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# Intuit Inc. (INTU) — Business, Risks, and Management's Discussion Sources: the fiscal 2025 Annual Report on Form 10-K (accession 0000896878-25-000035, filed September 3, 2025, for the fiscal year ended July 31, 2025) and the Quarterly Report on Form 10-Q for the third quarter of fiscal 2026 (accession 0000896878-26-000025, filed May 20, 2026, for the quarter and nine months ended April 30, 2026). Intuit's fiscal year ends July 31. **A note on segments.** Effective August 1, 2025, Intuit combined its Consumer, Credit Karma, and ProTax businesses into a single Consumer segment and now reports two segments: Global Business Solutions and Consumer. The fiscal 2025 10-K predates that change and describes and reports the earlier four-segment structure (Global Business Solutions, Consumer, Credit Karma, ProTax); the third-quarter fiscal 2026 10-Q reports under the two-segment structure, with prior-year comparatives recast. Each section below is labeled with the structure it uses. --- ## Business *From the fiscal 2025 Form 10-K (accession 0000896878-25-000035).* Intuit describes itself as a global financial technology platform serving approximately 100 million consumers, small and mid-market businesses, and accountants worldwide, with a stated mission to "power prosperity around the world." Its principal brands are TurboTax, Credit Karma, QuickBooks, Mailchimp, and Intuit Enterprise Suite. Intuit Inc. was incorporated in California in March 1984, reincorporated in Delaware and completed its initial public offering in March 1993, and is headquartered in Mountain View, California. The stated strategy is to be an "AI-driven expert platform" — connecting customers to a combination of AI agents and AI-enabled human tax, bookkeeping, and financial experts, so that routine work is done for the customer rather than by the customer. Intuit dates this strategy to 2019 and attributes its execution to a proprietary internal developer platform it calls the Generative AI Operating System (GenOS). In fiscal 2025 it launched a set of AI agents across QuickBooks and Intuit Enterprise Suite (accounting, payments, finance, and project management agents) alongside a redesigned interface and business feed. ### Segments as reported in fiscal 2025 (four segments) **Global Business Solutions** — small and mid-market businesses and the accountants who serve them. Renamed from "Small Business & Self-Employed" on August 1, 2024. Revenue splits into two ecosystems: - *Online Ecosystem*: QuickBooks Online and Intuit Enterprise Suite; QuickBooks Live (Expert Assisted and Full-Service Bookkeeping); workforce solutions (QuickBooks Online Payroll, QuickBooks Time); money offerings (merchant payment processing, bill pay, QuickBooks Checking through an FDIC-member bank partner, and QuickBooks Capital lending); 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, forms, stationery). Intuit Enterprise Suite is the mid-market offering, adding multi-entity accounting and multi-dimensional reporting on the QuickBooks Online interface. QuickBooks Desktop completed a transition to a recurring subscription model beginning in early fiscal 2024. **Consumer** — TurboTax do-it-yourself and assisted (TurboTax Live, TurboTax Live Full Service) income tax preparation, online and desktop, in the U.S. and Canada, plus electronic filing, faster refund access, and audit defense/support. **Credit Karma** — a consumer personal-finance platform monetized primarily through cost-per-action transactions (completed credit card issuances, personal loan funding) and cost-per-click / cost-per-lead transactions (mortgage and insurance), plus Credit Karma Money savings and checking accounts through an FDIC-member bank partner. Members get credit scores and reports, credit and identity monitoring, dispute and credit-building tools, and personalized product recommendations. Credit Karma's Lightbox platform lets lenders use de-identified member data to pre-qualify members. **ProTax** — professional tax preparation for accountants: Lacerte, ProSeries, and ProConnect Tax Online in the U.S.; ProFile and ProTax Online in Canada. ### How the money is made, and where Service offerings dominate: total service revenue was $16.4 billion, or 87% of total revenue, in fiscal 2025, and management expects that share to keep growing over the long term. Total international net revenue was approximately 8% of consolidated net revenue in each of fiscal 2025, 2024, and 2023 — this is overwhelmingly a U.S. business. Distribution is primarily direct (websites, apps, call centers, and a direct sales force calling on accountants, bookkeepers, and mid-market businesses), supplemented by multi-channel shop-and-buy, mobile app stores, value-added resellers, technology partners, accountants, and retail for TurboTax Desktop. Marketing spans TV and radio, digital and search (including generative engine optimization), email, in-product cross-sell, sponsorships, and