Intuit Q4 FY2026 Earnings Call - Shifting Focus to New Customer Acquisition Amid DIY Tax Erosion

Beau, Conference Operator, Intuit: Good afternoon, ladies and gentlemen. My name is Beau, and I will be your conference operator today. At this time, I would like to welcome everyone to Intuit’s fourth quarter and fiscal year end 2026 conference call. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks, there will be a question and answer period. If you would like to ask a question during this time, simply press star then the number 1 on your telephone. If you would like to withdraw your question, press star 2. With that, I’ll now turn the call over to Ms. Kendra Goodenough, Intuit’s Vice President of Investor Relations. Please go ahead, ma’am.

Kendra Goodenough, Vice President of Investor Relations, Intuit: Good afternoon, and welcome to Intuit’s fourth quarter fiscal 2026 conference call. I’m here with Intuit’s CEO, Sasan Goodarzi, and our CFO, Sandeep Aujla. Before we start, I’d like to remind everyone that our remarks will include forward-looking statements. There are a number of factors that could cause Intuit’s results to differ materially from our expectations. You can learn more about these risks in the press release we issued earlier this afternoon, our Form 10-K for fiscal 2025, and our other SEC filings. All of these documents are available on the investor relations page of Intuit’s website at intuit.com. We assume no obligation to update any forward-looking statement. Some of the numbers in these remarks are presented on a non-GAAP basis. We’ve reconciled the comparable GAAP and non-GAAP numbers in today’s press release.

Unless otherwise noted, all growth rates refer to the current period versus the comparable prior year period, and the business metrics and associated growth rates refer to the worldwide business metrics. A copy of our prepared remarks and supplemental financial information will be available on our website after this call ends. With that, I’ll turn the call over to Sasan.

Sasan Goodarzi, Chief Executive Officer, Intuit: Thanks, Kendra, and thanks to all of you for joining us today. We closed fiscal year 2026 with solid results. Full-year revenue grew 14%, and we expanded operating margin again this year. This drove full-year GAAP and non-GAAP diluted earnings per share growth of 20% for both. Our big bets, Assisted Tax, Money, and Mid-Market, collectively grew 34% and represented 30% of full-year revenue. At the same time, our results highlighted areas where we need to further evolve. Namely, in key parts of our business, we need to grow new customers at a faster pace. As we enter fiscal year 2027, we are deliberately shifting our execution and investments towards accelerating customer acquisition and market share growth, while continuing to scale the areas of the business that are working well. We have already taken decisive action.

We are sharpening our product and lineup strategy to accelerate new customer growth while continuing to scale our big bets and increase adoption of platform services. These actions are designed to strengthen our competitive position and set Intuit up for durable growth over time. Today, I will cover the opportunities we see ahead, the changes that we are making to capture them, and our progress to date. I have a great deal of conviction in our strategy to win as an AI-driven expert platform by creating a unified financial system of intelligence. We bring together decades of trusted proprietary data, deep financial and industry expertise, and domain-specific models built for accuracy and compliance to increasingly do the work for our customers and help them achieve better outcomes.

Our innovation is creating a future where consumers, businesses, and accountants can simply approve financial decisions or collaborate with a brilliant virtual team of AI and human experts while our platform works around the clock to power their prosperity. This is always-on financial intelligence. Our three big bets define where we are concentrating our focus, scale done for you experiences, putting money at the center of everything we do, and win in the mid-market. We are executing with greater speed against these two clear outcomes, grow new customers to capture market share, and increase adoption of platform services to drive higher ARPC. For businesses and accountants, we are helping them grow and run their businesses end to end, from accounting and human capital management to payments, QuickBooks Bill Pay, financing, and marketing automation. Across our business platform, that translates into a clear growth strategy.

Bring more new customers onto the platform, from early entrepreneurs to mid-market businesses, and grow with them over time as they adopt more services and their needs become more complex. In fiscal year 2026, we prioritized scaling our mid-market and money offerings focused on delivering greater value to our existing customer base. That delivered meaningful progress with revenue from our online money portfolio growing 31% and mid-market revenue growing 39%. That growth demonstrates the value that we are creating for existing customers as their needs become more complex. The opportunity now is to complement this strength by accelerating new to the franchise growth. Total online paying customers were 8.9 million at the end of fiscal year 2026, growing 3% year over year, which is about two points lower growth than in the prior year.

As we enter fiscal year 2027, we are broadening our focus to acquire significantly more new to franchise customers to increase our market share while scaling our big bets to position the business platform for re-acceleration over time. A key component of our new to franchise strategy is widening the front door with QuickBooks Free and QuickBooks Lite. These offerings create low-friction entry points to reach millions of businesses earlier in their journey and build a relationship with them from the start. We recently introduced QuickBooks Free, and early results are encouraging. As of last month, we had more than 20,000 customers either actively using QuickBooks Free or who had converted to paid offerings with monetization driven by payments adoption and upgrades to more comprehensive offerings. This is the model we intend to scale, acquire more new customers earlier, and grow with them as their needs become more complex.

