Published
# Intuit Inc. (INTU) — Business, Risks and Management's Discussion
Fiscal year ended July 31, 2026. Unless noted, the material below is drawn from Intuit's
Annual Report on Form 10-K for fiscal 2026, accession 0000896878-26-000037, filed
September 9, 2026.
---
## Business
*From the fiscal 2026 Form 10-K, accession 0000896878-26-000037.*
Intuit describes itself as a global financial technology platform serving approximately
93 million consumers, small and mid-market businesses, and accountants worldwide. Its
brands are TurboTax, Credit Karma, QuickBooks, Mailchimp, Intuit Enterprise Suite and
Intuit Accountant Suite. The company is incorporated in Delaware, headquartered at 2700
Coast Avenue, Mountain View, California, and its common stock trades on the Nasdaq Global
Select Market. As of July 31, 2026 it had approximately 18,600 employees in seven
countries, supplemented during fiscal 2026 by an average of roughly 12,300 seasonal
employees from January to April to support Consumer segment customers through the peak of
tax season.
The stated strategy is to be an "AI-driven expert platform" that combines proprietary
data, domain-specific AI capabilities and a network of AI-enabled human tax, bookkeeping
and financial experts into a single system that does work on the customer's behalf.
Management frames execution around three "Big Bets": delivering done-for-you experiences
through AI agents and human experts; accelerating money benefits (receivables, payables,
capital and spend management for businesses; faster refund access and savings for
consumers); and winning mid-market businesses through QuickBooks Online Advanced, Intuit
Enterprise Suite and connected services. Intuit says it declared this AI platform strategy
in 2019 and that its internally built Generative AI Operating System (GenOS) is what
enabled the fiscal 2026 expansion of AI agents and its partnerships with leading AI
companies.
### Reportable segments
Effective August 1, 2025 — the first day of fiscal 2026 — Intuit combined its former
Consumer, Credit Karma and ProTax businesses into a single **Consumer** segment, leaving
two reportable segments. Prior-period amounts were recast; the recast had no effect on the
consolidated balance sheets, statements of operations or cash flow statements.
**Global Business Solutions** serves small and mid-market businesses and the accountants
who advise them. It is reported as two ecosystems:
- *Online Ecosystem* — QuickBooks Online, Intuit Enterprise Suite and Intuit Accountant
Suite; Intuit Experts (Live Expert Assisted and Full-Service Bookkeeping); QuickBooks
Workforce (online payroll and time tracking); money offerings including merchant payment
processing, bill pay, QuickBooks Checking, the Intuit Business Credit Card and QuickBooks
Capital financing; and Mailchimp marketing automation.
- *Desktop Ecosystem* — QuickBooks Desktop Plus and QuickBooks Enterprise subscriptions,
ProAdvisor Program memberships, desktop payroll, desktop money offerings and financial
supplies (checks, tax forms, stationery).
QuickBooks Capital financing is originated through a bank partner or through partners on
the QuickBooks Capital Marketplace; Intuit purchases some or all of those loans, and also
acts as a third-party financing provider inside a strategic partner's lending program.
**Consumer** serves individual taxpayers and professional accountants through TurboTax
(do-it-yourself and assisted preparation in the U.S. and Canada, plus early refund access,
File Now Pay Later loans and Credit Karma Money accounts held at FDIC-member partner
banks); Credit Karma (credit scores and monitoring, credit-building tools, and
personalized credit card, loan and insurance recommendations monetized through
cost-per-action, cost-per-click and cost-per-lead arrangements, supported by its Lightbox
approval-odds technology); and ProTax (Lacerte, ProSeries and ProConnect Tax Online in the
U.S.; ProFile and ProTax Online in Canada).
Total international net revenue was approximately 8% of consolidated total net revenue in
each of fiscal 2026, 2025 and 2024 — the business is overwhelmingly U.S.-facing. Most of
Intuit's online systems, networks and databases run on public cloud providers, principally
Amazon Web Services and Google Cloud Platform.
### Seasonality
TurboTax and ProTax revenue is heavily concentrated from November through April, which
typically produces materially higher net revenue in the second and third fiscal quarters
ending January 31 and April 30. Management expects that pattern to continue to have a
material effect on quarterly results, and notes that the balance of cash, cash equivalents
and investments fluctuates with the same seasonal pattern.
