Intuit (INTU) Q3 2025: AI-Driven Tax and Business Platform Accelerates Revenue, TurboTax Live Surges 47%
Intuit delivered a robust Q3, with revenue up 15% year over year, underpinned by AI-powered growth in both consumer tax and business solutions. TurboTax Live revenue soared 47%, and Credit Karma rebounded sharply, prompting management to raise full-year guidance across all major financial metrics. The company’s strategic focus on AI-driven “done-for-you” experiences and mid-market expansion positions Intuit for durable growth, while operational discipline continues to drive margin improvement.
Summary
- TurboTax Live Breakthrough: TurboTax Live revenue jumped 47%, now representing 40% of consumer group revenue, with full-service adoption fueling outperformance.
- AI Platform Execution: AI agents and AI-enabled human experts are driving productivity, customer conversion, and margin expansion across tax and business segments.
- Credit Karma Reacceleration: Credit Karma revenue grew 31% YoY, supported by AI-driven offer matching and improved monetization, leading to a sharp guidance raise.
- Mid-Market and Business Platform Momentum: Global Business Solutions Group (GBSG) revenue grew 19%, with QBO Advanced and Intuit Enterprise Suite up 40% in the online ecosystem.
- Margin and Guidance Upside: Operating margin expanded 100 basis points; full-year revenue and EPS guidance raised materially on broad-based strength.
Performance Analysis
Intuit reported Q3 revenue of $7.8 billion, a 15% increase year over year, with GAAP operating income up 20% to $3.7 billion and non-GAAP operating income up 17% to $4.3 billion. GAAP diluted EPS rose 19% to $10.02, and non-GAAP EPS increased 18% to $11.65. These results reflect broad-based strength, especially in the consumer group and business platform.
TurboTax Live, Intuit’s AI-enabled assisted tax offering, achieved 47% revenue growth and now represents 40% of consumer group revenue. Consumer group revenue overall grew 11% to $4 billion. Credit Karma, the consumer financial platform, delivered a standout 31% revenue growth, driven by strong performance in credit cards, personal loans, and auto insurance. GBSG, the business platform, grew revenue 19%, with online ecosystem revenue up 20% and 40% growth in QBO Advanced and Intuit Enterprise Suite targeting mid-market clients.
- TurboTax Live Adoption: Full-service and expert-assisted tax products drove double-digit conversion gains and higher ARPR (average revenue per return), up 13% YoY.
- AI-Driven Productivity: AI-enabled automation reduced customer and expert time spent on tax returns, supporting margin expansion and improved customer satisfaction.
- Credit Karma Recovery: AI-powered offer matching and new product innovation (e.g., Lightbox) drove a sharp rebound and higher ARPC (average revenue per customer).
Margin expansion was supported by disciplined expense management and AI-driven operational efficiencies, with management confident in sustaining operating income growth above revenue growth. The business model’s high mix of recurring subscription revenue (over 90%) enhances resilience and predictability.
Executive Commentary
"We delivered an exceptional quarter with revenue growth of 15% driven by outstanding performance across our platform. As a result, we're raising guidance across all total company metrics including revenue, operating income, operating margin and earnings per share."
Sasan Goodarzi, CEO
"Our third quarter results include revenue of $7.8 billion, up 15%. GAAP operating income of $3.7 billion, up 20%. Non-GAAP operating income of $4.3 billion, up 17%. GAAP diluted earnings per share of $10.02, up 19%. And non-GAAP diluted earnings per share of $11.65, up 18%."
Sandeep Ojla, CFO
"Given our early bets on AI and the significant investments we've made in the last decade in data, AI, and AI-enabled human experts, we are positioned extremely well to fuel our customers' growth and save them money."
Sasan Goodarzi, CEO
Strategic Positioning
1. AI-Driven Expert Platform
Intuit’s core strategy is centered on an AI-powered expert platform, integrating virtual AI agents and AI-enabled human experts across tax and business workflows. This platform approach automates routine tasks, manages complex processes, and delivers predictive insights, fundamentally improving productivity for both customers and internal teams.