That model becomes even more valuable as customers grow in the mid-market, a nearly $90 billion total addressable market. Our progress in the mid-market has been strong and gives us a clear opportunity to broaden the sources of growth. Mid-market customers grew 28%, with roughly three-quarters of the additions coming from upgrades or desktop migrations. This reflects our success moving existing QuickBooks customers into higher value offerings, with our go-to-market emphasis weighted towards our existing base. As we enter fiscal year 2027, we are deliberately increasing investment in direct new to the franchise acquisition to expand our reach and broaden the sources of mid-market growth. We have tangible proof points that give us confidence in our ability to accelerate direct acquisition. New to the franchise mid-market customers grew over 30% this year, and Intuit Enterprise Suite annualized revenue surpassed $145 million in Q4, a 4x increase from last year.

Our industry specific approach is also attracting new customers. The launch of Construction Edition drove an incremental 19 points of growth in QuickBooks Online Advanced customer editions in construction, while new Intuit Enterprise Suite contracts in construction increased 20%. These results demonstrate that industry specific innovation can be a meaningful new customer growth lever, and we are moving quickly to scale this approach across more verticals. Accountants are another important part of scaling our mid-market new customer pipeline. This year, they drove 25% of our new Intuit Enterprise Suite contracts. To strengthen our network effect, this month we launched breakthrough AI native innovation in Intuit Accountant Suite, bringing together practice management, portfolio-wide insights, books close, and tax workflows in one experience. Accountants using Intuit Accountant Suite report spending nearly 30% more of their high-value time on advisory work, and over 150,000 accountants are already on Intuit Accountant Suite platform.

Together, these proof points give us confidence in our ability to expand our reach in the mid-market, not only by growing with businesses already on the platform, but by bringing significantly more new customers directly into the franchise. What makes this opportunity especially powerful is one unified financial platform serving businesses and accountants across their journey. From an entrepreneur just getting started to a complex mid-market business, we can bring customers onto the platform, solve more of their needs over time, and help them run more of their business in one place. The more businesses and accountants we bring together on the platform, the stronger the network becomes, driving greater engagement, customer growth, and adoption of services while creating more value for both sides. A foundational part of that advantage is Intuit Intelligence.

Powered by our financial system of intelligence, it brings done for you experiences to life, moving us beyond software that simply records transactions to a platform that increasingly does the work for our customers. Intuit Intelligence combines the context of a customer’s financial life and data with our deep domain and industry expertise, advanced models, and workflows built for accuracy and compliance. It understands what is happening in a customer’s business, anticipates what needs attention, and turns insight into action. It keeps books current, surfaces anomalies, forecasts cash flow, performs scenario planning, and initiates workflows to get work done on their behalf while bringing in human expertise when needed. The early proof is encouraging. Millions of customers are using our AI native experiences, getting paid four days faster and reducing manual work by 30%.

And among more complex businesses, over 75% of Intuit Enterprise Suite customers use our AI agents every month to keep their books current, automate transaction work, and close faster. Our focus now is to scale that value across a much larger customer base. As our customers grow, we have the opportunity to grow with them by managing more of their financial and workforce needs in one place. Money and workforce help us deliver that value while creating a significant opportunity to deepen customer relationships as they adopt more services and drive higher ARPC over time. We are seeing strong evidence of this today with significant opportunity ahead. Businesses manage over $2.7 trillion in invoices through QuickBooks every year, and total online payment volume, including bill pay, grew 30% to more than $225 billion for the full year. As customers grow with us, they adopt more of the platform.

QuickBooks Online Advanced U.S. customers have a 13 point higher payroll penetration rate and a nine point higher payment penetration rate than core QuickBooks Online customers. This demonstrates the opportunity to grow the value of a customer relationship over time by solving more of their needs on one platform. We continue to expand that opportunity by putting money at the center of the platform. Our recent launch of the Intuit Business Credit Card brings another critical financial capability directly into QuickBooks experience, creating more opportunities to deepen engagement and drive additional value for customers. As we look ahead, our priorities across the business platform are clear.

We will widen the front door with QuickBooks Free and QuickBooks Lite to accelerate new to the franchise customer growth, continue to expand our reach and momentum in mid-market, scale consumption and engagement of Intuit Intelligence, and drive greater adoption of money and workforce services. Our focus is to execute against both sides of the equation, bringing more customers onto the platform and growing the value of those relationships over time to expand market share, drive higher ARPC, and position the business platform for durable long-term growth. Now shifting to our consumer platform. Revenue grew 11% this year, and we are seeing strong growth across assisted tax, personal finance, and money. At the same time, we lost quality DIY customers to lower cost providers. I will unpack that shortly.

We now understand what needs to change, and our focus is to rebuild that customer funnel while continuing to scale the areas where we are seeing strong momentum. Our growth opportunity is to use TurboTax and Credit Karma as powerful entry points to bring more consumers into the platform, grow our share of total IRS e-filers, and deepen those relationships across their financial lives to drive higher platform ARPC over time. Our financial system of intelligence enables us to do that by helping consumers make smarter financial decisions year-round, whether connecting them to the right credit cards, personal loans, auto loans, home loans, and insurance, helping them manage their money or filing their taxes. We are already having significant scale to build from.

This year, we helped customers file 39 million tax returns, facilitated over $120 billion in tax refunds, and leveraged more than 70,000 tax and financial attributes per consumer to deliver deeply personalized experiences. We see significant opportunities to expand the value of these relationships. Today, approximately one out of every nine credit card and personal originations in the U.S. comes through our AI-powered platform. Over the last two years, our share increased approximately three points in credit cards and four points in personal loans as we gained share with both consumers and financial platform partners. Revenue for our personal finance key growth offerings, insurance and home loans, grew 44% this year, while connected financial accounts grew 104%. Consumer money revenue grew 26%, and we delivered more than $29 billion in fast money refunds this tax season, up 79%. This is the power of one consumer platform.

