Intuit Shares Slide on Lower Earnings and Underwhelming Revenue Guidance

Intuit Shares Tumble Amid Slower Sales Growth and Missed Forecasts

After the finance software company released a revenue forecast for the current quarter that fell short of analysts’ projections because of certain delayed sales, Intuit shares dropped 6% during extended trading on Thursday. The quarter ended October 31 saw a 10% year-over-year growth in revenue, according to a statement. A year ago, net income was $241 million, or 85 cents per share; now, it is $197 million, or 70 cents per share.

We are seeing good progress serving mid-market customers in MailChimp, but are seeing higher churn from smaller customers. We are addressing this by making product enhancements and driving feature discoverability and adoption to improve first-time use and customer retention.

Sandeep Aujla, Intuit’s finance chief

Intuit Expects 12%-13% Annual Revenue Growth Despite Q2 Consumer Segment Challenges

Although the fiscal first quarter’s earnings exceeded forecasts, the second quarter’s guidance was modest. Due to changes in retail promotions for the TurboTax desktop program, Intuit said it expects a single-digit drop in consumer segment revenue. The timing of revenue will be impacted, but the entire fiscal year 2025 will remain unaffected.

• Intuit projected revenue of $3.81 billion to $3.85 billion and second-quarter earnings of $2.55 to $2.61 per share.
• LSEG reached a consensus of $3.20 per share and $3.87 billion in sales.

With $18.16 billion to $18.35 billion in revenue, Intuit anticipates adjusted earnings per share of $19.16 to $19.36 for the entire year. That suggests a 12%–13% increase in revenue. According to LSEG’s poll, analysts were expecting $18.26 billion in revenue and $19.33 in adjusted profits per share.

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