### Distribution and competition
Products reach customers directly (websites, apps, inside sales, a direct sales force
calling on accountants and mid-market businesses, and physical TurboTax locations), through
online app stores, and through partners including value-added resellers, accountants,
technology partners and retailers. Intuit lists competitors spanning business software
providers, practice-management software, public- and private-sector tax preparation
services, accounting and consulting firms, money-services companies, personal finance
tools, consumer-finance marketplaces, financial institutions, credit bureaus, and platform
companies and general-purpose AI providers that could extend into its problem space. It
identifies its competitive strengths as innovation and technology capability, breadth and
integration of solutions, ease of use, security, brand, support quality, value and cost.
### Properties
Principal locations at July 31, 2026: Mountain View, California (corporate headquarters and
Global Business Solutions offices; approximately 364,000 square feet owned plus about
359,000 square feet leased through 2029–2034); San Diego, California (Consumer segment
offices; approximately 466,000 square feet, owned); and Bangalore, India (Intuit India;
approximately 478,000 square feet, principal lease expiring 2026, with additional Bangalore
office space leased but not yet occupied).
### Cybersecurity program
Intuit's information security program is led by a Chief Information Security and Fraud
Prevention Officer who also serves as Chief Information Officer, supported by a
Cybersecurity, Compliance, Risk, and Fraud Team of approximately 550 professionals as of
July 31, 2026. The program uses ISO 27001, PCI DSS and SOC 2 frameworks for testing, a
vulnerability management program, incident response playbooks, third-party risk management
and cybersecurity insurance. The CEO receives monthly updates from the CISO; the Audit and
Risk Committee of the Board holds primary oversight and receives quarterly updates. Intuit
states that during the last fiscal year it did not identify any risks from cybersecurity
threats, including from previous incidents, that materially affected the company.
---
## Risk factors
*Condensed from Item 1A of the fiscal 2026 Form 10-K, accession 0000896878-26-000037.*
**Competition, including from free offerings and from government.** Intuit expects
competition to intensify across every business. It faces free and low-cost competitors in
tax, accounting, payments and personal finance; large consumer platforms that could retarget
their strategies at small businesses or tax and consumer finance customers; and rapid AI
adoption that lowers barriers to entry and lets general-purpose AI providers add competing
features. The consumer tax business faces a distinct public-sector risk: although the IRS
free direct filing system was suspended, proponents continue to advocate for it, and the
legacy IRS Free File Program lets the IRS offer free commercial tax software to qualifying
taxpayers. Intuit states that government-funded services curtailing or eliminating the
taxpayer's own role in preparation could have material adverse revenue implications.
**Dependence on annual returning customers.** The consumer and professional tax businesses
depend significantly on customers returning each year, including free-product users whose
tax situations later require paid services. Retention becomes harder if customers do not
perceive continuing or incremental value.
**AI development, deployment and regulation.** Intuit is investing heavily in agentic and
generative AI for customers, experts, employees and internal operations, and uses third
parties to support that work. It flags that resource-intensive AI raises costs and may not
return the benefit; that AI algorithms may be flawed or trained on biased, inaccurate or
insufficient data; that latency or failure in AI systems could cause delays or errors; that
perceived social harm or unfairness could undermine confidence; and that third parties may
deploy AI in ways that reduce demand for Intuit's products. The legal landscape is
described as complex and uncertain across intellectual property, cybersecurity and privacy,
including uncertainty over the validity and enforceability of IP rights arising from
generative AI use.
**Security incidents and cyberattack.** Intuit hosts credit card data, tax return data,
bank account numbers, credit report information, credentials, financial data, Social
Security numbers and payroll information. It states its systems have been subject to, and
are increasingly likely to continue to be targets of, cyberattacks, and that it has
experienced unauthorized access through stolen identity information obtained outside its
systems. Because customers can hold one identity across multiple Intuit products, a single
incident could expose more data. Cybersecurity insurance may not cover all liabilities.
Separately, Credit Karma user data is subject to a Federal Trade Commission order requiring
a comprehensive security program and biennial independent security assessments **through
2034**; failure to meet it could bring fines, enforcement action and reputational harm.
Incidents at third parties Intuit relies on carry a parallel set of consequences.