The more customers engage with us across their financial lives, the more context we have to deliver personalized value, and the more opportunities we have to grow the relationship beyond a single tax transaction. Let me address how we’re evolving our tax growth model. Historically, our DIY model optimized for tax revenue and ARPC through pricing and upgrading customers into higher value offerings over time. That model worked for many years, but the market has changed. Consumers have more low-cost alternatives, and we lost quality DIY customers to low-cost providers this year. Price is now the number one reason customers leave TurboTax. We now know what needs to change, and we are already putting that plan into action to rebuild the DIY funnel and grow our share of total IRS e-filers.

We are making the entry experience more competitive and clear on price and expanding the distribution so customers can discover and access TurboTax where they already are, including through leading LLM experiences and new payroll provider partnerships. We are also fundamentally reinventing the tax experience with AI and expect to deliver a completely AI-native experience for the vast majority of tax situations, from document-first intake that dramatically reduces the work of filing, to a copilot that can take action directly on the return and seamlessly hand off to an expert with full context, while credit, deduction, and compliance agents help customers maximize their outcomes with greater accuracy. This approach also changes how we think about the economics of the customer relationship.

This means we are deliberately accepting lower initial DIY tax ARPC to acquire and retain more quality customers, grow e-file share, and create greater lifetime value as they engage across the consumer platform. We know the value of winning these customers extends far beyond the tax return. Customers using both TurboTax and Credit Karma generate approximately twice the average revenue per customer of a single product customer, and Credit Karma members filing through TurboTax grew more than 50% this year. These results demonstrate the opportunity to monetize consumer relationships beyond tax. Our focus now is to turn the changes we are making to pricing, packaging, and distribution into significantly more quality DIY customers entering the franchise. DIY is also an important funnel into assisted tax, one of the largest opportunities and approximately 88% of TurboTax’s total addressable market.

We’re disrupting this category with an AI-native virtual experience that combines the speed and productivity of AI with something customers deeply value and AI cannot replace, a trusted human expert who reviews, signs, and takes accountability for their return. Our ability to deliver that human accountability efficiently at scale, together with competitive pricing and compelling year-round benefits, is a powerful differentiator. TurboTax Live customers grew 38% this year. Over the last two years, we’ve been very successful in helping existing DIY customers realize the value of assisted. More than three-quarters of TurboTax Live customer additions in fiscal year 2026 came from DIY upgrades into Live. While this demonstrates the value of our assisted offers, the mix also makes it clear where our next opportunity lies. Looking ahead, we expect DIY upgrades to moderate from these strong levels and more of our assisted growth to come from new-to-the-franchise customers.

We saw encouraging progress this year with new-to-the-franchise customers in Live growing 15%. We’re investing to accelerate that growth by expanding our local efforts through targeted customer outreach, improved digital discoverability, and referral programs while remaining competitive on price and scaling our AI-native platform to help experts serve more customers with greater efficiency. At the same time, rebuilding the DIY funnel gives us a larger pool of customers we can serve as their needs become more complex. Taken together, our priorities across the consumer platform are clear. Rebuild and grow the DIY funnel with a more competitive price-value equation, accelerate new to the franchise growth in Assisted, use TurboTax and Credit Karma to bring more consumers onto the platform, and deepen engagement across money and personal finance to grow platform ARPC.

Our focus is on both sides of the equation, bringing more customers into the franchise and creating greater value from those relationships over time to position the consumer platform for durable growth. Let me close with this. This is an important moment for Intuit. We finished fiscal year 2026 with strong momentum across our big bets, while our results also highlighted where we need to accelerate progress, particularly in growing new customers. We understand the gaps, we have a clear plan to address them, and we’re already taking decisive action. Fiscal year 2027 is about executing this plan with speed and discipline. We are making deliberate investments today to strengthen our competitive position, accelerate customer growth, and position Intuit for durable growth and re-acceleration into the future. We know what we need to deliver, and we will hold ourselves accountable for the progress.

With that, let me turn it over to Sandeep.

Sandeep Aujla, Chief Financial Officer, Intuit: Thank you, Sasan. Our fiscal 2026 results include total revenue growth of 14% and GAAP and non-GAAP operating income growth of 20% and 18%, respectively. Our full year GAAP and non-GAAP diluted earnings per share each grew 20%. Our fourth quarter results include revenue of $4.4 billion, up 14%, GAAP operating income of $475 million versus $339 million last year, non-GAAP operating income of $1.4 billion, up 43%, GAAP diluted earnings per share of $1.34 versus $1.35 last year, and non-GAAP diluted earnings per share of $4.03, up 47%. Now, let me turn to the business segment results. Starting with the Global Business Solutions segment. We continue to make progress serving businesses with our all-in-one business platform and Intuit Intelligence, delivering done-for-you experiences powered by AI and human expertise. GBS revenue grew 16% for the full year, in line with expectations.

