INTU 10-Q — Smart Summary

• Segment reorganization: Effective August 1, 2025, Intuit combined its Consumer, Credit Karma, and ProTax businesses into a single Consumer segment; as a result, certain Credit Karma selling and marketing, product development, and G&A expenses previously managed at the segment level are now managed at the platform level and included in other corporate expenses. Certain marketing, communications, and customer success functions in the Global Business Solutions segment were also moved to the platform level. For the three and nine months ended April 30, 2025, $1 million and $7 million were reclassified from Global Business Solutions, and $155 million and $456 million were reclassified from Consumer to other corporate expenses, respectively, to conform to the current presentation.
• Deferred revenue recognition: During the three and nine months ended April 30, 2026, Intuit recognized $136 million and $977 million of revenue included in deferred revenue at July 31, 2025; comparable figures for the three and nine months ended April 30, 2025 were $111 million and $829 million from deferred revenue at July 31, 2024. As of April 30, 2026 and July 31, 2025, deferred revenue related to performance obligations satisfied after 12 months was $2 million and $4 million, respectively.
• Concentration of credit risk: No customer accounted for 10% or more of total net revenue in the three or nine months ended April 30, 2026 or April 30, 2025, and no customer accounted for 10% or more of gross accounts receivable as of April 30, 2026 or July 31, 2025.

• Recurring fair value assets: Total assets measured at fair value on a recurring basis were $4,101 million as of April 30, 2026 (Level 1: $1,852 million in cash equivalents; Level 2: $2,249 million consisting of corporate notes of $607 million and U.S. agency securities of $1,642 million), up from $3,608 million as of July 31, 2025.
• Available-for-sale debt securities placement: Of the $2,249 million in available-for-sale debt securities as of April 30, 2026, $2,099 million was classified in investments and $150 million in funds receivable and amounts held for customers (unchanged from July 31, 2025 for the latter).
• Senior unsecured notes (Level 2 liability): Estimated fair value of senior unsecured notes was $4.8 billion as of April 30, 2026 and $5.0 billion as of July 31, 2025, against a carrying value of $5.0 billion at each period.
• Non-recurring Level 3 investments: Net upward adjustments to long-term non-marketable equity securities were $46 million for the three months ended April 30, 2026 and $104 million for the nine months ended April 30, 2026; carrying value rose to $176 million as of April 30, 2026 from $94 million as of July 31, 2025, with cumulative upward adjustments of $125 million and cumulative downward adjustments (including impairments) of $27 million through April 30, 2026.

• Balance sheet totals: Total cash and cash equivalents, investments, and funds receivable and amounts held for customers were $14,540 million (fair value) as of April 30, 2026, up from $11,628 million as of July 31, 2025, with the three components standing at $4,681 million, $2,099 million, and $7,760 million, respectively, at April 30, 2026.
• Available-for-sale debt securities: The $2,249 million portfolio (amortized cost) as of April 30, 2026 consisted of corporate notes ($607 million) and U.S. agency securities ($1,642 million); $2,127 million of the total matures within one year, $62 million within two years, and $60 million within three years.
• Credit quality and unrealized positions: No credit losses were identified on available-for-sale debt securities as of April 30, 2026; gross unrealized gains and losses were not material and arose primarily from changes in market interest rates; gross realized gains and losses for the nine months ended April 30, 2026 were also not material.
• Funds receivable and amounts held for customers: The $7,760 million balance as of April 30, 2026 comprised $7,233 million of restricted cash and cash equivalents, $150 million of restricted available-for-sale debt securities, and $377 million of funds receivable from third-party payment processors (excluded from fair value measurement); the comparable prior-year balance was $5,221 million as of April 30, 2025.

• Business loans purchased: During the nine months ended April 30, 2026 and April 30, 2025, Intuit purchased business loans from its originating bank partner with principal balances of $4.3 billion and $2.4 billion, respectively; as of April 30, 2026, it had commitments to purchase $287 million in additional loans originated on or prior to that date.
• Net held-for-investment balances: The net balance of business loans held for investment was $1.5 billion at both April 30, 2026 and July 31, 2025 (after deducting allowances of $134 million and $100 million, respectively); net consumer loans were $243 million and $2 million at April 30, 2026 and July 31, 2025, respectively, reflecting $643 million and $459 million in consumer loan purchases during the respective nine-month periods.
• Notes receivable held for sale: As of April 30, 2026, the balance of notes receivable held for sale was $69 million (none held as of July 31, 2025); total unpaid principal of business loans sold during the nine months ended April 30, 2026 and April 30, 2025 was $1.4 billion and $288 million, respectively, under forward flow arrangements with expiration dates ranging from 2027 to 2030.
• Charge-off policy: Business loans are charged off when contractual principal becomes 120 days past due or when other charge-off policy requirements are met; delinquent and nonaccrual business loan balances were not material as of either reporting date.