retail. Most online offerings run on public cloud providers, specifically Amazon Web Services and Google Cloud Platform. Desktop software is generally delivered by electronic download; physical backlog is minimal. ### Seasonality The Consumer and ProTax offerings have a pronounced seasonal pattern: tax preparation revenue is heavily concentrated from November through April, producing much higher net revenue in the fiscal second and third quarters (ending January 31 and April 30). Management expects that pattern to continue to have a material effect on quarterly results. Cash, cash equivalents, and investments fluctuate with the same pattern. ### Competition Intuit describes competition as intense across every business, rapidly evolving, and fragmented. Named categories of competitor include business software providers (including vertical and embedded software), private and publicly-funded tax preparation and filing providers, accounting/consulting/tax firms, banks and companies offering money services, personal finance management and credit-score products, and marketplaces of consumer financial offerings. Public-sector competition in consumer tax is called out separately (see Risks). ### People As of July 31, 2025, Intuit had approximately 18,200 employees in seven countries. During fiscal 2025 it employed on average approximately 12,300 seasonal employees from January to April, primarily supporting Consumer segment customers during peak tax season. Customer success staff are predominantly Intuit-employed and outsourced experts, with international teams located primarily in the Philippines and Canada. ### Executive officers (as listed in the fiscal 2025 10-K) Sasan K. Goodarzi, President and Chief Executive Officer and a director since January 2019; Sandeep S. Aujla, EVP and Chief Financial Officer since August 2023; Anton Hanebrink, EVP Corporate Strategy & Development since 2019; Caryl Hilliard, EVP and Chief People & Places Officer since August 2025; Kerry J. McLean, EVP, General Counsel and Corporate Secretary since August 2020; Lauren D. Hotz, SVP and Chief Accounting Officer since August 2022. --- ## Risk factors *Condensed from the fiscal 2025 Form 10-K (accession 0000896878-25-000035), with changes noted where the third-quarter fiscal 2026 10-Q (accession 0000896878-26-000025) restates a risk differently.* ### Strategic **Competition, including free and public-sector alternatives.** Competitors range from large established platforms to start-ups, and include providers of free and low-cost offerings in tax, accounting, payments, and consumer finance. The consumer tax business faces public-sector competition: government-provided return preparation at public expense. The fiscal 2025 10-K described the IRS free direct filing system as available with the IRS stating it would explore expanding eligibility, including partnering with more states. **The 10-Q updates this**: it states that the IRS free direct filing system was suspended, but that proponents of such programs continue to advocate for them. The legacy IRS Free File Program remains, and adoption could expand with greater awareness and government support. **Dependence on returning customers.** Both consumer and professional tax revenue depend heavily on customers who come back 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. **Adapting to technological change and extending the platform.** Future revenue growth depends on introducing new and enhanced products, features, services, and business models. Intuit acknowledges it has had difficulty launching new offerings in the past and may spend significant resources and management attention on offerings that do not succeed. **Intellectual property, in both directions.** Products rely on third-party IP under licenses that must be renewed or renegotiated; Intuit and its customers have been and may be subject to infringement claims, including arising from AI use; open source components may carry copyleft obligations; and there is stated uncertainty about the validity and enforceability of IP rights resulting from Intuit's own use of generative AI. Software piracy through online marketplaces is described as a persistent problem. **Brand and reputation.** Brand value depends on providing secure, trustworthy products and on using customer data in ways that meet expectations; a security incident disclosing sensitive data is called out as capable of causing material reputational harm. Perceived social harm or unfairness from AI use is named as a reputational and liability risk that could require additional R&D spending. **Acquisitions and divestitures.** Integration failure, unrealized synergies, retention of key employees and partners, acquired-entity control environments, undisclosed liabilities, impairment of capitalized intangibles, and — where debt is used — increased interest expense and leverage. Divestiture risks include finding buyers on favorable terms, retained indemnities, separating IP and systems, and inability to shed fixed costs. ### Operational **Security incidents and cyberattacks.