When excluding Mailchimp, GBS grew 15% during the quarter and 18% for the full year. Online ecosystem revenue, excluding Mailchimp, grew 20% for the quarter and 23% for the year. We saw continued momentum in mid-market again this quarter, with online ecosystem revenue for QuickBooks Online Advanced and Intuit Enterprise Suite growing 38%. Online ecosystem revenue for small businesses and the rest of the base grew 14% this quarter. Our overall growth in online ecosystem revenue was driven by strength across both online accounting and online services. QuickBooks Online Accounting revenue grew 20% in Q4, driven by higher effective prices, customer growth, and mix shift. For the full year, revenue grew 23%. Online services revenue grew 15% in Q4, or 21% excluding Mailchimp, driven by Money and Payroll. For the full year, revenue grew 16%, or 24% excluding Mailchimp.

Within Money, Q4 revenue growth was driven by payments, Capital, and Bill Pay. For payments, revenue growth reflects an increase in total payment volume per customer growth, and higher revenue yield. We also had a one-time benefit from services provided to a new partner during their launch. This partnership will contribute to ongoing Money growth. Total online payment volume, including Bill Pay, grew 32% in Q4, reflecting our continued momentum in payments and adoption of our Bill Pay offering. Online payment volume growth, excluding Bill Pay, was 21%. In Capital, revenue growth continues to be driven by working capital loans to small businesses. Loan volume through QuickBooks Capital increased 54% to $1.9 billion this quarter. The Q4 deceleration in Capital revenue growth is due to a deliberate increase in the mix of loans we sell through our forward flow partners, which have a lower revenue yield.

Within Payroll, Q4 revenue growth reflects mix shift, customer growth, and higher effective prices. For Mailchimp, Q4 revenue was down slightly year-over-year. As shared in our press release today, Mailchimp will be a separate reportable segment beginning in fiscal 2027. As you heard from Sasan, customer growth is a key part of our strategy, and we understand the need to accelerate growth. Total online paying customers grew 3%, and U.S. QuickBooks Online customers grew 6%, excluding self-employed. In mid-market, we saw 28% growth in combined QuickBooks Online Advanced and Intuit Enterprise Suite customers. Upgrades within our existing franchise will remain an important part of mid-market growth as customer needs become more complex. At the same time, we are increasing focus on new to the franchise customer growth to expand market share and broaden the sources of durable growth over time.

Online ecosystem ARPC growth continued to accelerate in FY 2026 to 15%, driven by strong adoption of our online services, including adoption by mid-market customers, as well as value-based pricing for expanded and enhanced offerings. Turning to Desktop. Desktop ecosystem revenue grew 3% in Q4 and 6% for the full year. For QuickBooks Desktop Enterprise, revenue grew 4% in Q4 and 11% for the full year, with Q4 deceleration driven by more customers migrating to QBO Advanced given its compelling product capabilities. Now turning to our consumer segment. Q4 consumer segment revenue was $930 million, growing 14%, and for the full year, growth was 11%. TurboTax revenue grew 7% for the full year, driven by momentum in the assisted category. TurboTax Live revenue grew 37% for the full year, while customers grew 38%.

We are pleased with the progress against our big bet to deliver done-for-you experiences to customers with a unique combination of AI and AI-driven human expertise. The growing success of our local expert strategy this year sets a strong foundation to build on next year. For DIY, we are clear on the need to evolve our business model and to better serve customers with our all-in-one platform, engaging them year-round to support smarter financial decisions. ProTax Group revenue was $647 million in FY 2026, up 4%. Credit Karma revenue grew 16% in Q4 and 20% for the full year. For the quarter, growth was driven by personal loans, auto insurance, and credit cards. Shifting to our balance sheet and capital allocations. Our financial principles guide our decisions, and they remain our long-term commitment.

We finished the quarter with $7.2 billion in cash and investments and $7.7 billion of debt on our balance sheet. In June, we issued $1.75 billion in senior notes, which further strengthens our liquidity to address debt maturing in FY 2027. We significantly increased our share repurchases in FY 2026, with $2.1 billion of stock repurchased during the fourth quarter, an increase of 179% compared to the same period last year. For the full year, share repurchases were $5.5 billion, up 96% versus last year. These repurchases drove a 2% reduction in weighted average diluted shares outstanding as we more than offset dilution from share-based compensation. This acceleration reflects our strong conviction in Intuit’s long-term growth opportunity, and we expect share repurchases to remain a significant component of our capital allocation strategy in FY 2027 and beyond.

The board approved a quarterly dividend of $1.38 per share, payable on October 16, 2026. This represents a 15% increase versus last year. Now, before I move to guidance, I want to share two reporting changes we are making effective August 1, 2026. First, as we are now managing Mailchimp as a separate operating segment from Global Business Solutions, Mailchimp will be a separate reportable segment beginning in FY 2027. Second, share-based compensation expenses will no longer be excluded from our non-GAAP financial measures. We view share-based compensation as a recurring component of our compensation program and believe including this expense in our non-GAAP financial measures reflects our core operating results. It also reinforces our focus on managing all expenses and driving operating leverage over time.

