Key insights
- Intuit raised its annual revenue and profit forecasts while announcing a 17% workforce reduction to streamline operations and focus on AI. The company expects restructuring charges of $300-$340 million. While revenue for Feb-Apr fell slightly short of estimates, increased guidance and AI investments signal positive future growth, potentially influencing market sentiment for tech companies investing in AI.
May 20 (Reuters) - TurboTax parent Intuit raised its annual revenue and profit forecasts on Wednesday and announced it would trim 17% of its workforce, sharpening its focus on artificial intelligence-powered financial software amid robust demand.
The reduction of nearly 3,000 roles globally, reported exclusively by Reuters earlier in the day, is expected to help simplify organizational structure and streamline key areas, including AI efforts, according to a staff memo sent by CEO Sasan Goodarzi.
The tax and accounting software provider said it expects $300 million to $340 million in restructuring charges tied to the job cuts, to be recognized in the fourth quarter. It had about 18,200 employees across seven countries as of July 31, 2025, according to its annual report.
Intuit now expects annual revenue between $21.34 billion and $21.37 billion, up from its previous projection of $21 billion to $21.19 billion.
It raised its annual adjusted profit forecast to a range of $23.80 to $23.85 per share, up from $22.98 to $23.18 per share previously.
The recent tax season helped lift Intuit's February-April revenue 10% to $8.56 billion from a year earlier, though it fell short of analysts' average estimate of $8.61 billion, according to data compiled by LSEG.
Meanwhile, Intuit's TurboTax Live offering, which connects tax filers with experts, has seen some uptake and could help allay investor concerns about generative AI tools disrupting the company's lucrative consumer tax franchise.
Partnerships with AI companies, including a multi-year deal with Anthropic announced in February, are central to the company's strategy of embedding AI tools across its platforms as well as adding its personalized tax, finance, accounting and marketing capabilities to AI applications.
(Reporting by Anhata Rooprai in Bengaluru and Juby Babu in Mexico City; Editing by Diti Pujara)