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10-Q – 2025-11-20 – intu-20251031.htm

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Table of Contents

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________________________________
FORM 10-Q

☑   Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended October 31, 2025
OR

☐   Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from ____________ to ____________ .

Commission File Number 0-21180

INTUIT INC.
(Exact name of registrant as specified in its charter)

Delaware 77-0034661
(State or other jurisdiction of incorporation or organization)   (IRS Employer Identification No.)

2700 Coast Avenue , Mountain View , CA 94043
(Address of principal executive offices) (Zip Code)
( 650 )  944-6000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:

  Title of each class Trading Symbol Name of each exchange on which registered
  Common Stock, $0.01 par value INTU Nasdaq Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☑ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting
company ☐ Emerging growth
company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. The number of shares (in thousands) of Common Stock, $0.01 par value, outstanding as of November 13, 2025 was 278,400 .

INTUIT INC.
FORM 10-Q
INDEX

Page
PART I - FINANCIAL INFORMATION

ITEM 1: Financial Statements (Unaudited)
 

Condensed Consolidated Statements of Operations for the three months ended October 31 , 2025 and 2024
4

Condensed Consolidated Statements of Comprehensive Income for the three months ended October 31 , 2025 and 2024
5

Condensed Consolidated Balance Sheets at October 3 1 , 2025 and July 31, 202 5
6

Condensed Consolidated Statements of Stockholders’ Equity for the three months ended October 31 , 2025 and 2024
7

Condensed Consolidated Statements of Cash Flows for the three months ended October 31 , 2025 and 2024
8

Notes to Condensed Consolidated Financial Statements
10

ITEM 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations
29

ITEM 3: Quantitative and Qualitative Disclosures about Market Risk
44

ITEM 4: Controls and Procedures
45

PART II - OTHER INFORMATION
 

ITEM 1: Legal Proceedings
46

ITEM 1A: Risk Factors
46

ITEM 2: Unregistered Sales of Equity Securities and Use of Proceeds
60

ITEM 5: Other Information
60

ITEM 6: Exhibits
60

Signatures
61

Intuit, QuickBooks, TurboTax, Credit Karma, and Mailchimp, among others, are registered trademarks and/or registered service marks of Intuit Inc., or one of its subsidiaries, in the United States and other countries. Other parties’ marks are the property of their respective owners.

 Intuit Q1 Fiscal 2026 Form 10-Q
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Forward-Looking Statements
This Quarterly Report on Form 10-Q contains forward-looking statements that involve risks and uncertainties. Please also see the section entitled "Risk Factors" in Item 1A of Part II of this Quarterly Report for important information to consider when evaluating these statements. All statements in this report, other than statements that are purely historical, are forward-looking statements. Words such as “will,” “expect,” “anticipate,” “intend,” “plan,” “believe,” “forecast,” “estimate,” “seek,” and similar expressions also identify forward-looking statements. In this report, forward-looking statements include, without limitation, the following:
• our expectations and beliefs regarding future conduct and growth of the business;
• statements regarding the impact of macroeconomic conditions on our business;
• our beliefs and expectations regarding seasonality, competition, and other trends that affect our business;
• our expectation that we will continue to invest significant resources in our product development, marketing and sales capabilities, including products and services incorporating artificial intelligence;
• our expectation that we will continue to invest significant management attention and resources in our information technology infrastructure and in our privacy and security capabilities;
• our expectation that we will work with the broader industry and government to protect our customers from fraud;
• our expectation that we will generate significant cash from operations;
• our expectation that total service revenue as a percentage of our total revenue will grow over the long term;
• our expectations regarding the development of future products, services, business models and technology platforms and our research and development efforts;
• our assumptions underlying our critical accounting estimates, including our judgments and estimates regarding revenue recognition; the fair value of goodwill; and expected future amortization of acquired intangible assets;
• our intention not to sell our investments and our belief that it is more likely than not that we will not be required to sell them before recovery at par;
• our belief that the investments we hold are not other-than-temporarily impaired;
• our belief that we take prudent measures to mitigate investment-related risks;
• our belief that our exposure to currency exchange fluctuation risk will not be significant in the future;
• our assessments and estimates that determine our effective tax rate;
• our belief that our income tax valuation allowance is sufficient;
• our belief that our cash and cash equivalents, investments and cash generated from operations will be sufficient to meet our seasonal working capital needs, capital expenditure requirements, contractual obligations, commitments, debt service requirements, and other liquidity requirements associated with our operations for at least the next 12 months;
• our expectation that we will return excess cash generated by operations to our stockholders through repurchases of our common stock and the payment of cash dividends, after taking into account our operating and strategic cash needs;
• our judgments and assumptions relating to our loan portfolio;
• our belief that our debt facilities will be available to us should we choose to borrow under them;
• our expectations regarding acquisitions and their impact on business and strategic priorities; and
• our assessments and beliefs regarding the future developments and outcomes of pending legal proceedings and inquiries by regulatory authorities, the liability, if any, that Intuit may incur as a result of those proceedings and inquiries, and the impact of any potential losses or expenses associated with such proceedings or inquiries on our financial statements.
We caution investors that forward-looking statements are only predictions based on our current expectations about future events and are not guarantees of future performance. Actual outcomes and results may differ materially from what is expressed or forecast in these forward-looking statements. Risks, uncertainties and other factors that might cause such differences, some of which could be material, include but are not limited to those discussed in the section entitled “Risk Factors” in Item 1A of Part II of this Quarterly Report. We encourage you to read carefully all information provided in this report and in our other filings with the Securities and Exchange Commission before deciding to invest in our stock or to maintain or change your investment. These forward-looking statements are based on information as of the filing date of this Quarterly Report and, except as required by law, we undertake no obligation to revise or update any forward-looking statement for any reason.

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PART I - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS

INTUIT INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

  Three Months Ended
(In millions, except per share amounts) October 31,
2025 October 31,
2024
Net revenue:    
Service
$ 3,497   $ 2,889  
Product and other
388   394  
Total net revenue 3,885   3,283  
Costs and expenses:    
Cost of revenue:    
Cost of service revenue
824   772  
Cost of product and other revenue
15   14  
Amortization of acquired technology 44   37  
Selling and marketing 1,082   962  
Research and development 843   704  
General and administrative 422   394  
Amortization of other acquired intangible assets 121   120  

Restructuring —   9  
Total costs and expenses 3,351   3,012  
Operating income 534   271  
Interest expense ( 58 ) ( 60 )
Interest and other income, net 85   2  
Income before income taxes 561   213  
Income tax provision 115   16  

Net income $ 446   $ 197  

Basic net income per share $ 1.60   $ 0.70  
Shares used in basic per share calculations 279   280  

Diluted net income per share $ 1.59   $ 0.70  
Shares used in diluted per share calculations 281   283  

See accompanying notes.

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INTUIT INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

  Three Months Ended
(In millions) October 31,
2025 October 31,
2024

Net income $ 446   $ 197  
Other comprehensive loss, net of income taxes:

Foreign currency translation loss ( 1 ) —  

Total other comprehensive loss, net ( 1 ) —  
Comprehensive income $ 445   $ 197  

See accompanying notes.

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INTUIT INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In millions) October 31,
2025 July 31,
2025
ASSETS    
Current assets:    
Cash and cash equivalents $ 3,506   $ 2,884  
Investments 190   1,668  
Accounts receivable, net 579   530  

Notes receivable held for investment
1,519   1,403  
Notes receivable held for sale
48   —  
Income taxes receivable 31   50  
Prepaid expenses and other current assets 630   496  
Current assets before funds receivable and amounts held for customers 6,503   7,031  
Funds receivable and amounts held for customers 3,918   7,076  
Total current assets 10,421   14,107  
Long-term investments 92   94  
Property and equipment, net 965   961  
Operating lease right-of-use assets 596   541  
Goodwill 13,980   13,980  
Acquired intangible assets, net 5,136   5,302  
Long-term deferred income tax assets 1,173   1,222  
Other assets 828   751  
Total assets $ 33,191   $ 36,958  

LIABILITIES AND STOCKHOLDERS’ EQUITY    
Current liabilities:    
Short-term debt $ 749   $ —  
Accounts payable 670   792  
Accrued compensation and related liabilities 479   858  
Deferred revenue 1,045   1,019  

Other current liabilities 658   625  
Current liabilities before funds payable and amounts due to customers 3,601   3,294  
Funds payable and amounts due to customers 3,918   7,076  
Total current liabilities 7,519   10,370  
Long-term debt 5,391   5,973  

Operating lease liabilities 643   597  
Other long-term obligations 316   308  
Total liabilities 13,869   17,248  
Commitments and contingencies
Stockholders’ equity:    
Preferred stock —   —  
Common stock and additional paid-in capital 21,996   21,635  
Treasury stock, at cost ( 22,394 ) ( 21,543 )
Accumulated other comprehensive loss ( 51 ) ( 50 )
Retained earnings 19,771   19,668  
Total stockholders’ equity 19,322   19,710  
Total liabilities and stockholders’ equity $ 33,191   $ 36,958  
See accompanying notes.

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.
INTUIT INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited)

Three Months Ended October 31, 2025
(Dollars in millions, except per share amount;
shares in thousands)
Shares of
Common
Stock Common
Stock and
Additional
Paid-In Capital Treasury
Stock Accumulated
Other
Comprehensive
Loss Retained
Earnings Total
Stockholders'
Equity
Balance at July 31, 2025 279,129   $ 21,635   $ ( 21,543 ) $ ( 50 ) $ 19,668   $ 19,710  
Comprehensive income —  —  —  ( 1 ) 446   445  
Issuance of stock under employee stock plans, net of shares withheld for employee taxes 625   ( 182 ) —  —  —  ( 182 )
Stock repurchases under stock repurchase programs ( 1,245 ) —  ( 851 ) —  —  ( 851 )
Dividends and dividend rights declared ($ 1.20 per share)
—  —  —  —  ( 343 ) ( 343 )
Share-based compensation expense —  543   —  —  —  543  

Balance at October 31, 2025 278,509   $ 21,996   $ ( 22,394 ) $ ( 51 ) $ 19,771   $ 19,322  

Three Months Ended October 31, 2024
(Dollars in millions, except per share amount;
shares in thousands)
Shares of
Common
Stock Common
Stock and
Additional
Paid-In Capital Treasury
Stock Accumulated
Other
Comprehensive
Loss Retained
Earnings Total
Stockholders'
Equity
Balance at July 31, 2024 280,268   $ 20,251   $ ( 18,750 ) $ ( 54 ) $ 16,989   $ 18,436  
Comprehensive income —  —  —  —   197   197  
Issuance of stock under employee stock plans, net of shares withheld for employee taxes 768   ( 143 ) —  —  —  ( 143 )
Stock repurchases under stock repurchase programs ( 915 ) —  ( 570 ) —  —  ( 570 )
Dividends and dividend rights declared ($ 1.04 per share)
—  —  —  —  ( 295 ) ( 295 )
Share-based compensation expense —  511   —  —  —  511  

Balance at October 31, 2024 280,121   $ 20,619   $ ( 19,320 ) $ ( 54 ) $ 16,891   $ 18,136  

See accompanying notes.

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INTUIT INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Three Months Ended
(In millions) October 31,
2025 October 31,
2024
Cash flows from operating activities:    
Net income $ 446   $ 197  
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 44   44  
Amortization of acquired intangible assets 165   157  
Non-cash operating lease cost 23   19  

Share-based compensation expense 543   511  

Deferred income taxes 58   ( 91 )

Other ( 6 ) 63  
Total adjustments 827   703  

Changes in operating assets and liabilities:
Accounts receivable ( 49 ) 31  
Income taxes receivable 19   51  
Prepaid expenses and other assets ( 119 ) ( 27 )
Accounts payable ( 135 ) ( 75 )
Accrued compensation and related liabilities ( 378 ) ( 507 )
Deferred revenue 25   19  

Operating lease liabilities ( 23 ) ( 22 )
Other liabilities 24   ( 8 )
Total changes in operating assets and liabilities ( 636 ) ( 538 )
Net cash provided by operating activities 637   362  
Cash flows from investing activities:    
Purchases of corporate and customer fund investments ( 101 ) ( 306 )
Sales of corporate and customer fund investments 115   55  
Maturities of corporate and customer fund investments 1,473   235  
Purchases of property and equipment ( 38 ) ( 33 )

Originations and purchases of notes receivable held for investment
( 1,297 ) ( 666 )
Sales of notes receivable originally classified as held for investment
213   110  
Principal repayments of notes receivable held for investment
876   420  
Other ( 43 ) ( 3 )
Net cash provided by (used in) investing activities 1,198   ( 188 )
Cash flows from financing activities:    

Proceeds from borrowings under secured revolving credit facilities 166   85  

Proceeds from issuance of stock under employee stock plans 62   96  
Payments for employee taxes withheld upon vesting of restricted stock units ( 244 ) ( 239 )
Cash paid for purchases of treasury stock ( 854 ) ( 557 )
Dividends and dividend rights paid ( 341 ) ( 296 )
Net change in funds receivable and funds payable and amounts due to customers ( 3,160 ) 1,672  

Other ( 1 ) —  
Net cash provided by (used in) financing activities ( 4,372 ) 761  

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Effect of exchange rates on cash, cash equivalents, restricted cash, and restricted cash equivalents ( 1 ) —  
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents ( 2,538 ) 935  
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period 9,481   7,099  
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period $ 6,943   $ 8,034  

Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents reported within the condensed consolidated balance sheets to the total amounts reported on the condensed consolidated statements of cash flows
Cash and cash equivalents $ 3,506   $ 2,872  
Restricted cash and restricted cash equivalents included in funds receivable and amounts held for customers 3,437   5,162  
Total cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period $ 6,943   $ 8,034  

Supplemental schedule of non-cash investing activities:

Transfers of notes receivable originated or purchased as held for investment to held for sale
$ 253   $ 113  

See accompanying notes.

