Intuit (INTU) Q2 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley FoolFri, February 27, 2026 at 2:09 AM UTC

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Date

Thursday, Feb. 26, 2026 at 4:30 p.m. ET

Call participants -

Chairman and Chief Executive Officer — Sasan K. Goodarzi

Chief Financial Officer — Sandeep Singh Aujla

Senior Vice President of Investor Relations, Corporate, and Strategic Finance — Kimberly Anderson Watkins

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Takeaways -

Total revenue -- $4.7 billion, representing 17% growth.

GAAP operating income -- $855 million, up from $593 million.

Non-GAAP operating income -- $1.5 billion, compared to $1.3 billion previously.

GAAP diluted EPS -- $2.48, versus $1.67.

Non-GAAP diluted EPS -- $4.15, versus $3.32.

Global Business Solutions Group revenue -- Increased 18%; 21% excluding Mailchimp.

Online ecosystem revenue -- Rose 21%; 25% excluding Mailchimp.

QBO Advanced and Intuit Enterprise Suite revenue -- Grew approximately 40%.

QuickBooks Online accounting revenue -- Increased 24% from pricing, customer growth, and product mix shift.

Online services revenue -- Rose 18%; 28% excluding Mailchimp.

Total online payment volume -- Grew 29%, with bill pay adoption nearly doubling.

Payroll revenue -- Up, attributed to customer growth, mix shift, and higher effective prices.

Mailchimp revenue -- Declined slightly; mid-market momentum, but smaller customer improvement slower than expected.

Desktop ecosystem revenue -- Rose 10%.

Desktop enterprise revenue -- Gained by high teens percentage.

Consumer platform revenue -- Up 15%.

Credit Karma revenue -- Increased 23%; personal loans contributed 10 points, credit cards nine points, auto insurance four points.

TurboTax revenue -- Grew 12% despite a five percent decline in IRS returns through Feb. 6.

ProTax revenue -- Increased seven percent.

Cash and investments -- Approximately $3 billion at quarter-end.

Total debt -- $6.2 billion on the balance sheet.

Share repurchases -- $961 million completed in the quarter; plans to further increase repurchases.

Quarterly dividend -- $1.20 per share, up 15%.

AI adoption -- Over three million customers used AI agents; more than 85% repeat engagement.

QuickBooks Live customer growth -- Increased over 50%.

Mid-market direct sales team -- Expanded by approximately 30%.

New IES contracts -- Grew nearly 50% quarter over quarter.

Accountant-influenced contracts -- Nearly one-third of new contracts influenced by accountants, 10 points higher than prior quarter.

Service center footprint -- Approximately 600 local and retail locations, yielding five million unique visitors through Feb. 6 versus four million for the full prior season.

Fiscal 2026 revenue guidance -- $20.97 billion to $21.186 billion, or 12%-13% projected growth.

GBSG revenue guidance -- 14%-15% growth outlook.

Consumer group revenue guidance -- Eight percent to nine percent growth projected.

TurboTax, Credit Karma, ProTax guidance -- TurboTax: eight percent growth, Credit Karma: 10%-13%, ProTax: two percent to three percent.

GAAP diluted EPS guidance -- $15.49-$15.69 (13%-15% growth).

Non-GAAP diluted EPS guidance -- $22.98-$23.18 (14%-15% growth).

Fiscal Q3 2026 guidance -- Revenue growth of 10%; GAAP EPS $10.56-$10.62; non-GAAP EPS $12.45-$12.51.

GAAP tax rate guidance -- Approximately 23% expected.

Summary

Intuit (NASDAQ:INTU) presented market-moving updates on the strategic integration of domain-specific AI and human intelligence as critical growth drivers, emphasizing their role in customer adoption, pricing power, and ecosystem expansion. Management announced the launch of an industry-specific ERP construction edition as part of a broad push into mid-market verticals, with direct sales capacity expanding by roughly 30% and accountant partnerships accelerating customer acquisition. The company reported the launch of all four core apps in OpenAI’s directory and formalized a multiyear partnership with Anthropic, stating that proprietary customer data and domain expertise remain protected by contract and architecture, with no data shared externally. Credit Karma’s new AI-driven features, alongside enhancements in the assisted tax segment, drove high early-season engagement and contributed to double-digit revenue growth outpacing broader IRS filing activity. Dividend growth, accelerated share repurchases, and undiluted confidence in robust margin expansion underpin a capital return strategy reinforced by continued AI efficiency gains and platform leverage.

Intuit leaders emphasized a disciplined approach to shifting marketing and customer success spend between quarters to optimize for ROI and margin delivery over the full year.

Mailchimp’s pathway back to double-digit growth is now expected sometime beyond fiscal 2026 due to ongoing customer churn and slower-than-anticipated small-customer acquisition improvements.

AI/HI platform innovation has produced measurable customer time savings, with automated agents categorizing over 237 million transactions in January and tax agents lowering taxable income by an average of $12,000 for assisted filers utilizing the solution.

Management reported that ecosystem health indicators—such as hours worked, cash reserves, and business revenues—remain stable or improved, supporting broad-based customer resilience heading into the remainder of the fiscal year.

Sasan K. Goodarzi stressed that partnerships with LLM providers are structured to prevent proprietary data or AI models from leaving Intuit systems, addressing market questions regarding competitive risk from external AI partners.

Industry glossary -

HI (Human Intelligence): Human expertise embedded with AI to deliver personalized, high-confidence outcomes in financial applications.

QBO (QuickBooks Online): Intuit's cloud-based accounting software for small and mid-sized businesses.

IES (Intuit Enterprise Suite): AI-native, mid-market-targeted suite of ERP and accounting solutions.

GBSG (Global Business Solutions Group): Intuit business segment focused on small business and self-employed solutions including QuickBooks and related ecosystem services.

AI agent: Automated software component utilizing artificial intelligence to perform financial tasks, such as categorization, recommendations, or process automation.

LLM (Large Language Model): Advanced AI systems like OpenAI's GPT or Anthropic's Claude, used for natural language tasks and broader platform integration.

TAM (Total Addressable Market): The estimated total market demand for a product or service if fully realized.

Full Conference Call Transcript

Operator: Good afternoon, everyone. My name is Beau, and I will be your conference operator today. At this time, I would like to welcome everyone to Intuit Inc.'s second quarter fiscal year 2026 conference call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer period. To ask a question, please press star, then the number one on your telephone keypad. If you would like to withdraw your question, please press star two. I will now turn the call over to Ms. Kimberly Anderson Watkins, Intuit Inc.’s Senior Vice President of Investor Relations, Corporate, and Strategic Finance. Please go ahead, ma’am.