2. Disrupting Assisted Tax and Expanding Consumer Platform
TurboTax Live’s rapid growth reflects Intuit’s disruption of the $35 billion assisted tax category, with AI and data investments enabling seamless, fast, and cost-effective tax solutions. Integration with Credit Karma, including seamless login and faster refund access, is driving new customer acquisition and higher monetization across the consumer platform.
3. Scaling Business Platform and Mid-Market Penetration
GBSG’s focus on “done-for-you” AI experiences and mid-market expansion is delivering strong results, with QBO Advanced and Intuit Enterprise Suite growing 40% in the online ecosystem. Intuit’s business platform is positioned as a one-stop shop, consolidating multiple applications and providing end-to-end business intelligence, which is resonating with both small businesses and larger mid-market clients.
4. Operational Discipline and Capital Allocation
Ongoing investment in AI and automation is driving margin expansion, while disciplined operating expense growth and headcount optimization support sustained earnings leverage. Intuit remains committed to returning capital to shareholders through share repurchases ($754 million in Q3) and a 16% increase in the quarterly dividend.
5. Leadership Alignment and Segment Focus
Leadership realignment is sharpening the focus on small business, mid-market, and services (money and workforce solutions), with proven leaders assigned to each area. This structure is intended to accelerate innovation and execution in the company’s highest-growth segments.
Key Considerations
Intuit’s Q3 demonstrates the power of its AI-first strategy and platform model, but execution and market dynamics will determine the sustainability of recent gains. Investors should closely monitor the following:
- TurboTax Live Mix Shift: TurboTax Live now represents 40% of consumer group revenue; continued mix shift toward assisted offerings could alter the long-term growth formula and margin profile.
- AI Agent Monetization: The launch of end-to-end AI agents and modular pricing for business platform solutions creates new monetization levers and customer value, but adoption and pricing power will be tested in coming quarters.
- Credit Karma Volatility: Credit Karma’s sharp rebound was driven by both macro stabilization and execution; sustainability depends on continued product innovation and partner share gains.
- MailChimp Integration Lag: MailChimp revenue was flat; management expects several quarters before improved outcomes at scale, making it a watchpoint for overall platform synergy.
- Mid-Market Execution: Early wins in mid-market and enterprise suite are promising, but go-to-market execution and partner channel development remain in early innings.
Risks
Macro uncertainty, especially for small and mid-sized businesses, could impact demand for core business solutions. MailChimp’s slower growth remains a drag on consolidated results. Competitive dynamics in assisted tax and business software are intensifying, and the pace of AI adoption and monetization will be critical to sustaining above-market growth. Management’s raised guidance increases expectations for flawless execution in the coming quarters.
Forward Outlook
For Q4 2025, Intuit guided to:
- Total company revenue growth of 17% to 18%
- GAAP EPS of $0.84 to $0.89
- Non-GAAP EPS of $2.63 to $2.68
For full-year 2025, management raised guidance to:
- Total revenue growth of 15% (up from 12-13%)
- GAAP operating income growth of 35% (up from 28-30%)
- Non-GAAP operating income growth of 18% (up from 13-14%)
- GAAP EPS growth of 26-27% (up from 18-20%)
- Non-GAAP EPS growth of 18-19% (up from 13-14%)
Management highlighted:
- Ongoing margin expansion through AI-driven productivity and operational discipline
- Accelerating innovation and product launches in AI agents and business platform modules
- Confidence in durable double-digit revenue growth and operating income leverage
Conclusion
Intuit’s Q3 results reinforce its position as a leader in AI-powered tax and business solutions, with strong execution driving both top-line growth and margin expansion. The company’s platform model, mix shift toward higher-value assisted offerings, and early wins in mid-market provide a long runway, though execution on MailChimp and continued AI monetization will be key watchpoints.
Read-Through
Intuit’s quarter signals a decisive shift in the software and fintech landscape: AI-driven automation and “done-for-you” experiences are rapidly becoming table stakes for both tax and business management platforms. The success of TurboTax Live and the integration of Credit Karma highlight the potential for consumer fintech cross-sell, while the move toward modular AI agents and consolidated business platforms is likely to accelerate consolidation and competitive pressure across SMB and mid-market SaaS. Watch for similar strategies from peers in tax, accounting, payroll, and business software, as platform leverage and AI-driven productivity gains become central to growth and margin narratives.