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INTUIT INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

1. Description of Business and Summary of Significant Accounting Policies

Description of Business

Intuit Inc. (Intuit, we, us, or our) is a global financial technology platform with a mission to power prosperity around the world. We help consumers complete their taxes with ease and confidence and improve their financial success, from credit building to wealth building, with tax and personal financial management products. We help small and mid-market businesses grow and run their business end-to-end, from lead to cash. This encompasses financial management, which includes payments and capital, compliance, human capital management, and marketing products and services. For accounting professionals, we provide professional tax and financial management products and services.
We do this through our platform that powers TurboTax, Credit Karma, QuickBooks, Mailchimp, and Intuit Enterprise Suite. Lacerte, ProSeries, and ProConnect Tax Online are our leading tax preparation offerings for professional accountants. Incorporated in 1984 and headquartered in Mountain View, California, we sell our products and services primarily in the United States (U.S.).

Basis of Presentation

These condensed consolidated financial statements include the financial statements of Intuit and its wholly-owned subsidiaries. We have eliminated all intercompany balances and transactions in consolidation. We have included all adjustments, consisting only of normal recurring items, which we considered necessary for a fair presentation of our financial results for the interim periods presented. We have reclassified certain amounts previously reported in our financial statements to conform to the current presentation.
Effective August 1, 2025, we combined our Consumer, Credit Karma, and ProTax businesses into a single Consumer segment in order to better serve the diverse financial needs of our customers as one consumer platform. Our chief operating decision maker allocates resources and assesses segment performance using regularly provided segment revenue and segment operating income information under this updated segment structure. To align results under this segment change, certain selling and marketing, product development, and general and administrative expenses for Credit Karma that were managed at the segment level are now managed at the platform level and are included in other corporate expenses rather than in segment expenses. Also on August 1, 2025, we reorganized certain marketing, communications, and customer success functions in our Global Business Solutions segment that support and benefit our overall platform and are managed at that level rather than at the segment level. Additionally, certain data science and analytics teams that were managed at the platform level are now managed at the segment level. We have recast certain previously reported amounts to conform to these segment changes. As a result of these changes, for the three months ended October 31, 2024, we reclassified expenses totaling $ 3 million from Global Business Solutions and $ 152 million from Consumer to other corporate expenses to conform to the current presentation. See Note 12, "Segment Information," for more information.
These unaudited condensed consolidated financial statements and accompanying notes should be read together with the audited consolidated financial statements in Part II, Item 8 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2025. Results for the three months ended October 31, 2025 are not necessarily indicative of the results we expect for the fiscal year ending July 31, 2026 or any other future period.

Seasonality

Within our Consumer segment, our TurboTax and ProTax offerings have a significant and distinct seasonal pattern as sales and revenue from our income tax preparation products and services are typically heavily concentrated in the period from November through April. This seasonal pattern typically results in higher net revenues during our second and third quarters ending January 31 and April 30, respectively.

Significant Accounting Policies

We described our significant accounting policies in Note 1 to the financial statements in Part II, Item 8 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2025. There have been no changes to our significant accounting policies during the first three months of fiscal 2026.

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Use of Estimates

In preparing our condensed consolidated financial statements in accordance with U.S. generally accepted accounting principles (GAAP), we make certain judgments, estimates, and assumptions that affect the amounts reported in our financial statements and the disclosures made in the accompanying notes. For example, we use judgments and estimates in determining how revenue should be recognized. These judgments and estimates include identifying performance obligations, determining if the performance obligations are distinct, determining the standalone sales price (SSP) and timing of revenue recognition for each distinct performance obligation, and estimating variable consideration to be included in the transaction price. We use estimates in determining the collectibility of accounts receivable and notes receivable held for investment, the appropriate levels of various accruals including accruals for litigation contingencies, the discount rate used to calculate lease liabilities, the amount of our worldwide tax provision, the realizability of deferred tax assets, the credit losses of available-for-sale debt securities, the fair value of assets acquired and liabilities assumed for business combinations, and the fair value of notes receivable held for sale. We also use estimates in determining the remaining economic lives and fair values of acquired intangible assets, property and equipment, and other long-lived assets. In addition, we use assumptions to estimate the fair value of reporting units and share-based compensation. Despite our intention to establish accurate estimates and use reasonable assumptions, actual results may differ from our estimates.

Computation of Net Income Per Share

We compute basic net income or loss per share using the weighted-average number of common shares outstanding during the period. We compute diluted net income per share using the weighted-average number of common shares and dilutive potential common shares outstanding during the period. Dilutive potential common shares consist of the shares issuable upon the exercise of stock options and upon the vesting of restricted stock units (RSUs) under the treasury stock method.
We include stock options with combined exercise prices and unrecognized compensation expense that are less than the average market price for our common stock, and RSUs with unrecognized compensation expense that is less than the average market price for our common stock, in the calculation of diluted net income per share. We exclude stock options with combined exercise prices and unrecognized compensation expense that are greater than the average market price for our common stock, and RSUs with unrecognized compensation expense that is greater than the average market price for our common stock, from the calculation of diluted net income per share because their effect is anti-dilutive. Under the treasury stock method, the amount that must be paid to exercise stock options and the amount of compensation expense for future service that we have not yet recognized for stock options and RSUs are assumed to be used to repurchase shares.
Dividend rights apply to all RSUs that we grant and are accumulated and paid when the underlying RSUs vest. Since dividend rights are subject to the same vesting requirements as the underlying equity awards, they are considered a contingent transfer of value. Consequently, the RSUs are not considered participating securities, and we do not present them separately in earnings per share.
In loss periods, basic net loss per share and diluted net loss per share are the same since the effect of potential common shares is anti-dilutive and therefore excluded.

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The following table presents the composition of shares used in the computation of basic and diluted net income per share for the periods indicated.

  Three Months Ended
(In millions, except per share amounts) October 31,
2025 October 31,
2024
Numerator:    

Net income $ 446   $ 197  

Denominator:    
Shares used in basic per share calculations:
   
Weighted-average common shares outstanding 279   280  

Shares used in diluted per share calculations:

Weighted-average common shares outstanding 279   280  
Dilutive potential common equivalent shares from share-based awards
2   3  
Dilutive weighted-average common shares outstanding 281   283  

Basic and diluted net income per share:    

Basic net income per share $ 1.60   $ 0.70  

Diluted net income per share $ 1.59   $ 0.70  

Shares excluded from diluted net income per share:

Weighted-average share-based awards that have been excluded from dilutive common equivalent shares outstanding due to their anti-dilutive effect
3   —  

Deferred Revenue

We record deferred revenue when we have entered into a contract with a customer, and cash payments are received or due prior to transfer of control or satisfaction of the related performance obligation. Our deferred revenue primarily relates to our subscription offerings. During the three months ended October 31, 2025, we recognized revenue of $ 590 million that was included in deferred revenue at July 31, 2025. During the three months ended October 31, 2024, we recognized revenue of $ 524 million that was included in deferred revenue at July 31, 2024.
Our performance obligations are generally satisfied within 12 months of the initial contract date. As of October 31, 2025 and July 31, 2025, the deferred revenue balance related to performance obligations that will be satisfied after 12 months was $ 3 million and $ 4 million, respectively, and is included in other long-term obligations on our condensed consolidated balance sheets.

Concentration of Credit Risk and Significant Customers

No customer accounted for 10% or more of total net revenue in the three months ended October 31, 2025 or October 31, 2024. No customer accounted for 10% or more of gross accounts receivable at October 31, 2025 or July 31, 2025.

Accounting Standards Not Yet Adopted

Income Tax: In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." This standard requires additional disclosures related to the income tax rate reconciliation, income taxes paid by jurisdiction, and other income tax-related disclosures. The standard is effective for fiscal years beginning after December 15, 2024, which means that it will be effective for us for our annual reporting for the fiscal year ending July 31, 2026. Early adoption is permitted on either a prospective or retrospective basis.
Disaggregation of Income Statement Expenses: In November 2024, the FASB issued ASU 2024-03, "Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses," and in January 2025, the FASB issued ASU 2025-01, "Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date," which clarified the effective date of ASU 2024-03. This standard requires entities to disaggregate operating expenses into specific categories such as employee compensation, depreciation, and intangible asset amortization, by relevant expense caption on the statement of

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operations. The standard is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, which means that it will be effective for our annual reporting for the fiscal year ending July 31, 2028 and for interim period reporting beginning in fiscal 2029. Early adoption is permitted on either a prospective or retrospective basis.
Measurement of Credit Losses for Accounts Receivable and Contract Assets: In July 2025, the FASB issued ASU 2025-05, “ Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. ” This standard allows entities to apply a practical expedient when estimating expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under FASB Accounting Standards Codification (ASC) Topic 606, “Revenue from Contracts with Customers.” The standard is effective for fiscal years beginning after December 15, 2025, including interim periods within those fiscal years, which means that it will be effective for us in the first quarter of our fiscal year ending July 31, 2027. Early adoption is permitted, and the standard is to be applied prospectively.
Internal-Use Software: In September 2025, the FASB issued ASU 2025-06, “ Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. ” The standard removes all references to project stages and clarifies the threshold entities apply to begin capitalizing costs. The standard is effective for fiscal years beginning after December 15, 2027, including interim reporting periods within those fiscal years, which means that it will be effective for us in the first quarter of our fiscal year ending July 31, 2029. Early adoption is permitted, and the standard is to be applied using a prospective, retrospective, or modified transition approach.
Credit Losses: Purchased Loans: In November 2025, the FASB issued ASU 2025-08, “ Financial Instruments—Credit Losses (Topic 326): Purchased Loans. ” The standard expands the population of acquired financial assets subject to the gross-up approach in Topic 326 whereby certain purchased loans are recognized at their purchase price plus an allowance for expected credit losses. The standard is effective for fiscal years beginning after December 15, 2026, including interim reporting periods within those fiscal years, which means that it will be effective for us in the first quarter of our fiscal year ending July 31, 2028. Early adoption is permitted, and the standard is to be applied prospectively.
We are currently evaluating the impact of our pending adoptions of the above standards on our consolidated financial statements and related disclosures.

2. Fair Value Measurements

Fair Value Hierarchy

The authoritative guidance defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. When determining fair value, we consider the principal or most advantageous market for an asset or liability and assumptions that market participants would use when pricing the asset or liability. In addition, we consider and use all valuation methods that are appropriate in estimating the fair value of an asset or liability.
The authoritative guidance establishes a fair value hierarchy that is based on the extent and level of judgment used to estimate the fair value of assets and liabilities. In general, the authoritative guidance requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An asset or liability’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the measurement of its fair value. The three levels of input defined by the authoritative guidance are as follows:
• Level 1 uses unadjusted quoted prices that are available in active markets for identical assets or liabilities.
• Level 2 uses inputs other than quoted prices included in Level 1 that are either directly or indirectly observable through correlation with market data. These include quoted prices in active markets for similar assets or liabilities; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs to valuation models or other pricing methodologies that do not require significant judgment because the inputs used in the model, such as interest rates and volatility, can be corroborated by readily observable market data for substantially the full term of the assets or liabilities.
• Level 3 uses one or more unobservable inputs that are supported by little or no market activity and that are significant to the determination of fair value. Level 3 assets and liabilities include those whose fair values are determined using pricing models, discounted cash flow methodologies, or similar valuation techniques and significant management judgment or estimation.

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Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table summarizes financial assets that we measured at fair value on a recurring basis at the dates indicated, classified in accordance with the fair value hierarchy described above.

October 31, 2025 July 31, 2025
(In millions) Level 1 Level 2 Total
Fair Value Level 1 Level 2 Total
Fair Value
Assets:            
Cash equivalents, primarily money market funds
$ 2,330   $ —   $ 2,330   $ 1,790   $ —   $ 1,790  
Available-for-sale debt securities:            

Corporate notes —   335   335   —   502   502  
U.S. agency securities —   5   5   —   1,316   1,316  
Total available-for-sale debt securities —   340   340   —   1,818   1,818  

Total assets measured at fair value on a recurring basis $ 2,330   $ 340   $ 2,670   $ 1,790   $ 1,818   $ 3,608  

The following table summarizes our cash equivalents and available-for-sale debt securities by balance sheet classification and level in the fair value hierarchy at the dates indicated.

