Intuit reaffirms FY27 guidance, adjusted EPS misses estimates
- Intuit reaffirms FY27 adjusted EPS guidance of $22.88-$23.12, missing the $24.04 analyst estimate
- Full-year revenue guidance set at $23.279-$23.512 billion, bracketing the $23.406 billion consensus
- Global Business Solutions segment expected to grow 13%-14%, while Mailchimp faces flat to negative growth
- Company highlights AI-driven strategy during Investor Day in Mountain View
*this image is generated using AI for illustrative purposes only.
Intuit Inc (NASDAQ: INTU) reaffirmed its fiscal year 2027 financial guidance during an Investor Day event held at its Mountain View, California headquarters.
The company maintained targets that fall short of prevailing analyst estimates for earnings per share, while outlining a strategy focused on scaling AI-driven products across its consumer and business segments.
Guidance vs Estimates
Intuit kept its adjusted EPS outlook at $22.88 to $23.12, compared to the analyst estimate of $24.04. The firm also affirmed its FY27 GAAP EPS guidance at $20.12 to $20.36.
Sales guidance remains at $23.279 billion to $23.512 billion, against an estimated $23.406 billion.
| Metric | Intuit Guidance | Analyst Estimate |
|---|---|---|
| Adjusted EPS | $22.88 - $23.12 | $24.04 |
| GAAP EPS | $20.12 - $20.36 | N/A |
| Revenue | $23.279B - $23.512B | $23.406B |
Segment Revenue Outlook
Intuit provided a detailed breakdown of revenue growth expectations by segment for FY27:
- Global Business Solutions: Revenue expected between $13.068 billion and $13.158 billion, representing 13% to 14% growth.
- TurboTax: Projected revenue of $5.377 billion to $5.453 billion, with growth of 2% to 3%.
- Credit Karma: Anticipated revenue between $2.919 billion and $2.973 billion, reflecting 11% to 13% growth.
- Consumer: Expected revenue of $8.955 billion to $9.088 billion, up 4% to 6%.
- Mailchimp: Forecast revenue between $1.256 billion and $1.266 billion, indicating flat to slight decline ((1)% to 0%).
What the Numbers Show
The midpoint of Intuit’s adjusted EPS guidance ($23.00) represents a significant gap from the consensus estimate ($24.04). While the revenue guidance range brackets the estimate, with the upper bound exceeding it by approximately $106 million, the lower bound suggests potential downside risk relative to market expectations.
Non-GAAP operating income guidance includes $2.02 billion from share-based compensation expense, and non-GAAP diluted earnings per share guidance includes a $5.81 impact from share-based compensation expense.
How might Intuit's AI scaling strategy impact the timeline for closing the gap between its EPS guidance and higher analyst estimates?
What specific operational changes or cost-saving measures could Intuit implement to improve its adjusted EPS outlook without compromising AI investment?
Given the flat-to-negative growth forecast for Mailchimp, will Intuit consider strategic alternatives such as divestiture or a more aggressive integration with QuickBooks?
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