Intuit Inc. (אינטואיט)
Analytical review · Fiscal year ended July 31, 2026 (Form 10-K)
Bakshi Finance — Family Office | Research Depth: Comprehensive
What this review is based on. Intuit's annual report on Form 10-K for the fiscal year ended July 31, 2026, filed September 9, 2026; the three quarterly reports of the year; the annual report for fiscal 2025; the quarterly earnings releases from August 2025 to August 2026, including management's fiscal 2027 guidance; and Form 8-K filings on the restructuring plan, a bond offering and credit facilities. Intuit's fiscal year ends on July 31. Market data: closing price on Oct 6, 2026, and the Bank of Israel representative dollar rate for the same day.
Company Profile
Intuit Inc. develops financial software and services for small and mid-market businesses, consumers and accountants. Its best-known products: QuickBooks for bookkeeping, payroll, payments and business financing; TurboTax for personal tax preparation in the U.S. and Canada; Credit Karma, a platform that shows consumers their credit profile and matches them with loans, credit cards and insurance; ProTax, tax software for professional preparers; and Mailchimp for email marketing. Headquarters are in Mountain View, California.
The company reports two segments: Global Business Solutions — $12.9 billion, 60% of revenue — and Consumer, which includes TurboTax, Credit Karma and ProTax — $8.6 billion, 40%. About 92% of revenue comes from the U.S. According to the annual report, the company serves about 93 million customers and employs about 18,600 people, plus about 12,300 seasonal employees during tax season.
The CEO, Sasan Goodarzi, also serves as chairman of the board. The company has no controlling shareholder and a single class of shares. In May 2026 the company announced a reduction of about 17% of its full-time workforce, and in March 2026 the founder and the executive team terminated all of their pre-scheduled stock sale plans.
Financial Performance
The year: double-digit growth, and three items to normalize
In fiscal 2026 revenue rose 13.9% to $21.4 billion, operating income rose 19.5% to $5.9 billion, and diluted EPS rose 20.4% to $16.46. The diluted share count fell 2.1%.
What needs normalizing:
- Restructuring: $293 million, mostly severance, recorded in the fourth quarter. Excluding it, the operating margin was 28.8%. This is the second plan in two years: the 2024 plan cost $238 million.
- Investment gains: $180 million of gains on long-term investments. Removing both items before tax, and applying the 24% effective tax rate, EPS was about $16.77.
- Cash taxes: the U.S. tax law enacted in July 2025 restored immediate expensing of research and development costs. Cash taxes paid fell to $281 million from $1.4 billion the year before, which is why operating cash flow rose 42%. According to management, about $2 billion of taxes will be paid in fiscal 2027. Adjusted to that level, free cash flow was about $6.9 billion rather than $8.6 billion.
| Fiscal year, $ millions | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|
| Revenue | 12,726 | 14,368 | 16,285 | 18,831 | 21,448 |
| Operating income | 2,571 | 3,141 | 3,630 | 4,923 | 5,884 |
| Operating margin | 20.2% | 21.9% | 22.3% | 26.1% | 27.4% |
| Net income | 2,066 | 2,384 | 2,963 | 3,869 | 4,566 |
| Diluted EPS ($) | 7.28 | 8.42 | 10.43 | 13.67 | 16.46 |
| Free cash flow | 3,660 | 4,786 | 4,634 | 6,083 | 8,617 |
| Share-based compensation | 1,308 | 1,712 | 1,940 | 1,968 | 2,056 |
| Cash taxes paid | — | — | 1,881 | 1,408 | 281 |
The quarters and management's guidance
Quarterly growth: 18.3%, 17.4%, 10.4% and 13.7%. The third quarter, the tax-season quarter, was the slowest. Against the guidance issued in August 2025: TurboTax grew 7% vs 8% guided, Credit Karma grew 20% vs 10%–13%, and EPS came in above the guided range.
According to management, for fiscal 2027: revenue of $23.3–23.5 billion (+9% to +10%); TurboTax +2% to +3%; Credit Karma +11% to +13%; Mailchimp, now reported as a separate segment, −1% to 0%; GAAP operating income of $7.4–7.5 billion (+26% to +27%); and EPS of $20.12–20.36. In other words, management describes slower revenue growth alongside higher margins, mainly after the workforce reduction. In addition, starting in fiscal 2027 the company includes share-based compensation in its non-GAAP measures, so fiscal 2027 non-GAAP figures look lower than fiscal 2026 without any change in the business.
