Intuit Prepares for Q3 Earnings Release: Key Insights You Need to Have

Published On: May 20, 2025 9:34 am

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Intuit Prepares for Q3 Fiscal 2025 Earnings Report: Key Insights

Intuit (INTU) is set to report its third-quarter fiscal 2025 results on May 22. Analysts anticipate revenue growth between 12% and 13% year-over-year, translating to an expected revenue range of $7.55 to $7.60 billion. Non-GAAP earnings per share for the quarter are projected to be between $10.89 and $10.95. While these expectations are consistent with Intuit’s historical performance during tax season, they lack the potential for major surprises seen in prior quarters.

The Zacks Consensus Estimate predicts revenues of $7.54 billion, suggesting a year-over-year increase of 11.98%. However, the consensus earnings estimate stands at $10.89 per share, indicating a decline of 10.22% compared to the previous year.

Intuit has surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters, with an average surprise of 11.85%.

Intuit Inc. Price and EPS Surprise

The upcoming report will highlight the company’s performance in a key season. Investors should consider several factors before adjusting their positions.

Key Considerations for Investors

As Intuit prepares for the third-quarter results, the company is capitalizing on the momentum from a strong fiscal second quarter, which saw a 17% revenue increase. Intuit has reaffirmed its full-year guidance of 12-13% growth, indicating steady momentum but with a possibility of moderation.

Recently, Intuit announced the acquisition of GoCo to enhance its Human Capital Management services. This move is positioned to benefit the company in the long run; however, it may not significantly impact the upcoming results since the acquisition was finalized late in the quarter.

Performance during tax season will be crucial, as this period typically generates a significant portion of TurboTax revenues. Management noted strong early-season momentum, particularly in the assisted category, which shows promising growth potential. The implementation of AI-driven personalized experiences and campaigns like “Beat Your Price” could signal improved revenue per return, but investors should monitor competition closely.

The Credit Karma segment, which posted a 36% growth in the second quarter, will face tougher year-over-year comparisons in the upcoming report. The financial education partnership with colleges announced in March may provide long-term benefits, but immediate revenue gains are expected to be minimal.

Additionally, the performance of the Global Business Solutions Group will be under scrutiny following its 19% growth in the last fiscal quarter. Strong demand for online services, specifically payments and payroll solutions, has driven growth. However, Mailchimp’s performance, particularly regarding price adjustments, will be important to review in this quarter.

Margin expansion is anticipated as efficiencies from AI continue to take effect. In the second quarter, Intuit noted that AI implementation in customer success operations had surpassed efficiency goals ahead of schedule, a trend expected to carry through to the third quarter.

While strategic moves and product expansion support Intuit’s growth narrative, short-term performance may reflect a normalization from earlier exceptional growth rates.

Earnings Prediction Model Insights

Current analysis does not definitively predict an earnings beat for Intuit this quarter. A combination of a positive earnings ESP (Expected Surprise Prediction) and a Zacks Rank of #1 (Strong Buy), #2 (Buy), or #3 (Hold) typically enhances the likelihood of a positive surprise.

At present, INTU holds an earnings ESP of 0.00% and has a Zacks Rank of #3. Investors can use the earnings ESP Filter to identify stocks with potential for earnings surprises.