**Transaction processing and fraud.** The money offerings process large volumes and dollar
values daily; errors or misappropriation scale with volume and speed. In payments
processing, a disputed transaction resolved against the merchant may require Intuit to pay
amounts exceeding established customer reserves. Anti-fraud controls that become stricter
can also block legitimate customers and cost revenue.
**System availability, especially at tax-season peak.** Much of Intuit's software runs on
public cloud capacity, and it does not have redundancy for all systems. Any interruption in
online tax preparation or electronic filing during a peak period could mean significantly
decreased revenue, lost customers, unexpected refunds, negative publicity and higher
operating cost. Corporate headquarters and other critical operations sit near major seismic
faults.
**Third-party relationships.** Growth increasingly depends on relationships with software
and service providers, platforms, credit bureaus, vendors, distributors, accountants,
financial institutions, core processors and development partners, some of them sole- or
limited-source. Credit Karma's revenue specifically depends on financial institutions'
willingness to offer products on its platform, which is sensitive to macro conditions,
capacity limits and regulatory complexity. Failure or insolvency of a counterparty bank
holding significant deposits could limit Intuit's ability to recover assets. App store and
AI platform owners retain wide discretion over pricing, terms and the visibility of Intuit's
offerings.
**Talent.** Competition for people with expertise in SaaS, fintech, mobile, data science,
AI and cybersecurity is intense, particularly in California and India where a significant
number of employees are located. Equity awards become less effective as a retention tool if
the stock price falls or lags peers.
**Product accuracy and launch timing.** Tax software has a rigid development timetable that
must absorb unpredictable and sometimes late tax law and form changes. Errors can force code
changes, coordination with state administrators, customer amendments, patches, product
recalls or suspended availability, and Intuit's accuracy guarantee commits it to reimburse
penalties and interest caused solely by calculation errors. Human experts on the platform
may also give erroneous or unsuitable advice.
**Regulation, privacy and data protection.** Intuit is subject to an expanding set of
local, state, federal and international rules. It cites the EU AI Act, which went into force
in 2025, and AI frameworks emerging in Utah, Colorado and California; GDPR and a growing
patchwork of U.S. state privacy laws in the absence of a federal standard; and legal
challenges in European courts to the EU-U.S. Data Privacy Framework it relies on for
transatlantic transfers. Lending and payments products require licenses that must be
obtained and maintained jurisdiction by jurisdiction. The tax preparation industry
specifically continues to draw heightened federal and state attention.
**Litigation.** Intuit describes itself as frequently a party to litigation and regulatory
inquiries, including class actions and intellectual property claims.
**Acquisitions and divestitures.** Both are named as risks — integration failure, unrealized
synergies, control environments inconsistent with Intuit's standards, undiscovered
diligence issues, and on the divestiture side an inability to find buyers on favorable
terms, retained indemnities, and harm to retained businesses if divested customers receive
worse service from a new owner.
**Financial risks.** Tax-business seasonality causes significant quarterly fluctuation.
Refunds in excess of reserves would reduce net revenue. The effective tax rate is exposed to
deferred-tax revaluation, stock-price-driven share-based compensation effects, changes in
tax law including OECD-driven foreign legislation, and continuous IRS and other examinations.
Providing capital to small and mid-market businesses and consumers exposes Intuit to
borrower default, application fraud, and errors in credit decisioning, pricing and
loss-forecasting models, and depends on financial institutions continuing to lend to Intuit
to fund loan purchases. Amortization and impairment of acquired intangibles and goodwill can
swing net income, with the annual goodwill test falling in the fourth fiscal quarter.
Outstanding indebtedness carries covenants — credit facilities restrict subsidiary
borrowing and require specified financial ratios; a breach without waiver can accelerate
all outstanding debt — and the 2020 Notes may have to be repurchased on a change of control
accompanied by ratings downgrades. The share repurchase program has no expiration and
carries no obligation to repurchase any specified amount, and may be suspended or
terminated. Because the majority of revenue is derived in the U.S., U.S. economic
conditions matter more to Intuit than to more internationally diversified peers; adverse
macro conditions could reduce payments volumes, reduce tax filings, and cause financial
institutions to pull back from Credit Karma's platform.
