Business software company Intuit has said it will lay off around 17% of its workforce after a selloff in software stocks, with revenue also falling short of estimates last quarter.
Revenue rose 10% year-over-year to US$8.56 billion, under LSEG-compiled estimates of $8.61 billion. Earnings per share increased 10% to $12.80, above estimates of $12.57.
“We delivered strong third-quarter results, driven by our AI-driven expert platform strategy. We have ignited significant growth engines across the company including disrupting the assisted tax segment, expanding our money portfolio and serving mid-market businesses that are growing north of 30 percent,” said CEO and chair Sasan Goodarzi.
The layoffs will cause about $300-340 million in restructuring charges, the company said, largely in its quarter ending 31 July.
Software stocks fell sharply last quarter amid investor concerns about artificial intelligence disrupting the sector, with Intuit’s shares down 39% year-to-date. Cisco and Meta also announced major layoffs within the past week.
“We believe we can serve more customers and deliver breakthrough products that fuel our customers’ success by reducing complexity and simplifying our structure to become a faster, leaner, and more focused company,” Goodarzi wrote in a note to employees.
Intuit raised its full-year guidance, meanwhile. It projects revenue of $21.341-21.374 billion, up from last quarter’s outlook of $20.997-21.186 billion, and earnings per share of $23.80-23.85, rising from $22.98-23.18.
Its Consumer revenue climbed 8% to $5.3 billion last quarter, driven by 7% growth in TurboTax, and it expects a 10% increase across fiscal 2026. Global Business Solutions revenue was up 15% to $3.3 billion, with the company forecasting 16% full year growth.
Operating income rose 8% to $4.02 billion last quarter. Intuit’s full-year outlook includes operating income of $5.705-5.725 billion.
Intuit (NASDAQ: INTU) shares closed 4% lower at $383.93, and plummeted a further 13.5% after-hours. Its market capitalisation is $106.18 billion.
