Intuit Shares Jump 18.3% After Q2 Revenue Hits $4.65 Billion
Intuit shares gained 18.3% after reporting Q2 revenue up 17% to $4.65 billion and non-GAAP EPS rising 25% to $4.15. Management reaffirmed FY26 guidance of $21 billion in revenue (12–13% growth), non-GAAP EPS of $22.98–23.18 and raised its quarterly dividend 15% to $1.20 per share.
1. Q2 Financial Results
Intuit reported second-quarter fiscal 2026 revenue of $4.65 billion, up 17% year over year, driven by strong demand across Global Business Solutions and Consumer Group. Non-GAAP operating income rose 23% to $1.55 billion while non-GAAP EPS jumped 25% to $4.15, prompting an 18.3% share price gain post-announcement.
2. Growth Drivers
Global Business Solutions revenue grew 18% to $3.2 billion (21% excluding Mailchimp) while Online Ecosystem climbed 21% (25% excluding Mailchimp), led by 40% growth in QBO Advanced and Intuit Enterprise Suite. Consumer segment revenue increased 15% to $1.5 billion, fueled by a 23% rise in Credit Karma and 12% growth in TurboTax despite lower IRS returns.
3. FY26 Guidance and Capital Return
The board approved a 15% dividend increase to $1.20 per share and repurchased $961 million of stock in Q2, reflecting confidence in cash flow. Intuit reaffirmed fiscal 2026 guidance of $20.997 billion to $21.186 billion in revenue (12–13% growth) and non-GAAP EPS of $22.98 to $23.18 (14–15% growth).
4. Valuation and Outlook
Intuit trades at 5.73x forward price/sales, below the industry average of 7.15x, while EPS estimates have edged up to $23.14. Seasonality in its tax-driven business and macroeconomic risks temper near-term upside, but AI-driven innovation and mid-market expansion underpin its long-term outlook.