Our fiscal 2027 and Q1 guidance reflect both of these changes, and additional information can be found on a fact sheet posted on our investor relations website. Turning to our fiscal 2027 guidance. Our guidance reflects deliberate choices to accelerate customer growth, increase market share, and strengthen the long-term durability of our growth model. As a result, along with dynamics across our businesses that I will walk through, we expect total company revenue growth to decelerate in fiscal 2027. Therefore, for fiscal 2027, we expect total company revenue of $23.279 billion to $23.512 billion, or growth of 9%-10%. The deceleration from the prior year is primarily driven by Desktop Ecosystem, TurboTax, and Credit Karma. We expect Global Business Solutions segment revenue growth of 13%-14%.

For Online Accounting and Online Services, we will continue to increase customer value and deepen engagement, with growth driven by ARPC expansion due to higher effective prices and increased adoption of services. Online accounting growth includes continued upgrades as customers’ needs become more complex, along with higher effective prices. At the same time, we are increasing our focus and investment in new to the franchise customers to broaden the sources of growth over time. Online services growth will continue to benefit from growth across Money and Payroll, partially offset by moderation in capital revenue growth as we increase the mix shift to loans we sell through our forward flow partners, which have a lower revenue yield.

For Desktop Ecosystem, we expect revenue to decline in the low single digits, primarily due to continued migration of customers to online offerings, including QBO Advanced, where we can better serve their increasingly complex needs. We expect Consumer segment revenue growth of 4%-6%. TurboTax revenue growth will be 2%-3%. Our guidance reflects the deliberate actions we are taking to improve the price-value equation in DIY, grow quality customers, and increase our share of total IRS filers while continuing to scale Assisted Tax. These actions result in lower tax ARPC in fiscal 2027, but are designed to strengthen the customer funnel and create greater value across the consumer platform over time. Our TurboTax guide assumes total IRS filers remain flat year over year.

TurboTax Live revenue growth should be mid-teens with a deceleration due to fewer DIY upgrades to Assisted Tax following strong success over the last two years, as Sasan noted. We are focused on accelerating the growth of new-to-the-franchise customers, given this is critical for durable long-term growth. Credit Karma revenue growth should be 11%-13% as we continue to increase engagement and therefore monetization across the platform. Our guidance reflects a prudent stance on the pace at which we expect to continue gaining share of partner demand following the strong growth in fiscal 2026. Workday’s revenue growth should be approximately 2%, and we expect Mailchimp revenue growth to be flat to down 1% year over year, with higher effective prices expected to offset the increased churn. As we realigned our internal structure under which Mailchimp is managed, we are focused on maximizing its value and delivering strong profitability.

Now to operating margin. We expect margin expansion driven by savings from workforce changes announced last quarter and continued efficiency gains both in how we serve our customers and how we work. We expect those savings to be partially offset by deliberate choices we are making this year to increase investments in areas such as sales and marketing as we focus on growing our new-to-the-franchise customers as well as product innovation. GAAP diluted earnings per share is expected to be $20.12-$20.36, or a growth of 22%-24%, and non-GAAP diluted earnings per share is expected to be $22.88-$23.12, or growth of 23%-24%. This includes a $5.81 impact from shared-based compensation expenses. We expect a GAAP tax rate of approximately 27% in fiscal 2027.

For the first quarter of fiscal 2027, we expect total company revenue growth of approximately 11%, GAAP diluted earnings per share of $1.71-$1.75, and non-GAAP diluted earnings per share of $2.44-$2.48, inclusive of a $1.48 impact from shared-based compensation expenses. You can find our full fiscal 2027 and Q1 guidance details in our press release and in our fact sheet. As we enter the year, we are operating with a relentless focus on execution against the priorities we have laid out today. As we look beyond fiscal 2027, our goal is to be a durable double-digit revenue growth company over the long term. The actions we are taking now are designed to strengthen the durability of our growth model. This will ensure we have all levers for growth available, volume, mix, and price.

But we are being prudent in the contribution we are seeing from each in our long-term expectations. Additionally, we are providing long-term expectations at the segment level only, as this allows us the flexibility to lean into investments where we see momentum and can therefore scale the most successful growth initiatives. First, the Global Business Solutions segment. We expect revenue to grow at a CAGR of 10%-15% over the next three years. As noted, we are being prudent on the contribution we are seeing for each lever of growth while focusing on strengthening the durability of our model. Growth will continue to be driven by online ecosystem, including scaling our mid-market business and increasing adoption of our money and workforce services. Next, the consumer segment. We expect revenue to grow at a CAGR of 4%-8% over the next three years.

Growth will be driven by increasing share of IRS e-filers, scaling Assisted Tax as we grow new-to-the-franchise filers, and driving consumer platform ARPC growth as we increase engagement of our personal finance offerings. Disciplined capital allocation has long been core to how we run the company, and that will remain true in the years ahead. We are focused on investing with conviction in the highest return growth opportunities while continuing to drive efficiency across every business. We are committed to delivering margin expansion at the company level, even as the mix shifts to our services that include more AI capabilities and human expertise, given our operating discipline, efficiency gains, and shared-based compensation expense leverage. For share-based compensation, we committed last year to lower the percentage of revenue by at least one point over three years. We are on track to be at 9% of revenue by fiscal 2028.

While share-based compensation continues to be an important recruiting and retention tool for top talent, we will scale this cost at a slower rate than revenue. Today, we are furthering our commitment. We now expect share-based compensation as a percentage of revenue to be 8% by fiscal 2030. Lastly, we remain committed to delivering annual non-GAAP EPS growth of at least high teens over the coming years. This commitment has been updated due to the inclusion of stock-based compensation expenses, as noted earlier. With that, I’ll turn it back over to Sasan.