Kimberly Anderson Watkins: Thank you. Good afternoon, and welcome to Intuit Inc.'s second quarter fiscal 2026 conference call. I am here with Intuit Inc.’s Chairman and CEO, Sasan K. Goodarzi, and our CFO, Sandeep Singh Aujla. Before we start, I would like to remind everyone that our remarks will include forward-looking statements. There are a number of factors that could cause Intuit Inc.’s results to differ materially from our expectations. You can learn more about these risks in the press release we issued earlier this afternoon, our Form 10-Ks for fiscal 2025, and our other SEC filings. All of those documents are available on the Investor Relations page of Intuit Inc.’s website at investors.intuit.com. We assume no obligation to update any forward-looking statements.

Some of the numbers in these remarks are presented on a non-GAAP basis. We have reconciled the comparable GAAP and non-GAAP numbers in today’s press release. Unless otherwise noted, all growth rates refer to the current period versus the comparable prior-year period, and the business metrics and associated growth rates refer to the worldwide business metrics. A copy of our prepared remarks and supplemental financial information will be available on our website after this call ends. I will now turn the call over to Sasan K. Goodarzi.

Sasan K. Goodarzi: Thanks, Kimberly Anderson Watkins, and thanks to all of you for joining us today. We delivered an outstanding quarter with Q2 revenue growth of 17%, clear evidence our strategy is working with strong execution across our three big bets. This performance underscores how our AI and human intelligence platform innovation is fueling Intuit Inc.’s growth, delivering significant customer benefit. We are a category of one because our platform is mission-critical to our customers’ financial lives. In our category, accuracy, compliance, security, reliability of financial decisions, and the liability that comes with it are critical to our customers. It is our advantage, and it is why we win.

Intuit Inc. is fueling the success of our customers with innovation that enables businesses to operate from lead to cash and helps consumers from credit building to wealth building, all in one place with confidence that it is done right in a regulated environment. This means Intuit Inc. is delivering financial intelligence at scale. Our success rests on our powerful combination of proprietary data, domain-specific AI platform capabilities, and AI-powered human intelligence, which we will refer to as HI. And as we scale, the business model strengthens. The more customers we engage, the more insights we gain, which improve recommendations, outcomes, and value for every customer.

That creates a powerful network effect that reinforces our competitive advantage with our nearly 100 million customers and a system of AI agents and AI-enabled experts fueling ARPC growth and margin expansion. Our system of intelligence combines AI and HI to deliver done-for-you experiences with accuracy, compliance, security, reliability, and data privacy that create a durable competitive advantage. This foundation delivers what matters most to customers when it comes to financial insights: money management, taxes, bookkeeping, and accounting, leading to complete confidence in their high-stakes financial decisions. We are setting the standard for trusted financial intelligence and this advantage defines our leadership for years to come.

Our momentum is fueled by three big bets that represent the company’s largest growth vectors across $300 billion in TAM where our penetration today is 6%. The first bet is delivering done-for-you experiences powered by AI and HI, creating an entirely new category. Second, accelerating money benefits by putting money at the center of everything that we do for our consumers and businesses. And third, fueling mid-market success with a disruptive AI-native ERP platform.

Sasan K. Goodarzi: Let me start with our all-in-one business platform where we deliver done-for-you experiences powered by AI and HI, driving growth, saving customers time and money, and consolidating how they run their business in one place. We are continuing to see momentum with our virtual team of AI agents. Over 3 million customers have leveraged agents to do the work for them, with all-time repeat engagement of more than 85%. In January alone, our accounting agents saved time and delivered impact for our customers by categorizing over 237 million transactions. This represents over half of all the transactions categorized that month.

Our business tax agent is putting more money directly back into our customers’ pockets, uncovering an average of over $1,000 in incremental tax deductions. Our AI and HI capabilities are not only automating tasks and workflows, but driving consumption and adoption of services like payroll and powering QuickBooks Live customer growth of over 50% in Q2. Given this success, we are rapidly scaling the rollout of Intuit Intelligence, a revolutionary system of intelligence that fundamentally changes how customers engage with our platform to run their businesses. Leveraging Intuit Inc.’s proprietary data, domain-specific AI platform capabilities, and human intelligence delivers done-for-you experiences with complete confidence. Customers can ask anything. For example, who are my most profitable customers?

What are my top expenses, and how can I reduce operating costs? How can I grow customers? Intuit Intelligence provides grounded answers in their own proprietary data and will take action on their behalf through automation and with a seamless handoff to a trusted AI-enabled human expert. This represents a profound shift because now it is done for you with confidence. And because Intuit Intelligence uses deterministic domain-specific models that are built on decades of trusted proprietary data, its recommendations are personalized, accurate, reliable, and compliant. This is intelligence rooted in lived financial reality, not generic large language models. The value of Intuit Intelligence is unmistakable.

Over the past year, our real-world testing has shown that when AI and HI come together in a single integrated experience, customers can achieve better outcomes, and it positions Intuit Inc. for sustained double-digit revenue growth as it unlocks our TAM.

Sasan K. Goodarzi: We are also making strong progress accelerating money benefits by putting money at the center of everything we do. We saw total online payments volume for our payments and bill pay customers grow 29%, reflecting continued momentum in helping our customers get paid faster and better manage their cash flow. Bill pay volume nearly doubled as we continue to see breakthrough adoption. Turning to mid-market. Our disruptive AI-native mid-market platform is fueling the success of growing businesses and we are further scaling our investment, product innovation, and go-to-market motions to accelerate customer adoption. In Q2, online ecosystem revenue for QBO Advanced and Intuit Enterprise Suite grew approximately 40%.

The combination of continuous platform innovation and faster onboarding is driving significant customer value. With our Intuit Enterprise Suite product release in February, we are deepening our capabilities in the largest verticals within our nearly $90 billion mid-market TAM. We just launched a construction edition for Intuit Enterprise Suite, the first in a series of industry-specific AI-native ERP solutions designed for the mid-market. Construction firms face highly complex financial and project workflows, yet many still rely on fragmented systems and manual processes that limit visibility, slow decisions, and increase risk as they scale.

Built on our AI-native ERP financial platform, this construction edition brings financial and project data together in a single system, combining the rigor and control of an ERP with the flexibility, speed, and intelligence modern businesses need to operate and grow with confidence. Lalier Construction, a family-owned construction leader based in Colorado, is using Intuit Enterprise Suite as a single source of truth across five divisions, turning fragmented financial data into decision-grade insights. By automating hundreds of intercompany invoices, they have reduced peak month-end reconciliation time by approximately 90% and reclaimed 16 to 18 hours of accounting work per week, shifting their team from manual cleanup to real analysis.