Balance Sheet & Capital
On July 31, 2026 Intuit held $7.2 billion in cash and investments, against $7.7 billion of debt: $6.75 billion of senior notes, plus $970 million under secured credit facilities that fund business loans and are non-recourse to the parent. Net debt: about half a billion dollars. Debt to EBITDA was about 1.1, against a 4.0 ceiling in the credit agreement, and operating income covered interest expense about 23 times. In June 2026 the company issued $1.75 billion of notes, and in August it repaid $750 million of notes. The next maturity: $500 million in July 2027.
Capital return: during the fiscal year the company bought back 13.4 million shares for $5.5 billion — almost double the prior year — and paid $1.35 billion in dividends. Together: $6.76 billion, about 78% of reported free cash flow and about 98% of it at a normal tax level. In May 2026 the board approved an additional $8 billion buyback authorization, and $7.9 billion remained at year-end. The quarterly dividend rose 15% to $1.38.
Three notable balance-sheet items:
- Tangible equity: goodwill and intangible assets, mainly from the Credit Karma and Mailchimp acquisitions, total $18.6 billion — 98% of shareholders' equity ($19.0 billion). Return on equity (23.6%) therefore does not reflect a return on tangible assets.
- Loan book: the company buys unsecured business loans from a partner bank. Purchases rose from $1.8 billion in 2024 to $3.5 billion in 2025 and $6.2 billion in 2026. Charge-offs rose from $88 million to $185 million. $2.1 billion was sold to institutional investors under forward-flow arrangements, and the net balance at year-end was about $1.7 billion. The filing does not say whether these sales carry any recourse to the company.
- Customer funds: $5.0 billion of customer funds (mainly payroll and payments) appear both as an asset and as a liability, and offset.
Segments
Segment profit shown here is before costs that are not allocated to segments: platform R&D, share-based compensation, amortization, customer success and restructuring — together $10.3 billion a year. Segment margins are therefore much higher than the company's.
| $ millions | 2024 | 2025 | 2026 | Change |
|---|---|---|---|---|
| Global Business Solutions | 9,533 | 11,077 | 12,864 | +16% |
| QuickBooks Online Accounting | 3,379 | 4,120 | 5,051 | +23% |
| Online Services (payments, payroll, capital, Mailchimp) | 3,513 | 4,182 | 4,867 | +16% |
| Desktop ecosystem | 2,641 | 2,775 | 2,946 | +6% |
| Consumer | 6,752 | 7,754 | 8,584 | +11% |
| TurboTax | 4,508 | 4,933 | 5,296 | +7% |
| Credit Karma | 1,645 | 2,200 | 2,641 | +20% |
| ProTax | 599 | 621 | 647 | +4% |
| Segment profit — Business (margin) | 7,173 (75%) | 8,476 (77%) | 9,887 (77%) | +17% |
| Segment profit — Consumer (margin) | 5,012 (74%) | 5,760 (74%) | 6,308 (73%) | +10% |
Global Business Solutions: the online ecosystem grew 19%, and 23% excluding Mailchimp. According to the filing, QuickBooks Online growth came from "higher effective prices, customer growth, and mix shift." Online paying customers rose 3% (5% the year before), while average revenue per customer rose 15%. Desktop growth came from prices alone. Within Online Services, payments added $257 million and business lending $177 million.
Consumer: TurboTax federal returns fell 2% to 39.0 million (desktop −7%). Revenue rose 7% thanks to TurboTax Live, the service in which a human expert assists with or prepares the return: according to the earnings release it grew 37% and reached 53% of TurboTax revenue. From these figures one can derive that TurboTax revenue outside Live fell by about 14% (from about $2.9 to about $2.5 billion). Credit Karma grew mainly through personal loans (+$235 million), credit cards (+$101 million) and insurance (+$85 million).
Competitive Position
The differentiation the company presents is the combination of financial data, AI and human experts in one platform. For a small business, QuickBooks is usually connected to payroll, payments, the bank account and the accountant, and it holds the business's financial history. For consumers, TurboTax and Credit Karma are integrated: according to the third-quarter earnings release, the number of filers who started in Credit Karma rose 54%.
What changed in this year's filing: the competition section of the annual report now lists, for the first time, "providers of general purpose AI technologies" as competitors, and states that AI is "lowering barriers to entry" and enabling new entrants to build products for the same needs. This wording did not appear in the fiscal 2025 report. The company also notes competition from tax authorities: the IRS direct filing system "was suspended", but its proponents continue to advocate for it.
