Intuit misses quarterly revenue estimates, announces plans to cut 17% of workforce
Intuit (NASDAQ: INTU), the parent company of TurboTax and QuickBooks, announced plans on Wednesday to cut 17% of its full-time workforce. The news accompanied the company's fiscal third-quarter earnings report, which showed revenue missing analyst estimates.
Shares of Intuit fell 13% in extended trading following the announcement.
The workforce reduction will eliminate more than 3,000 jobs, according to BigGo Finance. Intuit expects to incur $300 million to $340 million in restructuring charges related to the job cuts, which are anticipated to be recognized in the fourth quarter.
For the fiscal third quarter, which ended April 30, Intuit reported revenue of $8.56 billion. This represented a 10% increase year-over-year but fell short of LSEG estimates. Adjusted earnings per share for the period were $12.80, surpassing forecasts. This quarter marked the slowest revenue growth for the company since 2024, BigGo Finance reported.
Looking ahead, Intuit now projects adjusted earnings per share for the full fiscal year to be between $23.80 and $23.85. The company expects full-year revenue to range from $21.34 billion to $21.37 billion. These updated forecasts are above LSEG consensus estimates of $23.21 per share and $21.23 billion in revenue, CNBC reported.
The job cuts contribute to a broader trend of layoffs across the technology sector, with companies like Meta, Cisco, Cloudflare, and ZoomInfo also announcing reductions. This comes amid ongoing concerns within the software industry regarding the potential disruption from artificial intelligence.
Intuit CEO Sasan Goodarzi stated the company aims to move "with greater velocity," according to CNBC. Goodarzi indicated that a "big chunk" of the cost savings from the layoffs would contribute to margin expansion and earnings per share growth, with a smaller portion reinvested into what he described as the company's "growth engines," BigGo Finance reported.
The company is integrating AI tools across its platforms, including a multi-year partnership with Anthropic, to expand its tax, finance, and accounting capabilities. Intuit also plans to implement "pricing actions at the higher end" of its portfolio and is set to expand its platform in August, The Star reported.
Intuit's shares have declined more than 40% this year, while the S&P 500 has gained approximately 8% over the same period, CNBC noted.
In terms of capital allocation, Intuit spent $3.4 billion on stock repurchases during the nine months ended April 30. The company's board has authorized an additional $8 billion for future buybacks.