INTU Q2 Deep Dive: AI Platform Adoption Drives Growth as Guidance Disappoints

Financial technology platform Intuit (NASDAQ:INTU) announced better-than-expected revenue in Q2 CY2025, with sales up 20.3% year on year to $3.83 billion. On the other hand, next quarter’s revenue guidance of $3.76 billion was less impressive, coming in 1.5% below analysts’ estimates. Its non-GAAP profit of $2.75 per share was 3.4% above analysts’ consensus estimates.

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StockStory’s Take

Intuit’s second quarter was marked by strong revenue growth and margin expansion, but the market reacted negatively to the results, reflecting concerns about the company’s forward outlook. Management attributed the solid performance to robust customer adoption of its AI-enabled business platform and new features in products like TurboTax Live and Credit Karma. CEO Sasan Goodarzi emphasized that “years of investments in data, data services, AI and human intelligence, coupled with strong execution against our AI-driven expert platform strategy fueled these outstanding results.” The company also highlighted successful expansion into mid-market business customers and increased engagement in its virtual team of AI agents.

Looking ahead, Intuit’s forward guidance was shaped by cautious optimism, with the company expecting continued momentum from its unified platform strategy and AI-driven automation. Management is focused on consolidating customer spend and data, increasing adoption of AI agents, and improving product integrations across business segments. CFO Sandeep Aujla stated that, “our guidance reflects less pricing action than last year, but we feel great about the ongoing customer growth and ARPC expansion.” While management expects slow improvement from the underperforming Mailchimp unit and ongoing investments in new capabilities, uncertainties around macroeconomic trends and pricing flexibility remain key watch points.

Key Insights from Management’s Remarks

Management credited the quarter’s growth to rapid adoption of AI-powered platform features, strong mid-market momentum, and accelerated engagement in consumer offerings, while highlighting Mailchimp as a continued area of weakness.

• AI agents boost engagement: The launch of Intuit’s virtual team of AI agents enabled automation of core business tasks, which management claims is driving millions of customer interactions and significantly higher repeat usage rates than anticipated.
• Mid-market expansion: Intuit Enterprise Suite and QBO Advanced saw rapid adoption among larger, more complex businesses, nearly doubling new billed customers quarter-over-quarter. Management believes this segment remains underpenetrated, representing a substantial growth opportunity.
• Consumer platform acceleration: TurboTax Live experienced a 47% revenue increase, outperforming historical expectations, while integration with Credit Karma supported higher year-round engagement and monetization for the consumer business.
• Mailchimp underperformance: The Mailchimp marketing platform continued to lag, with revenues slightly down year-over-year. Management pointed to improving customer satisfaction and a revamped sales strategy as key to an expected return to double-digit growth over coming quarters.
• Shift in pricing dynamics: Management highlighted that price increases contributed less to growth this quarter than in prior periods, with future growth expected to rely more heavily on customer acquisition, product uptake, and deeper ecosystem engagement.

Drivers of Future Performance

Intuit expects continued growth through AI-driven automation, platform consolidation, and increasing adoption in mid-market and consumer offerings, but faces slower pricing tailwinds and macroeconomic uncertainty.

• AI platform monetization: Management sees future growth coming from deeper integration of AI agents across the business platform. While current engagement is ahead of expectations, meaningful monetization is expected to ramp gradually as Intuit refines user experience and cross-sell strategies.
• Mailchimp recovery path: The company anticipates a slow but steady recovery for Mailchimp, emphasizing improvements in product usability for small businesses and scaled-up sales efforts targeting mid-market customers. Management expects it will take several quarters before these efforts translate to sustained revenue growth.
• Pricing and macro risks: Guidance for the next quarter and year reflects less contribution from price increases compared to prior periods. CFO Sandeep Aujla noted that core momentum in customer growth and product adoption remains strong, but flagged macroeconomic headwinds and consumer spending caution as factors that could impact future results.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will be monitoring (1) the pace of AI agent adoption and monetization across core business segments, (2) Mailchimp’s progress in improving small business usability and returning to growth, and (3) continued momentum in mid-market customer acquisition and deeper product engagement. Execution on these fronts—especially driving Mailchimp’s turnaround and demonstrating tangible AI-driven revenue gains—will be critical to Intuit’s ability to deliver on its strategic objectives.

Intuit currently trades at $651.96, down from $697.75 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).

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