---
## Management's discussion and analysis — fiscal 2026
*From Item 7 of the fiscal 2026 Form 10-K, accession 0000896878-26-000037.*
### Headline results
| Fiscal 2026 | Amount | vs. fiscal 2025 |
| --- | --- | --- |
| Total net revenue | $21,448 million | up 14% |
| Global Business Solutions revenue | $12,864 million | up 16% |
| Consumer revenue | $8,584 million | up 11% |
| Operating income | $5,884 million | up 20% |
| Net income | $4,566 million | up 18% |
| Diluted net income per share | $16.46 | up 20% |
| Cash flow from operations | approximately $8.8 billion | up 42% |
Service revenue was $18.9 billion in fiscal 2026, or 88% of total revenue; management
expects service revenue to keep rising as a share of the total over the long term.
Operating income rose $961 million. The gain came from revenue growth, partly offset by
higher outside services (which include hosting), staffing, restructuring, marketing,
QuickBooks Capital cost of revenue on higher loan volume, share-based compensation, SaaS
subscriptions and licenses, and online payment cost of revenue. Net income rose $697
million: operating income plus higher interest and other income, partly offset by higher
income tax expense. The swing in interest and other income reflects $180 million of net
realized and unrealized gains on long-term investments in fiscal 2026 against $40 million of
losses, net of upward adjustments, in fiscal 2025. Diluted EPS rose 20% on the higher net
income and a lower weighted share count from increased repurchase activity.
### Global Business Solutions
Segment revenue of $12,864 million (fiscal 2025: $11,077 million; fiscal 2024: $9,533
million) was 60% of total revenue. Segment operating income was $9,887 million, or 77% of
segment revenue — up 17% and the same margin as fiscal 2025.
| (Dollars in millions) | FY2026 | FY2025 | % change |
| --- | --- | --- | --- |
| QuickBooks Online Accounting | 5,051 | 4,120 | 23% |
| Online Services | 4,867 | 4,182 | 16% |
| **Total Online Ecosystem** | **9,918** | **8,302** | **19%** |
| QuickBooks Desktop Accounting | 1,801 | 1,672 | 8% |
| Desktop Services and Supplies | 1,145 | 1,103 | 4% |
| **Total Desktop Ecosystem** | **2,946** | **2,775** | **6%** |
| **Total Global Business Solutions** | **12,864** | **11,077** | **16%** |
Online Ecosystem revenue grew $1.6 billion, contributing essentially all of the segment's
$1.8 billion increase. QuickBooks Online Accounting added $931 million on the interrelated
factors of higher effective prices, customer growth and mix shift. Online Services added
$685 million, of which money offerings contributed $434 million and payroll $266 million.
Within money, payments revenue rose $257 million on payments customer growth, higher total
payment volume per customer and higher revenue yield, and QuickBooks Capital added $177
million on increased loan volume. Desktop Ecosystem revenue rose $171 million, entirely
attributed to higher effective prices.
The two operating metrics management discloses tell the shape of the year clearly: Online
Ecosystem **average revenue per customer rose 15%**, while **Online Ecosystem paying
customers rose only 3%** year over year at July 31, 2026. Growth in fiscal 2026 was
predominantly price, mix and attach rather than customer count.
Segment operating income rose $1.4 billion, offset in part by increases of $115 million in
QuickBooks Capital cost of revenue (loan volume), $80 million in online payments cost of
revenue, $70 million in staffing and $51 million in outside services.
### Consumer
Segment revenue of $8,584 million (fiscal 2025: $7,754 million; fiscal 2024: $6,752
million) was 40% of total revenue. Segment operating income was $6,308 million, up 10%, at
73% of segment revenue versus 74% in fiscal 2025.
| (Dollars in millions) | FY2026 | FY2025 | % change |
| --- | --- | --- | --- |
| TurboTax | 5,296 | 4,933 | 7% |
| Credit Karma | 2,641 | 2,200 | 20% |
| ProTax | 647 | 621 | 4% |
| **Total Consumer** | **8,584** | **7,754** | **11%** |
The $830 million increase came from Credit Karma (+$441 million) and TurboTax (+$363
million). Credit Karma's gain breaks down as $235 million from the personal loan vertical,
$101 million from credit cards and $85 million from insurance. TurboTax grew on assisted tax
and consumer money offerings, **partially offset by a decrease in revenue from fewer
TurboTax federal units** — the notable soft spot in an otherwise strong year. Segment
operating income rose $548 million, offset by $191 million more marketing expense and $44
million more sales-related expense.