** Intuit hosts large volumes of highly sensitive data — credit card information, tax return information, bank account numbers, credit report information, credentials, payroll and personal financial data. Systems have been and are increasingly likely to continue to be targeted; attackers include nation-states and state-sponsored organizations; AI is making attacks more automated, targeted, and harder to defend. Specific vectors named: social engineering and phishing, weak or reused customer credentials, stolen identity information obtained outside Intuit's systems, open source vulnerabilities, and the hybrid workplace model. Because Intuit operates a single customer identity across multiple products, one incident may expose more data than it otherwise would. Cybersecurity insurance may not cover all liabilities. Separately, use of Credit Karma member data is subject to a 2014 Federal Trade Commission order requiring a comprehensive security program and biennial independent security assessments for 20 years. **Third-party and supply-chain security.** Vendors, developers, and partners are given access to customer data or host it; malicious actors may misrepresent intended use, circumvent controls, or compromise the IT supply chain through software updates. **Fraud.** Fraudulent activity by malicious third parties is described as increasing and increasingly sophisticated, including through AI. Losses may be substantial; a loss of confidence by government agencies could, in the extreme, mean tax authorities refusing to allow Intuit to process returns electronically. Counter-fraud controls themselves can make it harder for legitimate customers to transact, costing revenue. **Transaction processing.** Large daily volumes and dollar values move through the money and personal financial management businesses. Errors or misappropriation risk scales with volume and speed. In payments, an unresolved merchant dispute can require Intuit to pay amounts that exceed established customer reserves. **Availability and infrastructure.** Most systems run on public cloud; there is not redundancy for all systems. The tax businesses must handle extremely heavy demand during peak filing periods, and any interruption during a peak period could cause significantly decreased revenue, lost customers, refunds, and negative publicity. Corporate headquarters and other critical operations are located near major seismic faults. **Third-party business relationships.** Growth increasingly depends on partners: software and service providers, credit bureaus, banks and other financial institutions, core processors, and app-store distribution platforms (Apple's App Store, Google's Play Store) whose owners have wide discretion over pricing and terms. Credit Karma specifically depends on financial institutions' willingness to offer products on its platform, which is sensitive to economic conditions, capacity, competing platforms, and regulation. Some relationships are sole- or limited-source. **Talent.** Competition for people with software-as-a-service, fintech, mobile, data science, AI, and cybersecurity expertise is intense, especially in California and India where a significant number of employees are located. Equity awards become less effective as retention tools if the stock price stalls, and issuing more equity dilutes shareholders. **Artificial intelligence.** Risks named span both directions: flawed algorithms or biased or insufficient datasets; latency, disruption, or failure in AI systems; the additional investment and cost of building and deploying resource-intensive AI; real or perceived social harm undermining public confidence; and third parties deploying AI in a way that reduces demand for Intuit's products. The legal and regulatory landscape is described as rapidly evolving and uncertain, with the EU AI Act in force since February 2025 and state frameworks in Utah, Colorado, and California among those named. **Product accuracy and launch timing.** Tax products have rigid development timetables and must absorb late, ambiguous tax law and form changes. Errors can cause customer compliance failures including over- or underpayment of tax; Intuit's accuracy guarantee commits it to reimburse penalties and interest caused by calculation errors. Experts connected to customers through TurboTax Live and QuickBooks Live may give erroneous or unsuitable advice. **International operations.** Privacy, data protection, and data localization laws; staffing and cultural distance; local labor law; credit risk and payment fraud; repatriation and currency restrictions; geopolitical events including conflicts in the Middle East; sanctions and export controls arising from the Russia-Ukraine war; FCPA and U.K. Bribery Act compliance; antitrust; tax developments; and changes in trade policy including tariffs and retaliation. **Climate.