Because IES offers multidimensional tracking across departments, locations, projects, and product lines, Lalier now has accurate P&Ls for each division with the visibility to support their goal of tripling revenue over the next three years. Shifting to go-to-market. We are excited to expand our direct sales team by approximately 30% as we are seeing seller productivity continue to increase. New IES contracts grew nearly 50% quarter over quarter, with a meaningful acceleration in new customers added to the franchise, underscoring the significant headroom we have for IES beyond fueling expansion within our base. We are also seeing continued momentum with our accountant partnerships.

This quarter, we signed partnerships with several top 20 accounting firms eager to build reseller practices, including Citrin Cooperman and Eide Bailly. The progress we are making with our early accounting partners, supported in part by the launch of new wholesale billing capabilities, drove accelerated growth with nearly a third of new contracts influenced by accountants’ recommendations in Q2, 10 points higher than Q1. We continue to make progress with Intuit Accountant Suite, an AI-native offering that transforms accounting firms’ efficiency and effectiveness in managing their clients, firm, and workforce. This platform significantly deepens our partnership with accountants and encourages them to migrate clients to QBO Advanced and Intuit Enterprise Suite, fueling faster mid-market penetration.

We are seeing strong initial adoption and feedback, particularly around the incremental value firms are getting by managing their operations and gaining valuable insights all in one place.

Sasan K. Goodarzi: Turning to our consumer platform. Our strategy is to win as an all-in-one AI-driven expert platform in service of building credit to wealth year-round. While overall IRS returns were down more than five points through February 6, we delivered 12% TurboTax revenue growth this quarter. Two strategic areas are standouts that contribute to our momentum: winning in the assisted segment and the outsized role Credit Karma is playing to accelerate tax growth. Starting with done-for-you experiences. This season, TurboTax’s AI-driven features such as dynamic navigation to streamline tax prep, agentic experiences like the stock basis agent, and personalized recommendations are accelerating tax completion and delivering a faster, more confident filing experience.

Our AI-powered automated data entry has been used so far by over 80% of our customers, saving them significant time from manual data entry. Last year, we saved our customers over 6 million hours of work while putting more money in their pocket. This year, our new AI agent handles the rigorous manual work required for cost basis adjustments, a task customers often choose to bypass due to its complexity, lowering taxable income by an average of $12,000 compared to those that filed without the agent. All these improvements also fuel the productivity of our AI-enabled experts serving customers in the assisted category.

Sasan K. Goodarzi: In Credit Karma, domain-specific AI agents such as our refund assistant, debt assistant, and tax assistant are delivering done-for-you personal finance, tax, and money experiences with better financial outcomes. These agents, along with new features like Card Optimizer and Credit Spark, promote engagement throughout the year. In addition, our new AI-powered year-round tax insights are driving stronger tax intent. Early tax demand from Credit Karma members has been exceptionally strong, highlighting the strategic advantage of an integrated consumer platform. Shifting to our go-to-market approach in tax. Our investment in proprietary data, domain-specific AI platform capabilities, and AI-enabled human intelligence is fundamentally transforming and disrupting the tax category.

The assisted tax category, which is seven times bigger than the DIY category, is all about confidence. When customers choose assisted, they demand a human expert in their corner to deliver peace of mind in a high-stakes regulated environment where they face significant liability if they get it wrong. With our unique platform advantage, Intuit Inc. delivers certainty and customer confidence with expert-level accuracy, compliance, and reliability backed by our guaranteed best money outcome. That is why we are expanding our local presence with AI-powered virtual and in-person filing options, delivering a uniquely warm, modern experience with confidence, the best price, and faster access to money.

We now have approximately 600 local service centers, including several retail locations and one flagship store, making local expertise more visible and accessible than ever. This expanded footprint is enabling us to serve customers where they are and establish our expertise locally, driving more engagement with a previously untapped customer base. We have seen 5.1 million total unique visitors to landing pages and in-store visits through February 6. That is compared to 4.2 million for the full season prior.

The majority of these are prior-year assisted prospects, and we are seeing strong early engagement with experiences that enable these visitors to connect with an expert immediately or schedule an appointment for later, building a strong pipeline for our robust assisted offerings, including business tax. Lastly, our fast money offerings reflect the seamless connection across our consumer platform that gives customers faster access to their largest paycheck of the year. With Credit Karma’s AI assistant, consumers get always-on financial guidance that helps them make smarter decisions and build stronger financial futures year-round. We are seeing compelling early demand for faster access to refunds.

We are off to a strong start in tax, growing revenue 12% in Q2, while IRS returns are down five points as of February 6. As anticipated, we are seeing higher consumer interest in our AI-enabled expert assistance and fast money capabilities. We are pleased with early momentum winning in the assisted segment and driving incremental tax demand with Credit Karma, highlighting the flywheel effect across our consumer platform. Our strategy is expanding our share of TAM, increasing ARPC, and contributing to our company margin expansion, all fueled by AI and HI. Our platform has become a service that delivers peace of mind, certainty, and confidence.

Sasan K. Goodarzi: Zooming out, we are helping shape the future of financial intelligence by working with leading AI companies to meet consumers and businesses wherever they choose to work and get work done. These companies partner with Intuit Inc. because in a high-stakes regulated environment, where customers face significant liability if they get it wrong, they demand more than generic LLM recommendations. They require intelligence that is personalized, accurate, compliant, reliable, secure, and drives real action on their behalf. In our category of one, it is all about customer confidence in financial decisions, and the combination of data, AI, and human expertise is essential to success.

That is why we have built a system of intelligence with APIs and MCP that span the customer’s financial life across their apps and data and is not confined to any one system. Our platform is designed to transcend and orchestrate across any system or app, so whether the data sits with Intuit Inc. or elsewhere, we can connect it, interpret it, and help customers act with confidence. Earlier this month, we launched all four of our apps in OpenAI’s app directory, and this week, we announced a multiyear game-changing partnership with Anthropic to advance highly personalized experiences for consumers and businesses.

Powered by Intuit Inc.’s decade of deep domain expertise and proprietary data models, the Intuit Inc. platform will become the foundation where businesses can build and customize secure, accurate, compliant AI agents for a long tail of industry-specific needs using Anthropic’s Claude Agent Builder. Intuit Inc. will also bring personalized finance, accounting, and marketing capabilities to millions of Claude and CoWork users. Our AI-driven expert platform strategy is unlocking our TAM as evidenced by strong first-half revenue growth of 18%. As a category-of-one leader, we provide the trusted foundation for high-stakes financial decisions delivering the reliability, accuracy, security, compliance, and privacy our customers rely on to act with confidence.

