Intuit Inc Goldman Sachs Communacopia + Technology Conference 2026
Review the key takeaways and the transcript of this earnings call.
- Intuit reported strong fiscal 2026 performance with solid growth in its big bets segment, which now represents nearly 30% of company revenue and grows north of 30%.
- The company generated $39 million tax filings last year and is focusing on regaining share in price-sensitive consumer segments by offering competitive pricing and expanding monetization through its broader consumer ecosystem.
- Intuit's small and mid-sized business (S&B) macro environment remains stable, with increased cash reserves and hours worked among customers.
- QuickBooks has introduced QuickBooks Lite and QuickBooks Free to onboard smaller and earlier-stage businesses, aiming to grow new-to-franchise customers and increase lifetime value.
- The mid-market segment is growing well, driven by upgrades to QuickBooks Advanced and Intuit Enterprise Solutions (IES), with 70% of mid-market customers having accountants who are now considered customers, not just partners.
- TurboTax retains a 76% retention rate and is being fundamentally reinvented with AI to improve data ingestion and user interface, aiming to enhance the consumer tax experience and grow share, especially in assisted tax services.
- Intuit is embedding AI deeply into its products to automate tasks like reconciliation and provide industry-specific intelligence, improving customer productivity and enabling new monetization opportunities.
- The company has longstanding partnerships with AI frontier model providers such as Anthropic and OpenAI, leveraging these relationships to stay at the cutting edge of innovation while protecting proprietary data and know-how.
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Transcript
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Hey, good morning. Thanks to all of you for joining us at the Intuit session at the Goldman Sachs Technology Conference. Delighted to have on stage Sandeep, CFO, with me. Thank you for taking the time today.
Thank you, Gabriela. Good to be here. You guys do an amazing conference every year, and it is our delight to be here.
It's very kind of you to join us multiple years in a row. Let me ask you to take us behind the scenes a little bit at Intuit from the last three to six months. When we listened to the earnings call, there was very much this tone that came through on, we are too good at this to be losing at the entry point on price. So maybe just walk us through how your strategic thinking has changed in the last six months, and then we can get into some of the specific business questions.
Sure, absolutely. I think, the last six months in the thinking is really a reflection on the last 43 years of the company.
Yeah, very fast. of identifying the trends early, understanding how those trends will impact our customers, what is the best customer benefit we could deliver, and making sure that we execute on that, come out bigger, better, more relevant to the life of our customers.
The company, about four years ago, started focusing on the big bets. Four years ago, the question was, hey, could Intuit actually go upmarket? Could Intuit really be a meaningful player in the fintech? Could Intuit really go beyond DIY tax to assisted tax? We shifted our focus and investments to those areas, and they did exceptionally well, and each one of those growing north of 30%, our big bets reflecting nearly 30% of the company's revenue. But when we looked at the last year, we realized we were not the best we could be in growing new-to-the-franchise customers.
As a company that is north of $21 billion in revenue, we need to be exceptional at both. So that performance in 2026, which was quite strong, solidified the foundation, but also clarified the agenda for the year ahead, which is continue to scale the big bets. It is a $300 billion opportunity. We are still in the early innings, but also meaningfully scale the platform, which comes down to scaling new-to-the-franchise customers.
There have been some conversations that we have had in the last year in the software space broadly on the nature of deterministic versus non-deterministic with AI algorithms. Especially now as you are embedding more AI into your own products, I would love to hear your view on how do you think about this deterministic, non-deterministic, taking the best of AI with the best of workflows?
AI is an exceptional capability in intelligence in terms of rendering answers, in terms of providing intelligence. What really makes AI powerful is the context around it. For us, we have hundreds of thousands of attributes per small business, 85,000-plus attributes per consumer. That financial context, the deep domain expertise, the deep industry expertise, knowing exactly how a nonprofit works, how a plumbing company works, allows us to really maximize the benefit of AI through Intuit Intelligence and deliver done-for-you experiences for our customers that are truly relevant. As AI proliferation continues to grow, as AI becomes even cheaper to adopt, by leaning on our moat, it's allowing us to even greater serve the customers in a very relevant way.
There is a fair number of moving pieces at Intuit over the next year, which I would imagine made the forecasting process a little more complicated than usual. One of the questions we get from investors is, "Look, we really want to buy this stock. How do we get comfortable that estimates are troughing and that numbers have been de-risked?" How would you answer that question?
First and foremost, I will start with the history. We are always prudent in terms of the numbers we put out there. We want you all to have the utmost confidence in those numbers, and our record has been at the company level to always deliver on our commitments. That approach, that principle remains consistent. What we are doing in fiscal 2027, our agenda, as I shared, is very clear. Continue to grow big bets, grow new-to-the-franchise customers. As we lean into scaling new-to-the-franchise customers, we are giving ourselves the opportunity to make sure that we're building a durable long-term franchise. These are going to be customers that are the lifeblood of future revenue. Our focus is to have a company that is durably delivering double-digit top-line growth, and through our disciplined approach to running the company, delivering EPS in the high teens.
That is the business we are building in 2027, and our guidance and the three-year CAGRs we have put out there are a reflection of the commitment towards that.
The three-year CAGRs are important, too, because they allow us to talk a little bit about this concept I think you introduced in the last several weeks of a J curve. What do you mean by a J curve? What does that mean about not just FY 2027, but what the three-year CAGR looks like?
Let's take a couple of examples to unpack that J curve. We were very deliberate, by the way, about being three-year CAGR versus just an arbitrary long term. Let's go through the J curve. Starting with our tax business. We have a business that is addressing a customer need to get into filing stream. We did 39 million filings last year. We also realized that in a price-sensitive consumer base, those who earn AGI, adjusted gross income, of $50K, we weren't the best we could be, and we lost share. So we're being deliberate about being competitive and transparent on pricing at that level because now we've spent the energy over the last few years to build a wholesome consumer ecosystem where we do not need to lean into just monetizing the tax filing.
We could have these customers monetized through early access to money, through putting the refund into Credit Karma Money and using that account year-round as their day-to-day banking app to get credit cards, personal insurance through consumer apps. So that is a very deliberate investment we're making in fiscal 2027 to take a hit on ARPC, get these customers in, and monetize that through higher lifetime value as we take share of the tax filing. So that means in 2027, the revenue takes a hit, but in the long term, the lifetime value is there. Then if we, similarly on our business side, we are continuing to scale our big bets. The breadth of those big bets give us the opportunity to have strong revenue growth for years to come, just since fiscal 2023.
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