** Primary workplace locations are described as vulnerable to climate-related events — drought, water scarcity, heat and cold waves, extreme wind, wildfires and resulting air quality effects — occurring at increasing frequency. ### Legal and compliance **Increasing regulation.** Intuit is subject to a growing body of law covering labor, advertising and marketing, tax, financial services, AI, data privacy and security, electronic funds transfer, money transmission, lending, consumer protection, insurance, antitrust, and more. Some offerings, including lending and payments products, require licenses; inability to obtain or maintain them could materially harm operations in specific jurisdictions. The tax preparation industry specifically continues to receive heightened attention from federal and state governments, and Intuit must comply with a variety of state revenue agency standards to operate its filing services. **Privacy and data protection.** GDPR, a growing patchwork of U.S. state privacy laws in the absence of a federal standard, cross-border transfer requirements, and AI-adjacent data frameworks. Intuit notes that the EU-U.S. Data Privacy Framework it relies on for transfers faces legal challenges in the European courts, following the earlier invalidation of Privacy Shield and Safe Harbor. **Litigation and regulatory inquiries.** Intuit describes itself as frequently a party to litigation and regulatory inquiries, including class actions, arising from ordinary conduct, and expects the number and significance to increase as its businesses evolve. It also faces infringement claims, including from patent holding companies against whom its own IP portfolio provides little deterrence, and risks associated with content disseminated through its services. ### Financial **Seasonality and period-to-period volatility.** Tax revenue is heavily concentrated November through April, causing significant quarterly fluctuations; unanticipated changes to federal or state filing deadlines can worsen the effect. Other named drivers of variability include refunds, changes in product pricing or sales mix, customer behavior, discontinuation of support for older offerings, changes to the tax code or administration of government programs affecting the number of filers, and the timing of acquisitions, divestitures, and impairment charges. **Customer refunds.** Reserves are established against revenue based on estimated refunds; actual refunds materially exceeding reserves would reduce net revenue. **Taxes.** Effective rates can move with deferred tax asset valuation, the stock price (share-based compensation), and law changes; Intuit is under continuous examination by the IRS and other authorities. Gross-receipts-style and transaction tax regimes adopted by states and foreign jurisdictions may create liabilities for past periods. **Macroeconomic conditions.** Because the majority of revenue is derived from U.S. sales, U.S. economic conditions matter more than for more internationally diversified companies. Specific transmission channels named: financial institutions decreasing or suspending activity on Credit Karma's platform; higher interest rates making partner offers less attractive and reducing member creditworthiness; lower consumer spending reducing payment processing volumes; and high unemployment or tax-code changes reducing the number of returns filed. **Small-business lending.** Intuit provides qualified businesses access to capital from third-party lenders and then purchases some or all of those loans, taking borrower credit risk; it funds this through credit arrangements with financial institutions. Credit decisioning, pricing, and loss-forecasting models may contain errors or misjudge creditworthiness, and applicants may supply false information. **Amortization and impairment.** Acquisitions have produced significant amortization of acquired technology and other intangibles; goodwill is tested annually in the fiscal fourth quarter, so charges can land in Q4 without prior warning. **Indebtedness.** Outstanding debt increases vulnerability to downturns, dedicates cash flow to debt service, and limits flexibility. Credit facilities restrict subsidiary indebtedness and require compliance with specified financial ratios; the facilities and the senior note indentures limit liens and sale-leaseback transactions. The 2020 Notes may require repurchase on certain changes of control accompanied by ratings downgrades, which could discourage a takeover. Credit rating downgrades would raise the interest rate payable under the revolving facility and could impair access to future financing. **Share repurchases and stock price.** The repurchase program has no expiration date, carries no obligation to repurchase any specified amount, may be suspended or terminated, and even if fully implemented may not enhance long-term value. The stock price is exposed to analyst revisions, speculation about strategic position or legal proceedings, and general market conditions. --- ## Management's discussion — fiscal 2025 *From the fiscal 2025 Form 10-K (accession 0000896878-25-000035). Reported under the four-segment structure then in effect.