In the numbers: TurboTax federal returns have declined two years in a row, and the company's share of e-files fell by about a point, according to the third-quarter earnings release. Revenue in both segments keeps growing, but mainly through price and mix. This review does not include primary-source competitor market-share data.
How to Think About This Company
At Intuit, the filing and the price tell two different stories. In fiscal 2026 revenue rose 14% and EPS 20%. Over the same period market value fell from $219 billion at the end of fiscal 2025 to $77 billion on Oct 6, 2026. That gap is not in the filing itself. It sits in the question of what happens to the company's pricing power when AI can do part of the work it charges for.
Price versus volume. The important figure in the filing is not the growth rate but its composition. In the online business ecosystem, paying customers rose 3% and average revenue per customer rose 15%. In TurboTax the number of returns fell and revenue rose. When most growth comes from price and mix, the ability to keep raising prices becomes the central variable.
Two TurboTaxes. The service with a human expert grew 37% and reached half of revenue. The do-it-yourself service and software, by a rough calculation from company figures, fell about 14%. Management guides TurboTax growth of 2%–3% for fiscal 2027. Anyone reading TurboTax should separate the two: one rests on accountability, guarantees and a human touch, the other on software that new competitors can imitate.
QuickBooks is most of the business. The business segment produces 60% of revenue and 61% of segment profit, and is growing 16%. A company's bookkeeping software is a system of record: history, integrations, payroll and payments are all connected. Switching takes work. On the other hand, the filing does not publish an absolute customer count or a churn rate, and customer growth has slowed. Customer growth in the next filings is a more direct test than any claim about switching costs.
Normalize the cash flow. Reported free cash flow — $8.6 billion — includes a tax benefit of about $1.7 billion relative to the level management describes for fiscal 2027. After that adjustment it is about $6.9 billion, and after deducting share-based compensation ($2.1 billion) about $4.8 billion, close to net income. That is the difference between a free-cash-flow yield of 11% on market value and about 6%, depending on which number one uses.
Stock compensation at a lower price. Share-based compensation (about $2 billion a year) was 9.6% of revenue. When the price falls, the same dollar amount equals more shares: at the Oct 6, 2026 price, the annual expense management describes for fiscal 2027 equals about 2.6% of shares. A large part of the buyback offsets this dilution. Fiscal 2026 buybacks were made at about $410 per share on average.
The reduction funds the profit. For fiscal 2027 management describes 9%–10% revenue growth alongside roughly 20% growth in operating income before restructuring. The difference comes from costs: a 17% reduction in roles, site closures, reduced investment in Mailchimp, and merging the TurboTax and Credit Karma teams. In the fourth quarter operating expenses barely rose. The filing does not disclose the size of the annual savings from the plan.
Credit inside a software company. The fastest growth engines — business lending and Credit Karma — are both tied to the credit cycle. The volume of loans the company buys nearly doubled, and charge-offs more than doubled. Most of the risk passes to institutional investors or is funded without recourse to the company, but revenue still depends on lenders wanting to lend.
The historical multiple versus today's. The price-to-earnings ratio at fiscal year-ends 2022–2025 ranged from 57 to 62. On Oct 6, 2026 it stood at about 17.6 on reported earnings. This figure describes the starting point and the scale of the change in market expectations. It does not determine the direction, and whether the growth of prior years represents the future is exactly the open question.
The framework is meant to organize the questions. It does not decide and does not take part in the decision — the decision is the reader's.
This framework is intended to structure analysis, not to produce an investment conclusion.
Risks & Monitoring
Risks that emerge from the filings
- AI and pricing: according to the filing, general-purpose AI providers may build products for the same needs, and AI lowers barriers to entry. Current growth rests mainly on price and mix.
- TurboTax: fewer returns two years in a row; lower revenue outside Live; guidance of 2%–3% for fiscal 2027.
- Government tax systems: the direct filing system was suspended, but according to the filing its proponents continue to advocate for it, and the Free File program continues.
- Credit: business-loan charge-offs rose 2.1 times; Credit Karma depends on lender demand; recourse terms on loan sales are not disclosed.
- Mailchimp: guidance of −1% to 0% growth. From fiscal 2027 it is reported as a separate segment, and goodwill in the business segment stands at $9.8 billion.