Sasan Goodarzi, Chief Executive Officer, Intuit: Thank you, Sandeep. We’re laser focused on the areas where our execution did not meet our expectations, particularly in new customer growth, while continuing to scale the big bets that are driving our momentum. Our priorities are clear, the organization is aligned, and we are executing with discipline to deliver measurable progress in fiscal year 2027. Intuit has navigated periods of significant transformation before, and each time we have emerged stronger by staying relentlessly focused on the customer and moving with speed. This moment gives us the same opportunity. I have tremendous belief in our team. We have the best people in the industry, and I know what we can achieve when the entire company is aligned on what matters most and moving with conviction. This is how we’re operating in fiscal year 2027.

I’m energized by what’s ahead and by what the team can accomplish for our customers and our shareholders. We look forward to going deeper at Investor Day next month. With that, let’s turn it over to your questions.

Beau, Conference Operator, Intuit: Thank you very much, Mr. Goodarzi. Ladies and gentlemen, at this time, if you would like to ask a question, please press star then the number one on your telephone. If you would like to withdraw your question, press star two. We ask that you please limit yourself to one question as we’d like to get to as many people as we can. We’ll go first this afternoon to Brad Zelnick with Deutsche Bank.

Brad Zelnick, Analyst, Deutsche Bank: Great. Thank you so much for taking the question. Sasan and Sandeep, I appreciate your taking the opportunity to rebase the business in FY 2027, focus on new customer acquisition, and set up for an even brighter future. What supports your confidence that this year is in fact the bottom of the J curve and that you are not experiencing some structural change perhaps brought on by AI? Thank you.

Sasan Goodarzi, Chief Executive Officer, Intuit: Yeah, Brad, thanks for your question. I think the place I would start is, I am resetting expectations for the company, because this is the perfect time to do it where we can play offense. It comes down to two things. One, we are going to continue to scale our bets. They will continue to be the fastest growing parts of the company. Even within our big bets, we are going to really double down on acceleration of new to the franchise. At the same time, with all of our AI investments we are making to make our experiences far better, we are really doubling down in core areas where I am personally dissatisfied and hold myself accountable for the lack of performance, which is DIY tax, and on the low end in the business group. I would just tell you that, Brad, it is important to go back to history.

When you think years past, we were very focused on market share gains and new customer acquisitions. In TurboTax, we were growing customers double digits. In the business group, we were growing customers north of 20%. We had to shift to really focus on building this agentic platform that we have built out to become the financial intelligence layer for our customers and really focusing our capital, our mind share, on three bets, assisted tax, money, and mid-market. That is 30% of the company growing 34%. Going forward, we are going to do both, and we know how to do both. When we focus on the company on achieving the outcomes we set out to achieve, we have always demonstrated that we can achieve it.

I think what is very different is now we have a platform with a lot more services, a consumer platform with a lot more services, a business platform with a lot more services, serving new areas like assisted tax and mid-market. I think with the focus on scaling big bets, with the focus on taking market share, particularly by the way where in the future disruption can in fact come from AI, we will be the disruptor. I am eager to demonstrate that in the coming year. That is our approach. It all comes down to stay true in execution. I would just say stay tuned.

Kendra Goodenough, Vice President of Investor Relations, Intuit: Thank you, Brad. Next question, please.

Beau, Conference Operator, Intuit: Certainly. We will go next now to Kirk Materne of Evercore ISI.

Kirk Materne, Analyst, Evercore ISI: Yeah. Thanks very much, and I appreciate the color on the forward guidance. Sasan, I assume I am going to get some questions on, is there a slippery slope in price for tax? Meaning, it makes a lot of sense to go after and to be aggressive at the DIY market from a price perspective. But, does that cut into your ability to take price in the assisted market? I realize you are more the price disruptor in that market, but I was just kind of wondering if you could walk us through that just to make sure we have a sense of why changing the strategy of the low end does not also bleed up to maybe how to change the strategy in the high end as we look out a couple of years. Thanks.

Sasan Goodarzi, Chief Executive Officer, Intuit: Yeah, sure, Kirk. Let me take your questions as you stated it. The market structure and the consumer behavior is very different, in the assisted versus DIY. It comes down to one very, very important and simple thing, and that is those that choose to have somebody else do their taxes for them are looking for someone to own the review, own the signature, and own the accountability of the review. In that market, we have built out a virtual expert platform where what you have to be great at is scaling humans. We have done that with AI, and so we can now do anybody’s taxes for them at a very competitive price, and we now have the consumer platform benefits across money, across financial products, to monetize beyond tax. From a structure of the market, assisted is very different than DIY.

I think if I go to DIY, the reason we are changing our approach is because we have lost quality customers, DIY customers, to low-cost providers. We have demonstrated that we can deliver benefits and monetize across the consumer platform. When you look at what we just talked about a moment ago, the customers that use both TurboTax and Credit Karma, their ARPC is twice what it is if you only use one product, and those customers grow 50%. What we want to do is really double down on winning, at the right price entry point in DIY tax because we know we can deliver benefits and monetize across the consumer platform. Also remember, by acquiring these customers, we can grow with them over time. Three-fourths of our TurboTax Live customers actually came from DIY.