This is the next chapter of Intuit Inc.: service as software built on data, AI, and HI, delivering double-digit revenue growth with expanding margins. I will now turn the call over to Sandeep Singh Aujla for the financial results.

Sandeep Singh Aujla: Thanks, Sasan. We delivered a strong 2026 across the company. Our second quarter results include revenue of $4.7 billion, up 17%; GAAP operating income of $855 million versus $593 million last year; non-GAAP operating income of $1.5 billion versus $1.3 billion last year; GAAP diluted earnings per share of $2.48 versus $1.67 a year ago; and non-GAAP diluted earnings per share of $4.15 versus $3.32 last year, reflecting our overall disciplined approach to managing the business, including continued AI efficiencies. Turning to our business segments. We continue to make progress serving businesses with our all-in-one platform and delivering done-for-you experiences with expertise. Global Business Solutions Group revenue grew 18% during the quarter, or 21% excluding Mailchimp.

While online ecosystem revenue grew 21% in Q2, or 25% excluding Mailchimp. This growth is underpinned by sustained momentum in mid-market, with online ecosystem revenue for QBO Advanced and Intuit Enterprise Suite increasing 40%. As Sasan noted, we are seeing continued productivity gains from a dedicated mid-market sales team and are expanding capacity by nearly 30%, supported by attractive LTV-to-CAC economics. Online ecosystem revenue for small businesses and the rest of the base grew a strong 18%. In Q2, we delivered robust growth in both online accounting and online services. QuickBooks Online accounting revenue grew 24% from higher effective prices, customer growth, and mix shift. Online services revenue grew 18% in Q2, or 28% excluding Mailchimp.

This growth was driven by Money, which includes payments, capital, and bill pay, as well as payroll. Within Money, revenue growth in the quarter reflects payments revenue growth driven by customer growth, an increase in total payments volume per customer, and higher effective prices. Total online payment volume, including bill pay, grew 29% in Q2, reflecting our continued momentum in payments and adoption of our bill pay offering. Online payment volume growth, excluding bill pay, was 17%, largely consistent with the last several quarters, including a one-point impact from the winter storms last month. Within payroll, revenue growth in the quarter reflects mix shift, customer growth, and higher effective prices.

Sandeep Singh Aujla: Within Mailchimp, revenue was down slightly versus a year ago as we continue to strengthen the platform for durable growth. We are seeing encouraging momentum in the mid-market with continued larger customer wins, improved retention, and growing adoption and usage of SMS. At the same time, progress in improving churn and acquisition among smaller customers is taking longer than expected. We continue to focus on improving go-to-market and product experience and now expect Mailchimp to return to double-digit growth sometime beyond fiscal 2026. Overall, we have high confidence in our strategy. The online ecosystem momentum is very strong. This performance underscores powerful traction across the growth vectors and positions Intuit Inc. to lead and win. Turning to desktop.

Desktop ecosystem revenue grew 10% in Q2, and desktop enterprise revenue grew in the high teens in Q2. We continue to expect desktop ecosystem revenue to grow low single digits in fiscal year 2026.

Sandeep Singh Aujla: Turning to our consumer platform. We continue to make progress serving consumers with our all-in-one platform that engages them year-round to make smarter financial decisions by delivering done-for-you experiences, AI-powered local tax expertise, and faster access to money. Q2 revenue grew 15%, driven by Credit Karma revenue, which grew 23%, TurboTax revenue grew 12%, and ProTax revenue grew 7%. Within Credit Karma, revenue growth reflects continued momentum with our members and partners. On a product basis, personal loans accounted for 10 points of growth, credit cards accounted for 9 points, and auto insurance accounted for 4 points.

As a reminder, in the second half, we are lapping the strong growth we saw in credit cards and personal loans a year ago. As Sasan shared, we are off to a strong start in tax season and are excited about the opportunity ahead for our AI-driven expert platform to deliver the best experience, speed to money, and best price for our customers.

Sandeep Singh Aujla: Now shifting to our balance sheet and capital allocation. Our financial principles guide our decisions. They remain our long-term commitment and are unchanged. As we have shared before, we are executing on opportunities to drive margin expansion over time, given our disciplined approach to capital management and ongoing efficiency gains from leveraging AI and automation. We finished the quarter with approximately $3 billion in cash and investments, and $6.2 billion in debt on our balance sheet. We repurchased $961 million of stock during the second quarter. Given the current stock price and our strong confidence in the momentum of our business, we are continuing to meaningfully increase our share repurchases this year.

We maintain our aim to be in the market each quarter. The board approved a quarterly dividend of $1.20 per share, payable on 04/17/2026. This represents a 15% increase versus last year.

Sandeep Singh Aujla: Moving to guidance. We are reaffirming our fiscal 2026 guidance. This includes total company revenue of $20.97 billion to $21.186 billion, growth of 12% to 13%. Our guidance includes Global Business Solutions Group revenue growth of 14% to 15%. We have high confidence and a lot of momentum in achieving Global Business Solutions Group revenue guidance for the year. Our guidance also includes overall Consumer Group revenue growth of 8% to 9%. This outlook is supported by continued strength and momentum across the portfolio, including TurboTax growth of 8%, Credit Karma growth of 10% to 13%, and ProTax growth of 2% to 3%, giving us high confidence in achieving our Consumer Group guidance for the year.

GAAP diluted earnings per share of $15.49 to $15.69, growth of 13% to 15%, and non-GAAP diluted earnings per share of $22.98 to $23.18, growth of 14% to 15%. We expect a GAAP tax rate of approximately 23% in fiscal 2026. Our guidance for Q3 2026 includes total company revenue growth of 10%, GAAP earnings per share of $10.56 to $10.62, and non-GAAP earnings per share of $12.45 to $12.51. You can find full-year 2026 and Q2 guidance details in our press release and on our fact sheet. I will now turn it back over to Sasan K. Goodarzi.

Sasan K. Goodarzi: Great. Thank you, Sandeep. We are excited about our progress and the momentum across our growth vectors and our opportunity to increase Intuit Inc.’s total share of our $300 billion TAM. With that, we will now open for questions.

Operator: Certainly, Mr. Goodarzi. Thank you, sir. We would like to get to as many people as we can. We will go first today to Sitikantha Panigrahi with Mizuho.

Sitikantha Panigrahi: Thanks. Thanks for taking my question. Sasan, you delivered strong Q2 results, no doubt about it. But as you can see right now, the market is worried about AI disrupting software and, in fact, your business—less QuickBooks, but more tax. Can you help us understand what is the disconnect? Where do you think the market is wrong? And where do you see the opportunity for you and that you are not getting disrupted by AI, rather you are going to benefit from AI? And, Sandeep, a quick follow-up that I want to ask here. People are pointing to your Q3 operating margin guidance. It was Q2 as strong. Is there any shift in expenses?