• Goodwill — no acquisitions during period: Goodwill was essentially flat at $13,982 million as of April 30, 2026 versus $13,980 million at July 31, 2025, with zero goodwill acquired during the nine months ended April 30, 2026; the $2 million net change reflects foreign currency translation ($-3 million in Global Business Solutions, $+5 million in Consumer). Goodwill is net of accumulated impairment losses of $114 million recorded prior to July 31, 2025, all within the Consumer segment.
• Acquired intangible assets — amortization reducing net carrying value: Net acquired intangibles declined to $4,807 million at April 30, 2026 from $5,302 million at July 31, 2025, driven by $496 million of accumulated amortization added during the nine months; gross cost was nearly unchanged at $8,644 million versus $8,643 million, confirming no material new acquisitions. The portfolio comprises Customer and User Relationships ($3,842 million net, 14-year weighted-average life), Purchased Technology ($571 million net, 8-year weighted-average life), and Trade Names and Logos ($394 million net, 13-year weighted-average life).
• Future amortization schedule: Remaining expected amortization on the $4,807 million net intangible balance is $165 million for the remainder of fiscal 2026, $633 million in fiscal 2027, $613 million in fiscal 2028, $593 million in fiscal 2029, $590 million in fiscal 2030, and $2,213 million thereafter.

• Senior unsecured notes outstanding: $1.0 billion in principal remains on the 2020 Notes (1.350% due July 2027 and 1.650% due July 2030, $500 million each), and $4.0 billion in principal remains on the 2023 Notes (5.250% due September 2026, 5.125% due September 2028, 5.200% due September 2033, and 5.500% due September 2053); net carrying value of all debt was $6,162 million at April 30, 2026 vs. $5,973 million at July 31, 2025, with $750 million reclassified to short-term (the 5.250% notes due September 2026).
• Secured revolving credit facilities: 3 subsidiary-level, non-recourse secured facilities totaling $1,200 million outstanding at April 30, 2026 — $500 million under the 2019 Secured Facility (weighted-average rate 5.01%), $400 million under the 2022 Secured Facility (weighted-average rate 4.76%), and $300 million under the 2024 Secured Facility (weighted-average rate 5.01%); each facility is secured by cash and receivables of the respective subsidiary.
• 2026 Credit Facility: On January 9, 2026, Intuit entered into a $2.2 billion unsecured revolving credit facility expiring January 9, 2031, replacing the prior facility; commitments may be increased by up to $4 billion in the aggregate; no amounts were outstanding as of April 30, 2026; financial covenant requires total gross debt to EBITDA of not greater than 4.00 to 1.00 on a rolling twelve-month basis.
• Commercial paper program: Capacity temporarily increased from $1.5 billion to $3.2 billion in January 2026 to support seasonal working capital, then reduced back to $2.2 billion in March 2026; no amounts were outstanding under the program as of April 30, 2026 or July 31, 2025.

• Other current liabilities: Total other current liabilities were $849 million at April 30, 2026, up from $625 million at July 31, 2025, with notable line-item movements including executive deferred compensation plan liabilities ($296M vs. $248M), sales/property/other taxes ($111M vs. $55M), reserve for returns/credits/promotional discounts ($81M vs. $39M), interest payable ($37M vs. $85M), amounts due for share repurchases ($31M vs. $14M), current portion of operating lease liabilities ($83M vs. $69M), and other ($210M vs. $115M).
• Seasonality impact: Several other current liability balances, particularly reserves for returns, credits, and promotional discounts, are affected by the seasonality of Intuit's business.
• Other long-term obligations: Total other long-term obligations were $358 million at April 30, 2026, up from $308 million at July 31, 2025, driven primarily by long-term deferred income tax liabilities ($76M vs. $20M), partially offset by a decline in income tax liabilities ($223M vs. $238M).
• Purchase obligations: No significant changes outside the ordinary course of business in unconditional purchase obligations during the nine months ended April 30, 2026.

Lease portfolio: Noncancellable operating leases for office facilities with remaining terms of up to 16 years (including options reasonably certain of being exercised); subleases to third parties have remaining terms of up to 5 years, with noncancellable future sublease proceeds of $17 million through July 31, 2030 and $1 million thereafter.

Lease cost trend: Total net lease cost was $40 million for the three months ended April 30, 2026 vs. $31 million in the prior-year quarter, and $113 million for the nine months ended April 30, 2026 vs. $89 million in the prior-year period, driven by operating lease cost of $36 million and $101 million, respectively.

Balance sheet and cash flow: Operating lease right-of-use assets were $601 million as of April 30, 2026 (vs. $541 million at July 31, 2025); total operating lease liabilities were $738 million (vs. $666 million); cash paid for operating lease liabilities was $88 million for the nine months ended April 30, 2026 vs. $78 million in the prior-year period; right-of-use assets obtained in exchange for new lease liabilities were $140 million vs. $210 million.

Uncommenced leases: As of April 30, 2026, additional operating leases with total minimum payments of $40 million, primarily for office facilities, have not yet commenced and are expected to begin in fiscal years 2026 and 2027 with lease terms of five to 10 years.

