Why Intuit’s 15% Revenue Growth and AI Innovation Make It a Market Standout

Intuit Inc (NASDAQ:) shares are surging today following exceptional third-quarter results that beat expectations across all key metrics. The TurboTax and QuickBooks parent company delivered revenue growth of 15%, raised full-year guidance significantly, and demonstrated robust momentum in its AI-powered services, particularly TurboTax Live and Credit Karma.

Intuit’s Exceptional Q3 Performance Drives Optimistic Outlook, Reveals AI Impact

Intuit delivered a standout third quarter that exceeded expectations across virtually every metric, prompting CEO Sasan Goodarzi to declare it “an exceptional quarter with revenue growth of 15%, driven by outstanding performance across our platform.” The results reflect the company’s successful integration of artificial intelligence across its product suite and strong execution during the critical tax season.

Revenue jumped to $7.75 billion from $6.74 billion in the prior year, representing 15% growth that significantly outpaced analyst expectations of $7.57 billion. Non-GAAP earnings per share of $11.65 beat estimates by $0.72, demonstrating the company’s ability to drive both top-line growth and operational efficiency. GAAP operating income surged 20% to $3.7 billion, while non-GAAP operating income grew 17% to $4.3 billion.

The Consumer Group, which includes TurboTax, posted revenue of $4.0 billion, up 11% year-over-year. The standout performer was TurboTax Live, where AI agents and experts support customers through the tax preparation process.

This “done-for-you” service is expected to see revenue growth of 47% for the full year, with customer growth of 24%. CEO Goodarzi highlighted that their “done-for-you experiences drove a 12% reduction in the average time a customer spent on their return with more than half of our do-it-yourself and do-it-with-me customers completing their return in under one hour.”

Global Business Solutions Group demonstrated consistent strength with 19% revenue growth to $2.8 billion, driven by 20% growth in Online Ecosystem revenue (24% excluding Mailchimp). QuickBooks Online Accounting revenue rose 21%, while online payment volume grew 18%, indicating healthy momentum in the small business segment.

Perhaps most impressive was Credit Karma’s remarkable turnaround, with 31% revenue growth in Q3 reaching $579 million. This dramatic improvement from previous quarters prompted management to raise full-year Credit Karma revenue growth guidance from 5-8% to 28%, signaling sustained momentum in the credit and financial services vertical.

AI Innovation and Raised Guidance Signal Strong Future

Intuit shares are trading at $721.00 in premarket, up $54.93 or 8.25% from the previous close of $666.07. This represents a significant move higher for a stock with a market capitalization of approximately $186 billion, reflecting strong investor enthusiasm for the company’s results and forward-looking guidance.

The premarket surge extends Intuit’s year-to-date gains to over 14%, significantly outperforming the S&P 500’s decline of 0.67%. Over the past three years, Intuit has delivered impressive returns of 84.80% compared to the S&P 500’s 49.74%, demonstrating consistent outperformance driven by the company’s successful digital transformation and market leadership in financial software.

Management’s confidence was evident in significantly raised full-year guidance. Intuit now expects fiscal 2025 revenue growth of 15%, up from previous guidance of 12-13%. The company also raised adjusted earnings per share guidance to $20.07–$20.12 (18-19% growth) from previous expectations of 13-14% growth. For Q4 2025, management provided strong guidance calling for revenue of $3.72–$3.76 billion versus analyst expectations of $3.54 billion.

A key driver of the optimistic outlook is Intuit’s aggressive deployment of AI technology across its platform. CEO Goodarzi announced a “refreshed end-to-end platform that completes key jobs all in one place with a virtual team of AI agents doing much of the work side by side with our customers.” The company plans to introduce new product lineups and pricing in the coming weeks, suggesting potential for additional revenue streams from AI-enhanced services.

The company’s strategic positioning appears particularly strong given over 90% of revenue is subscription-based, providing predictable recurring income.

Management characterizes Intuit as a “price disruptor” in the market, suggesting pricing power that could drive future margin expansion.

***

Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

This article was originally published on The Tokenist. Check out The Tokenist’s free newsletter, Five Minute Finance, for weekly analysis of the biggest trends in finance and technology.