By Jaspreet Singh (Reuters) -Intuit forecast fourth-quarter revenue and profit above Wall Street estimates on Thursday, signaling growing demand for its AI-driven financial management tools and sending its shares up more than 8% in extended trading. The tax filing season in the U.S. from January 27 to April 15 also helped the company report upbeat […]
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Intuit forecasts strong quarterly profit after tax season boost
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By Jaspreet Singh
(Reuters) -Intuit forecast fourth-quarter revenue and profit above Wall Street estimates on Thursday, signaling growing demand for its AI-driven financial management tools and sending its shares up more than 8% in extended trading.
The tax filing season in the U.S. from January 27 to April 15 also helped the company report upbeat third-quarter results as many taxpayers used Intuit’s software to file their federal income-tax returns.
Intuit provides products such as tax-preparation software TurboTax, personal finance portal Credit Karma and accounting software QuickBooks.
The company said it would launch AI agents, systems which can take actions for users, in the coming weeks and add these agents into its QuickBooks product portfolio.
“These agents are going to be incorporated into the lineup… we are going to be revamping our lineup. There’s going to be a new lineup, and as part of that, we will have price changes,” CFO Sandeep Aujla told Reuters.
In addition to the core portfolio, there will be options where customers can choose specific agents based on their needs, such as an accounting agent or a finance agent, and pay for them separately, he said.
Intuit forecast fourth-quarter revenue between $3.72 billion and $3.76 billion, above analysts’ average estimate of $3.51 billion, according to data compiled by LSEG.
Adjusted profit per share expectations of $2.63 to $2.68 for the quarter ending July 31 was also above estimates of $2.59.
Revenue for the third quarter rose 15% to $7.75 billion, beating estimates of $7.56 billion. The adjusted profit per share of $11.65 also exceeded estimates of $10.91.
Intuit now expects annual revenue growth of about 15%, up from its prior forecast of 12% to 13%.
The company’s total TurboTax Online units, number of individual online tax returns filed using the platform, are expected to decline about 1% in fiscal 2025, while the paying units are expected to grow 6%.
About 8 million users are expected to file their taxes for free using TurboTax this fiscal year, a drop of about 2 million from a year ago due to the company’s shift in marketing efforts to assisted and paid offerings.
(Reporting by Jaspreet Singh in Bengaluru)