Intuit’s Stock Drops as Its Outlook Disappoints

Intuit (INTU) reported fiscal first-quarter results that beat analysts expectations, but shares tumbled in extended trading as the company’s current-quarter forecast disappointed.

The TurboTax and Credit Karma parent saw first-quarter revenue grow 10% to $3.3 billion, above the analyst consensus from Visible Alpha. Net income of $197 million or 70 cents per share declined from $241 million or 85 cents per share in the year-ago quarter, but topped analysts’ projections. 

Looking ahead, Intuit said it expects second-quarter revenue revenue of $3.81 billion to $3.85 billion, below the analyst consensus. The company projected earnings per share (EPS) of 84 cents to 90 cents, also short of the $1.50 analysts anticipated. For the full-year, the company maintained its full-year EPS forecast of $12.34 to $12.54. 

Shares of Intuit fell 6% in extended trading following the release. They were up close to 9% for 2024 through Thursday’s close. 

Results Come After Reports Trump Administration Could Launch Competing Free Tax-Filing App

The drop comes after Intuit’s stock took a hit earlier in the week on concerns the tax prep company could face more competition following reports leaders of President-elect Donald Trump’s new Department of Government Efficiency (DOGE) are considering launching a free tax-filing app.

The Washington Post reported Tesla (TSLA) CEO Elon Musk and entrepreneur Vivek Ramaswamy, who Trump tapped to lead the agency, have discussed the possibility in what the report described as “highly preliminary” conversations. 

Such an app could compete with Intuit and H&R Block (HRB), which offer both free and paid tax-filing software.