Sasan K. Goodarzi: Yes. Siti, thanks for your question. Let me take the first part of it. First of all, I would just start by restating that we are a category of one. The category that we operate in is a regulated environment, and in that, compliance and security and accuracy is everything for customers. In fact, customers demand human expertise because what they are very focused on is in their high-stakes decisions, whether it is a consumer, business of any kind, or an accountant, getting it wrong means huge, huge liabilities for the customer. And that is really the context behind the category, which really informs our advantage. We have a regulatory-driven, we have customer-driven advantage.

And when you look at where we are today, our entire platform is fueled by data, AI, and HI. And in fact, when you look at the results that we are delivering, where we ended last year, the momentum we have had the first half of the year, it is actually unlocking TAM. It is unlocking ARPC, and it is unlocking margin expansion. I think our results speak for themselves in terms of how it is fueling our success. And our perspective is it is all about focusing on customers, all about putting points on the board.

And it is also the thing I would point out is it is why companies like OpenAI, companies like Anthropic, look to partner with us. Because at the end of the day, they see and understand that this is a business that comes with a lot of liability and LLMs cannot just create the platform that we have created overnight. But most importantly, what we have really created is the combination of technology and human intelligence all in one. So we have truly become a service that delivers high confidence and high certainty. And I would just end with where I started. That is why our results are so strong.

And that is why we are so bullish about not just the rest of the year, but frankly, our trajectory going into the future.

Sandeep Singh Aujla: Let me touch on the margin. But before touching on margin, one thing I will reinforce is Sasan’s point around the partnerships we are doing with these big LLMs. As you can see, the partnerships we are doing, other software companies are doing, these LLMs are looking to work with us, not against us. So I think that is a key component to keep in mind. And the customer benefits that we are delivering through our platform are really resonating. In fact, one of the things I would highlight is we always had the thesis that AI and HI is a true differentiator because AI is middle to middle.

And to be end to end, particularly when you are making high-stakes, high-liability financial decisions, you need that HI plus AI working together. And we have been testing this actually in our business platform in the marketplace. The lineup includes AI and HI. I would tell you, this was my biggest surprise. I was pretty confident that there was a “there” with the thesis. The customer reaction has been tremendous, way above even our own expectation. And, right now, we are thinking through how to incorporate AI and HI into our lineup, just by seeing how well the tests are resonating. So I just wanted to add that point to your question on AI and our differentiator.

Now let me touch on the margins as well. Siti, you have followed us for years, and you know we operate to deliver margins for the full year. I feel super confident in our guide for the full year. I feel super confident in my ability to deliver the margin expansion for the full year. And what you are seeing in Q3, a couple of things. One is we over-delivered Q2. As Sasan mentioned, it was a slow start to the tax season. So you had some cost—marketing and customer success cost—move from Q2 to Q3. And secondly, as the teams looked at some of the tests, we saw meaningful opportunity to shift some spend to maximize ROI into Q3.

So that is really all that you are seeing in the guide. Take into account the Q2 over-delivery and the fact of our long tradition of ensuring we deliver margin for the full year, and I feel pretty good about it.

Sitikantha Panigrahi: That is great color. Thank you both.

Operator: Thank you. We will go next now to Brad Alan Zelnick with Deutsche Bank.

Nick (for Brad Alan Zelnick): Great. Thank you very much. It is Nick on for Brad this evening, and I appreciate you taking my question. I would actually like to build on Siti’s question a bit here. When you are talking about the power of AI and HI together, as models continue to improve, how do you see that balance between AI and HI shifting? Where do Intuit Inc. and its customers stand to benefit the most from these models as they continue to advance?

Sasan K. Goodarzi: Yes. Thank you for your question. Let me maybe break it apart into important segments of the company. First and foremost, our entire disruption in the tax segment, by the way, both assisted consumer tax and assisted business tax, is entirely driven by data, AI, and HI. We are winning based on our scale of the best experience, the best price, and the fastest access to money. And as I said a moment ago, customers—if you look at the size of the assisted category, it is more than seven times the do-it-yourself category. And the reason is that customers demand an expert to help them with their decisions and to help them with their liability.

And so one area, based on seven years of investment that we have made, that we are really benefiting from is disrupting the assisted tax segment. This was a segment that grew 45% last year, well over $2 billion in size. And we are seeing incredible traction, not just through February 6, but we have got two months of tax season under our belt. We have about six weeks left, and we are seeing incredible traction with our assisted offering. So that is one significant area where it is a tailwind for us. And I think we are just scratching the surface of the disruption.

The second area is we are actually winning in mid-market because our entire platform is based on AI and HI, where we are now fundamentally an AI-native ERP platform where we are doing the work for customers. When you look at some of the customer benefits that we are seeing, from peak reconciliation being done 90% faster at month-end to 17 hours a week of accounting work that our platform does with not just AI, but our HI that comes with it. Our platform is beyond self-funding. It is actually digitizing and driving growth in mid-market, which is why we are seeing the acceleration. It is why we are seeing accountants actually embrace our platform.

The third is I want to amplify what Sandeep already said, but it is just a really, really important point that Sandeep made. As you recall, last year, we rolled out a series of AI agents on our platform. And those AI agents were accounting agents, payments agents, finance agent. The accounting agent is saving customers 12 hours a month. Our finance agent is delivering automated P&Ls and automated cash flow statements. It is saving customers 17 to 18 hours a week. We are putting more money, and fast money, into our customers’ pockets, whether it is our payments AI agent and or our tax agent where it is actually helping our customers with reducing their deductions.

And all of that is actually fueling QuickBooks Live. It is up 50% year over year. So that is where AI and HI is fueling the customer benefit. But it is actually completely self-funding, which gives us a lot of pricing power. And that is really the point Sandeep was making: what we have learned beyond the benefits that we are delivering since last July and how it is actually fueling adoption and consumption of our HI services, which is QB Live. What we learned in tests is that when we actually offer it as a combined experience—both technology and human expertise—customers are actually willing to pay more for it. Why?

Because it comes down to helping them fuel their success, making sure that they are confident in their liability. And so that is informing the future, which I want to spend one more minute on the future. We are assessing and we are going to be rolling out AI and HI now as part of our lineup, with certain jobs that we will solve based on all the test results that we have seen. We will see, over time, an increase in subscription prices where it is actually saving customers a lot of money. But two, we are actually seeing consumption.

There are certain things we are going to include in the lineup and then certain things that we are seeing in our test results that will actually drive consumption of payments, consumption of payroll, and actually consumption of more expert services. And so that is a primary example in assisted tax, in mid-market, and really across our business platform how AI and HI is actually fueling the growth that we are experiencing, and that is what gives us confidence not just for the rest of the year. We have a lot of confidence in the year, but just as we look at the next two to five years.