• Effective tax rates: For the three and nine months ended April 30, 2026, effective tax rates were approximately 24% and 23%, respectively; excluding discrete items primarily related to share-based compensation, both periods were approximately 24%. The difference from the 21% federal statutory rate was primarily due to state income taxes and non-deductible share-based compensation, partially offset by the federal research and experimentation credit.
• Discrete share-based compensation items: For the three months ended April 30, 2026, tax shortfalls on share-based compensation of $11 million were recognized; for the nine months ended April 30, 2026, excess tax benefits of $40 million were recognized. Comparable prior-year amounts were $18 million and $75 million of excess tax benefits for the three and nine months ended April 30, 2025, respectively.
• OBBBA legislation: The One Big Beautiful Bill Act, enacted July 4, 2025, reinstates immediate expensing of domestic research and developmental expenditures effective in fiscal 2026; while not expected to materially impact the fiscal 2026 effective tax rate, fiscal 2026 cash tax payments and related deferred tax asset positions are expected to decrease significantly compared to fiscal 2025.
• Unrecognized tax benefits: Total unrecognized tax benefits were $394 million at July 31, 2025, with no material changes during the nine months ended April 30, 2026; recognition of net benefits would produce a favorable net impact of $276 million on income tax expense. A $126 million long-term liability for uncertain tax positions was offset against a long-term income tax receivable at April 30, 2026 (versus $61 million at July 31, 2025), with the April 30, 2026 receivable primarily related to fiscal 2026 federal research and experimentation credits carried back to fiscal 2025 and an approved method of accounting change request for fiscal 2018.

• Share repurchases: During the nine months ended April 30, 2026, Intuit repurchased 6.6 million shares for $3.4 billion (including $31 million of late-April 2026 trades that settled in early May 2026); remaining Board authorization stood at $1.9 billion as of April 30, 2026. On August 19, 2025, the Board approved an additional $3.2 billion authorization, and on May 7, 2026, the Board approved a further $8 billion increase under the existing program.
• Dividends: During the nine months ended April 30, 2026, quarterly cash dividends totaling $3.60 per share were declared for a total of $1.0 billion; in May 2026 the Board declared a quarterly dividend of $1.20 per share payable July 17, 2026 to stockholders of record at close of business on July 9, 2026.
• Unrecognized RSU compensation: At April 30, 2026, approximately $3.6 billion of unrecognized compensation cost related to non-vested RSUs and restricted stock remained, with a weighted-average vesting period of 2.5 years; for stock options, approximately $101 million of unrecognized cost remained with a weighted-average vesting period of 2.6 years.
• Share-based award pool: Shares available for grant increased from 25,147 thousand at July 31, 2025 to 27,559 thousand at April 30, 2026, driven by 4,475 thousand shares returned via cancellations/forfeitures/expirations, partially offset by 2,063 thousand RSUs granted (which reduce the pool at a 2.3-to-1 ratio under the 2005 Equity Incentive Plan).

Legal Proceedings

• FTC Actions re: free online tax preparation (order vacated March 20, 2026): FTC filed federal court action March 29, 2022; ALJ ruled against Intuit August 29, 2023; FTC Commissioners issued final order January 19, 2024 with no monetary penalties; Fifth Circuit vacated order and remanded March 20, 2026.
• State attorneys general settlement ($141 million, May 4, 2022): Settled with 50 states, D.C., Los Angeles City Attorney, and Santa Clara County Counsel; no wrongdoing admitted; full payment made in quarter ended January 31, 2023.
• Ontario (Canada) class action (filed August 25, 2022): Class action filed in Ontario Superior Court of Justice in connection with free online tax preparation programs; financial exposure not estimable.
• Remaining free tax prep proceedings (May 2019 onwards): Multiple unresolved proceedings and inquiries remain; Intuit unable to estimate reasonably possible financial loss or range of loss.

Segment structure change: Effective August 1, 2025, Intuit combined its Consumer, Credit Karma, and ProTax businesses into a single Consumer segment. Simultaneously, certain marketing, communications, and customer success functions in Global Business Solutions were reorganized to the platform level, and certain data science and analytics teams moved from the platform level to the segment level. Previously reported amounts were recast; for the three and nine months ended April 30, 2025, expenses of $1 million and $7 million from Global Business Solutions and $155 million and $456 million from Consumer were reclassified to other corporate expenses to conform to the current presentation.

• Unallocated corporate items: Expenses not allocated to segments include corporate selling and marketing, general and administrative, non-employment related legal and litigation costs, customer success costs (including TurboTax Expert Assist, TurboTax Expert Full Service, and QuickBooks Live expert costs), product development managed at the platform level, share-based compensation, amortization of acquired technology and other acquired intangible assets, goodwill and intangible asset impairment charges, professional fees and transaction costs related to business combinations, and restructuring charges.
• Geographic concentration: All segments operate primarily in the United States. Total international net revenue was approximately 6% and 7% of consolidated net revenue for the three and nine months ended April 30, 2026, respectively, and approximately 5% and 7% for the three and nine months ended April 30, 2025, respectively.
• Assets by segment: Except for goodwill and acquired intangible assets, total assets are not tracked by reportable segment and are not disclosed on a per-segment basis.

