(Reuters) -Intuit forecast first-quarter revenue growth below analysts’ estimates on Thursday, a sign of sluggish performance at its marketing platform Mailchimp, sending its shares down nearly 6% in extended trading.
The Mountain View, California-based company’s board approved a new $3.2 billion share buyback, lifting total repurchase authorization to $5.3 billion.
The company provides products such as tax-preparation software TurboTax, personal finance portal Credit Karma and accounting software QuickBooks.
Mailchimp, acquired by Intuit in 2021, is currently experiencing challenges that are impacting the company’s growth in its Global Business Services segment.
CFO Sandeep Aujla told Reuters that Mailchimp is a near-term drag on growth, but the company has initiatives underway and expects it to be performing well by the year-end.
With the launch of AI agents — systems capable of taking actions on behalf of users — for its QuickBooks portfolio, Intuit also raised the prices of its QuickBooks Online and Payroll subscription services last month.
Intuit expects fiscal 2026 revenue to be between $21 billion and $21.19 billion, largely in line with analysts’ average estimate of $21.12 billion, according to data compiled by LSEG.
For the fiscal year, its adjusted profit per share forecast of $22.98 to $23.18 was also broadly in line with estimates of $23.
The company’s projection for first-quarter revenue growth of 14% to 15% came in below estimates of 16.1% growth.
Intuit forecast adjusted earnings per share of $3.05 to $3.12 for the first quarter, compared with estimates of $3.07.
The fourth-quarter revenue grew 20% to $3.83 billion, beating estimates of $3.75 billion. The adjusted EPS of $2.75 also exceeded estimates of $2.66.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Mohammed Safi Shamsi)
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