Intuit CEO Sasan Goodarzi highlighted a strong second quarter, with total revenue growing 17% and the Business platform up 18%. Growth was anchored by the mid-market segment, which surged 40%, and TurboTax, which grew 12% despite a 5% decline in IRS filings. Goodarzi detailed the "AI-driven expert platform" strategy, emphasizing that combining AI with human intelligence creates a moat against generic LLMs by ensuring accuracy and liability protection in high-stakes financial decisions. While partnerships with OpenAI and Anthropic are accelerating verticalization, management expressed frustration with Mailchimp's performance, citing high attrition at the low end.

Key Takeaways

• Q2 Financial Strength: Intuit reported 17% total revenue growth in Q2, with the Business platform growing 18% and the Consumer platform growing 15%.
• Tax Season Outperformance: TurboTax revenue grew 12% through January 31, significantly outperforming IRS returns, which were down 5% over the same period.
• Local Strategy Traction: To capture the assisted tax market, Intuit established 600 local service centers; visitors to local landing pages reached "5.1 million" through February 6, compared to "4.2 million" the prior year.
• Mid-Market Momentum: The mid-market segment grew 40%, with contracts up 50% quarter-over-quarter; consequently, Intuit is expanding its salesforce for this segment by 30%.
• Defensibility Against GenAI: Management argued that while LLMs provide speed, they cannot replace Intuit regarding "accuracy, compliance and correctness" or assume liability for financial filings.
• Partnership Structure: Deals with OpenAI and Anthropic exclude data sharing or economic splits; OpenAI is viewed as a top-of-funnel driver, while Anthropic aids in verticalizing complex industries like construction.
• Mailchimp Struggles: Management admitted to being "more frustrated than you are" regarding Mailchimp, specifically noting a "leaky bucket" among customers paying less than $200, leading to delayed growth targets.
• Internal Efficiency: Developers are currently delivering "40% more code" than a year ago, with internal goals to eventually "3x our velocity" to drive margin expansion.

Q&A

Keith Weiss (Morgan Stanley): You beat revenue across almost every segment in Q2; what is driving these results specifically?

• Sasan Goodarzi: Revenue grew 17% driven by the Business platform growing 18%—specifically mid-market which grew "40%"—and TurboTax growing "12%" despite IRS returns being down "five points." The driver is the "AI-driven expert platform strategy" which combines technology and human intelligence to unlock a "$300 billion" TAM.

Keith Weiss (Morgan Stanley): Last year you were "constructively dissatisfied" with the tax season; how are you addressing those issues for 2026?

• Sasan Goodarzi: Last year Intuit did not show up in local searches; this year the company launched "600 local service centers." As a result, visitors to local landing pages through February 6 reached "5.1 million" versus "4.2 million" last year, with improved conversion rates.

Keith Weiss (Morgan Stanley): Investors are concerned about terminal risk and whether ChatGPT will eventually do taxes; what is the fundamental moat against agentic computing?

• Sasan Goodarzi: Intuit operates in a "category of one" involving high-stakes financial decisions where customers demand liability protection, which LLMs cannot provide. While LLMs offer speed, they lack "accuracy, compliance and correctness," which remains Intuit's core advantage as the source of truth.

Keith Weiss (Morgan Stanley): What are the benefits and data risks associated with your partnerships with OpenAI and Anthropic?