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SEC filingIntuit's Q1 FY26 revenue grew 18% YoY, driven by Global Business Solutions and Consumer segments, with operating income up 97%.
Intuit's first quarter of fiscal 2026 (ended October 31, 2025) demonstrated strong financial performance, with total net revenue increasing 18% year-over-year to $3.885 billion. This growth was primarily driven by the Global Business Solutions segment, which saw revenue rise 18% to $2.991 billion, and the Consumer segment, which grew 21% to $894 million. Operating income surged 97% to $534 million, reflecting a significant operating margin expansion from 8.3% to 13.7%. The increase in operating income was attributed to the revenue growth, partially offset by higher expenses in staffing, outside services, share-based compensation, and SaaS subscriptions. Net income rose 126% to $446 million, benefiting from a $34 million net gain on long-term investments in the current quarter compared to a $42 million net loss in the prior year. Diluted earnings per share increased to $1.59 from $0.70.
Global Business Solutions: Segment revenue grew 18% YoY to $2.991 billion, with Online Ecosystem revenue up 21% to $2.351 billion. QuickBooks Online Accounting revenue increased 25% due to higher effective prices, customer growth, and mix-shift. Online Services revenue rose 17%, driven by increases in money offerings ($105 million) and payroll offerings ($67 million). Desktop Ecosystem revenue grew 6% to $640 million, primarily from higher effective prices. Segment operating income increased 17% to $2.334 billion, with operating margin slightly declining to 78% from 79% due to increased staffing, marketing, and cost of revenue expenses.
Consumer: Segment revenue increased 21% YoY to $894 million, driven by Credit Karma revenue growth of 27% to $651 million, with increases in personal loan ($65 million), credit card ($53 million), and auto insurance ($16 million) verticals. TurboTax revenue grew 6% to $198 million, and ProTax revenue rose 15% to $45 million. Segment operating income increased 36% to $584 million, with operating margin expanding to 65% from 58%, reflecting the revenue growth.
Management highlighted the company's AI-driven expert platform strategy, focusing on delivering done-for-you experiences, accelerating money benefits, and fueling success for mid-market businesses. The company expects seasonality to continue, with Consumer segment revenue concentrated in the second and third fiscal quarters due to tax preparation offerings. No specific forward guidance was provided in the MD&A section. The company continues to invest in product development, marketing, and sales capabilities to remain competitive and drive growth.
As of October 31, 2025, Intuit had $3.506B in cash and cash equivalents, $0.340B in available-for-sale debt securities (including $0.150B restricted in funds receivable), and total debt of $6.140B (carrying value), resulting in net debt of $2.294B. Shareholders' equity stood at $19.322B. The company also held $1.519B in notes receivable held for investment (net) and $0.048B held for sale.
Intuit had $36M in commitments to purchase business loans originated on or prior to October 31, 2025. Operating lease obligations total $871M in undiscounted payments, with $63M remaining in fiscal 2026 (Q2-Q4). No material changes in unconditional purchase obligations were noted.
During Q1, Intuit repurchased 1.2M shares for $851M. The Board authorized an additional $3.2B on August 19, 2025, leaving $4.4B remaining. Quarterly dividends increased to $1.20 per share (total $343M declared), up 15.4% YoY. Total debt increased by $0.167B due to draws on secured revolving credit facilities; capital expenditures were $38M (0.98% of revenue). Share-based compensation was $543M.
Effective August 1, 2025, Intuit merged Consumer, Credit Karma, and ProTax into a single Consumer segment. Segment results: Global Business Solutions revenue $2,991M (+17.6% YoY), operating income $2,334M (78.0% margin); Consumer revenue $894M (+21.0% YoY), operating income $584M (65.3% margin). International revenue was approximately 9% of consolidated net revenue.
Net income of $446M (2025) compared to $197M (2024) drove operating cash flow of $637M, a 76% YoY increase. The primary non-cash adjustments were share-based compensation ($543M) and amortization ($165M), offset by deferred taxes. Operating cash flow exceeded net income, indicating strong cash generation quality.
Capex was modest at $38M, representing only 6% of operating cash flow, suggesting low capital intensity. Free cash flow (not explicitly stated) would be approximately $599M, but the filing does not report it directly.
Investing activities provided $1,198M, largely from maturities of investments ($1,473M) net of originations and purchases of notes receivable ($1,297M). Financing activities used $4,372M, primarily for share repurchases ($854M), dividends ($341M), and a net change in funds receivable/payable ($3,160M). The large financing outflow indicates significant capital returns to shareholders and liquidity management.
Working capital changes consumed $636M (2025) vs $538M (2024), driven by increases in accounts receivable, prepaids, and decreases in accrued compensation and accounts payable. These swings are partly seasonal. Overall, operating cash flow remains robust but is heavily supplemented by investing inflows to fund capital returns.