October 31, 2025 July 31, 2025
(In millions) Level 1 Level 2 Total
Fair Value Level 1 Level 2 Total
Fair Value
Cash equivalents:            
In cash and cash equivalents $ 2,330   $ —   $ 2,330   $ 1,790   $ —   $ 1,790  

Available-for-sale debt securities:            
In investments $ —   $ 190   $ 190   $ —   $ 1,668   $ 1,668  
In funds receivable and amounts held for customers —   150   150   —   150   150  

Total available-for-sale debt securities $ —   $ 340   $ 340   $ —   $ 1,818   $ 1,818  

We value our Level 1 assets, consisting primarily of money market funds, using quoted prices in active markets for identical instruments.
Financial assets whose fair values we measure on a recurring basis using Level 2 inputs consist of corporate notes and U.S. agency securities. We measure the fair values of these assets with the help of a pricing service that either provides quoted market prices in active markets for identical or similar securities or uses observable inputs for their pricing without applying significant adjustments. Our fair value processes include controls designed to ensure that we record appropriate fair values for our Level 2 investments. These controls include comparison to pricing provided by a secondary pricing service or investment manager, validation of pricing sources and models, review of key model inputs, and independent recalculation of prices where appropriate.
Financial assets whose fair values we measure using Level 3 inputs consist of notes receivable held for sale and notes receivable held for investment. Notes receivable held for sale are recorded at the lower of amortized cost or fair value. As of October 31, 2025, total notes receivable held for sale were not material and the difference between amortized cost and fair value was not material. As of July 31, 2025, we held no notes receivable for sale. As of October 31, 2025 and July 31, 2025, the difference between the amortized cost and fair value of notes receivable held for investment was not material.
Financial liabilities whose fair values we measure using Level 2 inputs consist of senior unsecured notes. We measure the fair value of our senior unsecured notes based on their trading prices and the interest rates we could obtain for other borrowings with similar terms. At each of the reporting periods ended October 31, 2025 and July 31, 2025, the total estimated fair value of the senior unsecured notes was $ 5.0 billion. At each of the reporting periods ended October 31, 2025 and July 31, 2025, the carrying value of the senior unsecured notes was $ 5.0 billion. See Note 6, “Debt , ” for more information.

Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

Long-term investments primarily include non-marketable equity securities in privately-held companies that do not have a readily determinable fair value. They are accounted for at cost and adjusted based on observable price changes from orderly transactions for identical or similar investments of the same issuer, or impairment. These investments are classified as Level 3 in the fair value hierarchy because we estimate the value of these investments using a valuation method based on observable transaction price changes at the transaction date.

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The following table summarizes the adjustments to the carrying value of our long-term investments.

Three Months Ended
(In millions) October 31,
2025 October 31,
2024
Upward adjustments
$ 27   $ —  
Downward adjustments, including impairments
—   ( 42 )
Net adjustments
$ 27   $ ( 42 )

Cumulative upward adjustments amounted to $ 48  million, and cumulative downward adjustments, including impairments, amounted to $ 27  million through October 31, 2025 for measurement alternative investments held as of October 31, 2025. The carrying value of long-term investments on our condensed consolidated balance sheets was $ 92 million and $ 94 million at October 31, 2025 and July 31, 2025, respectively.

3. Cash and Cash Equivalents, Investments, and Funds Receivable and Amounts Held for Customers

We consider highly liquid investments with maturities of three months or less at the date of purchase to be cash equivalents. In all periods presented, cash equivalents consist primarily of money market funds. Investments consist primarily of investment-grade available-for-sale debt securities. Funds receivable and amounts held for customers represent funds receivable from third-party payment processors for customer transactions, funds in transit to our customers, and funds held on behalf of our customers that are invested in cash and cash equivalents and investment-grade available-for-sale debt securities, restricted for use solely for the purpose of satisfying amounts we owe on behalf of our customers. Our obligations with respect to funds we transmit on behalf of our customers are satisfied when the funds are settled in the customers' accounts. These obligations, including funds in transit to our customers, are reflected in funds payable and amounts due to customers in the accompanying condensed consolidated balance sheets.
Except for direct obligations of the U.S. government, securities issued by agencies of the U.S. government, and money market funds, we diversify our investments in debt securities by limiting our holdings with any individual issuer.
The following table summarizes our cash and cash equivalents, investments, and funds receivable and amounts held for customers by balance sheet classification at the dates indicated.

  October 31, 2025 July 31, 2025
(In millions) Amortized
Cost Fair Value Amortized
Cost Fair Value
Classification on condensed consolidated balance sheets:        
Cash and cash equivalents $ 3,506   $ 3,506   $ 2,884   $ 2,884  
Investments 189   190   1,667   1,668  
Funds receivable and amounts held for customers 3,917   3,918   7,076   7,076  

Total cash and cash equivalents, investments, and funds receivable and amounts held for customers $ 7,612   $ 7,614   $ 11,627   $ 11,628  

The following table summarizes our cash and cash equivalents, investments, and relevant portion of funds receivable and amounts held for customers by investment category at the dates indicated. As of October 31, 2025 and July 31, 2025, this excludes $ 331 million and $ 329 million, respectively, of funds receivable from third-party payment processors on our condensed consolidated balance sheets included in funds receivable and amounts held for customers that were not measured and recorded at fair value.

  October 31, 2025 July 31, 2025
(In millions) Amortized
Cost Fair Value Amortized
Cost Fair Value
Type of issue:        
Total cash, cash equivalents, restricted cash,
and restricted cash equivalents $ 6,943   $ 6,943   $ 9,481   $ 9,481  

Available-for-sale debt securities:

Corporate notes 333   335   502   502  
U.S. agency securities 5   5   1,315   1,316  

Total available-for-sale debt securities 338   340   1,817   1,818  

Total cash, cash equivalents, restricted cash, restricted cash equivalents, and investments $ 7,281   $ 7,283   $ 11,298   $ 11,299  

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We use the specific identification method to compute gains and losses on investments. We include realized gains and losses on our available-for-sale debt securities in interest and other income, net in our condensed consolidated statements of operations. Gross realized gains and losses on our available-for-sale debt securities for the three months ended October 31, 2025 and October 31, 2024 were not material.
We accumulate unrealized gains and losses on our available-for-sale debt securities, net of tax, in accumulated other comprehensive income or loss in the stockholders’ equity section of our condensed consolidated balance sheets, except for certain unrealized losses described below. Gross unrealized gains and losses on our available-for-sale debt securities at October 31, 2025 and July 31, 2025 were not material.
For available-for-sale debt securities in an unrealized loss position, we determine whether a credit loss exists. The estimate of the credit loss is determined by considering available information relevant to the collectibility of the security and information about past events, current conditions, and reasonable and supportable forecasts. The allowance for credit loss is recorded to interest and other income, net in our condensed consolidated statements of operations, not to exceed the amount of the unrealized loss. Any excess unrealized loss greater than the allowance for credit loss at a security level is recognized in accumulated other comprehensive income or loss in the stockholders' equity section of our condensed consolidated balance sheets. We determined there were no credit losses related to available-for-sale debt securities as of October 31, 2025. Unrealized losses on available-for-sale debt securities at October 31, 2025 were not material and were primarily due to changes in market interest rates. We do not intend to sell these investments. In addition, it is m ore likely than not that we will not be required to sell them before recovery of the amortized cost basis, which may be at maturity.
The following table summarizes our available-for-sale debt securities, included in investments and relevant portion of funds receivable and amounts held for customers, classified by the stated maturity date of the security at the dates indicated.

  October 31, 2025 July 31, 2025
(In millions) Amortized
Cost Fair Value Amortized
Cost Fair Value
Due within one year $ 209   $ 209   $ 1,694   $ 1,694  
Due within two years 71   72   62   63  
Due within three years 58   59   61   61  

Total available-for-sale debt securities $ 338   $ 340   $ 1,817   $ 1,818  

The following table summarizes our funds receivable and amounts held for customers by asset category at the dates indicated.

(In millions) October 31, 2025 July 31,
2025
Restricted cash and restricted cash equivalents $ 3,437   $ 6,597  
Restricted available-for-sale debt securities and funds receivable 481   479  
Total funds receivable and amounts held for customers $ 3,918   $ 7,076  

(In millions) October 31, 2024 July 31,
2024
Restricted cash and restricted cash equivalents $ 5,162   $ 3,490  
Restricted available-for-sale debt securities and funds receivable 444   431  
Total funds receivable and amounts held for customers $ 5,606   $ 3,921  

4. Notes Receivable and Allowances for Credit Losses

As of October 31, 2025 and July 31, 2025, our notes receivable portfolio consisted of notes receivable held for investment, including small and mid-market business and consumer loans, and notes receivable held for sale, consisting of small and mid-market business loans. We classify notes receivable as held for investment when we have both the intent and ability to hold for the foreseeable future or until maturity or payoff. We classify notes receivable as held for sale when we have the intent and ability to sell substantially all of our rights and interests in a qualified loan to a third-party investor. A note receivable that is initially designated as held for sale or held for investment may be reclassified when our intent for that individual note receivable changes. When a note receivable held for investment is reclassified to held for sale and recorded at the lower of amortized cost or fair value, the related allowance for credit losses for that note receivable is released, and any adjustment to record the note receivable at the lower of amortized cost or fair value is recorded.

Notes Receivable Held for Investment

Business loans. We provide financing to small and mid-market businesses via term loans (business loans) that we originate through an originating bank partner. During the three months ended October 31, 2025 and October 31, 2024, we purchased business loans from our originating bank partner with principal balances in the amount of $ 1.3  billion and $ 650  million,

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respectively. As of October 31, 2025, we had commitments to purchase $ 36  million in business loans that were originated on or prior to October 31, 2025.
The business loans are not secured and are recorded at amortized cost, which includes the unpaid principal balances net of any related deferred origination costs and fees, discounts, purchase premiums, and allowance for credit losses. As of October 31, 2025 and July 31, 2025, the net balance of business loans held for investment was $ 1.7  billion and $ 1.5  billion, respectively, which is net of an allowance for credit losses of $ 112  million and $ 100  million, respectively. The current portion is included in notes receivable held for investment and the long-term portion is included in other assets on our condensed consolidated balance sheets.
Interest income is earned on business loans purchased and held for investment in accordance with the specified period of time and defined interest rate noted in the loan contract. Interest income is recorded net of amortized direct origination costs and fees, discounts, and purchase premiums and is included in service revenue in our condensed consolidated statements of operations. Interest income was not material for all periods presented.
Consumer loans. We provide refund advance loans to eligible TurboTax customers based on the customer's anticipated income tax refund at no cost to the customer, and other consumer loans (consumer loans). The refund advance loans are repaid from the customer's income tax refund, which is generally received within three to four weeks after acceptance of the customer's income tax return by the Internal Revenue Service (IRS). We partner with third-party issuing banks to originate the consumer loans and subsequently purchase those consumer loans. The consumer loans are not secured and are recorded at amortized cost, net of any related deferred origination costs and fees, discounts, purchase premiums, and allowance for credit losses. Refund advance and other consumer loans were not material as of October 31, 2025 and July 31, 2025.
Allowance for credit losses. We maintain an allowance for credit losses on notes receivable held for investment to reserve for expected credit losses in the notes receivable portfolio. The allowance for credit losses is determined based on our current estimate of expected credit losses, historical credit losses, estimates of recoveries, and future expectations as of each balance sheet date. Adjustments to the allowance each period for changes in our estimate of lifetime expected credit losses are recognized in earnings through the provision for credit losses included in cost of service revenue in our condensed consolidated statements of operations. We evaluate the creditworthiness of our notes receivable portfolio on a pooled basis when shared credit risk characteristics exist.
The allowance for credit losses is subjective and requires management estimates, including such factors as known and inherent risks in the business loan portfolio, use of historical credit losses to estimate expected credit losses, adverse situations that may affect borrowers' ability to repay, and current and forecasted economic conditions. Other factors considered may include uncertainties in forecasting, subjective application of modeling techniques, changes in portfolio composition, seasonality, business conditions, and emerging trends.
For our business loan portfolio, expected credit losses are measured based on a credit loss forecasting model and calculated by applying loss curves derived from loan-level risk segment and term mixes, aggregated at monthly business loan vintages. Loss curves are estimated based on a combination of empirical loss curve data and management judgment. The loss rates and underlying models are updated periodically to reflect factors such as actual loan performance and changes in assumptions based on the credit risk characteristics of the business loan portfolio. We use empirical data and management judgment to estimate losses for new credit tests or products for which we do not have enough history.
We consider a business loan to be delinquent when the payments are one day past due. We place delinquent business loans on nonaccrual status and stop accruing interest income. Business loans are returned to accrual status if they are brought current or have performed in accordance with the contractual terms for a reasonable period of time and, in our judgment, will continue to make periodic principal and interest payments as per contractual terms. Previously recognized interest receivable from charged-off business loans that is accrued but not collected from the consumers is reversed. As of October 31, 2025 and July 31, 2025, the amortized cost basis for delinquent business loans held for investment and the balance of business loans held for investment on a nonaccrual status were not material. The interest income on nonaccrual business loans recognized on a cash basis for the three months ended October 31, 2025 and 2024 was not material.
The changes in the allowance for credit losses for our business loan portfolio for the three months ended October 31, 2025 and 2024 were as shown in the following table.

Three Months Ended

(In millions)
October 31,
2025 October 31,
2024
Beginning balance
$ 100   $ 62  
Provision for expected credit losses 38   21  
Charge-offs
( 31 ) ( 16 )
Recoveries 5   2  
Ending balance
$ 112   $ 69  

For our consumer loan portfolio, we maintain an allowance for credit losses to reserve for potentially uncollectible refund advance loans and other consumer loans. The allowance for credit losses for refund advance loans is determined based on

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expected funding of refunds by the IRS using historical trends and future expectations. The allowance for credit losses on refund advance loans and other consumer loans was not material as of October 31, 2025 and July 31, 2025.
When available information confirms that specific notes receivable or portions thereof are uncollectable, identified amounts are charged off against the allowance for credit losses. Notes receivable are charged off in accordance with our charge-off policy when the contractual principal becomes 120 days past due or when other charge-off policy requirements are met. Subsequent recoveries of the unpaid principal balance, if any, are credited to the allowance for credit losses.