* ### Headline results | Fiscal 2025 | Amount | Change vs. fiscal 2024 | |---|---|---| | Revenue | $18.8 billion | +16% | | Global Business Solutions revenue | $11.1 billion | +16% | | Consumer revenue | $4.9 billion | +10% | | Credit Karma revenue | $2.3 billion | +32% | | ProTax revenue | $621 million | +4% | | Operating income | $4.9 billion | +36% | | Net income | $3.9 billion | +31% | | Diluted net income per share | $13.67 | +31% | | Cash flow from operations | $6.2 billion | +27% | Operating income rose $1.3 billion, or 36%, as revenue growth outpaced the increase in costs and operating expenses set out below. Net income rose $906 million; the increase in income tax expense reflected both higher operating income and a decrease in excess tax benefits related to share-based compensation. ### Costs and operating expenses Total cost of revenue was $3,848 million, or 20% of revenue, against $3,465 million (21%) in fiscal 2024 and $3,143 million (22%) in fiscal 2023. Its three components were cost of service revenue $3,624 million (22% of service revenue), cost of product and other revenue $68 million (3%), and amortization of acquired technology $156 million. Cost of service revenue as a percentage of service revenue was relatively consistent with fiscal 2024, and cost of product and other revenue as a percentage of its related revenue was flat. Total operating expenses were $10,060 million, or 53% of total net revenue, down from 56% in fiscal 2024 and 56% in fiscal 2023: | Fiscal 2025 operating expenses | Amount | % of total net revenue | Fiscal 2024 % | |---|---|---|---| | Selling and marketing | $5,035 million | 27% | 26% | | Research and development | $2,928 million | 15% | 17% | | General and administrative | $1,601 million | 8% | 9% | | Amortization of other acquired intangible assets | $481 million | 3% | 3% | | Restructuring | $15 million | — | 1% | | Total | $10,060 million | 53% | 56% | The filing's own bridge: total net revenue increased $2.5 billion, or 16%, while total operating expenses increased $870 million, or 9%. The expense increase was made up of $410 million more marketing, $300 million more staffing, $161 million more outside services, and $52 million more sales-related expense, partially offset by a $208 million decrease in restructuring charges. ### Segment detail **Global Business Solutions**: total segment revenue $11,077 million (up 16% from $9,533 million), segment operating income $8,467 million, or 76% of related revenue (up from 75%). Online Ecosystem revenue was $8,302 million, up $1.4 billion or 20%. Within it, QuickBooks Online Accounting rose $741 million (+22%) to $4,120 million on the interrelated factors of higher effective prices, customer growth, and mix shift; Online Services rose $669 million (+19%), comprising money offerings up $379 million, payroll up $279 million, and Mailchimp up $20 million. The money increase was $242 million from payments (customer growth, higher payment volume per customer, higher effective prices) plus $137 million from QuickBooks Capital. Desktop Ecosystem revenue was $2,775 million, up $134 million or 5%, on higher effective prices and the completed transition to a recurring subscription model. Online Ecosystem average revenue per customer rose 14% while online ecosystem paying customers rose 5% — growth in this segment was substantially price and mix rather than unit count. **Consumer**: revenue $4,870 million (+10%, +$425 million) driven by higher-priced and additional service offerings such as TurboTax Live and early tax refund offerings; segment operating income $3,786 million (+8%), 78% of related revenue, down from 79%, with marketing expense up $132 million. **Credit Karma**: revenue $2,263 million (+32%, +$555 million), from personal loans (+$221 million), credit cards (+$213 million), and auto insurance (+$99 million); segment operating income $835 million, up 102%, at 37% of related revenue versus 24% the prior year, with marketing expense up $120 million. **ProTax**: revenue $621 million (+4%) on higher average revenue per customer; segment operating income $533 million (+3%), 86% of related revenue. **Unallocated corporate items** — share-based compensation, amortization of acquired technology and other intangibles, impairments, business-combination fees, restructuring, corporate selling and marketing, G&A, and (under the platform strategy) customer success and product development for the Global Business Solutions, Consumer, and ProTax segments — totaled $8.7 billion in fiscal 2025, versus $8.0 billion in fiscal 2024 and $7.0 billion in fiscal 2023. This is the gap between the segment margins above and the consolidated result, and it is growing. Two presentation changes affect comparability. On August 1, 2024, certain technology and customer success functions were moved from the segments to corporate; fiscal 2024 and 