Stock Markets February 26, 2026

Intuit Flags Lower-Than-Expected Q3 Profit as U.S. Tax-Season Marketing Ramps Up

Higher third-quarter marketing and customer support spending to capture tax-season demand and invest in assisted tax and QuickBooks growth, company says

By Hana Yamamoto INTU
Intuit Flags Lower-Than-Expected Q3 Profit as U.S. Tax-Season Marketing Ramps Up
INTU

Intuit projected adjusted earnings per share for its fiscal third quarter below Wall Street consensus as it plans elevated marketing and customer support expenditures to attract more customers during the U.S. tax season. The company expects roughly 10% revenue growth and reiterated full-year fiscal 2026 forecasts, while continuing multi-year partnerships to integrate frontier AI models into its products.

Key Points

  • Intuit forecast adjusted EPS of $12.45 to $12.51 for the fiscal third quarter ending April 30, below analysts' average estimate of $12.95 (LSEG).
  • The company expects roughly 10% revenue growth in the quarter, near analysts' 9.9% estimate, and reiterated fiscal 2026 guidance while reporting Q2 revenue of $4.65 billion, a 17% increase versus the estimate of $4.53 billion.
  • Intuit is increasing third-quarter marketing and customer support spending to capitalize on the U.S. tax season and to drive growth in assisted tax and QuickBooks; it has also signed multi-year deals with Anthropic and OpenAI to integrate frontier models into its software.

Intuit said it expects adjusted profit for the fiscal third quarter to fall short of Wall Street estimates as management increases marketing and customer support outlays to capture heightened demand during the U.S. tax season.

The company noted that the third quarter - typically its strongest period - benefits from seasonal demand for its financial management offerings, including TurboTax, Credit Karma and QuickBooks. The Internal Revenue Service began accepting federal tax returns on January 26 this year, and the filing deadline is April 15. Intuit's third-quarter forecast covers the period ending April 30.

Chief Financial Officer Sandeep Aujla told reporters that the additional spending on marketing and customer support is concentrated in the third quarter to leverage the tax season and to drive growth in the assisted tax and QuickBooks businesses. Intuit projected adjusted earnings per share of $12.45 to $12.51 for the quarter, compared with analysts' average estimate of $12.95, according to LSEG data.

The company expects revenue to grow by roughly 10% in the quarter, largely in line with analysts' average estimate of 9.9% growth. Intuit also reiterated its fiscal 2026 forecasts.

Intuit reported that second-quarter revenue rose 17% to $4.65 billion, topping analysts' average estimate of $4.53 billion. Management characterized the elevated third-quarter spending as an investment to attract customers during the peak filing window and to support the assisted tax and QuickBooks segments.

The company has moved to bolster its competitive position by signing multi-year agreements with AI startups Anthropic and OpenAI to integrate their frontier models into Intuit software. On the commercial arrangements, Aujla said, "We're paying OpenAI and Anthropic for the capabilities. We're not paying them revenue share," and added that more than 3 million clients engage with the company's AI agents.

Intuit's forecasts arrive amid market concerns that wider adoption of AI tools could erode demand for traditional software, as customers increasingly seek personalized financial guidance and automated bookkeeping solutions. Management framed its partnerships and product integrations as part of the response to that competitive dynamic.


Summary of company results and outlook:

  • Adjusted EPS guidance for Q3: $12.45 - $12.51 versus analysts' $12.95 (LSEG).
  • Expected Q3 revenue growth: approximately 10% versus analysts' 9.9%.
  • Q2 revenue: $4.65 billion, up 17%, above analysts' $4.53 billion estimate.

Risks

  • Higher marketing and customer support spending in the third quarter could pressure near-term profit margins - this affects the software and fintech sectors that rely on seasonal demand and customer acquisition.
  • The market's growing adoption of AI tools could reduce demand for traditional software if customers shift to more automated, personalized solutions - a risk for companies across financial software and bookkeeping services.
  • Dependence on successful integration and customer adoption of frontier models from Anthropic and OpenAI introduces execution risk; if implementations underdeliver, expected competitive benefits may not materialize - impacting Intuit and its competitors in financial technology.

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