Notes Receivable Held for Sale

Business loans. We have entered into multiple forward flow arrangements with institutional investors that facilitate the sale of participation interests in eligible unsecured business loans. These arrangements have varying terms, with expiration dates ranging from 2027 to 2029.
Notes receivable held for sale are recorded at the lower of amortized cost or fair value determined on an individual note receivable basis. As of October 31, 2025, the balance of notes receivable held for sale was $ 48  million and is included in notes receivable held for sale on our condensed consolidated balance sheets. As of July 31, 2025, we held no notes receivable for sale. The total unpaid principal balance of business loans sold during the three months ended October 31, 2025 and October 31, 2024 amounted to $ 205  million and $ 106  million, respectively. For the three months ended October 31, 2025 and October 31, 2024, gains on sales of business loans and servicing income were not material.

5. Goodwill and Acquired Intangible Assets

Goodwill

Changes in the carrying value of goodwill by reportable segment during the three months ended October 31, 2025 were as shown in the following table. Our reportable segments are described in Note 12, “Segment Information.”

(In millions) Balance
July 31, 2025 Goodwill
Acquired Foreign Currency Translation Balance
October 31, 2025
Global Business Solutions
$ 9,825   $ —   $ —   $ 9,825  
Consumer 4,155   —   —   4,155  
Totals $ 13,980   $ —   $ —   $ 13,980  

Goodwill is net of accumulated impairment losses of $ 114  million, which were recorded prior to July 31, 2025 and are included in our Consumer segment.

Acquired Intangible Assets

The following table shows the cost, accumulated amortization, and weighted-average life in years for our acquired intangible assets at the dates indicated. The weighted-average lives are calculated for assets that are not fully amortized.

(Dollars in millions) Customer
and User Relationships
Purchased
Technology Trade
Names
and Logos Total

At October 31, 2025:        
Cost $ 6,198   $ 1,765   $ 680   $ 8,643  
Accumulated amortization ( 2,142 ) ( 1,105 ) ( 260 ) ( 3,507 )
Acquired intangible assets, net $ 4,056   $ 660   $ 420   $ 5,136  
Weighted-average life in years 14 8 13 13

At July 31, 2025:        
Cost $ 6,198   $ 1,765   $ 680   $ 8,643  
Accumulated amortization ( 2,034 ) ( 1,061 ) ( 246 ) ( 3,341 )
Acquired intangible assets, net $ 4,164   $ 704   $ 434   $ 5,302  
Weighted-average life in years 14 8 13 13

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The following table shows the expected future amortization expense for our acquired intangible assets at October 31, 2025. Amortization of purchased technology is generally charged to amortization of acquired technology in our condensed consolidated statements of operations. Amortization of other acquired intangible assets, such as customer and user relationships, is charged to amortization of other acquired intangible assets in our condensed consolidated statements of operations. If impairment events occur, they could accelerate the timing of acquired intangible asset charges.

(In millions) Expected
Future
Amortization
Expense
Fiscal year ending July 31,  
2026 (excluding the three months ended October 31, 2025) $ 494  
2027 633  
2028 613  
2029 593  
2030 590  
Thereafter 2,213  
Total expected future amortization expense $ 5,136  

6. Debt

The carrying value of our debt was as follows at the dates indicated:

(Dollars in millions)
October 31,
2025 July 31,
2025 Effective
Interest Rate
Senior unsecured notes issued June 2020:
1.350 % notes due July 2027
$ 500   $ 500   1.486 %
1.650 % notes due July 2030
500   500   1.767 %
Senior unsecured notes issued September 2023:

5.250 % notes due September 2026
750   750   5.325 %
5.125 % notes due September 2028
750   750   5.258 %
5.200 % notes due September 2033
1,250   1,250   5.312 %
5.500 % notes due September 2053
1,250   1,250   5.576 %

Secured revolving credit facilities 1,180   1,014  
Total principal balance of debt 6,180   6,014  
Unamortized discount and debt issuance costs ( 40 ) ( 41 )
Net carrying value of debt $ 6,140   $ 5,973  

Short-term debt $ 749   $ —  
Long-term debt $ 5,391   $ 5,973  

Future principal payments for debt at October 31, 2025 were as shown in the table below.

(In millions) Future Principal Payments

Fiscal year ending July 31,  
2026 (excluding the three months ended October 31, 2025) $ —  
2027 1,250  
2028 400  
2029 1,530  
2030 500  
Thereafter 2,500  
Total future principal payments for debt $ 6,180  

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Senior Unsecured Notes

2020 Notes. In June 2020, we issued four series of senior unsecured notes (together, the 2020 Notes) pursuant to a public debt offering. The proceeds from the issuance were $ 1.98 billion, net of debt discount of $ 2  million and debt issuance costs of $ 15  million. As of October 31, 2025, $ 1.0  billion in principal on the 2020 Notes remained outstanding.
Interest is payable semiannually on January 15 and July 15 of each year. The discount and debt issuance costs are amortized to interest expense using the effective interest method over the term of the 2020 Notes.
The 2020 Notes are senior unsecured obligations of Intuit and rank equally with all existing and future unsecured and unsubordinated indebtedness of Intuit and are redeemable by us at any time, subject to a make-whole premium. Upon the occurrence of change of control transactions that are accompanied by certain downgrades in the credit ratings of the 2020 Notes, we will be required to repurchase the 2020 Notes at a repurchase price equal to 101 % of the aggregate outstanding principal plus any accrued and unpaid interest to but not including the date of repurchase. The indenture governing the 2020 Notes requires us to comply with certain covenants. For example, the 2020 Notes limit our ability to create certain liens and enter into sale and leaseback transactions. As of October 31, 2025, we were compliant with all covenants governing the 2020 Notes.
2023 Notes. In September 2023, we issued four series of senior unsecured notes (together, the 2023 Notes) pursuant to a public debt offering. The proceeds from the issuance were $ 3.96 billion, net of debt discount of $ 20  million and debt issuance costs of $ 24  million, and were used, together with operating cash, to repay the outstanding balance on our unsecured term loan. As of October 31, 2025, $ 4.0  billion in principal on the 2023 Notes remained outstanding.
Interest is payable semiannually on March 15 and September 15 of each year. The discount and debt issuance costs are amortized to interest expense using the effective interest method over the term of the 2023 Notes.
The 2023 Notes are senior unsecured obligations of Intuit and rank equally with all existing and future unsecured and unsubordinated indebtedness of Intuit and are redeemable by us at any time, subject to a make-whole premium. The indenture governing the 2023 Notes requires us to comply with certain covenants. For example, the 2023 Notes limit our ability to create certain liens and enter into sale and leaseback transactions. As of October 31, 2025, we were compliant with all covenants governing the 2023 Notes.

Unsecured Credit Facilities

2024 Credit Facility. On February 5, 2024, we terminated our amended and restated credit agreement dated November 1, 2021 (2021 Credit Facility), and entered into a credit agreement with certain lenders providing for a $ 1.5  billion unsecured revolving credit facility that expires on February 5, 2029 (2024 Credit Facility).
Under the 2024 Credit Facility, we may, subject to certain customary conditions, including approval of relevant lenders, on one or more occasions, increase commitments under the 2024 Credit Facility by an amount not to exceed $ 1  billion in the aggregate, and, on one or more occasions, extend the maturity date of the 2024 Credit Facility by one year . The 2024 Credit Facility includes a $ 500 million sublimit for borrowing swingline loans and a $ 250 million sublimit for the issuance of letters of credit. Advances under the 2024 Credit Facility accrue interest at rates equal to (a) in the case of U.S. dollar borrowings, at our election, either (i) the alternate base rate plus a margin that ranges from 0.0 % to 0.125 %, or (ii) the adjusted term Secured Overnight Finance Rate (SOFR) plus a margin that ranges from 0.7 % to 1.125 %, or (b) in the case of foreign currency borrowings, the interest benchmark for the relevant currency specified in the credit agreement plus a margin that ranges from 0.7 % to 1.125 %. The facility fee ranges from 0.050 % to 0.125 % per annum. The actual interest margins and the facility fee are based on our senior long-term debt credit ratings.
The 2024 Credit Facility includes customary affirmative and negative covenants, including a financial covenant that requires us to maintain a ratio of total gross debt to earnings before interest, taxes, depreciation, and amortization (EBITDA), as defined in the agreement, of not greater than 4.00 to 1.00 as measured on a rolling twelve month basis as of the last day of each fiscal quarter. As of October 31, 2025, we were compliant with all covenants governing the 2024 Credit Facility. At October 31, 2025, no amounts were outstanding under the 2024 Credit Facility.

Secured Revolving Credit Facilities

2019 Secured Facility. On February 19, 2019, a subsidiary of Intuit entered into a secured revolving credit facility with a lender to fund the lending products and services we offer to qualified small and mid-market businesses (the 2019 Secured Facility). The 2019 Secured Facility is non-recourse to Intuit Inc. and is secured by cash and receivables of the subsidiary, which are in excess of the amount outstanding under the 2019 Secured Facility as of October 31, 2025. We have entered into several amendments to this facility. These amendments primarily increase the facility limit, extend the commitment term and final maturity date, and update the benchmark interest rate. Under the amended 2019 Secured Facility, the facility limit is $ 500 million, of which $ 300 million is committed and $ 200 million is uncommitted. Advances accrue interest at adjusted daily simple SOFR plus 1.25 %. Unused portions of the committed credit facility accrue a fee at a rate ranging from 0.25 % to 0.75 %, depending on the total unused committed balance. The commitment term is through August 31, 2027, and the final maturity date is August 31, 2028. The agreement includes certain affirmative and negative covenants, including financial covenants that require the subsidiary to maintain specified financial ratios. As of October 31, 2025, we were compliant with all covenants

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governing the 2019 Secured Facility. At October 31, 2025, $ 480 million was outstanding under the 2019 Secured Facility and the weighted-average interest rate was 5.57 %. Interest on the 2019 Secured Facility is payable monthly.
2022 Secured Facility. On October 12, 2022, another subsidiary of Intuit entered into a secured revolving credit facility with a lender to fund the lending products and services we offer to qualified small and mid-market businesses (the 2022 Secured Facility). The 2022 Secured Facility is non-recourse to Intuit Inc. and is secured by cash and receivables of the subsidiary, which are in excess of the amount outstanding under the 2022 Secured Facility as of October 31, 2025. We have entered into several amendments to this facility. These amendments primarily extend the commitment term and final maturity date, increase the commitment amount, and reduce the interest rate. Under the amended 2022 Secured Facility, the facility limit is $ 500 million, of which $ 400 million is committed and $ 100 million is uncommitted. Advances accrue interest at term SOFR plus 1.1 %. Unused portions of the committed credit facility accrue a fee at a rate ranging from 0.2 % to 0.4 %, depending on the total unused committed balance. The commitment term is through April 30, 2027, and the final maturity date is May 1, 2028. The agreement includes certain affirmative and negative covenants, including financial covenants that require the subsidiary to maintain specified financial ratios. As of October 31, 2025, we were compliant with all covenants governing the 2022 Secured Facility. At October 31, 2025, $ 400 million was outstanding under the 2022 Secured Facility and the weighted-average interest rate was 5.32 %. Interest on the 2022 Secured Facility is payable monthly.
2024 Secured Facility. On November 1, 2024, another subsidiary of Intuit entered into a secured revolving credit facility with a lender to fund the lending products and services we offer to qualified small and mid-market businesses (the 2024 Secured Facility). The 2024 Secured Facility is non-recourse to Intuit Inc. and is secured by cash and receivables of the subsidiary, which are in excess of the amount outstanding under the 2024 Secured Facility as of October 31, 2025. We have entered into several amendments to this facility. These amendments primarily increase the commitment amount. Under the amended 2024 Secured Facility, the facility limit is $ 300  million, all of which is committed. Advances accrue interest at daily simple SOFR plus 1.15 %. Unused portions of the committed credit facility accrue a fee at a rate ranging from 0.2 % to 0.4 %, depending on the total unused committed balance. The commitment term is through November 1, 2027, and the final maturity date is November 1, 2028. The agreement includes certain affirmative and negative covenants, including financial covenants that require the subsidiary to maintain specified financial ratios. As of October 31, 2025, we were compliant with all covenants governing the 2024 Secured Facility. At October 31, 2025, $ 300  million was outstanding under the 2024 Secured Facility and the weighted-average interest rate was 5.37 %. Interest on the 2024 Secured Facility is payable monthly.

Commercial Paper Program

Under our established commercial paper program, we may issue and sell unsecured short-term promissory notes (commercial paper) up to $ 1.5 billion. The maturities of the commercial paper may vary but will not exceed 397 days from the date of issuance. At October 31, 2025 and July 31, 2025, no amounts were outstanding under this program.

7. Other Liabilities and Commitments

Other Current Liabilities

Other current liabilities were as follows at the dates indicated:

(In millions) October 31,
2025 July 31,
2025
Executive deferred compensation plan liabilities $ 284   $ 248  
Current portion of operating lease liabilities 78   69  
Sales, property, and other taxes 66   55  
Reserve for returns, credits, and promotional discounts 39   39  
Interest payable 37   85  

Other 154   129  
Total other current liabilities $ 658   $ 625  

The balances of several of our other current liabilities, particularly our reserves for returns, credits, and promotional discounts, are affected by the seasonality of our business. See Note 1, “Description of Business and Summary of Significant Accounting Policies – Seasonality,” for more information.

