Overview
- Intuit posted fiscal third‑quarter revenue of about $8.56 billion and adjusted EPS of $12.80, and it raised full‑year fiscal 2026 revenue and earnings guidance following its earnings release on Thursday.
- Management announced a reorganization that eliminates roughly 3,000 roles, which it described as a structural realignment to remove management layers and reallocate spending toward AI and higher‑margin products.
- The company signaled a product mix change in tax: TurboTax revenue rose modestly while management projects TurboTax Live to grow roughly 36% and to make up about half of TurboTax revenue this year.
- Markets reacted negatively to the combination of job cuts and tax‑unit pressure, with shares tumbling sharply after the announcement and the stock trading at a materially lower valuation near 13 times FY26 EPS.
- The overhaul carries human and strategic consequences: affected U.S. employees will remain through July 31 with severance, Intuit expects $300–$340 million in restructuring charges, and investors must weigh short‑term disruption against competitive and regulatory risks from lower‑cost AI entrants.