Intuit late Thursday beat estimates for the financial software firm's fiscal first quarter but gave an outlook that was below views for the current quarter and full year ahead. Intuit stock fell in extended trading.
The Mountain View, Calif.-based company earned an adjusted $2.50 a share on sales of $3.28 billion in the quarter ended Oct. 31. Analysts polled by FactSet had expected Intuit earnings of $2.36 a share on sales of $3.14 billion in fiscal Q1. On a year-over-year basis, Intuit earnings rose 1% while sales increased 10%.
For the current quarter ending Jan. 31, its fiscal Q2, Intuit forecast adjusted earnings of $2.58 a share on sales of $3.83 billion. That's based on the midpoint of its guidance. Wall Street had been modeling earnings of $3.25 a share on sales of $3.88 billion.
The tax-prep and accounting software maker reiterated its guidance for the full fiscal 2025. It expects to earn an adjusted $19.26 a share on sales of $18.25 billion in the current year. That's based on the midpoint of its annual outlook. Its guidance would translate to year-over-year growth of 13.7% in earnings and 12.1% in revenue.
However, analysts had been looking for earnings of $19.33 a share on sales of $18.27 billion.
In after-hours trading on the stock market today, Intuit stock dropped more than 4% to 649.25. During the regular session, Intuit stock rose 4.3% to close at 678.70.
Intuit offers personal and business financial software including TurboTax, Credit Karma, QuickBooks and Mailchimp.
Intuit Adding AI Assistants To Software
"We've had a strong start to the year as we demonstrate the power of Intuit's AI-driven expert platform strategy," Chief Executive Sasan Goodarzi said in a news release. "By delivering 'done-for-you' experiences, enabled by AI with access to AI-powered human experts, we continue to fuel the success of consumers and businesses."
Chief Financial Officer Sandeep Aujla said the company is confident it will deliver double-digit revenue growth and margin expansion this year.
Intuit Stock Falls On DOGE Proposal
On Tuesday, Intuit stock tumbled on a news report that claimed the Trump administration is considering a plan to create a mobile app for Americans to file their taxes free with the Internal Revenue Service.
The Washington Post reported that the leaders of President-elect Donald Trump's "Department of Government Efficiency" have discussed overhauling the tax system to let people file their taxes through a mobile app.
On Nov. 12, Trump appointed billionaire Elon Musk and former pharmaceutical executive Vivek Ramaswamy to lead the DOGE panel. The group has two principal mandates: cut government spending and reduce federal regulations.
However, sources told the Post that the conversations about simplifying the tax system and making a mobile app are highly preliminary. The article describes the proposals as part of early brainstorming and says they would be difficult to implement.
Jefferies analyst Brent Thill said the Intuit stock drop was an overreaction to the media report.
Intuit stock is on the IBD Tech Leaders list.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