Sandeep Singh Aujla: Great. Thank you so much.

Operator: Thank you. We will go next now to Keith Weiss with Morgan Stanley.

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Keith Weiss: Question and congratulations on a really solid quarter. I was going to ask about the new Anthropic deal that you guys signed in the quarter. Something that you guys are really excited about—we could see that excitement in the press release. I would say investors are a little bit less excited because of the uncertainty that brings. And I think the core of the uncertainty is the idea of, you are letting the fox into the henhouse. Are Anthropic and the Anthropic models going to be able to get access to all your good proprietary data, access to all your customers, to your workflows, and therefore be able to replicate your business?

Can you talk about, one, the relationship itself—what is so exciting from the Intuit Inc. part of the equation? But maybe touch on the controls that you have. How do you keep that bear case scenario from happening? How can we help soothe maybe some of those concerns from investors?

Sasan K. Goodarzi: Yes, Keith, thank you for your question. I want to just start with the why—why these partnerships—and Sandeep touched on this, but this is probably the most important premise that is important to be understood, which is in this case both OpenAI and Anthropic. One, they are wonderful partners. But two, they are very interested in this partnership because they actually see and understand the regulatory environment and the high-stakes financial decisions that customers make and how important accuracy and compliance and safety is, and the fact that customers actually demand the combination of technology and human expertise. And that is not an easy thing to replicate.

Frankly, in some ways, this addressable market is too small for them to even worry about and why they rely on us. So the why is really, really important because they are heavily relying on us to provide the experience, which gets to the second question that you asked—and that is, the way the relationship is constructed and the way our platform is constructed is that customers, when they engage, they are using our platform. In essence, it is through APIs and MCPs, and it is in the contract—this is beyond how the experience works—that the data does not leave our four walls. The AI capabilities, which are domain-specific that we have built, do not leave our four walls.

And it is about delivering the experience that the customer needs, whether it is with an OpenAI or in this case, Anthropic. And from an economic perspective, we only experience the economics in the relationship and we do not share in the economics, while at the same time, we have committed to continued use of external LLMs, which is part of the Anthropic deal. So the elements of how the experience works are: no data is shared, no domain expertise is shared. And, frankly, they have zero interest in it because of where I started and the interest of the partnership with them.

And I think the last thing I will just end with is our fundamental goal is to be where the eyeballs are. We want all of our capabilities to be where customers are. And we are working daily on improving the experiences. It is yet to be determined whether or not customers actually will want to engage in their finances with us through these apps. So we are working on the experience. We are very excited about it. We believe the biggest opportunity is really new customer growth. But we actually need to determine whether or not customers are willing to engage with their finances through the apps.

But that is what gives us a lot of excitement around the deal.

Sandeep Singh Aujla: And, Keith, one thing I would add is, when customers think or investors think about the relationship we have with these LLMs, in addition to everything Sasan mentioned, the moat that we have comes from proprietary data. And so Sasan shared that data is not leaving our four walls. That stays here. So that is not being impacted. Our moat comes from being the core of the flow of funds, whether it is access to capital, whether it is hours worked by the employees, whether it is money flow—that is not being touched by these LLMs.

Our moat comes from human intelligence being a massive differentiator, particularly in the area that we play in, which is high-stakes financial decisions, high-liability regulatory decisions. That is the moat that remains with us. So that is the one where I would ask folks to step back and look at what generates the moat and how that moat remains untouched and, in fact, is being augmented in this new era of AI.

Keith Weiss: Excellent. Thank you, guys.

Operator: Thank you. We will go next now to Steven Lester Enders with Citi.

Steven Lester Enders: Okay. Great. Thanks for taking the questions. Maybe I will just continue the line of thinking on the AI side. As you work and partner with these model providers and they have your own internally built generative capabilities as well, how do you think about what makes sense for you all to focus on? Where does it make sense to rely on some of these third parties? And maybe where does the rubber meet the road in terms of what that means for the customer experience moving forward?

Sasan K. Goodarzi: Yes. I would say that is a really great question and an element that I forgot to share in answering Keith’s question. We think about it in the realm of context versus core. And for us, core is what we talked about, which is we are all about delivering done-for-you experiences with AI, data, and HI to help you from lead to cash and to help you from credit building to wealth building. And so all of our investments over the years with the proprietary data, data models, our domain-specific AI models—which, by the way, to a lesser extent is actually LLMs. The majority of our AI capabilities is actually knowledge engineering and machine learning.

And, of course, we built out our Intuit Financial large language models that really work in a very complementary way to deliver these experiences with confidence where there is a lot of liability for customers, which is why there is so much demand. If you think about our category, demand is high and supply is short. So there are not too many that do what we do end to end. That is core.

And when you think about what context is, the part of the alignment that we have, like for instance with Anthropic, where for mid-market customers, if there is a customer like a construction company that is looking to look at their project plan, look at their lien waivers, look at their subcontractor payments, and then they are looking to actually understand the combination of those and the impact it has to their cash flow, our customer now on our platform—because remember, it is our AI models, data models, and HI that drives the end experience—can now, they do not know what they are using, but they are using some of the capabilities with Claude CoWork to actually be able to create a dashboard to see the long tail of things that construction company needs to see.

And, by the way, every construction company wants to see different things. Every roofer wants to see different things. Every architect wants to see different things. That is context for us. Because we do not want to go out and build the long tail of things, but it actually allows us to disrupt industry-specific verticals. That is an example of context. Another example of context is for Anthropic and OpenAI, context for them when a customer is in their app is what is the customer’s intent. That is core to them. And once they identify what the customer wants, then it becomes very much our skills, our experiences, which the customer uses, and they are in our platform.

So this is back to where I started. This is very much about context versus core. And from our perspective and the LLM providers, it is actually very clear-cut how we are partnering to deliver experiences for customers. Hopefully that helps, but that is really the way we are executing the experiences and how the models actually work.

Steven Lester Enders: Yes. That is great to hear. Thanks for taking the question.

Operator: Thank you. We go next now to Mark Murphy with JPMorgan.

Mark Murphy: Thank you so much. I will add my congrats. Sasan, you had mentioned twice that IRS returns are down 5% year over year through February 6. I assume you mean that more as a timing difference this season, perhaps because I think some of the reports are showing that IRS staffing is down 27% versus last year. Maybe it takes longer. So is it just more back-end-loaded tax season? Or are you trying to signal anything about the full tax season?