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Other Long-Term Obligations

Other long-term obligations were as follows at the dates indicated:

(In millions) October 31,
2025 July 31,
2025
Income tax liabilities $ 248   $ 238  
Other 68   70  
Total other long-term obligations $ 316   $ 308  

Unconditional Purchase Obligations

We describe our unconditional purchase obligations in Note 8 to the financial statements in Part II, Item 8 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2025. There were no significant changes outside the ordinary course of business in our purchase obligations during the three months ended October 31, 2025.

8. Leases

We lease office facilities under noncancellable operating lease arrangements. Our facility leases generally provide for periodic rent increases and may contain escalation clauses and renewal options. Our leases have remaining lease terms of up to 16 years, which include options to extend that are reasonably certain of being exercised. Some of our leases include one or more options to extend the lease for up to 10 years per option, which we are not reasonably certain to exercise. The options to extend are generally at rates to be determined in accordance with the agreements. Options to extend the lease are included in the lease liability if they are reasonably certain of being exercised.
We sublease certain office facilities to third parties. These subleases have remaining lease terms of up to 5 years, one of which includes an option to extend the sublease for up to 5 years.
The components of lease expense were as follows:

Three Months Ended
(In millions) October 31,
2025 October 31,
2024
Operating lease cost (1)
$ 31   $ 29  

Variable lease cost 6   5  
Sublease income ( 2 ) ( 3 )
Total net lease cost $ 35   $ 31  

(1) Includes short-term leases, which were not material for the three months ended October 31, 2025 and 2024.
Supplemental cash flow information related to operating leases was as follows:

Three Months Ended
(In millions) October 31,
2025 October 31,
2024
Cash paid for amounts included in the measurement of operating lease liabilities $ 30   $ 27  
Right-of-use assets obtained in exchange for operating lease liabilities $ 79   $ 150  

Other information related to operating leases was as follows at the dates indicated:

October 31,
2025 July 31,
2025
Weighted-average remaining lease term for operating leases 8.0 years 8.1 years
Weighted-average discount rate for operating leases 4.2   % 3.8   %

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Future minimum lease payments under noncancellable operating leases as of October 31, 2025 were as follows:

(In millions) Operating
Leases (1)

Fiscal year ending July 31,  
2026 (excluding the three months ended October 31, 2025) $ 63  
2027 114  
2028 106  
2029 110  
2030 108  
Thereafter 370  
Total future minimum lease payments 871  
Less imputed interest ( 150 )
Present value of lease liabilities $ 721  

(1) Noncancellable future sublease proceeds as of October 31, 2025 totaled $ 20 million through July 31, 2030 and $ 1 million thereafter, and are not included in the table above.
Supplemental balance sheet information related to operating leases was as follows at the dates indicated:

(In millions) October 31,
2025 July 31,
2025

Operating lease right-of-use assets $ 596   $ 541  

Other current liabilities $ 78   $ 69  
Operating lease liabilities 643   597  
Total operating lease liabilities $ 721   $ 666  

As of October 31, 2025, we have additional operating leases with total minimum lease payments of $ 47  million for office facilities that have not yet commenced and therefore are not reflected on the condensed consolidated balance sheets nor in the tables above. These operating leases are expected to commence in fiscal years 2026 and 2027 with lease terms ranging from five to 10 years.

9. Income Taxes

Effective Tax Rate

We compute our provision for or benefit from income taxes by applying the estimated annual effective tax rate to income or loss from recurring operations and adding the effects of any discrete income tax items specific to the period.
We recognized excess tax benefits on share-based compensation of $ 30  million and $ 28  million in our provision for income taxes for the three months ended October 31, 2025 and 2024, respectively.
Our effective tax rate for the three months ended October 31, 2025 was approximately 20 %. Excluding discrete tax items primarily related to share-based compensation, our effective tax rate was approximately 24 %. The difference from the federal statutory rate of 21% was primarily due to state income taxes and non-deductible share-based compensation, which were partially offset by the tax benefit we received from the federal research and experimentation credit.
Our effective tax rate for the three months ended October 31, 2024 was approximately 8 %. Excluding discrete tax items primarily related to share-based compensation, our effective tax rate was approximately 24 %. The difference from the federal statutory rate of 21% was primarily due to state income taxes and non-deductible share-based compensation, which were partially offset by the tax benefit we received from the federal research and experimentation credit.
On July 4, 2025, the U.S. federal government enacted the One Big Beautiful Bill Act (OBBBA), which includes significant tax law changes, most notably the reinstatement of the immediate expensing of domestic research and developmental expenditures, effective in fiscal 2026. While this provision is not expected to have a material impact on our fiscal 2026 effective tax rate, we expect our fiscal 2026 cash tax payments and related deferred tax asset positions to decrease significantly compared to fiscal 2025.

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In the current global tax policy environment, the U.S. and other domestic and foreign governments continue to consider, and in some cases enact, changes in corporate tax laws. As changes occur, we account for finalized legislation in the period of enactment.

Unrecognized Tax Benefits and Other Considerations

The total amount of our unrecognized tax benefits at July 31, 2025 was $ 394  million. If we were to recognize these net benefits, our income tax expense would reflect a favorable net impact of $ 276  million. There were no material changes to these amounts during the three months ended October 31, 2025.
We offset a $ 61  million long-term liability for uncertain tax positions against our long-term income tax receivable at each of the reporting periods ended October 31, 2025 and July 31, 2025, respectively. The long-term income tax receivable for both periods was primarily related to the government’s approval of a method of accounting change request for fiscal 2018.

10. Stockholders’ Equity

Stock Repurchase Programs and Treasury Shares

Intuit’s Board of Directors has authorized a series of common stock repurchase programs. Shares of common stock repurchased under these programs become treasury shares. During the three months ended October 31, 2025, we repurchased a total of 1.2 million shares for $ 851  million under these programs. Included in this amount were $ 12  million of repurchases, which occurred in late October 2025 and settled in early November 2025. On August 19, 2025, our Board of Directors approved an increase in the authorization under the existing stock repurchase program under which we are authorized to repurchase up to an additional $ 3.2  billion of our common stock. At October 31, 2025, we had authorization from our Board of Directors for up to $ 4.4 billion in stock repurchases. Future stock repurchases under the current program are at the discretion of management, and authorization of future stock repurchase programs is subject to the final determination of our Board of Directors.
Our treasury shares are repurchased at the market price on the trade date; accordingly, all amounts paid to reacquire these shares have been recorded as treasury stock on our condensed consolidated balance sheets. Any direct costs to acquire treasury stock are recorded to treasury stock on our condensed consolidated balance sheets. Repurchased shares of our common stock are held as treasury shares until they are reissued or retired. When we reissue treasury stock, if the proceeds from the sale are more than the average price we paid to acquire the shares, we record an increase in additional paid-in capital. Conversely, if the proceeds from the sale are less than the average price we paid to acquire the shares, we record a decrease in additional paid-in capital to the extent of increases previously recorded for similar transactions and a decrease in retained earnings for any remaining amount.
In the past, we have satisfied option exercises and restricted stock unit vesting under our employee equity incentive plans by reissuing treasury shares, and we may do so again in the future. For all periods presented, we issued new shares of common stock to satisfy option exercises and RSU vesting under our 2005 Equity Incentive Plan. We have not yet determined the ultimate disposition of the shares that we have repurchased in the past, and consequently we continue to hold them as treasury shares.

Dividends on Common Stock

During the three months ended October 31, 2025, we declared quarterly cash dividends that totaled $ 1.20 per share of outstanding common stock for a total of $ 343 million. In November 2025, our Board of Directors declared a quarterly cash dividend of $ 1.20 per share of outstanding common stock payable on January 16, 2026 to stockholders of record at the close of business on January 9, 2026. Future declarations of dividends and the establishment of future record dates and payment dates are subject to the final determination of our Board of Directors.

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Share-Based Compensation Expense

The following table summarizes the total share-based compensation expense that we recorded in operating income for the periods shown.

  Three Months Ended
(In millions) October 31,
2025 October 31,
2024
Cost of revenue $ 97   $ 111  
Selling and marketing 156   137  
Research and development 185   161  
General and administrative 105   102  

Total share-based compensation expense $ 543   $ 511  

Share-Based Awards Available for Grant

A summary of share-based awards available for grant under our plans for the three months ended October 31, 2025 was as follows:

(Shares in thousands) Shares
Available
for Grant
Balance at July 31, 2025 25,147  

Restricted stock units granted (1)
( 452 )
Options granted —  
Share-based awards canceled/forfeited/expired (1) (2)
1,830  
Balance at October 31, 2025 26,525  

(1) RSUs granted from the pool of shares available for grant under our 2005 Equity Incentive Plan reduce the pool by 2.3 shares for each share granted. RSUs forfeited and returned to the pool of shares available for grant under the 2005 Equity Incentive Plan increase the pool by 2.3 shares for each share forfeited.
(2) Stock options and RSUs canceled, expired, or forfeited under our 2005 Equity Incentive Plan are returned to the pool of shares available for grant. Under the 2005 Equity Incentive Plan, shares withheld for income taxes upon vesting of RSUs that were granted on or after July 21, 2016 are also returned to the pool of shares available for grant.

Restricted Stock Unit and Restricted Stock Activity

A summary of RSU and restricted stock activity for the three months ended October 31, 2025 was as follows:

(Shares in thousands) Number
of Shares Weighted-
Average
Grant Date
Fair Value

Nonvested at July 31, 2025 9,573   $ 577.03  

Granted 196   $ 681.65  
Vested ( 835 ) $ 520.44  
Forfeited ( 438 ) $ 414.41  
Nonvested at October 31, 2025 8,496   $ 593.39  

At October 31, 2025, there was approximately $ 4.6 billion of unrecognized compensation cost related to non-vested RSUs and restricted stock with a weighted-average vesting period of 2.8  years. We adjust unrecognized compensation cost for actual forfeitures as they occur.

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Stock Option Activity

A summary of stock option activity for the three months ended October 31, 2025 was as follows:

  Options Outstanding
(Shares in thousands) Number
of Shares Weighted-
Average
Exercise
Price
Per Share

Balance at July 31, 2025 1,319   $ 566.59  

Granted —   $ —  
Exercised ( 14 ) $ 490.28  
Canceled or expired ( 5 ) $ 532.75  
Balance at October 31, 2025 1,300   $ 567.54  

Exercisable at October 31, 2025 613   $ 473.10  

At October 31, 2025, there was approximately $ 132 million of unrecognized compensation cost related to non-vested stock options with a weighted-average vesting period of 3.0  years. We adjust unrecognized compensation cost for actual forfeitures as they occur.

11. Legal Proceedings

Beginning in May 2019, various legal proceedings were filed and certain regulatory inquiries were commenced in connection with our provision and marketing of free online tax preparation programs. We believe that the allegations contained within these legal proceedings are without merit and continue to defend our interests in them. These proceedings included, among others, multiple putative class actions that were consolidated into a single putative class action in the Northern District of California in September 2019 (the Intuit Free File Litigation). In August 2020, the Ninth Circuit Court of Appeals ordered that the putative class action claims be resolved through arbitration. In May 2021, the Intuit Free File Litigation was dismissed on a non-class basis after we entered into an agreement that resolved the matter on an individual non-class basis, without any admission of wrongdoing, for an amount that was not material. These proceedings also include a class action lawsuit that was filed in the Ontario (Canada) Superior Court of Justice on August 25, 2022.
These proceedings also included individual demands for arbitration that were filed beginning in October 2019. As of January 31, 2023, we settled all of these arbitration claims, without any admission of wrongdoing, for an amount that was not material. In June 2021, we received a demand and draft complaint from the Federal Trade Commission (FTC) and certain state attorneys general relating to the ongoing inquiries described above. On March 29, 2022, the FTC filed an action in federal court seeking a temporary restraining order and a preliminary injunction enjoining certain Intuit business practices pending resolution of the FTC’s administrative complaint seeking to permanently enjoin certain Intuit business practices (the FTC Actions). On April 22, 2022, the Northern District of California denied the FTC’s requests for a temporary restraining order and a preliminary injunction. Beginning on March 27, 2023, a final hearing on the administrative action was held before an administrative law judge (ALJ) at the FTC and, on August 29, 2023, the FTC's ALJ issued a decision in favor of the FTC and adverse to Intuit. On January 19, 2024, the FTC Commissioners affirmed the ALJ's decision and issued a final order that requires us to adhere to certain marketing practices and does not contain any monetary penalties. On January 21, 2024, we filed a petition for review with the United States Court of Appeals for the Fifth Circuit and this appeal is pending. The FTC's order became effective on March 23, 2024, and is now pending review by the Court of Appeals. We intend to continue to defend our position on the merits of this case. However, the defense and resolution of this matter could involve significant costs.
The state attorneys general did not join the FTC Actions, and, on May 4, 2022, we entered into a settlement agreement with the attorneys general of the 50 states and the District of Columbia, admitting no wrongdoing, that resolved the states’ inquiry, as well as actions brought by the Los Angeles City Attorney and the Santa Clara County (California) Counsel. As part of this agreement, we agreed to pay $ 141  million and made certain commitments regarding our advertising and marketing practices. We recorded this as a one-time charge in the quarter ended April 30, 2022, and paid the full amount to the fund administrator in the quarter ended January 31, 2023.
In view of the complexity and ongoing and uncertain nature of the outstanding proceedings and inquiries, at this time, we are unable to estimate a reasonably possible financial loss or range of financial loss that we may incur to resolve or settle the remaining matters.
To date, the legal and other fees we have incurred related to these proceedings and inquiries have not been material. The ongoing defense and any resolution or settlement of these proceedings and inquiries could involve significant costs to us.
Intuit is subject to certain routine legal proceedings, including class action lawsuits, as well as demands, claims, government inquiries, and threatened litigation, that arise in the normal course of our business, including assertions that we may be infringing patents or other intellectual property rights of others. Our failure to obtain necessary licenses or other rights, or

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litigation arising out of intellectual property claims could adversely affect our business. We currently believe that, in addition to any amounts accrued, the amount of potential losses, if any, for any pending claims of any type (either alone or combined) will not have a material impact on our condensed consolidated financial statements. The ultimate outcome of any legal proceeding is uncertain and, regardless of outcome, legal proceedings can have an adverse impact on Intuit because of defense costs, negative publicity, diversion of management resources, and other factors.