### Costs, expenses and taxes
| (Dollars in millions) | FY2026 | % of related revenue | FY2025 | % of related revenue |
| --- | --- | --- | --- | --- |
| Cost of service revenue | 4,016 | 21% | 3,624 | 22% |
| Cost of product and other revenue | 63 | 2% | 68 | 3% |
| Amortization of acquired technology | 174 | n/a | 156 | n/a |
| **Total cost of revenue** | **4,253** | **20%** | **3,848** | **20%** |
| (Dollars in millions) | FY2026 | % of total net revenue | FY2025 | % of total net revenue |
| --- | --- | --- | --- | --- |
| Selling and marketing | 5,534 | 26% | 5,035 | 27% |
| Research and development | 3,376 | 16% | 2,928 | 15% |
| General and administrative | 1,623 | 8% | 1,601 | 8% |
| Amortization of other acquired intangible assets | 485 | 2% | 481 | 3% |
| Restructuring | 293 | 1% | 15 | — |
| **Total operating expenses** | **11,311** | **53%** | **10,060** | **53%** |
Total operating expenses as a percentage of revenue was flat year over year: revenue rose
$2.6 billion (14%) and operating expenses rose $1.3 billion (12%). The increase was driven
by $365 million more staffing, $278 million more restructuring, $175 million more outside
services, $140 million more share-based compensation and $133 million more marketing.
Interest expense was $256 million (fiscal 2025: $247 million) on senior unsecured notes,
unsecured revolving credit facilities and commercial paper. Total interest and other income,
net was $389 million versus $158 million, comprising $180 million of interest income
(fiscal 2025: $175 million), a $39 million net gain on executive deferred compensation plan
assets, and $170 million of "other" against a $41 million loss in fiscal 2025.
The effective tax rate for fiscal 2026 was approximately **24%**, versus approximately 20%
reported in fiscal 2025 (approximately 24% excluding fiscal 2025's share-based-compensation
tax benefits). The fiscal 2026 rate exceeds the 21% federal statutory rate because of state
income taxes and non-deductible share-based compensation, partly offset by the federal
research and experimentation credit. At July 31, 2026 Intuit had net deferred tax
liabilities of $67 million. The One Big Beautiful Bill Act, enacted July 4, 2025,
reinstated immediate expensing of domestic research and development expenditures effective
in fiscal 2026; the deduction — including an election to deduct prior-year unamortized
capitalized R&D — reduced deferred tax assets and income taxes payable for fiscal 2026.
Management attributes part of the year's operating cash flow to those lower cash tax
payments, which is relevant to why cash from operations grew faster than net income. The Act's
provisions take effect across fiscal 2025 to fiscal 2027 and management is still assessing
the fiscal 2027 and later impact.
### Segment reporting and unallocated costs
Segment operating income totalled $16,195 million in fiscal 2026 against consolidated
operating income of $5,884 million; the gap is unallocated corporate items, which totalled
$10.3 billion in fiscal 2026, $9.3 billion in fiscal 2025 and $8.6 billion in fiscal 2024.
These include share-based compensation ($2,056 million in fiscal 2026), other corporate
expenses ($7,303 million), amortization of acquired technology ($174 million) and
amortization of other acquired intangible assets ($485 million). Under the platform
operating model, customer success (including the cost of the tax and bookkeeping experts
behind TurboTax Expert Assist, TurboTax Expert Full Service and Intuit Experts) and product
development are deliberately held at the corporate level rather than charged to segments —
so segment margins of 77% and 73% are not company margins.
### Restructuring — the 2026 Plan
In May 2026 management approved and initiated a reorganization ("the 2026 Plan") to
simplify the organizational structure and, in the company's words, become a faster, leaner,
more focused company. It reduces the full-time workforce and closes certain sites while
growing technology teams in strategic locations. The 10-K puts no figure on the reduction,
but the announcement of the plan on May 20, 2026 (accession 0000896878-26-000024) set it at
**approximately 17% of the full-time workforce**. Total costs are estimated at approximately
**$315 million**; **$293 million** was charged in fiscal 2026, primarily severance and
employee benefits, of which $51 million sat in Global Business Solutions, $28 million in
Consumer and $214 million in Corporate. Cash payments through July 31, 2026 were only $4
million, leaving $277 million accrued. Actions are expected to be substantially complete by
the first quarter of fiscal 2027. For comparison, the earlier 2024 Plan cost $238 million in
total and was fully settled during fiscal 2026.