We have demonstrated the ability to deliver benefits and monetize, and for us, it is actually a proven model. Now we can do both. Not only serve assisted and win, which is 90% of the total addressable market, but make sure that our top of the funnel, which is DIY, is very strong, and that is the choice that we are making strategically.

Kendra Goodenough, Vice President of Investor Relations, Intuit: Thank you, Kirk. Next question, please.

Beau, Conference Operator, Intuit: We will go next now to Raimo Lenschau with Barclays.

Raimo Lenschau, Analyst, Barclays: Hey, thank you. I get all the comments on tax on the GBS business. This time last year, we talked about 15%-20% growth in the long run. Today, we are talking 10%-15%. The one question I am getting from a lot of investors, is that pressure from new entrants coming in there, or what is driving the big delta there? Could you just clarify that a little bit? Thank you.

Sasan Goodarzi, Chief Executive Officer, Intuit: Yeah, sure. We are creating the pressure. We are not being pressured to make the change. The way I would talk about it is, one, a lot of our growth in the business group is actually coming from mid-market. We grew 39%, new customers grew 28%, or overall customers grew 28%. New customers to the franchise grew over 30%. Mid-market customers are really important because of the adoption of services. When we look at our QuickBooks Online Advanced offering, which is in the mid-market, payroll penetration and payments penetration are 12 to 9 points higher. So one, we want to continue to scale mid-market. We want to continue to drive the adoption of our services.

Because of all of our AI-native investments that we have made to become truly an AI-native ERP and serving both sides of the network, both the accountant and businesses, we want to continue to scale that. We want to continue to accelerate. This has, by the way, taken years of work to be able to position our platform, both from a product standpoint and a go-to-market standpoint, to be able to serve mid-market. We now want to double down in the area where we were not as focused as we need to be on new customer acquisition. I want to give my team, I want to give the company flexibility to make sure that we are competitively positioned in the low end with all of the investments that we are making across AI to truly become the financial business intelligence layer.

I want to make sure that we win these customers at the low end. Frankly, with a trusted brand like us, with a great product, winning customers in the low end, I can grow with them over time. I want to reset expectations of a franchise that can grow 10%-15% to give my team, give the company the opportunity not only to scale mid-market, but to accelerate customer growth and accelerate market share. I will remind you of the day-

Beau, Conference Operator, Intuit: Ladies and gentlemen, thank you for standing by. We apologize for that technical difficulty. At this time, our speakers are back in conference. Please proceed.

Kendra Goodenough, Vice President of Investor Relations, Intuit: We’ll hand it back over to Sandeep to finish the response to that question.

Sandeep Aujla, Chief Financial Officer, Intuit: Hi, Raimo. I was going to add a couple of factors to complement what Sasan shared about the GBSG long-term 10%-15%. Just a reminder to also keep in mind that desktop is nearly a quarter of the GBSG business, and that is an ecosystem we expect is going to be declining. But outside of the desktop, the areas that you have to underwrite for confidence in the GBS, the mid-market, all ecosystem, they continue to grow at a very strong momentum as we shared.

Kendra Goodenough, Vice President of Investor Relations, Intuit: Thank you for the question, Raimo, and Bill, we’ll go to the next question, please.

Beau, Conference Operator, Intuit: Certainly. We’ll take that question now from Siti Panigrahi of Mizuho. Ms. Panigrahi, your line is open. Please go ahead. It looks like we might have lost Siti. We will circle back to her. We’ll go next now to Taylor McGinnis of UBS.

Taylor McGinnis, Analyst, UBS: Yeah. Hi, thanks for taking my question. You placed a big emphasis on growing new customers, and you mentioned earlier that online customer growth decelerated to 3%. Could you just comment on what you are seeing as the drivers of that slowdown and what might have changed? Secondly, just given the size of the QuickBooks business today, maybe you can talk about what’s giving you guys comfort that

Beau, Conference Operator, Intuit: Ladies and gentlemen, again, sorry for the continued technical disruption. Again, we are back live in the conference, and Taylor, we are back on your question.

Taylor McGinnis, Analyst, UBS: Perfect. Yeah. I’ll just repeat it in case you guys missed the beginning of it, but you placed a big emphasis on the new customer growth, mentioned online customer growth, in particular, decelerated. Maybe you could just talk through the drivers of that. Secondly, just given the size of the QuickBooks business, what gives you comfort that there’s still runway ahead? Thanks.

Sasan Goodarzi, Chief Executive Officer, Intuit: Yeah, Taylor, let me jump in with the question. First and foremost, I would start with our TAM. We have a nearly $200 billion total addressable market, which is only penetrated by 7%. One, the TAM is quite significant. I would just remind us of the evolution where we’ve been really focused on building out our agentic platform and focused on mid-market. Really by focusing on mid-market, focusing on our services around money and workforce solutions, it’s been a teacher of the cohort of customers we’re winning with, the go-to-market motions, the platform motions that have been in place. That’s really what’s driving the significant growth going forward. We know how to acquire new customers. This is where I would take us back to history where we were growing double-digit customer growth on the low end.