12. Segment Information

We have defined our two reportable segments, described below, based on factors such as how we manage our operations and how our chief operating decision maker views results. We define the chief operating decision maker as our Chief Executive Officer and our Chief Financial Officer. Our chief operating decision maker organizes and manages our business primarily on the basis of service and product offerings.
Effective August 1, 2025, we combined our Consumer, Credit Karma, and ProTax businesses into a single Consumer segment in order to better serve the diverse financial needs of our customers as one consumer platform. Our chief operating decision maker allocates resources and assesses segment performance using regularly provided segment revenue and segment operating income information under this updated segment structure. To align results under this segment change, certain selling and marketing, product development, and general and administrative expenses for Credit Karma that were managed at the segment level are now managed at the platform level and are included in other corporate expenses rather than in segment expenses. Also on August 1, 2025, we reorganized certain marketing, communications, and customer success functions in our Global Business Solutions segment that support and benefit our overall platform and are managed at that level rather than at the segment level. Additionally, certain data science and analytics teams that were managed at the platform level are now managed at the segment level. We have recast certain previously reported amounts to conform to these segment changes. For the three months ended October 31, 2024, we reclassified expenses totaling $ 3 million from Global Business Solutions and $ 152 million from Consumer to other corporate expenses, respectively, to conform to the current presentation.

  Global Business Solutions : This segment serves small and mid-market businesses around the world, and the accounting professionals who assist and advise them. QuickBooks and Intuit Enterprise Suite are offerings powered by our all-in-one business platform which includes financial management services, human capital management solutions such as payroll and time tracking, money solutions, such as merchant payment processing, bill pay, checking accounts through an FDIC-member bank partner, and financing for small and mid-market businesses. Intuit Enterprise Suite provides mid-market businesses with a configurable, AI-powered solution that includes multi-entity and multi-dimensional financial management capabilities designed to seamlessly scale and enhance productivity and profitability for more complex businesses to streamline operations. Mailchimp offerings include marketing automation and customer relationship tools.
Consumer : This segment primarily serves consumers and professional accountants.
Our TurboTax offerings primarily help consumers complete their taxes with confidence and maximize their financial outcomes—whether they do it themselves or with the help of an AI-enabled human expert. TurboTax delivers do-it-yourself and assisted income tax preparation products and services sold in the United States (U.S.) and Canada. We offer a variety of money products directly to consumers, including early refund access to any bank, as well as Credit Karma Money branded savings and checking accounts through an FDIC-member bank partner.
Credit Karma is a personal finance solution that helps members find the right financial products and make smarter money decisions throughout the year to reach their financial goals. This includes personalized recommendations for credit card, home, auto, and personal loan, and insurance products; and access to their credit scores and reports, credit and identity monitoring, credit report dispute, credit building tools, credit card rewards optimization, and connected account capabilities to help members understand net worth and make financial progress.
Finally, our ProTax offerings help professional accountants in the U.S. and Canada, who are essential to both business success and tax preparation and filing. Our professional tax offerings include Lacerte, ProSeries, and ProConnect Tax Online in the U.S., and ProFile and ProTax Online in Canada.

All of our segments operate primarily in the U.S. and sell primarily to customers in the U.S. Total international net revenue was approximately 9 % and 10 % of consolidated net revenue for the three months ended October 31, 2025 and 2024, respectively.
We include expenses such as corporate selling and marketing, general and administrative, and non-employment related legal and litigation settlement costs, which are not allocated to specific segments, in unallocated corporate items as part of other corporate expenses. As part of our platform strategy, we also include customer success and product development for our segments in unallocated corporate items as we do not allocate these expenses to the segments because they are managed at the platform level. Customer success includes the costs of tax and bookkeeping experts that support our TurboTax Live and QuickBooks Live offerings. Unallocated corporate items also include share-based compensation, amortization of acquired technology, amortization of other acquired intangible assets, goodwill and intangible asset impairment charges, professional fees and transaction costs related to business combinations, and restructuring charges.
The accounting policies of our reportable segments are the same as those described in the summary of significant accounting policies in Note 1 to the financial statements in Part II, Item 8 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2025 and in Note 1, "Description of Business and Summary of Significant Accounting Policies – Significant Accounting Policies" in this Quarterly Report on Form 10-Q. Except for goodwill and acquired intangible assets, we do not generally track

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assets by reportable segment and, consequently, we do not disclose total assets by reportable segment.
The following table shows our financial results by reportable segment for the periods indicated.

  Three Months Ended
(In millions) October 31,
2025 October 31,
2024
Net revenue:    
Global Business Solutions
$ 2,991   $ 2,544  
Consumer 894   739  
Total net revenue $ 3,885   $ 3,283  

Segment cost of revenue and operating expenses (1) :

Global Business Solutions
$ 657   $ 542  
Consumer
310   311  
Total segment cost of revenues and operating expenses
$ 967   $ 853  

Operating income:
   
Global Business Solutions $ 2,334   $ 2,002  
Consumer 584   428  
Total segment operating income 2,918   2,430  
Unallocated corporate items:    
Share-based compensation expense ( 543 ) ( 511 )
Other corporate expenses ( 1,676 ) ( 1,482 )
Amortization of acquired technology ( 44 ) ( 37 )
Amortization of other acquired intangible assets ( 121 ) ( 120 )
Restructuring —   ( 9 )

Total unallocated corporate items ( 2,384 ) ( 2,159 )
Total operating income $ 534   $ 271  

(1) Cost of revenues and operating expenses primarily include direct expenses related to selling and marketing, direct costs associated with our product and services offerings, certain data science and analytics related costs, and certain design and product management related costs. They exclude expenses that are recorded within unallocated corporate items, such as certain technology and customer success costs that support and benefit the overall platform and are managed at the corporate level.
Revenue classified by significant service and product offerings was as follows:

  Three Months Ended
(In millions) October 31,
2025 October 31,
2024
Net revenue:    
QuickBooks Online Accounting $ 1,206   $ 965  
Online Services 1,145   978  
Total Online Ecosystem 2,351   1,943  
QuickBooks Desktop Accounting 356   329  
Desktop Services and Supplies 284   272  
Total Desktop Ecosystem 640   601  
Global Business Solutions
2,991   2,544  
TurboTax
198   187  
Credit Karma
651   513  
ProTax
45   39  
Consumer 894   739  
Total net revenue $ 3,885   $ 3,283  

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ITEM 2 - MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to provide readers of our condensed consolidated financial statements with the perspectives of management. This should allow the readers of this report to obtain a comprehensive understanding of our businesses, strategies, current trends, and future prospects. Our MD&A includes the following sections:

• Executive Overview: High-level discussion of our operating results and some of the trends that affect our business.

• Critical Accounting Estimates: Significant changes since our most recent Annual Report on Form 10-K that we believe are important to understanding the assumptions and judgments underlying our financial statements.

• Results of Operations: A more detailed discussion of our revenue and expenses.

• Liquidity and Capital Resources: Discussion of key aspects of our condensed consolidated statements of cash flows, changes in our condensed consolidated balance sheets, and our financial commitments.

You should note that this MD&A contains forward-looking statements that involve risks and uncertainties. Please see the section entitled “Forward-Looking Statements” immediately preceding Part I of this Quarterly Report for important information to consider when evaluating such statements.
You should read this MD&A in conjunction with the financial statements and related notes in Part I, Item 1 of this Quarterly Report and our Annual Report on Form 10-K for the fiscal year ended July 31, 2025.
In the Results of Operations section of this MD&A, where we describe two or more factors that contributed to changes in revenue and operating income, we have, where possible, quantified the impact of those factors. Where a change is the result of multiple factors that are interrelated and cannot be separately quantified, we have identified the interrelated factors without quantifying them.
Effective August 1, 2025, we combined our Consumer, Credit Karma, and ProTax businesses into a single Consumer segment in order to better serve the diverse financial needs of our customers as one consumer platform. Our chief operating decision maker allocates resources and assesses segment performance using regularly provided segment revenue and segment operating income information under this updated segment structure. To align results under this segment change, certain selling and marketing, product development, and general and administrative expenses for Credit Karma that were managed at the segment level are now managed at the platform level and are included in other corporate expenses rather than in segment expenses. Also on August 1, 2025, we reorganized certain marketing, communications, and customer success functions in our Global Business Solutions segment that support and benefit our overall platform and are managed at that level rather than at the segment level. Additionally, certain data science and analytics teams that were managed at the platform level are now managed at the segment level. We have recast certain previously reported amounts to conform to these segment changes. For the three months ended October 31, 2024, we reclassified expenses totaling $3 million from Global Business Solutions and $152 million from Consumer to other corporate expenses, respectively, to conform to the current presentation. See Note 12, "Segment Information , " for more information.

EXECUTIVE OVERVIEW

This overview provides a high-level discussion of our operating results and some of the trends that affect our business. We believe that an understanding of these trends is important in order to understand our financial results, as well as our future prospects. This summary is not intended to be exhaustive, nor is it a substitute for the detailed discussion and analysis provided elsewhere in this Quarterly Report on Form 10-Q.

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About Intuit

Intuit helps consumers and small and mid-market businesses prosper by delivering financial management, compliance, and marketing products and services. We also provide specialized tax products to accounting professionals. We organize our businesses into two reportable segments – Global Business Solutions and Consumer.

Global Business Solutions : This segment serves small and mid-market businesses around the world, and the accounting professionals who assist and advise them. QuickBooks and Intuit Enterprise Suite are offerings powered by our all-in-one business platform which includes financial management services, human capital management solutions such as payroll and time tracking, money solutions, such as merchant payment processing, bill pay, checking accounts through an FDIC-member bank partner, and financing for small and mid-market businesses. Intuit Enterprise Suite provides mid-market businesses with a configurable, AI-powered solution that includes multi-entity and multi-dimensional financial management capabilities designed to seamlessly scale and enhance productivity and profitability for more complex businesses to streamline operations. Mailchimp offerings include marketing automation and customer relationship tools.
Consumer : This segment primarily serves consumers and professional accountants.
Our TurboTax offerings primarily help consumers complete their taxes with confidence and maximize their financial outcomes—whether they do it themselves or with the help of an AI-enabled human expert. TurboTax delivers do-it-yourself and assisted income tax preparation products and services sold in the United States (U.S.) and Canada. We offer a variety of money products directly to consumers, including early refund access to any bank, as well as Credit Karma Money branded savings and checking accounts through an FDIC-member bank partner.
Credit Karma is a personal finance solution that helps members find the right financial products and make smarter money decisions throughout the year to reach their financial goals. This includes personalized recommendations for credit card, home, auto, and personal loan, and insurance products; and access to their credit scores and reports, credit and identity monitoring, credit report dispute, credit building tools, credit card rewards optimization, and connected account capabilities to help members understand net worth and make financial progress.
Finally, our ProTax offerings help professional accountants in the U.S. and Canada, who are essential to both business success and tax preparation and filing. Our professional tax offerings include Lacerte, ProSeries, and ProConnect Tax Online in the U.S., and ProFile and ProTax Online in Canada.

Our Business and Growth Strategy

The era of AI is igniting global innovations at an incredible pace and will fundamentally transform every part of our work and personal lives. We made an early bet on AI, declaring our AI-driven expert platform strategy in 2019. We have transformed the company from a tax and accounting platform to an AI-driven expert platform. We have a significant competitive advantage as we are creating a system of intelligence with our scale of data, data services, AI capabilities, ecosystem of applications, and our large network of AI-enabled human experts to become the all-in-one platform for consumers, businesses, and accountants. We're disrupting the categories we operate in to drive better money outcomes for our customers.
We leverage AI and human intelligence to provide our customers with done-for-you experiences that automate tasks, identify actionable insights to drive important decisions, and manage end-to-end workflows or entire processes to eliminate work, while ensuring the customer remains in control. When customers need additional help or want help to complete the work on their behalf, we connect them with the best human expert from our network of thousands of AI-enabled financial, tax, and bookkeeping experts who can complete a specific task, address specialized questions, or manage the entire workload. Our strategy, combined with our Big Bets that focus on the largest customer problems and growth opportunities, positions us for durable growth.