• 2026 restructuring plan: In May 2026, management approved and initiated the 2026 Plan to simplify its organizational structure, reduce its full-time workforce, and consider closure of certain sites in service to growing technology teams and capabilities in strategic locations.
• Estimated charges: Restructuring charges of approximately $300 million to $340 million are expected, primarily in the fourth fiscal quarter ending July 31, 2026, consisting primarily of cash expenditures related to severance payments and employee benefits.
• Timeline: Actions associated with the 2026 Plan are expected to be substantially complete by the first quarter of fiscal 2027.

• Segment structure: Intuit operates 2 reportable segments — Global Business Solutions and Consumer — serving small and mid-market businesses, consumers, and professional accountants in the U.S. and Canada.
• Global Business Solutions: Encompasses QuickBooks and Intuit Enterprise Suite (an AI-powered, configurable multi-entity financial management platform for more complex businesses), plus payroll, time tracking, merchant payment processing, bill pay, checking accounts through an FDIC-member bank partner, small and mid-market business financing, and Mailchimp marketing automation and CRM tools.
• Consumer segment: Includes TurboTax (DIY and AI-enabled assisted tax prep for U.S. and Canada consumers), money products such as early refund access and Credit Karma Money branded savings and checking accounts, Credit Karma (personalized financial product recommendations, credit monitoring, dispute, and building tools), and ProTax offerings (Lacerte, ProSeries, ProConnect Tax Online, ProFile, and ProTax Online) for professional accountants in the U.S. and Canada.
• Revenue mix: Global Business Solutions represented 55% of total net revenue YTD Q3 Fiscal 2026, with Consumer at 45%.

• AI-driven platform strategy: Intuit describes itself as having transformed from a tax and accounting platform to an AI-driven expert platform, leveraging a "system of intelligence" combining proprietary data, AI capabilities, an ecosystem of applications, and a network of AI-enabled human experts to serve consumers, businesses, and accountants.
• AI agents and GenOS: Intuit launched AI agents providing customers a "virtual team" to automate workflows and deliver real-time insights, including agents in Intuit Enterprise Suite covering accounting, payments, finance, and project management; these are powered by its proprietary Generative AI Operating System (GenOS), described as enabling rapid internal development of autonomous financial solutions.
• Three Big Bets: Management prioritizes three growth initiatives — (1) done-for-you experiences via AI agents and human experts for businesses and consumers; (2) Accelerate Money Benefits, targeting an all-in-one platform for cash flow, receivables, payables, capital, spend management, and consumer savings; and (3) Fuel Success for Mid-Market Businesses via QuickBooks Advanced, Intuit Enterprise Suite, and connected services targeting mid-market customers with a lower total cost of ownership.
• Mid-market positioning: Intuit frames mid-market businesses as "overdigitized, juggling too many disparate apps" and positions its integrated platform as the solution to consolidate data and insights, with the stated goal of growing customer revenue and profit.

• Seasonal concentration: Within the Consumer segment, TurboTax and ProTax sales and revenue are typically heavily concentrated in the period from November through April, resulting in higher net revenues during the second and third quarters ending January 31 and April 30, respectively.
• Forward outlook: Management expects this seasonality to continue to have a significant impact on quarterly financial results in the future.

• Innovation and AI dependence: Growth strategy depends on the ability to innovate and introduce emerging technologies, including AI and GenAI, to drive adoption of products and services and enter new markets; significant resources are being invested in product development, marketing, and sales, with continued investment expected.
• Talent and third-party relationships: Future success depends on attracting, retaining, and developing highly skilled employees in technical and leadership roles in a highly competitive talent environment, as well as maintaining and strengthening third-party business relationships.
• Data security and fraud: As an online financial services provider, Intuit faces risks around hosting, collection, use, and retention of personal customer information; fraudulent activities by malicious third parties are described as increasingly sophisticated, including through the use of AI, prompting continued investment in security measures and collaboration with state, federal, and broader industry partners.
• Regulatory environment: Operations are subject to numerous federal, state, local, and foreign laws and regulations covering a broad and increasing range of subjects, in a rapidly-evolving regulatory environment with heightened scrutiny, both in the U.S. and internationally.

• Key financial indicators: Management tracks revenue growth (company-wide and by reportable segment), operating income growth, earnings per share, and cash flow from operations as its primary financial indicators, supplemented by non-financial revenue drivers disclosed in segment discussions when material.
• Services mix: Total service revenue was $16.4 billion, or 87% of total revenue, in fiscal 2025; management expects service revenue as a percentage of total revenue to grow over the long term.

• Revenue: Total revenue of $17.1B, up 14% from the same period of fiscal 2025, with Global Business Solutions segment revenue of $9.4B (up 17%) and Consumer segment revenue of $7.7B (up 10%).
• Profitability: Operating income of $5.4B (up 18%), net income of $4.2B (up 20%), and diluted net income per share of $15.05 (up 22%), all versus the same period of fiscal 2025.
• Liquidity: Cash, cash equivalents, and investments of $6.8B as of the end of the period.