And then secondly, Sandeep, can you comment on some of the economic health indicators that you sometimes cite like number of employees, hours worked, the cash balances, credit scores, etc., just whether you think there has been any change there?

Sandeep Singh Aujla: Yeah. Hey, Mark. Let me just take both of those and then see if Sasan has something to add on top of my answer. So on the first question, what we wanted to highlight with the fact that the IRS was down 5% to February 6, that was simply—we were highlighting the timing, but we wanted to showcase that, hey, look, IRS is down five points as of February 6, and our business, TurboTax revenue, was up 12%. Now you can compare that to last year. Mark, you have followed us for years. Last year, IRS was down about eight points through February 7, and our business was up 4%.

So we are just highlighting what is giving us the confidence going into this tax season. So that is purely timing and more just giving a comparison to external versus our performance during the similar time period. Now getting to your second question—Mark, remind me of your second question. Sorry. Quickly blanked on it.

Mark Murphy: If you could just comment on some of the economic health indicators like cash balances and hours worked to credit card? The reason I am asking, Sandeep, is the consumer confidence scores—you know, there was a minor bounce last month, but outside of that, they have looked pretty weak for a while, and yet, you have had better, more positive read on it and very, very strong results. And I am just wondering if that is continuing.

Sandeep Singh Aujla: Of course, Mark. So there are two metrics that I look at as my own personal leading indicators when I look at the health of the business. One is—and this is my Uber metric—what are the stats on the number of hours being worked by the employees of our customers? Those are around 4% or thereabouts, which is actually stronger in January than it was in the October time frame. So that I continue to feel good about, and it has actually improved from about the October time frame. The second thing I look at is what are the cash reserves? Because cash on the balance sheet, cash in the bank matters so much. And that is stable.

Mid-market and small businesses are actually up. The micro businesses are down a bit. But net-net across the overall SMB space, it is very stable. The other metrics that we look at are more secondary, but still helpful, is what is the business revenue, and that has remained stable over the last three months. Mid-market grew around 6%. SMB is up low single digit, and micro is down single digit, but generally, the health is good. IT services, nondiscretionary; discretionary is doing well. Advertising and retail discretionary are seeing some declines. In summary, on the profit side, profit is up several points over the last three months through January.

And on the profit side, we have seen good performance by IT services, manufacturing, and wholesale trade. So, putting aside all the noise we might see in the press and everything else, when I look at the pure quantitative stats in the business, I continue to feel good about the health of the business. On top of that, I will also remind you, Mark—and you have followed us for years, so you know this, but just for everyone’s benefit—we have a well-diversified base of customers across multiple customer sizes, multiple industries, multiple geographies. So that is also something additional to keep in mind as you think about our business and the health of the economy.

Mark Murphy: Wonderful. Thank you so much. Really appreciate it.

Operator: Thank you. We go next now to Aleksandr J. Zukin with Wolfe Research.

Aleksandr J. Zukin: Hey, guys. Appreciate you taking the question. Maybe just two quick ones for me. Sasan, I guess to the part about AI, the partnerships that you have talked about, obviously amazing growth again in GBSG. I wanted to ask how durable are some of the trends that you are seeing over the course of the next few quarters and even beyond that? And then to the Anthropic partnership specifically, I think you did a great job laying out how it is going to improve the customer experience. You have talked about how the data is not going to leave. But maybe talk about just the specific monetization plans—how it impacts potentially gross margins.

And then, Sandeep, just as a follow-up on Mailchimp, I think the language moved to returning to double digits fiscal 2026—maybe just give us a little bit more color there and your thoughts about both the key unlock and then what happens if it cannot do that?

Sasan K. Goodarzi: Yeah, Alex. Thanks for your question. I will jump in on the first one. The thing that is very exciting for us is AI and HI is foundational to our platform and fueling our growth. And we talked a lot about what those proof points are. It is not a side project for us. We are not looking on the side to figure out how to monetize AI to make up for the core. It is fundamental to our platform. But that is juxtapositioned against three growth vectors. And so to answer your durability question, we feel very good about the durability of what we are seeing.

One growth vector for us is how we are disrupting assisted tax, which is both for consumers and business. And you saw in the last several years how our trajectory has fundamentally changed. Last year was a $2 billion-plus business growing 45%, and we are seeing incredible traction so far this year. And, by the way, we have seen enough of the tax season to know how it is going to play out and our confidence in tax season. So that is very, very durable. And in fact, every day that passes, we build momentum because of all the investments that we have made.

Second, mid-market is very durable with all of our platform innovation, with our go-to-market motion that we are building, and you can see it in our results. Contracts quarter over quarter continue to be up 50%. Accountants are now starting to contribute to new customers to the franchise. It is up 10 points over the last quarter. New customers to the franchise is actually meaningful now. It is not just our base, and we have a long way to go in our base. That is why we are expanding our sales force. So that is durable. And then third is I think Sandeep said it really well.

With all of our AI and HI innovation on the business platform, we have actually been—beyond the significant savings, both time savings and money impact that it is having for businesses, which, by the way, our platform is beyond self-funding—that gives us a lot of pricing power. We were very surprised to see in our testing that customers, new customers and existing ones, want the combination of both as part of the platform. And that will impact how we think about not just subscription pricing, but consumption. So what we are seeing is very durable and not just for the next couple of quarters.

We have been focused on these three growth vectors for some time, and we are seeing the impact of our investments. Last thing before I turn it over to Sandeep, you asked about economics. Both with OpenAI and Anthropic, we do not share in any of the economics. Whatever the usage is by our customers, it is the same economics if the customers come to us directly. And we are just really focused on the experience. And I think we have a lot to prove together as to whether or not customers actually want to engage through these LLM apps. But we enjoy all of the economics. There is no margin compression.

I think the thing you can expect from us—and Sandeep said this earlier—is continued margin expansion at the company level.

Sandeep Singh Aujla: Alex, let me build on that and also touch on your question on Mailchimp. When it comes to AI, keep in mind, the margins are driven by the monetization. We have three levers for monetization. One is pricing for value. When Sasan shared that the accounting agent is saving people 12 to 14 hours a month, we know that people in North America value their time around $75 an hour. So that is $900-plus of value we are delivering. We can take a cut of that, and that is straight margin that goes to the bottom line. Secondly, our agents—our AI—is serving up capabilities across our ecosystem at a time of need.

So we are switching that conversation from being a sales pitch to helping address a customer need. As an example, our customer could have a payroll due tomorrow, but the invoice is not going to get paid till next week. With a click of a button, they can access the Capital loans. Payroll is done. The employees are paid. Employees are happy. Next week when the customers pay the invoices, the agent automatically pays down the debt. Thirdly, and this is a key point for us all to keep in mind, AI drives a seamless connection to HI. And we know in HI, particularly QB Live, we see 22% higher ecosystem attach.