### Liquidity and capital structure
Cash, cash equivalents and investments totalled **$7.2 billion** at July 31, 2026, up $2.6
billion from a year earlier. None of it was restricted, approximately 93% was held in the
U.S., and approximately 7% was held by foreign subsidiaries located primarily in Canada,
India, the United Kingdom and Israel, with no incremental U.S. tax expected on repatriation.
Fiscal 2026 cash movements: $8.8 billion generated from operations (helped by lower cash tax
payments under the OBBBA), plus $4.3 billion of principal repayments on notes receivable
held for investment, $2.2 billion from sales of notes receivable originally classified as
held for investment, $1.7 billion from the senior note issuance and $180 million from
employee stock plans. Uses were $6.8 billion for purchases of notes receivable held for
investment, **$5.4 billion for share repurchases**, $2.1 billion for the net decrease in
funds receivable/payable and amounts due to customers, $1.3 billion for dividends, $791
million net for investment purchases, $709 million for employee taxes withheld on RSU
vesting, $221 million for capital expenditures and $44 million of net repayments under
secured credit facilities. Capital expenditure of $221 million against $21.4 billion of
revenue is roughly 1% — this is a capital-light business.
Debt and facilities at July 31, 2026:
- **Senior unsecured notes: $6.75 billion aggregate principal outstanding**, all fixed
rate, compliant with all covenants. In June 2026 Intuit issued $1.75 billion of new notes
— $750 million of 4.950% notes due June 2031 and $1 billion of 5.500% notes due June 2036
— for net proceeds of $1.74 billion after $14 million of discount and issuance costs.
Maximum remaining commitment for interest payments was $3.27 billion.
- **2026 Credit Facility**: on January 9, 2026 Intuit terminated its amended and restated
credit agreement dated February 5, 2024 and entered a $2.2 billion unsecured revolving
credit facility expiring January 9, 2031, with an accordion of up to $4 billion, a $500
million swingline sublimit and a $250 million letter-of-credit sublimit. Pricing is SOFR
plus 0.700%–1.125% (or alternate base rate plus 0.000%–0.125%), facility fee 0.050%–0.125%,
both tied to senior long-term debt ratings. The financial covenant caps total gross debt to
EBITDA at 4.00 to 1.00 on a rolling twelve-month basis. Nothing was drawn at July 31, 2026.
- **2026 Short-Term Credit Facility**: on January 30, 2026 Intuit entered a **$5.8 billion**
unsecured short-term revolving facility specifically to fund a portion of the TurboTax
early tax refund offering, and terminated it effective February 26, 2026 — a striking
illustration of the intra-year working capital swing the tax season creates.
- **Secured revolving credit facilities**, non-recourse to Intuit Inc. and held through
special-purpose vehicles that are variable interest entities, fund purchases of business
loans from the originating bank partner. Total committed limit $1.2 billion; commitment
terms run April 2027 to November 2028 and final maturities May 2028 to November 2029.
**$970 million was outstanding** at a weighted average interest rate of 4.95%.
- **Commercial paper**: capacity was temporarily raised from $1.5 billion to $3.2 billion
during fiscal 2026 for seasonal working capital, then cut to $2.2 billion in March 2026.
Nothing was outstanding at July 31, 2026 or July 31, 2025.
Management expects to pay approximately **$2 billion in income taxes during fiscal 2027**,
primarily in the second half of the year, and expects to continue generating significant
cash from operations.
### Returns to shareholders
Intuit repurchased **13.4 million shares for $5.5 billion** during fiscal 2026 (including
$31 million of late-July trades that settled in August 2026). The Board raised the
authorization by $3.2 billion on August 19, 2025 and by a further $8.0 billion on May 7,
2026, leaving **$7.9 billion of remaining authorization** at July 31, 2026. On July 23,
2026 Intuit retired all existing treasury shares and all shares repurchased from July 24
through July 31, 2026 — 233 million shares carried at $27.0 billion, the accumulated cost of
repurchases made over many years, including fiscal 2026's — reducing
additional paid-in capital by $23.2 billion and retained earnings by $3.8 billion with no
net effect on total stockholders' equity. Dividends declared in fiscal 2026 totalled $4.80
per share, approximately $1.3 billion.