• Revenue: Total net revenue for the third quarter of fiscal 2026 increased $804 million, or 10%, compared with the same quarter of fiscal 2025, driven by Consumer segment growth of 8% (assisted tax, consumer money offerings, and Credit Karma personal loan and insurance verticals, partially offset by fewer TurboTax federal units) and Global Business Solutions segment growth of 15% from Online Ecosystem revenue.
• Operating income: Operating income increased $300 million, or 8%, with the revenue gain partially offset by higher expenses for outside services including hosting, staffing, marketing, SaaS subscriptions and licenses, and share-based compensation.
• Net income and EPS: Net income increased $244 million, or 9%, reflecting higher operating income and $46 million in net gains on long-term investments, partially offset by higher income tax expense (driven by higher operating income and share-based compensation tax shortfalls); diluted net income per share rose to $11.09 from $10.02 in the prior-year quarter, aided by reduced weighted shares outstanding from increased share repurchase activity.

• Revenue: Total net revenue for the first nine months of fiscal 2026 increased $2.1 billion, or 14%, compared with the same period of fiscal 2025, driven by Global Business Solutions segment revenue growth of 17% (from Online Ecosystem revenue) and Consumer segment revenue growth of 10% (from assisted tax, consumer money offerings, and Credit Karma personal loan, credit card, and insurance verticals), partially offset by fewer TurboTax federal units.
• Operating income: Operating income for the first nine months of fiscal 2026 increased $825 million, or 18%, compared with the same period of fiscal 2025, with the gain partially offset by higher expenses for outside services including hosting, staffing, marketing, share-based compensation, and SaaS subscriptions and licenses.
• Net income and EPS: Net income increased $715 million, or 20%, compared with the same period of fiscal 2025, aided by $104 million in net gains on long-term investments in the current period versus $43 million in net losses in the prior-year period, partially offset by higher income tax expense and lower tax benefits related to share-based compensation; diluted net income per share increased to $15.05 from $12.33, also reflecting a decrease in weighted shares outstanding due to increased share repurchase activity.

• Segment restructuring: Effective August 1, 2025, Intuit combined its Consumer, Credit Karma, and ProTax businesses into a single Consumer segment; simultaneously, certain marketing, communications, customer success functions in Global Business Solutions and certain data science and analytics teams were reorganized between platform and segment levels, requiring recast of prior periods.
• Recast impact: As a result of these changes, for the three and nine months ended April 30, 2025, expenses totaling $1 million and $7 million from Global Business Solutions and $155 million and $456 million from Consumer were reclassified to other corporate expenses to conform to the current presentation.
• Unallocated corporate costs: Unallocated corporate items — including share-based compensation, amortization of acquired technology and other intangibles, goodwill and intangible asset impairment charges, restructuring charges, and platform-level customer success and product development — totaled $7.6 billion and $6.9 billion for the nine months ended April 30, 2026 and April 30, 2025, respectively; the increase in the fiscal 2026 period was primarily due to increases in research and development expense, cost of service revenue, and selling and marketing expense.
• International revenue: Total international net revenue was approximately 6% and 7% of consolidated net revenue for the three and nine months ended April 30, 2026, respectively, compared to approximately 5% and 7% for the three and nine months ended April 30, 2025, respectively.

• Revenue drivers: Segment revenue increased $436 million, or 15%, in Q3FY26 and $1.4 billion, or 17%, in the first nine months of fiscal 2026 compared with the same periods of fiscal 2025, primarily due to growth in Online Ecosystem revenue.
• Online Ecosystem growth: Total Online Ecosystem revenue grew 19% to $2,497M in Q3FY26 (YTD: +20% to $7,315M), led by QuickBooks Online Accounting (+22% to $1,278M in Q3; +24% to $3,732M YTD) and Online Services (+15% to $1,219M in Q3; +17% to $3,583M YTD).
• Desktop Ecosystem: Total Desktop Ecosystem revenue grew 6% to $788M in Q3FY26 (YTD: +7% to $2,125M), with QuickBooks Desktop Accounting up 7% to $507M in Q3 and Desktop Services and Supplies up 4% to $281M.
• Segment operating income: Segment operating income was $2,520M in Q3FY26 (+15% vs. $2,189M) and $7,257M YTD (+16% vs. $6,243M), with operating margin stable at 77% of related revenue in both periods and both years.

• Q3 fiscal 2026 Online Ecosystem: Revenue increased $394 million, or 19%, versus the prior-year quarter, with QuickBooks Online Accounting up $234 million (22%) driven by higher effective prices, customer growth, and mix shift, and Online Services up $160 million (15%).
• Online Services Q3 detail: Money offerings contributed $107 million of the Online Services increase — $61 million from payments (customer growth and higher total payment volume per customer) and $46 million from QuickBooks Capital — while payroll offerings added $55 million from mix shift, customer growth, and higher effective prices.
• First nine months fiscal 2026 Online Ecosystem: Revenue increased $1.2 billion, or 20%, year-over-year, with QuickBooks Online Accounting up $715 million (24%) and Online Services up $516 million (17%).
• Online Services nine-month detail: Money offerings drove $327 million of the Online Services increase — $183 million from payments and $144 million from QuickBooks Capital — and payroll offerings contributed $204 million, with growth attributed to mix shift, customer growth, and higher effective prices.

