Intuit reported strong financial results for Q4 and fiscal year 2025 but forecasts slower revenue growth for Q1 2026 due to challenges with its Mailchimp marketing platform.
Why it matters: The sluggish performance of Mailchimp, acquired by Intuit in 2021, is impacting the company’s short-term revenue growth projections despite overall strong results.
The details:
- Intuit’s shares dropped nearly 6% before the bell on Friday following the Q1 2026 revenue growth forecast below analysts’ estimates.
- The Global Business Solutions unit housing Mailchimp reported a slight decline in Q4 revenue.
- Intuit’s CFO Sandeep Aujla acknowledged that Mailchimp is currently a drag on growth but reassured that initiatives are in place to improve performance by year-end.
- The shift from QuickBooks Desktop licenses to subscriptions has largely been completed, resulting in slower growth for QuickBooks Desktop.
Despite the challenges with Mailchimp, Intuit reported a 20% increase in Q4 revenue, totaling $3.83 billion and exceeding estimates of $3.75 billion. Adjusted EPS for Q4 stood at $2.75, surpassing the estimated $2.66.
What they’re saying:
- “The small businesses are the bread and butter of Mailchimp,” noted Intuit’s CFO Sandeep Aujla, acknowledging user difficulty in utilizing the platform, impacting retention and expansion.
- “Every time we do a price change, we realize that we were too conservative, but customer attrition ends up being below our expectations,” Aujla said, referring to the recent price increases for QuickBooks Online and Payroll subscription services.
What’s next: Intuit expects fiscal 2026 revenue between $21 billion and $21.19 billion, aligning closely with analysts’ average estimate of $21.12 billion. The company’s board also approved a new $3.2 billion share buyback, bringing the total repurchase authorization to $5.3 billion.
