Intuit Q1 FY2026: Revenue Soars as Profits More Than Double

Intuit, the financial technology giant behind household names like TurboTax, QuickBooks, and Credit Karma, just kicked off its 2026 fiscal year with a powerful financial performance. In its latest quarterly report filed with the SEC on November 20, 2025, the company revealed significant growth in both revenue and profitability, signaling a strong start to the year. Let's dive into the numbers from the first-quarter 10-Q filing to see what's driving this momentum.

For the three months ending October 31, 2025, Intuit reported total net revenue of $3.9 billion, an impressive 18% increase from the same period last year. But the real headline is how efficiently the company translated that growth into profit. Operating income nearly doubled, soaring 97% to $534 million, while net income jumped 126% to $446 million. This resulted in a diluted net income per share of $1.59, up from just $0.70 a year ago.

The Engines of Growth: Segments Firing on All Cylinders

Intuit’s growth was broad-based, with strong results from its two primary business segments:

• Global Business Solutions: This segment, which includes QuickBooks and Mailchimp, remains the company's largest revenue driver. It posted revenue of $3.0 billion, an 18% increase. The star performer here was the Online Ecosystem, which grew 21%, powered by a 25% surge in QuickBooks Online Accounting revenue. This highlights the continued successful migration of small businesses to cloud-based financial tools.

• Consumer: Home to TurboTax and Credit Karma, this segment also delivered robust growth, with revenue climbing 21% to $894 million. Credit Karma was a standout, with its revenue rocketing up 27% to $651 million. While TurboTax revenue grew a more modest 6%, it's important to remember that the first quarter is seasonally slow for the tax-preparation business, with the bulk of its revenue recognized in the second and third fiscal quarters.

From Revenue to Profit: A Story of Efficiency

A company's journey from revenue to profit can be complex, involving various costs and expenses. The flow diagram below visualizes Intuit's income statement for the quarter, showing how the $3.9 billion in revenue was allocated.

The dramatic rise in profitability stems from Intuit's ability to grow revenue faster than its expenses, a concept known as operating leverage. The company's total cost of revenue increased at a slower pace than its sales, causing its gross margin to improve. Total cost of revenue as a percentage of net revenue fell from 25% to 23% year-over-year.

Furthermore, key operating expenses like Selling and Marketing, while larger in absolute terms, shrank as a percentage of revenue from 30% to 28%. This demonstrates increasing efficiency, as each dollar of revenue is now generating more bottom-line profit.

Capital Returns and Financial Health

Intuit's strong performance generated substantial cash, with net cash from operating activities reaching $637 million for the quarter, a significant increase from $362 million in the prior year. The company actively returned capital to its shareholders, spending $854 million on stock repurchases and paying out $341 million in dividends.

In summary, Intuit has started its fiscal year on exceptionally strong footing. The powerful combination of double-digit revenue growth and expanding profit margins indicates that its AI-driven expert platform strategy is resonating with customers. As the company continues to navigate a competitive fintech landscape, its ability to effectively integrate its suite of products for consumers and small businesses appears to be a key advantage.