• Desktop Ecosystem revenue: Increased $42 million, or 6%, in Q3 fiscal 2026 and $145 million, or 7%, in the first nine months of fiscal 2026 compared with the same periods of fiscal 2025, driven by higher effective prices.
• Segment operating income (Q3): Global Business Solutions segment operating income increased $331 million, or 15%, in Q3 fiscal 2026, with revenue gains partially offset by increases in QuickBooks Capital cost of revenue of $41 million (due to increased loan volume), online payments cost of revenue of $19 million, outside services expenses (including hosting) of $16 million, staffing expenses of $14 million, and marketing expenses of $8 million.
• Segment operating income (YTD): Global Business Solutions segment operating income increased $1.0 billion, or 16%, in the first nine months of fiscal 2026, with revenue gains partially offset by increases in QuickBooks Capital cost of revenue of $96 million, staffing expenses of $58 million, online payments cost of revenue of $55 million, marketing expenses of $52 million, and outside services expenses (including hosting) of $45 million.
• Segment recast: Effective August 1, 2025, Intuit reorganized certain marketing, communications, and customer success functions and data science and analytics teams between the Global Business Solutions segment and the platform level; for the three and nine months ended April 30, 2025, $1 million and $7 million were reclassified from Global Business Solutions to other corporate expenses to conform to the current presentation.

• Cost of service revenue: Includes staffing costs for ongoing production support, customer support, and tax and bookkeeping experts supporting TurboTax Expert Assist, TurboTax Expert Full Service, and QuickBooks Live offerings, as well as costs for data processing and storage from cloud providers and costs related to credit score providers; as a % of service revenue, was relatively consistent in both Q3FY26 and the first nine months of FY26 versus the same periods of FY25.
• Cost of product and other revenue: Includes direct costs of manufacturing and shipping or electronically downloading desktop software and financial supplies products; as a % of product and other revenue, was relatively consistent in both Q3FY26 and the first nine months of FY26 versus the same periods of FY25; product revenue costs are expensed as incurred for delivered software and no costs are deferred when product revenue is deferred.
• Amortization of acquired technology: Represents amortization of developed technologies obtained through acquisitions over their useful lives; totaled $43M in Q3FY26 vs. $38M in Q3FY25, and $131M year-to-date FY26 vs. $112M year-to-date FY25.

• Selling and marketing: $1,793M in Q3FY26 (21% of total net revenue) vs. $1,618M in Q3FY25 (21%), and $4,270M YTD Q3FY26 (25%) vs. $3,784M YTD Q3FY25 (26%).
• Research and development: $840M in Q3FY26 (10% of total net revenue) vs. $707M in Q3FY25 (9%), and $2,519M YTD Q3FY26 (15%) vs. $2,127M YTD Q3FY25 (14%).
• General and administrative: $409M in Q3FY26 (5%) vs. $394M in Q3FY25 (5%), and $1,232M YTD Q3FY26 (7%) vs. $1,177M YTD Q3FY25 (8%).
• Restructuring and amortization: Amortization of other acquired intangible assets was $122M in Q3FY26 vs. $120M in Q3FY25; restructuring charges were negligible ($0 in Q3FY26, $1M in Q3FY25; $0 YTD Q3FY26 vs. $14M YTD Q3FY25); total operating expenses were $3,164M (37% of net revenue) in Q3FY26 vs. $2,840M (37%) in Q3FY25, and $8,385M (49%) YTD Q3FY26 vs. $7,462M (50%) YTD Q3FY25.

• Revenue vs. expenses: Total net revenue for Q3 fiscal 2026 increased $804 million, or 10%, while total operating expenses increased $324 million, or 11%, leaving total operating expenses as a % of total net revenue consistent with the same period of fiscal 2025.
• Expense drivers: The increase in total operating expenses was driven by $92 million in higher marketing expenses, $77 million in staffing expenses, $65 million in outside services expenses (which include hosting), and $30 million in share-based compensation expenses.

• Revenue vs. expense leverage: Total net revenue for the first nine months of fiscal 2026 increased $2.1 billion, or 14%, while total operating expenses rose $923 million, or 12%, resulting in operating expenses as a % of total net revenue declining year-over-year.
• Expense drivers: The increase in total operating expenses was driven by staffing expenses (+$311 million), marketing expenses (+$177 million), outside services expenses including hosting (+$161 million), and share-based compensation expenses (+$115 million).

• Interest expense: $186 million for the first nine months of fiscal 2026 versus $188 million for the first nine months of fiscal 2025, consisting of interest on senior unsecured notes, unsecured revolving credit facilities, and commercial paper program.