- Legal: two shareholder class actions (July and August 2026) alleging misleading statements; a class action in Canada was certified. On the other hand, the FTC order on "free" advertising was vacated on appeal in March 2026.
- Stock compensation: about 10% of revenue, and at the current price dilution of about 2.6% of shares a year before buybacks.
Items to monitor for the first quarter of fiscal 2027 (November 2026) and the tax season
| # | Item | Latest reading |
|---|---|---|
| 1 | Management's fiscal 2027 guidance — maintained or not | Revenue +9% to +10% |
| 2 | TurboTax revenue, with and without Live | +7%; excl. Live about −14% (derived) |
| 3 | Online paying customers and revenue per customer | +3% / +15% |
| 4 | QuickBooks Online and Online Services excl. Mailchimp | +23% / +24% |
| 5 | Operating margin excluding restructuring | 28.8% |
| 6 | Cash taxes and free cash flow | $281 million; $8.6 billion |
| 7 | Loan charge-offs and provisions | $185 million; $199 million |
| 8 | Headcount after the reduction | About 18,600 on July 31, 2026 |
| 9 | Buybacks vs stock compensation and net debt | $5.4 billion; $2.1 billion; $0.5 billion |
Scenario Framework
The scenarios below are descriptive, not predictive. They contain no prices, no probabilities, and do not rank outcomes. Their only purpose is to organize the conditions that would need to hold for each state to materialize, so they can be checked against future filings.
Scenarios are descriptive, not predictive.
- If online paying-customer growth picks up again, not only revenue per customer
- If TurboTax return counts stabilize and revenue outside Live stops declining
- If operating margins rise as management describes, without hurting QuickBooks growth
- If business-loan charge-offs grow more slowly than loan volume
- If growth keeps coming mainly from price and mix, with low customer growth
- If TurboTax Live keeps offsetting the decline in do-it-yourself
- If the savings from the reduction materialize, but revenue grows at a single-digit rate
- If cash taxes return to about $2 billion, as management describes
- If the company cuts prices in TurboTax or QuickBooks to retain customers against AI-based competitors
- If online customer growth stalls or turns negative
- If the credit cycle weakens and hits Credit Karma and business lending at the same time
- If a free government tax-filing program returns at national scale
Analytical Lens
The following six questions are identical in every company review we publish. They are deliberately open and do not lead to a single conclusion. Their role is to let the reader examine the company along the same six dimensions as any other company.
Key Observations
1. For the fiscal year ended July 31, 2026 Intuit reported revenue of $21.4 billion (+13.9%) and diluted EPS of $16.46 (+20.4%). The business segment grew 16% and the consumer segment 11%.
2. Online paying business customers rose 3%, and average revenue per customer 15%. TurboTax federal returns fell 2% to 39.0 million, and TurboTax Live reached 53% of TurboTax revenue.
3. Cash taxes paid fell to $281 million from $1.4 billion, following a change in U.S. tax law. According to management, about $2 billion will be paid in fiscal 2027. Reported free cash flow was $8.6 billion, and capital returned to shareholders $6.8 billion.
4. In May 2026 the company announced a reduction of about 17% of full-time roles, at an estimated cost of $315 million. For fiscal 2027 management describes revenue growth of 9%–10% and EPS of $20.12–20.36. Market value on Oct 6, 2026: $77.4 billion.
Bakshi Finance operates as a Family Office for qualified clients only. Mr. Yaron Bakshi held an investment advisory license from 2008 to 2023. As of the publication date of this document, the company does not hold an investment advisory, investment marketing, or portfolio management license.
This document is intended for research and professional education purposes only. Nothing herein constitutes a recommendation to buy, sell, hold, or take any action in securities. It is not a substitute for advice that takes into account each person's individual data and needs. Any decision is the sole responsibility of the investor.
Past performance is not indicative of future results. Data was drawn from official sources: the Form 10-K for the fiscal year ended July 31, 2026 (filed September 9, 2026), the Form 10-Qs for fiscal 2026, the Form 10-K for fiscal 2025 (September 3, 2025), the quarterly earnings releases, and the company's Form 8-K filings with the U.S. Securities and Exchange Commission. Historical multiples: stockanalysis.com. Filing updates published after this date are not included.
Qualified-Client Review — Family Office
The full analytical review of Intuit (INTU) for fiscal 2026 is available to Bakshi Finance premium clients.
The review includes a 10-section analysis, "How to Think About This Company", a structured scenario framework, and a 6-dimension Analytical Lens.
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