2023 comparatives were restated by reclassifying $1.4 billion and $1.3 billion from Global Business Solutions, $573 million and $475 million from Consumer, and $33 million and $34 million from ProTax. Separately, the July 2024 reorganization plan (exit of employees, closing of real estate sites) was substantially complete in the first quarter of fiscal 2025; total costs were $238 million, of which $15 million was charged in fiscal 2025 and $223 million in fiscal 2024. ### Below the operating line Interest expense was $247 million in fiscal 2025 (senior unsecured notes, revolving credit facility, commercial paper) versus $242 million in fiscal 2024. Interest income was $175 million, up on higher average investable balances. Intuit recorded $51 million in net losses on long-term investments during fiscal 2025. The effective tax rate was approximately 20%; excluding tax benefits primarily related to share-based compensation it was approximately 24%, above 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. Net deferred tax assets were $1.2 billion at July 31, 2025. The One Big Beautiful Bill Act, enacted July 4, 2025, reinstates immediate expensing of domestic research and development expenditures effective in fiscal 2026, which management expects to significantly reduce deferred tax assets and income taxes payable from fiscal 2026 onward. OECD Pillar Two rules had no impact and are not expected to have a significant one. ### Liquidity and capital structure at July 31, 2025 Cash, cash equivalents, and investments totaled $4.6 billion, up $478 million year over year; none restricted, approximately 91% located in the U.S. and approximately 9% held by foreign subsidiaries (primarily Canada, India, and the United Kingdom), with no incremental U.S. tax expected on repatriation. Fiscal 2025 cash flow: $6.2 billion generated from operations, plus $3.1 billion from the net increase in funds receivable/payable and amounts due to customers, $429 million of net borrowings under secured facilities, and $398 million from employee stock plans. Uses were $2.8 billion of share repurchases, $1.2 billion of dividends, $1.2 billion of net investment purchases, $982 million of employee taxes withheld on RSU vesting, $724 million of net originations of notes receivable, $500 million of debt repayment, $184 million for a business acquisition, and $124 million of capital expenditures. Debt consisted of $1.0 billion of the 2020 Notes remaining outstanding ($500 million of 1.350% due July 2027 and $500 million of 1.650% due July 2030) and the $4 billion 2023 Notes ($750 million of 5.250% due September 2026, $750 million of 5.125% due September 2028, $1,250 million of 5.200% due September 2033, and $1,250 million of 5.500% due September 2053). Nothing was drawn on the unsecured revolver or commercial paper program. $1.0 billion was outstanding under the non-recourse secured revolving facilities that fund small and mid-market business lending (2019, 2022, and 2024 Secured Facilities; $440 million, $300 million, and $274 million respectively, at weighted-average rates of 5.74%, 5.56%, and 5.56%). Intuit was compliant with all covenants, including the requirement under its unsecured revolver to keep total gross debt to EBITDA at or below 4.00 to 1.00. Capital returns: $2.1 billion of repurchase authorization remained at July 31, 2025, increased by an additional $3.2 billion by Board action on August 19, 2025. Dividends declared in fiscal 2025 totaled $4.16 per share, approximately $1.2 billion. Working-capital seasonality is visible in the financing arrangements: a $4.5 billion unsecured short-term facility entered into January 30, 2025 to fund part of the TurboTax early tax refund offering was terminated March 3, 2025, and the commercial paper program was temporarily increased from $1.5 billion to $2.0 billion during the year before returning to $1.5 billion. --- ## Current period — third quarter and nine months of fiscal 2026 *From the Form 10-Q for the quarter and nine months ended April 30, 2026 (accession 0000896878-26-000025). Reported under the two-segment structure effective August 1, 2025, with prior-year comparatives recast.* ### Results | (Dollars in millions, except per share) | Q3 FY26 | Q3 FY25 | Change | 9M FY26 | 9M FY25 | Change | |---|---|---|---|---|---|---| | Total net revenue | $8,558 | $7,754 | +10% | $17,094 | $15,000 | +14% | | Operating income | $4,020 | $3,720 | +8% | $5,409 | $4,584 | +18% | | Net income | $3,064 | $2,820 | +9% | $4,203 | $3,488 | +20% | | Diluted net income per share | $11.09 | $10.02 | +11% | $15.05 | $12.33 | +22% | The third quarter is one of the two tax-season quarters, so it carries a disproportionate share of the year: $8.6 billion of the $17.1 billion of nine-month revenue and $4.0 billion of the $5.4 billion of nine-month operating income landed in this one quarter. Operating income grew more slowly than revenue in the quarter (8% against 10%), on higher outside services (including