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Intuit Raises Fiscal 2026 Outlook Following Third-Quarter Beat; Plans to Reduce Workforce by 17%

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Intuit Raises Fiscal 2026 Outlook Following Third-Quarter Beat; Plans to Reduce Workforce by 17%

Intuit (INTU) lifted its full-year outlook and reported fiscal third-quarter results above Wall Street's expectations, while the financial technology platform disclosed plans to reduce its workforce by about 17%.

The company anticipates adjusted earnings to be in a range of $23.80 to $23.85 per share for fiscal 2026, it said late Wednesday, up from its previous guidance of $22.98 to $23.18. The current consensus on FactSet is for non-GAAP EPS of $23.46.

Revenue is pegged at $21.34 billion to $21.37 billion for the ongoing fiscal year, compared with prior projections of nearly $21 billion to $21.19 billion. The Street is looking for sales of $21.34 billion.

In a regulatory filing with the Securities and Exchange Commission, Intuit said it plans to lay off around 17% of its employees, as part of a plan to simplify its organizational structure. The company expects to incur about $300 million to $340 million in charges related to the workforce reduction, mainly in its fourth quarter ending July 31.

"While these decisions are never easy, they are a reflection of our disciplined approach to capital management, and we are confident it will ultimately allow us to deliver durable revenue growth, expanded margins, and growing capital returns to shareholders over the long term," Chief Financial Officer Sandeep Aujla said during an earnings call, according to a FactSet transcript.

Intuit's shares dropped 14% in Thursday's most recent premarket activity.

For the ongoing three-month period, the firm expects adjusted EPS to come in between $3.56 and $3.62 on revenue growth of 11% to 12%. The market's forecast is for non-GAAP EPS of $3.30 and sales of $4.19 billion.

For the quarter ended April, Intuit's adjusted EPS rose 10% to $12.80, surpassing the Street's view for $12.57. Revenue climbed to $8.56 billion from $7.75 billion in the prior-year period, topping the average analyst estimate of $8.54 billion.

Revenue in the global business solutions segment advanced 15% to $3.3 billion, led by a 22% jump in QuickBooks online accounting sales that reflected pricing and customer growth, according to the company. Online services gained 15% while international online revenue moved 10% higher on a constant currency basis.

The consumer platform recorded revenue growth of 8% to $5.3 billion. Credit Karma's revenue improved 15% to $631 million, boosted by personal loans, auto insurance and home loans. Revenue from tax-preparation software TurboTax increased 7% to $4.4 billion, while ProTax sales were flat.

"We delivered strong third-quarter results, driven by our (artificial intelligence)-driven expert platform strategy," Chief Executive Sasan Goodarzi said in a statement. "As we look ahead, we are further scaling our growth engines and architecting an organization that operates with greater velocity to deliver durable long-term growth."

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