So in addition to HI being a higher-revenue upsell—when they engage, they have to pay us more for the human expert—we also know when they end up talking to a human expert, they end up consuming even more of our ecosystem. So all of that is top-line massively accretive, which will then drive the margins. Now let me get to Mailchimp. Look, as a company, we fall in love with our customers’ problems, not the solution. Our focus and our attachment as a business remains to the core customer problem versus an attachment to any one particular solution.

We are evaluating the paths to continue to scale Mailchimp and how we can best address the customer need, and also evaluate how it fits as part of our set of offerings, and we will continue to evaluate our portfolio offerings. All options, as I have shared before, are on the table, and we will make sure we keep you all apprised as we narrow in on the options.

Aleksandr J. Zukin: Sounds like a healthy flywheel. Thanks, guys.

Operator: Thank you. We will go next now to Gabriela Borges with Goldman Sachs.

Gabriela Borges: Hey, good afternoon. Thanks for taking my question. So, Sasan, I wanted to ask you a little bit of how you see the general-purpose knowledge intelligence tools evolving, so specifically something like CoWork. Where do you see the boundary at some of your leading-edge SMB customers between the types of tasks that they can do with CoWork or a general-purpose intelligence tool versus where Intuit Inc. really excels with some of the domain-specific intelligence? How do those two ecosystems work together? Thank you.

Sasan K. Goodarzi: Yes, Gabriela, thank you for the question. It is really fairly clean-cut, which is, the moat that we have, the advantage that we have, to deliver for our customers is proprietary data, domain-specific AI models, which is knowledge engineering, machine learning, and our Intuit Financial large language models, coupled with human expertise—HI. And as I mentioned earlier, in an environment where it is a regulatory environment, it is about high-stakes financial decisions where the liability is high. Compliance and accuracy and privacy and security is everything for customers. And it is important to note, because facts are friendly, that within our $300 billion in TAM, people—experts—impact over half of the spend in that TAM because it is customer-back.

And that structurally has not changed in the last ten years. It has not changed in the last six months. And in fact, based on our innovation on AI and HI, as we talked about earlier, we are actually seeing an acceleration of the need of combining both the technology and human expertise because of the notion of confidence and certainty in things done right. That is really the fine line, back to specifically your question, when we think about why an OpenAI and Anthropic is so interested in us—because we do that very, very well—and why we are interested in a partnership with them beyond being where the eyeballs are.

The example that I would use when you look at our capabilities versus, like, Claude CoWork is we are actually very excited about making the Claude CoWork capabilities available in Intuit Enterprise Suite—and why. Because there are things that Claude’s CoWork does that we do not need to go build.

It is context for us because, if you take the example that I used earlier, which is a construction company—I will not reuse that example—but I will use the example, a very real example of a restaurant that is located in a tourist area and wants to actually understand what are the tourist trends, how does it get impacted by weather, and ultimately, how is that connected to taking their POS data, their put-into-a-platform data, to get daily updates and forecasts as to what their traffic into their restaurant could be. We do not need to go build an LLM for that.

But we can integrate—which we are—Claude CoWork into our platform, and the brains of our platform is delivering the accuracy and the compliance, but the LLMs of Claude CoWork actually allow the customer to see the specifics of what they need to be able to better run their business. Now the customer does not know what they are doing, what they are using. All they care about is they are asking for this KPI to be presented to them. So that is where we are very clear in our partnership. And, by the way, we both see the need of what is context versus core and vice versa. That is just a real-life example of where the lines are.

Sandeep Singh Aujla: And Gabriela, if I can add my lens to it, the way I think about it, any financial recommendation, any core business recommendation, anything you could think of as the office of the CFO, office of the COO, office of the CEO is core to us. When we talk about our financial agents saving 17 to 18 hours a month, 69% reduction in the time to get to analysis—that is core. Accounting agent—that is core. Payment agent getting people paid five days faster—that is core. Payroll agent identifying anomalies, saving people multiple hours in getting the payroll done—that is core.

Now I will give you an example from a recency bias, but it is a very good example to make it real. I recently visited with a winery in Napa. They give you free shipping when you buy a case. But they have to decide, do I ship this bottle from Napa to Denver ground—is the low cost to me better margin—or do I ship it two-day air because they do not want the wines to get frozen? Now they can use Claude on our platform—on our real estate—to see what the weather pattern is, and then the agent could pick what that shipping should be.

That is something that we do not need to build because that thin sliver has to do with the long tail. So that is more the office of the shipping department. So that is not core to us. So that is how I very simply think about what is core versus what is context for us.

Gabriela Borges: Good examples. Thank you.

Operator: Thank you. And ladies and gentlemen, we have time for one more question today. We will take that now from Daniel Jester with BMO Capital Markets.

Daniel Jester: Great. Thanks for squeezing me in. Appreciate it. Maybe on the 600 service centers and the in-person opportunity in tax. Maybe how are you judging the success of that? I think, as you have been listening to the whole call, we have been hearing the combination of human plus intelligence means that is the optimal way to see the path forward. And so, as you think about the in-person opportunity in tax, what is the takeaway so far this year? How are you thinking about it going forward? Thank you.

Sasan K. Goodarzi: Yes. Thanks for the question. First of all, I will start with the fact we talked about earlier because it is just, again, facts-friendly. Through early February, we had over 5 million customers that visited either our landing pages and or a store because of the 600 centers that you just alluded to, and that is through early February—like February 6. All of last season, it was 4.2 million. So that is a very important stat from the perspective of we want to be where the customers are. So, one, by having these 600 locations, it allows us to actually show up locally in search, visibly be seen.

And, two, it gives customers confidence that we are local, albeit the majority of the engagement is entirely virtual. So, really, we are tapping into a customer base that allows us to unlock the TAM based on all the capabilities that we now have across our platform with AI and HI. But that is the importance of the centers. And, again, it is all tech-driven. And it is powerful because of the traffic that it ignites for us.

Daniel Jester: Great. Thank you very much.

Operator: Thank you very much. And, Mr. Goodarzi, at this time, sir, I would like to turn the conference back to you for any closing comments.

Sasan K. Goodarzi: Okay. Awesome. Well, thank you, everyone, for your wonderful questions. We look forward to seeing you between now and then and look forward to talking to you about our Q3 results. So until then, be safe, be good. We will talk to you soon. Bye, everybody.

Operator: Thank you very much. Again, ladies and gentlemen, that will conclude today’s Intuit Inc. second quarter fiscal year 2026 conference call. Again, thanks so much for joining us, everyone. We wish you all a great remainder of your day. Goodbye.

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