Shares of software company Intuit (INTU) are little changed in after-hours trading after reporting solid first-quarter results. Earnings per share came in at $3.34, which beat analysts’ consensus estimate of $3.09 per share. In addition, sales increased by 17.9% year-over-year, with revenue hitting $3.89 billion. This also beat analysts’ expectations of $3.76 billion. These results were driven by its Global Business Solutions Group and Credit Karma.
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The Global Business Solutions Group saw revenue rise 18% to $3 billion due to a 21% increase in Online Ecosystem revenue to $2.4 billion, which was supported by 17% growth in online services and a 25% increase in QuickBooks Online Accounting revenue. In addition, Credit Karma revenue surged 27% to $651 million, thanks to growth in personal loans, auto insurance, and credit cards.
Guidance for FY 2026
Looking forward, management has provided the following guidance for FY 2026:
- Revenue of between $20.997 billion and $21.186 billion, versus analysts’ estimates of $21.15 billion
- Adjusted EPS in the range of $22.98 to $23.18 compared to analysts’ estimates of $23.16
As we can see, the company’s outlook is worse than expected when using its midpoint figures, which likely led to the muted after-hours move in the stock price. Interestingly, this is the same annual guidance that Intuit issued in its last earnings report. Given that analysts had estimates that were higher than the midpoint, it suggests that they were expecting the firm to raise its forecast.
What Is the Fair Value of Intuit?
Turning to Wall Street, analysts have a Strong Buy consensus rating on INTU stock based on 16 Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average INTU price target of $831.40 per share implies 28.3% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