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We launched a transformative set of AI agents that provide customers with a virtual team to complete jobs on their behalf, dramatically improving how businesses run and grow. Combined with our AI-enabled human experts, these agents are automating workflows and delivering real-time insights to drive growth and improve cash flow. Our redesigned user interface and new business feed highlights these real-time insights and recommendations and the tasks completed by agents on behalf of the customer. We also launched AI agents in Intuit Enterprise Suite, including accounting, payments, finance, and project management agents, transforming how our small and mid-market business customers manage their finances by automating a variety of day-to-day tasks, and increasing productivity.
Our innovation has been possible with the investments in our proprietary Generative AI Operating System (GenOS), which have enabled us to fuel innovation with unparalleled speed for our customers. Built for our internal developers, GenOS not only keeps pace with rapid technological industry advances but is setting the pace—by melding the best of artificial intelligence and human intelligence on our platform. This enables us to rapidly deliver a new class of intelligent, autonomous financial solutions that will define the next decade of growth for our customers and for Intuit. Our AI-driven expert platform and products are built in keeping with the company’s commitment to data privacy, security, and responsible AI governance. We safeguard customer data and protect privacy using industry-leading technology and practices, and adhere to responsible AI principles that guide how we operate and scale our platform with our customers’ best interests in mind.
As we execute our global AI-driven expert platform strategy, we prioritize resources on Big Bets that solve the problems that matter most to our customers:
• Deliver done-for-you experiences : We will address our customers’ biggest pain points through a virtual team of AI agents and AI-enabled human experts that deliver done-for-you experiences, with customers in control. This means delivering done-for-you experiences to help businesses run and grow, from lead to cash, and fueling consumers’ financial success year-round, from credit building to wealth building.
• Accelerate Money Benefits : We will become the all-in-one platform for customers to manage their critical workflows, decisions, and money. For businesses, this means optimizing cash flow, including receivables, payables, capital, and spend management. For consumers, this means optimizing money and growing their savings, starting with fast access to their tax refund to help them manage cash flow year-round.
• Fuel Success for Mid-Market Businesses : We will become the all-in-one solution for mid-market customers, fueling their success by offering a better experience, better price, and lower total cost of ownership. Businesses are overdigitized, juggling too many disparate apps. Our platform, including QuickBooks Advanced, Intuit Enterprise Suite, and our ecosystem of connected services, brings the data and insights they need all in one place to grow revenue and profit.
As the external environment evolves, we continue to innovate and adapt our strategy and anticipate our customers’ needs. For more than 40 years, we have been dedicated to developing innovative solutions that are designed to solve our customers' most important financial problems. At Intuit, we believe that everyone should have the opportunity to prosper, and we never stop working to find new, innovative ways to make that possible.

Industry Trends and Seasonality

Industry Trends
AI, including GenAI, predictive AI, and agentic AI, is transforming multiple industries, in particular financial technology. Disruptive start-ups, emerging ecosystems, and mega-platforms are harnessing new technology to create personalized experiences, deliver data-driven insights, and increase speed of service. These shifts are creating a more dynamic and highly competitive environment where customer expectations are shifting around the world as more services become digitized and the array of choices continues to increase.
Seasonality
Within our Consumer segment, our TurboTax and ProTax offerings have a significant and distinct seasonal pattern as sales and revenue from our income tax preparation products and services are typically heavily concentrated in the period from November through April. This seasonal pattern typically results in higher net revenues during our second and third quarters ending January 31 and April 30, respectively.
We expect the seasonality of these offerings to continue to have a significant impact on our quarterly financial results in the future.

Key Challenges and Risks

Our growth strategy depends upon our ability to innovate, develop, and introduce emerging technologies, including AI and GenAI, to drive broad adoption of our products and services and enter new markets. Our future growth also increasingly depends on the strength of our third-party business relationships and our ability to continue to develop, maintain, and strengthen new and existing relationships. To remain competitive and continue to grow, we are investing significant resources in our product development, marketing, and sales capabilities, and we expect to continue to do so in the future. Much of our future success also depends on our ability to continue to attract, retain, and develop highly skilled employees, including those

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in technical and leadership roles who are critical to our strategic growth, in a highly competitive talent environment.
As we offer more online services, the ongoing operation and availability of our platforms and systems and those of our external service providers is becoming increasingly important. Because we help customers manage their financial lives, we face risks associated with the hosting, collection, use, and retention of personal customer information and data. We are investing significant management attention and resources in our information technology infrastructure and in our privacy and security capabilities, and we expect to continue to do so in the future.
We operate in industries that are experiencing an increasing amount of fraudulent activities by malicious third parties, and those fraudulent activities are becoming increasingly sophisticated, including through the use of AI. We continue to invest and implement additional security measures. We work with state and federal governments to implement industry-wide security and anti-fraud measures, including sharing information regarding suspicious activity. We also work with the broader industry and government to protect our customers against this type of fraud.
Our operations are impacted by a rapidly-evolving regulatory environment and face increasingly heightened scrutiny. We are subject to numerous federal, state, and local, as well as foreign laws and regulations covering a broad and increasing range of subjects, both in the U.S. and internationally.
For a complete discussion of the most significant risks and uncertainties affecting our business, please see “Forward-Looking Statements” immediately preceding Part I and “Risk Factors” in Item 1A of Part II of this Quarterly Report.

Overview of Financial Results

The most important financial indicators that we use to assess our business are revenue growth for the company as a whole and for each reportable segment; operating income growth for the company as a whole; earnings per share; and cash flow from operations. We also track certain non-financial drivers of revenue growth and, when material, identify them in the applicable discussions of segment results below. Service offerings are a significant part of our business. Our total service revenue was $16.4 billion, or 87% of our total revenue, in fiscal 2025, and we expect our total service revenue as a percentage of our total revenue to grow over the long term.
Key highlights for the first three months of fiscal 2026 include the following:

Revenue of Global Business Solutions segment revenue of
Consumer segment revenue of

$3.9B $3.0B $894M
up 18% from the same period of fiscal 2025 up 18% from the same period of fiscal 2025 up 21% from same period of fiscal 2025

Operating income of Net income of Diluted net income per share of
$534M $446M $1.59
up 97% from the same period of fiscal 2025 up 126% from the same period of fiscal 2025 up 127% from the same period of fiscal 2025

CRITICAL ACCOUNTING ESTIMATES

In preparing our condensed consolidated financial statements, we make estimates, assumptions, and judgments that can have a significant impact on our net revenue, operating income or loss, and net income or loss, as well as on the value of certain assets and liabilities on our condensed consolidated balance sheets. We believe that the estimates, assumptions, and judgments described in Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2025 have the greatest potential impact on our financial statements, so we consider them to be our critical accounting estimates. There were no significant changes in those critical accounting estimates during the first three months of fiscal 2026. Senior management has reviewed the development and selection of our critical accounting estimates and their disclosure in this Quarterly Report on Form 10-Q with the Audit and Risk Committee of our Board of Directors.

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RESULTS OF OPERATIONS

Financial Overview

(Dollars in millions, except per share amounts) Q1
FY26 Q1
FY25 $
Change %
Change
Total net revenue $ 3,885  $ 3,283  $ 602  18  %
Operating income 534  271  263  97  %
Net income 446  197  249  126  %
Diluted net income per share $ 1.59  $ 0.70  $ 0.89  127  %

Total net revenue for the first quarter of fiscal 2026 increased $602 million, or 18%, compared with the same quarter of fiscal 2025. Our Global Business Solutions segment revenue increased 18% during the quarter due to growth in our Online Ecosystem revenue. Consumer segment revenue increased 21% due to strength in our Credit Karma personal loan, credit card, and auto insurance verticals. See “Segment Results” later in this Item 2 for more information about the results for all of our reportable segments.
Operating income for the first quarter of fiscal 2026 increased $263 million, or 97%, compared with the same quarter of fiscal 2025. The increase in operating income was due to the increase in revenue described above, partially offset by an increase in expenses. Expenses increased due to increases in staffing, outside services, share-based compensation, and SaaS subscriptions and licenses. See “Cost of Revenue” and “Operating Expenses” later in this Item 2 for more information.
Net income for the first quarter of fiscal 2026 increased $249 million, or 126%, compared with the same quarter of fiscal 2025. The increase in net income was due to the increase in operating income described and the increase in interest and other income, partially offset by an increase in income tax expense. The increase in interest and other income is the result of $34 million in net gains on long-term investments recorded in the first quarter of fiscal 2026 and $42 million in net losses on long-term investments recorded during the same quarter of fiscal 2025. The increase in income tax expense is due to the increase in operating income described above. Diluted net income per share increased to $1.59 for the first quarter of fiscal 2026 compared to $0.70 for the same quarter of fiscal 2025, relatively consistent with the increase in net income.

Segment Results

The information below is organized in accordance with our two reportable segments. See “Executive Overview – About Intuit” earlier in this Item 2 and Note 12 to the condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report for more information. All of our segments operate and sell to customers primarily in the U.S. Total international net revenue was approximately 9% and 10% of consolidated net revenue for the three months ended October 31, 2025 and October 31, 2024, respectively.
Effective August 1, 2025, we combined our Consumer, Credit Karma, and ProTax businesses into a single Consumer segment in order to better serve the diverse financial needs of our customers as one consumer platform. Our chief operating decision maker allocates resources and assesses segment performance using regularly provided segment revenue and segment operating income information under this updated segment structure. To align results under this segment change, certain selling and marketing, product development, and general and administrative expenses for Credit Karma that were managed at the segment level are now managed at the platform level and are included in other corporate expenses rather than in segment expenses. Also on August 1, 2025, we reorganized certain marketing, communications, and customer success functions in our Global Business Solutions segment that support and benefit our overall platform and are managed at that level rather than at the segment level. Additionally, certain data science and analytics teams that were managed at the platform level are now managed at the segment level. We have recast certain previously reported amounts to conform to these segment changes. For the three months ended October 31, 2024, we reclassified expenses totaling $3 million from Global Business Solutions and $152 million from Consumer to other corporate expenses, respectively, to conform to the current presentation.
Segment operating income or loss is segment net revenue less segment cost of revenue and operating expenses. See “Executive Overview – Industry Trends and Seasonality” earlier in this Item 2 for a description of the seasonality of our business. We include expenses such as corporate selling and marketing, general and administrative, and non-employment related legal and litigation settlement costs, which are not allocated to specific segments, in unallocated corporate items as part of other corporate expenses. As part of our platform strategy, we also include customer success and product development for our segments in unallocated corporate items as we do not allocate these expenses to the segments because they are managed at the platform level. Customer success includes the costs of tax and bookkeeping experts that support our TurboTax Live and QuickBooks Live offerings. Unallocated corporate items also include share-based compensation, amortization of acquired technology, amortization of other acquired intangible assets, goodwill and intangible asset impairment charges, professional fees and transaction costs related to business combinations, and restructuring charges. These unallocated corporate costs for all segments totaled $2.4 billion and $2.2 billion for the three months ended October 31, 2025 and October 31, 2024, respectively. Unallocated corporate items increased in the fiscal 2026 period,

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primarily due to increases in research and development expense, cost of service revenue and selling and marketing expense. See Note 12 to the condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report for reconciliations of total segment operating income or loss to consolidated operating income or loss for each fiscal period presented.

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Global Business Solutions

Global Business Solutions segment revenue includes both Online Ecosystem and Desktop Ecosystem revenue.
Our Online Ecosystem includes revenue from:
• QuickBooks Online and Intuit Enterprise Suite financial and business management offerings;
• QuickBooks Live;
• Workforce solutions, including QuickBooks Online Payroll and QuickBooks Time;
• Money offerings for businesses that use online offerings, which include merchant payment processing and bill pay services, and financing for small and mid-market businesses (QuickBooks Capital);
• Mailchimp’s marketing automation offerings; and
• Financing for small and mid-market businesses.
Our Desktop Ecosystem includes revenue from:
• QuickBooks Desktop software subscriptions (QuickBooks Desktop Plus, QuickBooks Enterprise, and ProAdvisor Program memberships for accounting professionals who serve small businesses);
• Desktop workforce solutions, including payroll products;
• Money offerings for businesses that use desktop offerings, which include merchant payment processing services and financing for small and mid-market businesses (QuickBooks Capital); and
• Financial supplies.

Segment service revenue is primarily derived from our Online Ecosystem revenue and revenue from the services, support, and when-and-if-available product upgrades and enhancements that are provided as part of our QuickBooks Desktop subscriptions, services and support for our desktop payroll offerings, and merchant payment processing services. Segment product and other revenue is primarily derived from revenue related to delivery of software licenses, version protection updates, and payroll software updates for our QuickBooks Desktop subscriptions and desktop payroll offerings, which are part of our Desktop Ecosystem.

