Intuit's AI-driven tools boost revenue forecast with US tax season underway

TurboTax maker Intuit forecast third-quarter revenue above Wall Street estimates on Tuesday, betting on growing demand for its AI-driven financial services software, sending the company's shares up nearly 5 per cent in extended trading.

The ongoing tax season in the U.S. is also boosting demand for Intuit's software as bulk of the tax filings are expected to be made in the third quarter.

"We continue to feel very optimistic about the full year," Intuit's Chief Financial Officer Sandeep Aujla said, adding that the company is seeing a strong start to the tax season.

Intuit provides financial management and compliance products such as its tax-preparation software TurboTax, personal finance portal Credit Karma and financial software QuickBooks for small businesses.

Its AI-powered assistant, Intuit Assist, is integrated across its products, helping individuals and businesses by providing personalized financial recommendations and automation of specific tasks such as bookkeeping.

The company launched its AI-powered tool for QuickBooks in November 2024 to help businesses manage taxes and other financial tasks.

Last year, the company cut 10 per cent of its workforce and said it would rehire for the impacted roles.

"We ended up filling the roles at a faster pace than we had expected," Aujla said on Tuesday.

Intuit forecast third-quarter revenue between $7.55 billion and $7.60 billion, compared with the average analyst estimate of $7.51 billion, according to data compiled by LSEG.

However, its third-quarter forecast for adjusted profit per share of $10.89 to $10.95 was below estimates of $11.48.

The company reported second-quarter revenue of $3.96 billion, beating estimates of $3.83 billion.

On an adjusted basis, Intuit earned $3.32 per share, ahead of estimates of $2.58.

The company reiterated its forecasts for fiscal 2025.