hosting), staffing, marketing, SaaS subscriptions and licenses, and share-based compensation. For the nine months, total operating expenses rose 12% against 14% revenue growth — operating expenses as a percentage of revenue fell — driven by staffing (+$311 million), marketing (+$177 million), outside services (+$161 million), and share-based compensation (+$115 million). ### Segment detail **Global Business Solutions**: Q3 revenue $3,285 million (+15%); nine-month revenue $9,440 million (+17%). Segment operating income $2,520 million in the quarter (+15%) and $7,257 million for nine months (+16%), at a 77% margin in both the quarter and the nine months, flat against the prior year on both bases. Online Ecosystem revenue was $2,497 million in the quarter (+19%) and $7,315 million for nine months (+20%). QuickBooks Online Accounting was $1,278 million (+22%) in the quarter and $3,732 million (+24%) for nine months. Online Services was $1,219 million (+15%) in the quarter, with money offerings up $107 million (payments +$61 million, QuickBooks Capital +$46 million) and payroll up $55 million. Desktop Ecosystem revenue was $788 million (+6%) in the quarter and $2,125 million (+7%) for nine months, on higher effective prices. Segment operating income growth was held back by QuickBooks Capital cost of revenue (+$41 million in the quarter, +$96 million for nine months, on increased loan volume), online payments cost of revenue, outside services, staffing, and marketing. **Consumer**: Q3 revenue $5,273 million (+8%); nine-month revenue $7,654 million (+10%). Segment operating income $4,263 million in the quarter (+6%), at 81% of related revenue versus 82% a year earlier, and $5,745 million for nine months (+9%), at 75% versus 76%. Within the segment: TurboTax $4,364 million in the quarter (+7%) and $5,143 million for nine months (+7%); Credit Karma $631 million (+15%) and $1,898 million (+22%); ProTax $278 million (flat) and $613 million (+4%). The composition of the Consumer result is the most important qualitative point in the quarter. TurboTax revenue grew on **assisted tax and consumer money offerings**, partially offset by a decrease from **fewer TurboTax federal units** — that is, growth came from price, mix, and attach rather than from more taxpayers served. Credit Karma's growth came from the personal loan vertical (+$51 million in the quarter, +$166 million for nine months), insurance (+$29 million, +$67 million), and, for the nine months, credit cards (+$87 million). Consumer segment margin compressed slightly on higher marketing (+$93 million in the quarter) and sales-related expenses. Unallocated corporate costs for all segments totaled $7.6 billion for the nine months, against $6.9 billion a year earlier, increasing primarily on research and development, cost of service revenue, and selling and marketing. Recast note: to conform prior periods to the new segment structure, expenses of $1 million (Q3) and $7 million (nine months) were reclassified from Global Business Solutions, and $155 million and $456 million from Consumer, to other corporate expenses. International revenue was approximately 6% of consolidated revenue in the quarter and 7% for the nine months, versus approximately 5% and 7% in the prior-year periods. ### Below the operating line Interest expense was $186 million for the nine months, versus $188 million a year earlier. Interest and other income benefited from $104 million of net gains on long-term investments in the nine months of fiscal 2026, against $43 million of net losses in the same period of fiscal 2025 — a $147 million year-over-year swing that flatters the net income comparison. Effective tax rates were approximately 24% for the quarter and 23% for the nine months (approximately 24% for both periods excluding discrete share-based compensation items), versus 23% and 22% in the prior-year periods. Intuit recognized an $11 million tax shortfall on share-based compensation in the quarter, against $18 million of excess benefits a year earlier. ### Liquidity and capital returns Cash, cash equivalents, and investments were $6.8 billion at April 30, 2026, up $2.2 billion from July 31, 2025; none restricted, approximately 93% in the U.S., approximately 7% held by foreign subsidiaries (primarily India, Canada, Israel, and the United Kingdom). Nine-month cash flow: $7,507 million provided by operating activities, against $5,826 million a year earlier — an increase of $1,681 million. Investing used $1,100 million (essentially unchanged). Financing used $3,983 million, against $1,652 million a year earlier, an increase of $2,331 million in outflow, reflecting the step-up in buybacks. Intuit repurchased 6.6 million shares for $3.4 billion in the first nine months of fiscal 2026 and had $1.9 billion of authorization remaining at April 30, 2026, following the August 19, 2025 Board increase of $3.2 billion. Dividends declared in the nine months totaled $3.60 per share, approximately $1.0 billion. Debt was unchanged in