Intuit (NASDAQ: $INTU), a leading company in the income tax preparation products and services industry, released its Q2 fiscal 2025 results on Tuesday, February 25, 2025, to a positive market reaction. Here is a deep dive into Intuit’s second-quarter results.
Intuit Q2 Results
For the second quarter of fiscal 2025, Intuit reported revenue of $3.96 billion, beating estimates of $3.83 billion and up 17% YoY. Adjusted Eps came in at $3.32, a 26% YoY increase, and above estimates of $2.57.
Other Q2 Highlights
Intuit reported a 19% YoY increase in the Global Business Solutions group revenue to $2.7 billion, while Online ecosystem revenue was up 21% YoY to $2 billion. The company reported a 36% increase in Credit Karma revenue to $511 million, while Consume Group revenue was up 3% YoY to $509 million. However, ProTax revenue was down 1% YoY to $272 million.
Intuit reported a 61% YoY increase in GAAP operating income to $593 million and a 26% YoY increase to $1.3 billion on a non-GAAP basis.
Capital Allocations
As of the end of January 31, 2025, Intuit had $2.5 billion in total cash, and investments, and a $6.3 billion debt. It bought back $721 million worth of shares, and it has $3.6 billion remaining under the current share buyback authorization. Intuit’s board approved a quarterly dividend of $1.04 per share, which is a 16% YoY increase.
Q3 And Fiscal 2025 Guidance
Intuit expects revenue of $18.16 billion to $18.347 billion for fiscal 2025, a 12% to 13% YoY increase. It expects an operating income of $4.649 billion to $4.724 billion, a 28% to 30% YoY increase, while non-GAAP operating income is expected to grow 13% to 14% to $7.241 billion to $7.316 billion. The company also expects the adjusted EPS to growth 13% o 14% to $19.16 to $19.36.
Full-year revenue and adjusted EPS forecasts missed analysts’ estimates of $128.28 billion in revenue and an adjusted EPS of $19.29 at the midpoints.
Intuit expects revenue of $7.55 billion to $7.6 billion in the third quarter, a 12% to 13% YoY increase, while the adjusted EPS is expected to come in at $10.89 to $10.95. The third quarter guidance is below analysts’ forecast of an adjusted EPS of $11.51, and revenue of $7.52 at the respective midpoints.
Earnings Call Highlights
During the earnings call, Intuit highlighted the success of its AI solutions, particularly Intuit Assist, which it credits with enhancing automation, workflow management, and customer engagement. Analysts pointed to the strong traction in AI-driven automation and mid-market expansion. The company remains bullish on the long-term growth opportunity of its AI-driven solutions.
Intuit Market Performance
INTU shares hit a new 52-week low of $553.24 during the Tuesday, February 25, 2025, trading session before closing at a new 52-week low of $555.63, marking a 2.05% during the trading session. Over the past six months, Intuit stock is down 10.36%, while over the past year, it is down 15.79%.
However, the stock recovered during the pre-market trading session, following the stellar Q2 results, rising 6.57% to $592.15 as of 8:01 AM EST.
Analysts give the stock a moderate buy rating. They forecast a price of $721.42, which is a 27.18% upside based on Tuesday’s closing price. The analysts forecast a wide range of price targets for the stock, with a high of $800 and a low of $530.
Should You Add Intuit To Your Portfolio In 2025?
Intuit has seen a resurgence in growth as it turns its focus to small and medium sized business. However, an economic downturn would likely have a major impact on small businesses, impacting the company’s growth. Additionally, while the company has integrated AI into its product, AI-driven solutions could still pose a challenge to its market position. There is also the fact that Intuit is highly reliant on the US market for most of its revenue generation.
Despite these challenges, interest rates are set to come down, which is always good for small enterprises and the self-employed. Consequently, adding INTU to your portfolio could potentially generate positive results in the medium term.
Click Here For Updates on INTU – It’s FREE to Sign Up for Text Message Notifications!
Disclaimer: This website provides information about cryptocurrency and stock market investments. This website does not provide investment advice and should not be used as a replacement for investment advice from a qualified professional. This website is for educational and informational purposes only. The owner of this website is not a registered investment advisor and does not offer investment advice. You, the reader / viewer, bear responsibility for your own investment decisions and should seek the advice of a qualified securities professional before making any investment.
