Intuit Inc 2026 Q4 Earnings Call

Please go ahead, ma'am. 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.

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.