### Legal proceedings
The long-running matters arising from the marketing of free online tax preparation moved
materially in Intuit's favour during fiscal 2026. The FTC's January 19, 2024 final order —
which imposed marketing conditions but no monetary penalty — was **vacated by the U.S.
Court of Appeals for the Fifth Circuit on March 20, 2026** and remanded to the FTC; the
deadline for the FTC to appeal has since passed. The separate May 2022 settlement with the
attorneys general of all 50 states and the District of Columbia, under which Intuit admitted
no wrongdoing, paid $141 million and made advertising and marketing commitments, was charged
in the quarter ended April 30, 2022 and paid in full in the quarter ended January 31, 2023.
Two matters moved against the company. On **July 24, 2026 the Ontario (Canada) Superior
Court of Justice granted class certification** in a class action filed August 25, 2022;
Intuit expects to appeal. And on **July 10, 2026 a purported shareholder class action** was
filed in the Northern District of California against the company and certain members of
management, alleging violations of Sections 10(b) and 20(a) of the Exchange Act on the
basis of allegedly false and misleading statements made in 2025 and 2026. Intuit says it has
strong defenses. It is unable to estimate a reasonably possible loss or range of loss for
these matters.
---
## Fourth quarter of fiscal 2026 (three months ended July 31, 2026)
*From the earnings release furnished as Exhibit 99.01 to the Form 8-K filed August 25,
2026, accession 0000896878-26-000029. The fourth quarter is not covered by any Form 10-Q.*
| Three months ended July 31 | 2026 | 2025 |
| --- | --- | --- |
| Total net revenue | $4,354 million | $3,831 million |
| Operating income | $475 million | $339 million |
| Net income | $363 million | $381 million |
| Diluted net income per share | $1.34 | $1.35 |
Fourth-quarter revenue grew 14%. Global Business Solutions revenue grew 14% to $3.4 billion
(15% excluding Mailchimp) and Online Ecosystem revenue grew 17% to $2.6 billion (20%
excluding Mailchimp), with QuickBooks Online Accounting up 20% on higher effective prices,
customer growth and mix shift, and Online Services up 15% (21% excluding Mailchimp) on money
and payroll. Consumer revenue grew 14% to $930 million: TurboTax $153 million (up 3%),
Credit Karma $743 million (up 16%, driven by personal loans, auto insurance and credit
cards) and ProTax $34 million (up 6%). Total international online revenue rose 10% on a
constant currency basis in both the quarter and the year.
Fourth-quarter operating income rose 40% year over year despite absorbing the entire $293
million restructuring charge; net income and diluted EPS were slightly below the prior-year
quarter because fiscal 2025's fourth quarter carried a $15 million income tax **benefit**
against a $177 million provision this year.
Two full-year disclosures in the release are not in the 10-K tables. Chief executive Sasan
Goodarzi said the Big Bets "collectively grew 34 percent and represented 30 percent of
full-year revenue." And the release gives the TurboTax federal unit detail behind the
"fewer federal units" language in the MD&A:
| Units in millions | FY2026 | FY2025 | Change |
| --- | --- | --- | --- |
| Desktop units | 4.1 | 4.4 | (7)% |
| Online units | 34.9 | 35.5 | (2)% |
| **Total U.S. TurboTax units** | **39.0** | **39.9** | **(2)%** |
TurboTax Live revenue grew 37% for the year and represented 53% of total TurboTax revenue —
the mix shift toward assisted preparation that offset the unit decline. Non-GAAP operating
income for the year was $8.9 billion (up 18%) and non-GAAP EPS $24.27 (up 20%).
### Fiscal 2027 guidance
Guidance issued August 25, 2026 reflects both the Mailchimp segment change and a change in
non-GAAP methodology (see below), so the segment lines are not directly comparable to the
fiscal 2026 presentation above.
