Intuit Soars on Strong Q2 Earnings, Revenue Beat

Intuit Inc. (Nasdaq: INTU), the global financial technology platform that makes Intuit TurboTax, Credit Karma, QuickBooks, and Mailchimp, reported strong second-quarter fiscal 2025 results, with revenue and earnings surpassing analysts' expectations. The company's stock price reacted positively to the news, increasing by 5.2% on the day of the earnings announcement.

Strong Revenue Growth and Earnings Beat

Intuit's total revenue for the second quarter grew 17% year-over-year to $4.0 billion, driven by strong performance in its Global Business Solutions Group (GBSG) and Credit Karma segments. GBSG revenue grew 19% to $2.7 billion, with Online Ecosystem revenue increasing 21% to $2.0 billion. Credit Karma revenue grew 36% to $511 million, driven by strength in credit cards, personal loans, and auto insurance.

The company's GAAP operating income grew 61% to $593 million, and GAAP diluted earnings per share increased 34% to $1.67. Non-GAAP operating income grew 26% to $1.3 billion, and non-GAAP diluted earnings per share grew 26% to $3.32.

Key Drivers Behind Strong Performance

1. AI-driven Expert Platform: Intuit's AI-driven expert platform strategy, Intuit Assist, is delivering 'done-for-you' experiences to complete tasks, automate end-to-end workflows, and connect customers to AI-powered human experts, powering their prosperity.
2. Growth in Global Business Solutions Group (GBSG): GBSG revenue grew 19% to $2.7 billion, with Online Ecosystem revenue increasing 21% to $2.0 billion. This growth was driven by:
* Online Services revenue growing 19%, driven by growth in money, payroll, and Mailchimp offerings.
* QuickBooks Online Accounting revenue growing 22%, driven by higher effective prices, customer growth, and mix-shift.
* Total international Online Ecosystem revenue growing 9% on a constant currency basis.
3. Strong Performance in Credit Karma: Credit Karma revenue grew 36% to $511 million, driven by strength in credit cards, personal loans, and auto insurance.

Market Expectations and Stock Performance

Analysts polled by FactSet expected revenue of $3.83 billion, earnings per share of $2.57, and adjusted earnings of $11.51 a share for the fiscal third quarter. Intuit's stock price reacted positively to the positive earnings report, increasing by 5.2% on the day of the announcement. The company's confidence in delivering double-digit revenue growth and expanding margin this year has also contributed to the positive market sentiment.

Intuit's strong earnings report demonstrates the company's ability to deliver on its mission to power prosperity for consumers, small and mid-market businesses, and accountants. With a solid financial performance and a positive market reaction, Intuit is well-positioned to continue its growth trajectory in the coming quarters.