• Interest income: Rose to $42M in Q3FY26 from $39M in Q3FY25, driven by higher average investable balances partially offset by lower average interest rates; year-to-date interest income of $115M was consistent with the prior-year period.
• Deferred compensation plan assets: Net gain of $8M in Q3FY26 versus a net loss of $7M in Q3FY25; YTD gain of $31M versus $5M in the prior year — offsetting amounts are recorded in operating expenses each period.
• Other income: $47M in Q3FY26 versus $0 in Q3FY25; YTD figure of $108M versus a loss of $48M in the prior year, driven primarily by $104M in net gains on long-term investments in the current YTD period compared with $43M in net losses in the prior YTD period.

• Effective tax rates: For the three and nine months ended April 30, 2026, effective tax rates were approximately 24% and 23%, respectively; excluding discrete items primarily related to share-based compensation, both periods were approximately 24%. For the three and nine months ended April 30, 2025, effective tax rates were approximately 23% and 22%, respectively; excluding discrete items, both periods were approximately 24%. The difference from the federal statutory rate of 21% in all periods was primarily due to state income taxes and non-deductible share-based compensation, partially offset by the federal research and experimentation credit.
• Share-based compensation tax items: For the three months ended April 30, 2026, tax shortfalls on share-based compensation of $11 million were recognized; for the nine months ended April 30, 2026, excess tax benefits of $40 million were recognized. Comparatively, excess tax benefits of $18 million and $75 million were recognized for the three and nine months ended April 30, 2025, respectively.
• OBBBA legislation: On July 4, 2025, the U.S. federal government enacted the One Big Beautiful Bill Act (OBBBA), which reinstates immediate expensing of domestic research and developmental expenditures effective in fiscal 2026; this deductibility is expected to significantly reduce deferred tax assets and income taxes payable for periods starting in fiscal 2026.

• Cash and investments: Cash, cash equivalents, and investments totaled $6,780 million as of April 30, 2026, up $2,228 million (49%) from $4,552 million at July 31, 2025, driven by cash from operations and partially offset by financing and investing activities; approximately 93% of those funds were located in the U.S. and none were restricted.
• Debt and working capital: Working capital rose $1,824 million (49%) to $5,561 million, with a current ratio of 1.5:1; long-term debt declined $561 million (9%) to $5,412 million, while short-term debt increased $750 million to $750 million; $1.2 billion was outstanding under secured revolving credit facilities used to fund small and mid-market business lending products.
• Credit facilities: On January 9, 2026, Intuit replaced its prior revolving credit agreement with a $2.2 billion unsecured revolving credit facility expiring January 9, 2031 (no amounts outstanding as of April 30, 2026); a separate $5.8 billion unsecured short-term revolving credit facility entered January 30, 2026 to fund the TurboTax early tax refund offering was terminated effective February 26, 2026.
• Liquidity adequacy: Management states it believes existing cash, investments, operating cash flows, credit facility capacity, and access to external financing will be sufficient to meet working capital needs, contractual obligations, debt service, capital expenditures, and other operational liquidity requirements for the next 12 months and the foreseeable future; excess cash is expected to be returned to stockholders via stock repurchases and cash dividends.

• Operating cash flow: Net cash provided by operating activities was $7,507 million for the nine months ended April 30, 2026, up $1,681 million from $5,826 million in the prior-year period.
• Investing activities: Net cash used in investing activities was $(1,100) million versus $(1,093) million in the prior-year period, a change of $(7) million, with primary uses including purchases of notes receivable held for investment and net purchases of corporate and customer fund investments, partially offset by principal repayments and sales of notes receivable.
• Financing activities: Net cash used in financing activities was $(3,983) million, a $(2,331) million increase in outflows versus $(1,652) million in the prior-year period, driven by repurchases of common stock, payment of cash dividends and dividend rights, payments for employee taxes withheld upon RSU vesting, and payment of accrued bonuses for fiscal 2025.
• Net increase in cash: Cash, cash equivalents, restricted cash, and restricted cash equivalents increased $2,433 million for the nine months ended April 30, 2026, compared to a $3,085 million increase in the prior-year period, a decrease of $(652) million.

• Share repurchases: During the first nine months of fiscal 2026, the company repurchased 6.6 million shares of common stock; as of April 30, 2026, remaining repurchase authorization stood at $1.9 billion, and on May 7, 2026, the Board approved an additional $8 billion increase to the existing program.
• Prior repurchase authorization: On August 19, 2025, the Board approved an increase of up to an additional $3.2 billion under the existing stock repurchase program.
• Dividends declared: During the nine months ended April 30, 2026, the company declared quarterly cash dividends totaling $3.60 per share of outstanding common stock for a total of $1.0 billion; in May 2026, the Board declared a quarterly cash dividend of $1.20 per share payable on July 17, 2026 to stockholders of record at the close of business on July 9, 2026.
• Forward expectations: Management currently expects to continue repurchasing common stock on a quarterly basis and to continue paying comparable cash dividends on a quarterly basis, though both are subject to the final determination of the Board of Directors.