Full year fiscal 2027: total revenue $23,279–$23,512 million, up 9%–10%; Global Business
Solutions $13,068–$13,158 million (13%–14%); Mailchimp $1,256–$1,266 million, (1)%–0%;
Consumer $8,955–$9,088 million (4%–6%), of which TurboTax $5,377–$5,453 million (2%–3%),
Credit Karma $2,919–$2,973 million (11%–13%) and ProTax $659–$662 million (2%). GAAP
operating income $7,408–$7,490 million (up 26%–27%) and GAAP diluted EPS $20.12–$20.36 (up
22%–24%); non-GAAP operating income $8,063–$8,145 million and non-GAAP diluted EPS
$22.88–$23.12.
First quarter fiscal 2027: total revenue $4,294–$4,313 million (up 11%); GAAP operating
income $716–$729 million (up 34%–37%); GAAP diluted EPS $1.71–$1.75 (up 8%–10%); non-GAAP
diluted EPS $2.44–$2.48.
The non-GAAP guidance figures include share-based compensation expense of $2,020 million
for the year ($5.81 per diluted share) and $521 million for the first quarter ($1.48 per
diluted share).
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## Subsequent events
Events occurring after the July 31, 2026 fiscal year end, as disclosed in the fiscal 2026
Form 10-K (accession 0000896878-26-000037) and the Form 8-K filed August 25, 2026
(accession 0000896878-26-000029):
- **Debt repayment.** In August 2026 Intuit used the net proceeds of the June 2026 bond
issuance together with cash on hand to repay the **$750 million of 5.250% senior notes**
scheduled to mature in September 2026. It intends to use the remaining net proceeds for
general corporate purposes, which may include repaying the senior notes due July 2027.
- **Dividend increase.** In August 2026 the Board declared a quarterly cash dividend of
**$1.38 per share**, payable October 16, 2026 to stockholders of record at the close of
business on October 8, 2026 — a 15% increase over the prior-year quarterly dividend.
- **Mailchimp becomes a separate segment.** Effective August 1, 2026 Intuit began managing
Mailchimp as an operating segment separate from Global Business Solutions, and it will be
a separate reportable segment beginning in fiscal 2027. Fiscal 2027 guidance implies
Mailchimp revenue of roughly $1.26 billion, essentially flat to slightly down year over
year — the slowest-growing part of the portfolio, and the reason management repeatedly
quotes Global Business Solutions growth both including and excluding it.
- **Non-GAAP definition change.** Effective August 1, 2026 share-based compensation expense
will **no longer be excluded** from Intuit's non-GAAP financial measures. Management says
it views share-based compensation as a recurring component of the compensation program.
Because that expense was $2,056 million in fiscal 2026, this materially changes the level
of every non-GAAP measure Intuit reports going forward, and fiscal 2027 non-GAAP guidance
is stated on the new basis.
- **Shareholder litigation.** A **second** purported shareholder class action was filed on
**August 17, 2026** in the U.S. District Court for the Northern District of California
against the company and certain members of management, alleging Section 10(b) and 20(a)
violations on the same theory as the July 10, 2026 complaint. No lead plaintiff or
plaintiff's counsel had been appointed as of the 10-K filing.
- **FTC matter.** On **August 31, 2026** Intuit filed a motion in the U.S. District Court
for the Northern District of California seeking dismissal of the remaining FTC lawsuit as
moot, following the Fifth Circuit's vacatur of the FTC order. The FTC has agreed not to
oppose the motion and Intuit is awaiting the court's decision.
- **Benefit plan consolidation.** Effective August 2026, Credit Karma employees began
participating in the Intuit Inc. 401(k) Plan and their account balances were transferred
from the Credit Karma 401(k) Plan.
- **Restructuring completion.** The 2026 Plan's remaining actions — against a $315 million
total estimate of which $293 million was charged and only $4 million paid in cash by
July 31, 2026 — are expected to be substantially complete in the first quarter of fiscal
2027.
Goodwill was essentially unchanged through fiscal 2026 — $13,981 million at July 31, 2026
against $13,980 million a year earlier, with no goodwill acquired and the movement
attributable to foreign currency translation. Nothing in the fiscal 2026 Form 10-K
identifies an acquisition or divestiture pending or completed after July 31, 2026.
---
*Share count reference: 267,236 thousand shares of voting common stock were outstanding as
of August 31, 2026.*