Shares of Intuit (INTU 8.19%), the parent of TurboTax, QuickBooks, Credit Karma, and Mailchimp, were moving higher today after the financial technology company reported better-than-expected results in its fiscal third-quarter earnings report.
As of 10:42 a.m. ET, the stock was up 9.1% on the news.
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Intuit shines
In an uncertain macro environment, Intuit delivered strong results, with overall revenue up 15% to $7.75 billion, which beat expectations at $7.56 billion.
Its consumer group, primarily made up of TurboTax, posted revenue growth of 11% to $4 billion, with TurboTax Live revenue up 47% to $2 billion, showing increasing demand for its live assistance product.
In global business solutions, which is mostly QuickBooks, revenue rose 19% to $2.8 billion, and Credit Karma revenue jumped 31% to $579 million.
On the bottom line, adjusted operating income jumped 17% to $4.34 billion, and adjusted EPS was up 18% to $11.65, which beat the consensus at $10.91.
CEO Sasan Goodarzi said, "We're redefining what's possible with AI by becoming a one-stop shop of AI agents and AI-enabled human experts to fuel the success of consumers and small- and mid-market businesses."
What's next for Intuit
For the fiscal fourth quarter, the company expects growth to accelerate, calling for revenue to increase 17%-18% to $3.723-$3.76 billion, well ahead of estimates at $3.5 billion. On the bottom line, it sees adjusted EPS of $2.63-$2.68, ahead of the consensus at $2.60 and up from $1.99 in the quarter a year ago. Management also raised its full-year guidance.
With popular products like TurboTax and QuickBooks, Intuit is arguably positioned as well as any other software company to leverage the power of AI by making its software easier to use, more useful, and more efficient, and it seems to be doing that.
The stock trades at a premium, but it's clear why after the latest report. Even in an uncertain environment, Intuit's growth is accelerating. It's not a surprise to see the stock pop on today's news.
