TurboTax Maker Intuit's Stock Jumps on Raised Outlook, Strong Earnings

Intuit (INTU) reported stronger-than-expected Q3 earnings, with revenue reaching $7.75 billion, a 15% year-over-year increase, and adjusted EPS of $11.65, exceeding analyst consensus. The company raised its full-year revenue outlook to $18.72-$18.76 billion and adjusted EPS forecast to $20.07-$20.12, both figures surpassing prior guidance and Wall Street estimates. Following the announcement, Intuit shares surged over 8% in after-hours trading.

Analysis

Intuit (INTU) demonstrated robust financial performance in its third quarter, reporting revenue of $7.75 billion, a significant 15% year-over-year increase, which surpassed analyst consensus. The company's adjusted net income also exceeded expectations, rising to $3.28 billion, or $11.65 per share, compared to $2.8 billion, or $9.88 per share, in the corresponding prior-year period. Critically, Intuit has raised its full-year outlook, now projecting revenue between $18.72 billion and $18.76 billion, an upward revision from its previous range of $18.16 billion to $18.35 billion. Similarly, the forecast for adjusted earnings per share has been increased to $20.07-$20.12, up from $19.16-$19.36. Both revised guidance metrics are notably above Wall Street's mean projections. This strong performance and optimistic outlook from the TurboTax and Credit Karma owner triggered a substantial positive market reaction, with Intuit shares surging over 8% in after-hours trading, building on its 6% gain for 2025 through Thursday’s close.

Key Decisions for Investors

• Investors should view the strong Q3 earnings beat and significantly raised full-year guidance as clear indicators of Intuit's operational strength and positive growth trajectory.
• Consider the implications of the 15% year-over-year revenue growth and improved profitability on Intuit's valuation, especially following the over 8% after-hours share price increase.
• It may be prudent to monitor upcoming analyst revisions and assess whether the current positive momentum and revised guidance are fully reflected in the stock's valuation post-rally.