoing execution of our lineup and evolution of our lineup as we look ahead.
Alex Zukin: Sounds like ERP for the SMB. And it's working.
Sasan Goodarzi: Yeah. Thank you, Alex.
Operator: Thank you. We will go next now to Brad Sills of Bank of America.
Brad Sills: Oh, great. Thank you so much. I wanted to ask a question around the AI platform, maybe a little different angle. You have had the invoice generator out for quite some time, but would love to hear about any traction you are seeing there. And how that's performing and could that be a leading indicator perhaps for other agents that might be coming over time?
Sasan Goodarzi: Yes, absolutely. I mean, I will tell you what we saw very early on, which is one, customers that are using our invoice reminder, which I think is what you were asking about, we actually see 10% higher payments volume and conversion by those that are using the invoice reminder, and they are getting paid five days early. And I am glad you asked about it the way you did because that's just a tangible example of how our payments AI agent with that sliver of focus, which is invoice reminder, can have a substantial impact on our customers.
And really then if you expand that, what we are really focused on with our payments AI agent is how do we pay the customers' bills on their behalf? How do we help them with a line of credit? How do we help them with Instant Deposit? How do we actually help create an estimate that's payment-enabled upfront and they do not have to lift a finger, they have a handwritten note, they just take a picture of it, and we just create everything for them. So those are all the, you know, expanding beyond your question, the opportunities that we have with launching a virtual team of AI agents.
Brad Sills: Thank you, Sasan.
Sasan Goodarzi: Yep. Very welcome.
Operator: Thank you. We will go next now to Brent Thill of Jefferies.
Brent Thill: Sasan, the playbook to get Mailchimp back to growth, how do you think about this? What's the most important thing? I know you mentioned the user interface is a little too complicated for SMBs to use. How much longer is this going to take to get you back to growth in that business?
Sandeep Aujla: Hey, Brent, Sandeep, why I take this one? So a couple of things. Let's start with areas where we are seeing really good progress on the Mailchimp side, which is in the mid-market. As Sasan mentioned, we are scaling the Salesforce account management team there and getting really good ROI on that headcount and seeing really good progress there. An area where we continue to iterate fast, and I feel really good about the progress the team is making and is showing up in the customer satisfaction scores going up and being some of the highest in recent history is on the small business.
Small businesses are the bread and butter, and the angle there is to make sure the small business can get to its first and second benefit on our platform within the first thirty days or thereabouts. And that's where the team is helping make sure the offering is resonating, that they are able to navigate it, they are able to see the benefit, and we are making good progress, and I feel good about it, which is why we are confident in this business exiting double digits this fiscal year. One thing to keep in mind, it is a subscription business.
So there is a tilde six-month lag in terms of these actions getting implemented and them showing up in the revenue scaling up. So that's why we think, you know, it will be a couple of quarters at least before we start seeing the scaling up in revenue, but the momentum in the progress that we feel good about in Mailchimp.
Brent Thill: Great. Thanks.
Operator: Thank you. And ladies and gentlemen, that is all the time we have for questions this afternoon. Mr. Goodarzi, I would like to turn things back to you, sir, for any closing comments.
Sasan Goodarzi: Yes. Hey, thank you, everyone, for attending. Thank you for all your great questions, and we look forward to seeing everybody at Investor Day. Until then, be safe. Bye, everybody.
Operator: Thank you. Again, ladies and gentlemen, that will conclude today's conference call. We would like to thank you all so much for joining us today and wish you all a great remainder of your day. Goodbye.
Kim Watkins: Goodbye.