Intuit Stock Sinks Despite Strong Q3 FY26 Results

Shares of Intuit Inc. (NASDAQ: INTU) plunged 20.8% following the company’s fiscal third-quarter 2026 earnings release, despite reporting strong revenue growth, double-digit earnings expansion, and raising full-year guidance.

The Financial Highlights: Strong Top and Bottom Line Growth

For the quarter ended April 30, Intuit generated total revenue of $8.6 billion, up 10% year over year, driven by continued momentum across its Consumer and Global Business Solutions segments. GAAP operating income rose 8% to $4.0 billion, while non-GAAP operating income increased 8% to $4.7 billion. Operating margin came in at 46.97%, while non-GAAP operating margin was 54.69%, both slightly declining from 47.98% and 56.01%, respectively. Net income climbed to $3.1 billion from $2.8 billion a year ago, with GAAP diluted earnings per share rising 11% to $11.09 and non-GAAP EPS growing 10% to $12.80.

Sasan Goodarzi, Intuit’s Chairman and CEO, pointed to the company’s AI-focused strategy as the primary catalyst. "The powerful combination of Intuit’s proprietary data, domain-specific AI platform capabilities, and AI-powered human expertise is setting the standard for trusted financial intelligence," Goodarzi stated.

The Segment Performance

Consumer revenue rose 8% to $5.3 billion during the quarter, driven by TurboTax revenue which grew 7%, and Credit Karma revenue which grew 15%. ProTax revenue was in line with last year.

For the full fiscal year, Intuit expects TurboTax Online paying units to grow 2%, driven by share gains among higher average revenue per user (ARPU) filers, and ARPU to increase about 11% as more customers chose assisted offerings and faster access to refunds. TurboTax Live, one of the company’s highest-growth businesses, is expected to grow 36% to $2.8 billion in revenue and will account for more than half of total TurboTax revenue.

Management also expects total TurboTax Online units to decline approximately 2% for the full fiscal year and TurboTax share of e-files to decline approximately 1 point. Pay-nothing customers of approximately 7 million, down from 8 million last year.

Global Business Solutions segment delivered another strong quarter, with revenue increasing 15% to $3.3 billion, while Online Ecosystem revenue grew 19% to $2.5 billion. Within the segment, QuickBooks Online Accounting revenue jumped 22%, benefiting from higher effective prices, customer growth, and mix-shift. Online Services revenue grew 15%, driven by money—which includes payments, capital, and bill pay—as well as payroll. Total international online revenue grew 10% on a constant currency basis.

Balance Sheet and Capital Allocation

Intuit ended the quarter with $6.8 billion in cash and investments against $6.2 billion in debt, repurchased $1.6 billion worth of stock during the quarter, and authorized an additional $8 billion share repurchase program. The board also approved a quarterly dividend of $1.20 per share, marking a 15% year-over-year increase.

Alongside its earnings, Intuit made an announcement that it is cutting its full-time workforce by 17% in an effort to simplify its organizational structure. The move to make the company "faster, leaner, and more focused" is expected to result in restructuring charges of approximately $300 million to $340 million, most of which will hit the books in the fourth fiscal quarter.

Looking Ahead: Raised Full-Year Guidance

Intuit raised its fiscal 2026 guidance across revenue and all non-GAAP metrics. The company now expects annual revenue between $21.341 billion and $21.374 billion, representing growth of approximately 13% to 14%. Non-GAAP diluted EPS is projected to reach between $23.80 and $23.85, reflecting expected growth of approximately 18% for the full fiscal year.

Intuit expects fourth-quarter revenue growth of approximately 11% to 12%, while forecasting GAAP diluted EPS between $0.73 and $0.79 and non-GAAP EPS between $3.56 and $3.62. Guidance for GAAP metrics includes the anticipated restructuring charges tied to workforce reductions.

INTU Stock Technical Analysis

From a technical perspective, Intuit stock now faces several important resistance levels after its post-earnings collapse. In the short term, $385 serves as a vital near-term boundary. If shares successfully reclaim and hold above that mark, the next key resistance zone sits near $425. Over the medium term, resistance is located around $510, while the longer-term resistance level stands near $609.