• 2020 Notes outstanding: Of the $2 billion issued in June 2020, $1.0 billion remains outstanding as of April 30, 2026, consisting of $500 million of 1.350% notes due July 2027 and $500 million of 1.650% notes due July 2030; interest is payable semiannually on January 15 and July 15, with a maximum remaining interest commitment of $47 million.
• 2023 Notes outstanding: The full $4 billion issued in September 2023 remains outstanding, comprising $750 million of 5.250% notes due September 2026, $750 million of 5.125% notes due September 2028, $1,250 million of 5.200% notes due September 2033, and $1,250 million of 5.500% notes due September 2053; interest is payable semiannually on March 15 and September 15, with a maximum remaining interest commitment of $2.5 billion.
• Structure and covenants: Both the 2020 Notes and 2023 Notes are senior unsecured obligations ranking equally with all existing and future unsecured and unsubordinated indebtedness, redeemable at any time subject to a make-whole premium; both indentures restrict creation of certain liens and sale and leaseback transactions, and Intuit was compliant with all covenants governing both series as of April 30, 2026.
• Change of control (2020 Notes): Upon a change of control accompanied by certain credit rating downgrades, Intuit would be required to repurchase the 2020 Notes at 101% of aggregate outstanding principal plus accrued and unpaid interest.

• 2026 Credit Facility: On January 9, 2026, the company terminated its prior amended and restated credit agreement (dated February 5, 2024) and entered into a new $2.2 billion unsecured revolving credit facility expiring January 9, 2031, with options to increase commitments by up to $4 billion in aggregate and extend maturity by one year on one or more occasions; sublimits include $500 million for swingline loans and $250 million for letters of credit.
• Interest rate terms: U.S. dollar borrowings accrue at either the alternate base rate plus 0.000%–0.125% or term SOFR plus 0.700%–1.125%; foreign currency borrowings accrue at the relevant currency benchmark plus 0.700%–1.125%; facility fee ranges from 0.050% to 0.125% per annum, with actual margins and fees based on senior long-term debt credit ratings.
• Covenant compliance and utilization: The facility requires a total gross debt-to-EBITDA ratio of not greater than 4.00 to 1.00 on a rolling twelve-month basis; as of April 30, 2026, the company was compliant with all covenants and no amounts were outstanding.
• 2026 Short-Term Credit Facility: On January 30, 2026, the company entered into a $5.8 billion unsecured short-term revolving credit facility to fund a portion of its TurboTax early tax refund offering, accruing interest at term SOFR or daily simple SOFR plus 0.875% or alternate base rate plus 0.000%, with unused commitment fee of 0.07% per annum; the facility was terminated effective February 26, 2026.

• 2019 Secured Facility: Facility limit is $500 million ($300 million committed, $200 million uncommitted), with advances at adjusted daily simple SOFR plus 1.25% and unused committed balance fees of 0.25%–0.75%; commitment term runs through August 31, 2027, final maturity August 31, 2028; as of April 30, 2026, $500 million was outstanding at a weighted-average interest rate of 5.01%, and Intuit was compliant with all covenants.
• 2022 Secured Facility: Facility limit is $500 million ($400 million committed, $100 million uncommitted), with advances at term SOFR plus 1.1% and unused committed balance fees of 0.2%–0.4%; commitment term runs through April 30, 2027, final maturity May 1, 2028; as of April 30, 2026, $400 million was outstanding at a weighted-average interest rate of 4.76%, and Intuit was compliant with all covenants.
• 2024 Secured Facility: Facility limit is $500 million, all committed, with advances at daily simple SOFR plus 1.15% and unused committed balance fees of 0.2%–0.4%; commitment term runs through November 1, 2028, final maturity November 1, 2029; as of April 30, 2026, $300 million was outstanding at a weighted-average interest rate of 5.01% (inclusive of the fee on the unused committed portion), and Intuit was compliant with all covenants.
• Recourse and collateral: All three facilities are non-recourse to Intuit Inc. and are each secured by cash and receivables of the respective subsidiary, which in each case exceed the amount outstanding as of April 30, 2026.

• Program capacity: The commercial paper program allows up to $2.2 billion in unsecured short-term promissory notes outstanding at any time, with maturities not exceeding 397 days from issuance.
• Temporary capacity increase: In January 2026, capacity was temporarily raised from $1.5 billion to $3.2 billion to support seasonal working capital needs, then reduced back to $2.2 billion in March 2026.
• Current utilization: As of April 30, 2026 and July 31, 2025, no amounts were outstanding under this program.

• Foreign cash exposure: As of April 30, 2026, cash, cash equivalents, and investments totaled $6.8 billion, of which approximately 7% was held by foreign subsidiaries and subject to repatriation tax considerations, with those funds located primarily in India, Canada, Israel, and the United Kingdom.
• Repatriation tax position: The company does not expect to pay incremental U.S. taxes on repatriation; however, income tax expense has been recorded for Canada, India, and Israel withholding taxes on earnings not permanently reinvested, and withholding taxes would be paid upon any actual repatriation of foreign funds to the U.S.