If we scaled our platform to be able to serve mid-market, we want to accelerate our growth in mid-market and accelerate our acquisition on the low end. It’s also taught us a lot around how to position our product and how to position the go-to-market. With the introduction of QuickBooks Free and QuickBooks Lite, which has been recently introduced, we have over 20,000 customers through the last month that are active, not only in QuickBooks Free and/or they have upgraded to upper SKUs and we’re monetizing payments. One, the TAM opportunity is there. Two, we have really learned how to drive the growth that we need in mid-market, and we’re going to continue to scale that. Third, we have the right product with the right focus in our go-to-market to accelerate growth on the low end.

That’s what gives us, one, confidence in building a competitive position and the durability of the model as we look ahead to set ourselves up for the future.

Kendra Goodenough, Vice President of Investor Relations, Intuit: Thank you, Taylor. Next question, please.

Beau, Conference Operator, Intuit: Certainly. We’ll go circle back now to Siti Panigrahi at Mizuho. Siti, please go ahead.

Siti Panigrahi, Analyst, Mizuho: Going back to the guidance, you sharply lower both GBS and tax. How much of this really you are seeing the pressure in the market, versus you’re kind of embedding some sort of conservatism into your guidance, specifically tax, now 2%-3%, even with TurboTax Live going mid-teens, you get almost 8-point growth. Seems like on the standard, again, you are expecting another double-digit decline. How much of that really seeing the pressure versus you could see some sort of pressure from AI or something unforeseen challenges you might see that’s already baked into your guidance?

Sasan Goodarzi, Chief Executive Officer, Intuit: Yeah, Siti, I would start with I’m resetting expectations so that we can now do two things well. One is what I’m actually quite happy about, which is our growth that’s being generated by our big bets. So when you look at assisted tax, money portfolio across consumer and business platform and mid-market, it’s at 30% of the company growing over 34%. I want to continue to scale that, and I want to actually double down on new to the franchise acquisition, which we talked about earlier. At the same time, we cannot accept the quality DIY customers that we lost in tax. So what we are doubling down on is ensuring that we can be competitive on the low end because we know there are two things that we can do well. One is provide benefits to these DIY customers that’s beyond tax that we can also monetize.

But also these are customers that we can grow with over time. A bunch of them over time go to TurboTax Live, which is the assisted segment. So this really positions us competitively and durably to feed our growth model. By resetting expectations, it gives the company, it gives our team a chance to really drive durable growth. Yes, we are being prudent with how we’re thinking about our guidance. We’re being prudent of how we’re thinking about long-term expectations because I want to make sure that our say, do is there, and I want to make sure that we build a durable model going forward. Those are the reasons in which we’ve made these decisions and choices.

Siti Panigrahi, Analyst, Mizuho: Thanks, Siddhi.

Kendra Goodenough, Vice President of Investor Relations, Intuit: Thank you, Siddhi. Next question, please.

Beau, Conference Operator, Intuit: Certainly. We will go next now to Arjun Bhatia with William Blair.

Arjun Bhatia, Analyst, William Blair: Tom, maybe one for you just on timing. I think you have sort of done a great job laying out the strategy and trying to get net new onto the platform. But when you think about the growth trough and the re-acceleration, is FY 2027 enough to implement the changes you are looking to make in the business? Or is there a chance this transition can slip into perhaps FY 2028 before we see the re-acceleration in growth?

Sasan Goodarzi, Chief Executive Officer, Intuit: Yeah, it’s a great question. I’ll say two things as context before I answer your question. One, what I’m really happy about is our progress on our big bets. Both the scale of revenue, the size and scale across the company, now we have an opportunity to accelerate new customer acquisition even across our big bets. It’s important to start there because that’s a significant and material part of the company. It’s a very large TAM. We have a very strong innovation pipeline, and we want to continue to scale our big bets. At the same time, I’m not happy in two areas, DIY tax, and the fact that our online paying customers only grew 3%. Both of those we know how to do well. The history again is very important to look back on because these are both areas where we grew customers double digits.

Because of our evolution to focus on our big bets, we now need to be able to do both because I’m not satisfied with where we are. With that said, with both of them, we’ve already taken decisive actions and put the actions in place, both in terms of how we pursue winning quality DIY customers, and we already know how to monetize them, but also what we’ve already launched with QuickBooks Free and QuickBooks Lite that is driving up our traffic and the 20,000 customers that I just shared earlier based on new launches. Those are important context relative to we’re doing this from a position of strength.

Because AI is fueling a lot of our innovation on the low end, I want to make sure that a trusted brand like ours, when it comes to compliance and accuracy, I want to be able to increase our share because these are then customers we can grow with over time. In terms of answering your question about will this pay off by 2028 or is it going to take longer? I think I would just say, I’d rather our say, do speak for it. I want to talk to you guys about our results on a quarterly basis, share the progress that we’re making, and I think you’ll then be the judge of how quickly we are executing against these plans. I have confidence because we’re scaling the bets today. I have confidence because we’ve driven new customer acquisition in the past.

Now we focus the company on both. Let’s watch our quarterly results. We’ll update you, and then you’ll be the judge of how that’s going to impact 2028.

Kendra Goodenough, Vice President of Investor Relations, Intuit: Thank you, Arjun. That was our last question. So, Bo, I will hand it back over to you.

Beau, Conference Operator, Intuit: Thank you very much, Ms. Goodenough. Ladies and gentlemen, again, that will conclude today’s Intuit fourth quarter and fiscal year 2026 conference call. We would like to thank you all so much for your time and participation. You may disconnect at this time.