composition from year-end: the $1.0 billion of 2020 Notes and the $4 billion of 2023 Notes remained outstanding, with all covenants complied with. $1.2 billion was outstanding under the secured revolving facilities that fund business lending, up from $1.0 billion at July 31, 2025 (2019 Facility $500 million at 5.01%, 2022 Facility $400 million at 4.76%, 2024 Facility $300 million at 5.01%). Financing arrangements were reshaped during the year. On January 9, 2026, Intuit terminated its February 5, 2024 credit agreement and entered a $2.2 billion unsecured revolving facility expiring January 9, 2031, with the ability to increase commitments by up to $4 billion; nothing was drawn at April 30, 2026. On January 30, 2026, it entered a $5.8 billion unsecured short-term facility to fund part of the TurboTax early tax refund offering, and terminated it effective February 26, 2026 once the season had passed. The commercial paper program was temporarily increased from $1.5 billion to $3.2 billion in January 2026 and reduced to $2.2 billion in March 2026; nothing was outstanding at April 30, 2026 or July 31, 2025. These seasonal facilities are the clearest evidence of how large the intra-year working capital swing in the consumer refund business has become. ### Legal proceedings update The long-running matter over Intuit's provision and marketing of free online tax preparation reached a new stage. The FTC's final order of January 19, 2024, which required Intuit to adhere to certain marketing practices and carried no monetary penalties, took effect March 23, 2024 and was appealed to the Fifth Circuit. **On March 20, 2026, the Court of Appeals for the Fifth Circuit vacated the FTC's order and remanded the case to the FTC.** Intuit states it intends to continue to defend its position on the merits and that defense and resolution could involve significant costs. The separate May 4, 2022 settlement with the attorneys general of the 50 states and the District of Columbia — entered admitting no wrongdoing, under which Intuit agreed to pay $141 million and made certain commitments regarding its advertising and marketing practices, recorded as a one-time charge in the quarter ended April 30, 2022 and paid in full to the fund administrator in the quarter ended January 31, 2023 — remains resolved. A class action filed August 25, 2022 in the Ontario (Canada) Superior Court of Justice remains pending. Intuit states it is unable to estimate a reasonably possible loss or range of loss for the remaining matters, and that legal and other fees incurred to date have not been material. --- ## Subsequent events *From Note 13 to the condensed consolidated financial statements and the liquidity discussion of the Form 10-Q for the quarter ended April 30, 2026 (accession 0000896878-26-000025).* **Restructuring — the 2026 Plan.** In May 2026, after the April 30 quarter end, management approved and initiated a plan to simplify Intuit's organizational structure and, in the company's words, "become a faster, leaner, more focused company." Under the plan Intuit will reduce its full-time workforce and is considering the closure of certain sites in service to growing technology teams and capabilities in strategic locations. The quarterly report does not size the reduction, but the earnings announcement Intuit issued the same day put it at approximately **17%** of the full-time workforce (Form 8-K of May 20, 2026, accession 0000896878-26-000024), against the approximately 18,200 employees the fiscal 2025 10-K counts as of July 31, 2025. Intuit estimated approximately **$300 million to $340 million** of restructuring charges, primarily in the fiscal fourth quarter ending July 31, 2026, consisting primarily of cash expenditures for severance payments and employee benefits, with the actions expected to be substantially complete by the first quarter of fiscal 2027. Actual costs may vary from the estimate. **Capital returns authorized after quarter end.** On May 7, 2026, the Board approved an increase in the authorization under the existing stock repurchase program of up to an additional $8 billion of common stock — a step-change against the $1.9 billion of authorization that remained at April 30, 2026. In May 2026 the Board also declared a quarterly cash dividend of $1.20 per share, payable July 17, 2026 to stockholders of record at the close of business on July 9, 2026. As of the May 20, 2026 filing date the note disclosed no acquisitions, no divestitures, no debt issuance, and no litigation settlements after the April 30, 2026 balance sheet date. Events after that filing fall outside its scope: Intuit issued $1.75 billion of senior notes in June 2026, fiscal 2026 ended July 31, 2026, and fourth-quarter and full-year results were announced by Form 8-K on August 25, 2026 (accession 0000896878-26-000029). No Form 10-K covering fiscal 2026 has been filed, so those results sit outside the financial record set out above and are summarized in the events section of this report.