(Dollars in millions) Q1
FY26 Q1
FY25 %
Change
Service revenue
$ 2,626  $ 2,168  21  %
Product and other revenue
365  376  (3) %
Total segment revenue $ 2,991  $ 2,544  18  %
% of total revenue 77  % 77  %  

Segment operating income $ 2,334  $ 2,002  17  %
% of related revenue 78  % 79  %  

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Revenue classified by significant service and product offerings was as follows:

(Dollars in millions) Q1
FY26 Q1
FY25 %
Change
Net revenue:
QuickBooks Online Accounting $ 1,206  $ 965  25  %
Online Services 1,145  978  17  %
Total Online Ecosystem 2,351  1,943  21  %
QuickBooks Desktop Accounting 356  329  8  %
Desktop Services and Supplies 284  272  4  %
Total Desktop Ecosystem 640  601  6  %
Total Global Business Solutions
$ 2,991  $ 2,544  18  %

Revenue for our Global Business Solutions segment increased $447 million, or 18%, in the first quarter of fiscal 2026 compared with the same period of fiscal 2025. The increase was primarily due to growth in Online Ecosystem revenue.
Online Ecosystem Revenue
Online Ecosystem revenue increased $408 million, or 21%, in the first quarter of fiscal 2026 compared with the same period of fiscal 2025. QuickBooks Online Accounting revenue increased $241 million, or 25%, in the first quarter of fiscal 2026 due to the interrelated factors of higher effective prices, customer growth, and mix-shift. Online Services revenue increased $167 million, or 17%, in the first quarter of fiscal 2026, due to increases in revenue from our money offerings of $105 million and our payroll offerings of $67 million. Revenue increases were due to the interrelated factors described below. Money revenue increased $105 million due to a $58 million increase in payments revenue from payments customer growth, an increase in total payment volume per customer, and higher effective payments prices, and a $47 million increase from QuickBooks Capital. Online payroll revenue increased due to mix-shift, customer growth, and higher effective prices.
Desktop Ecosystem Revenue
Desktop Ecosystem revenue increased $39 million, or 6%, in the first quarter of fiscal 2026 compared with the same period of fiscal 2025 due to higher effective prices.
Global Business Solutions segment operating income increased $332 million, or 17%, in the first quarter of fiscal 2026 compared with the same period of fiscal 2025, due to the increase in revenue described above, partially offset by increases in staffing expenses of $24 million, QuickBooks Capital cost of revenue of $23 million due to increased loan volume, marketing expenses of $21 million, outside services expenses of $16 million, and online payments cost of revenue of $10 million due to an increase in payments volume.
On August 1, 2025, we reorganized certain marketing, communications, and customer success functions in our Global Business Solutions segment that support and benefit our overall platform and are managed at that level rather than at the segment level. Additionally, certain data science and analytics teams that were managed at the platform level are now managed at the segment level. We have recast certain previously reported amounts to conform to these segment changes. For the three months ended October 31, 2024, we reclassified $3 million from Global Business Solutions to other corporate expenses to conform to the current presentation.

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 Consumer

Consumer segment revenue includes the following:
• TurboTax - TurboTax Online and TurboTax Live offerings; TurboTax desktop tax return preparation software; electronic tax filing services; Credit Karma Money; and related services.
• Credit Karma - cost-per-action transactions, which include the delivery of qualified links that result in completed actions such as credit card issuances and personal loan funding; cost-per-click and cost-per-lead transactions, which include user clicks on advertisements or advertisements that allow for the generation of leads, and primarily relate to mortgage and insurance businesses.
• ProTax - ProConnect Tax Online tax products; Lacerte, ProSeries, and ProFile desktop tax preparation software products, and related form updates; electronic tax filing services; connected services; and bank products.

Consumer segment service revenue is primarily derived from our online TurboTax and ProTax offerings, related electronic tax filing services, connected services, and bank products, and Credit Karma. Consumer segment product and other revenue is primarily derived from our TurboTax and ProTax desktop tax return preparation software and related form updates.

(Dollars in millions) Q1
FY26 Q1
FY25 %
Change
Service revenue
$ 871  $ 721  21  %
Product and other revenue
23  18  28  %
Total segment revenue $ 894  $ 739  21  %
% of total revenue 23  % 23  %  

Segment operating income $ 584  $ 428  36  %
% of related revenue 65  % 58  %  

Revenue classified by significant service and product offerings was as follows:

(Dollars in millions) Q1
FY26 Q1
FY25 %
Change
Net revenue:
TurboTax
$ 198  $ 187  6  %
Credit Karma
651  513  27  %
ProTax
45  39  15  %
Total Consumer
$ 894  $ 739  21  %

Revenue for our Consumer segment increased $155 million, or 21%, in the first three months of fiscal 2026 compared with the same period of fiscal 2025 due to an increase in Credit Karma revenue of $138 million. The increase in Credit Karma is due to increases in revenue from our personal loan vertical of $65 million, our credit card vertical of $53 million, and our auto insurance vertical of $16 million. Due to the seasonal nature of our TurboTax and ProTax offerings, they typically generate minimal revenue in our first fiscal quarter compared with our second and third fiscal quarters. The majority of revenue for the first quarter of each fiscal year for our TurboTax and ProTax offerings is for the filing of returns from the previous tax year.

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Consumer segment operating income increased $156 million, or 36%, in the first three months of fiscal 2026 compared with the same period of fiscal 2025, due to the increase in revenue described above.
Effective August 1, 2025, we combined our Consumer, Credit Karma, and ProTax businesses into a single Consumer segment in order to better serve the diverse financial needs of our customers as one consumer platform. Our chief operating decision maker allocates resources and assesses segment performance using regularly provided segment revenue and segment operating income information under this updated segment structure. To align results under this segment change, certain selling and marketing, product development, and general and administrative expenses for Credit Karma that were managed at the segment level are now managed at the platform level and are included in other corporate expenses rather than in segment expenses. Additionally, certain data science and analytics teams that were managed at the platform level are now managed at the segment level. We have recast certain previously reported amounts to conform to these segment changes. For the three months ended October 31, 2024, we reclassified $152 million from Consumer to other corporate expenses to conform to the current presentation.

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Cost of Revenue

(Dollars in millions) Q1
FY26 % of
Related
Revenue Q1
FY25 % of
Related
Revenue
Cost of service revenue
$ 824  24  % $ 772  27  %
Cost of product and other revenue
15  4  % 14  4  %
Amortization of acquired technology 44  N/A 37  N/A
Total cost of revenue $ 883  23  % $ 823  25  %

Our cost of revenue has three components: (1) cost of service revenue, which includes the direct costs associated with our online and service offerings, such as staffing costs for ongoing production support, customer support, and tax and bookkeeping experts that support our TurboTax Live and QuickBooks Live offerings, costs for data processing and storage capabilities from cloud providers, and costs related to credit score providers; (2) cost of product and other revenue, which includes the direct costs of manufacturing and shipping or electronically downloading our desktop software and financial supplies products; and (3) amortization of acquired technology, which represents the cost of amortizing developed technologies that we have obtained through acquisitions, over their useful lives.
Cost of service revenue as a percentage of service revenue was relatively consistent in the first quarter of fiscal 2026 compared with the same period of fiscal 2025.
Cost of product and other revenue as a percentage of product and other revenue was consistent in the first quarter of fiscal 2026 compared with the same period of fiscal 2025. Costs of product and other revenue are expensed as incurred, and we do not defer any of these costs when product and other revenue is deferred.

Operating Expenses

(Dollars in millions) Q1
FY26 % of
Total
Net
Revenue Q1
FY25 % of
Total
Net
Revenue
Selling and marketing $ 1,082  28  % $ 962  30  %
Research and development 843  22  % 704  21  %
General and administrative 422  11  % 394  12  %
Amortization of other acquired intangible assets 121  3  % 120  4  %
Restructuring
—  —  % 9  —  %

Total operating expenses $ 2,468  64  % $ 2,189  67  %

Total operating expenses as a percentage of total net revenue decreased in the first quarter of fiscal 2026 compared to the same period of fiscal 2025. Total net revenue for the first quarter of fiscal 2026 increased $602 million, or 18%, while total operating expenses for the quarter increased $279 million, or 13%. The increase in total operating expenses was due to increases of $125 million for staffing expenses, $47 million for outside services expenses, and $46 million for share-based compensation expenses.

Non-Operating Income and Expenses

Interest Expense
Interest expense of $58 million and $60 million for the first three months of fiscal 2026 and 2025, respectively, consisted of interest on our senior unsecured notes.

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Interest and Other Income, Net

(In millions) Q1
FY26 Q1
FY25
Interest income (1)
$ 38  $ 42 
Net gain on executive deferred compensation plan assets (2)
15  4 
Other (3)
32  (44)
Total interest and other income, net $ 85  $ 2 

(1) Interest income for the three months ended October 31, 2025 decreased compared to the same period of fiscal 2025 due to lower average interest rates, partially offset by higher average investable balances.
(2) In accordance with authoritative guidance, we record gains and losses associated with executive deferred compensation plan assets in interest and other income and gains and losses associated with the related liabilities in operating expenses. The total amounts recorded in operating expenses for each period are approximately equal to the total amounts recorded in interest and other income in those periods.
(3) During the three months ended October 31, 2025 and 2024, we recorded $34 million in net gains and $42 million in net losses on long-term investments, respectively.
Income Taxes
We compute our provision for or benefit from income taxes by applying the estimated annual effective tax rate to income or loss from recurring operations and adding the effects of any discrete income tax items specific to the period.
We recognized excess tax benefits on share-based compensation of $30 million and $28 million in our provision for income taxes for the three months ended October 31, 2025 and 2024, respectively.
Our effective tax rate for the three months ended October 31, 2025 was approximately 20%. Excluding discrete tax items primarily related to share-based compensation, our effective tax rate was approximately 24%. The difference from the federal statutory rate of 21% was primarily due to state income taxes and non-deductible share-based compensation, which were partially offset by the tax benefit we received from the federal research and experimentation credit.
Our effective tax rate for the three months ended October 31, 2024 was approximately 8%. Excluding discrete tax items primarily related to share-based compensation, our effective tax rate was approximately 24%. The difference from the federal statutory rate of 21% was primarily due to state income taxes and non-deductible share-based compensation, which were partially offset by the tax benefit we received from the federal research and experimentation credit.
On July 4, 2025, the U.S. federal government enacted the One Big Beautiful Bill Act (OBBBA), which includes significant tax law changes, most notably the reinstatement of the immediate expensing of domestic research and developmental expenditures, effective in fiscal 2026. The deductibility of these expenditures is expected to significantly reduce our deferred tax assets and income tax payable for periods starting in fiscal 2026.
The OBBBA has multiple effective dates from fiscal 2025 through fiscal 2027. We are currently assessing all applicable provisions of the legislation and their impact on our consolidated financial statements for fiscal 2027 and beyond.
In the current global tax policy environment, the U.S. and other domestic and foreign governments continue to consider, and in some cases enact, changes in corporate tax laws. As changes occur, we account for finalized legislation in the period of enactment.

LIQUIDITY AND CAPITAL RESOURCES

Overview

At October 31, 2025, our cash, cash equivalents, and investments totaled $3.7 billion, a decrease of $856 million from July 31, 2025 driven by cash used in financing activities, partially offset by cash from investing activities and operations. See the discussion of all factors under “Statements of Cash Flows” below. Our primary sources of liquidity have been cash from operations, which entails the collection of accounts receivable for products and services, the issuance of senior unsecured notes and commercial paper, and borrowings under our credit facilities. Our primary uses of cash have been for research and development programs, selling and marketing activities, capital projects, acquisitions of businesses, debt service costs and debt repayment, repurchases of our common stock under our stock repurchase programs, the payment of cash dividends, and funding of our financing for small and mid-market businesses and early tax refund offerings. As discussed in “Executive Overview – Industry Trends and Seasonality” earlier in this Item 2, our business is subject to significant seasonality. The balance of our cash, cash equivalents, and investments generally fluctuates with that seasonal pattern. We believe the seasonality of our business is likely to continue in the future.

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The following table summarizes selected measures of our liquidity and capital resources at the dates indicated:

(Dollars in millions) October 31,
2025 July 31,
2025 $
Change %
Change
Cash, cash equivalents, and investments $ 3,696  $ 4,552  $ (856) (19) %
Long-term investments $ 92  $ 94  $ (2) (2) %
Short-term debt $ 749  $ —  $ 749  NM
Long-term debt $ 5,391  $ 5,973  $ (582) (10) %
Working capital $ 2,902  $ 3,737  $ (835) (22) %
Ratio of current assets to current liabilities 1.4 : 1 1.4 : 1    
__________________________
NM - Not meaningful
We have historically generated significant cash from operations, and we expect to continue to do so in the future. Our cash, cash equivalents, and investments totaled $3.7 billion at October 31, 2025. None of those funds were restricted and approximately 89% of those funds were located in the U.S.
Our $1.5 billion unsecured revolving credit facility and our commercial paper program are available to us for general corporate purposes. At October 31, 2025, no amounts were outstanding under the unsecured revolving credit facility or the commercial paper program. See Note 6 to the financial statements in Part I, Item 1 of this Quarterly Report for more information.
Our secured revolving credit facilities are available to fund the lending products and services we offer to qualified small and mid-market businesses. At October 31, 2025, $1.2 billion was outstanding under our secured revolving credit facilities.
Based on past performance and current expectations, we believe that our cash and cash equivalents, investments, cash generated from operations, borrowing capacity under our credit facilities and commercial paper program, and access to external financing will be sufficient to meet anticipated seasonal working capital needs, contractual obligations, commitments, debt service requirements, capital expenditure requirements, and other liquidity requirements associated with our operations for the next 12 months and the foreseeable future.
We expect to return excess cash generated by operations to our stockholders through repurchases of our common stock and payment of cash dividends, after taking into account our operating and strategic cash needs.
We evaluate, on an ongoing basis, the merits of acquiring technology or businesses, or establishing strategic relationships with and investing in other companies. Our strong liquidity profile enables us to quickly respond to these types of opportunities.

Statements of Cash Flows

The following table summarizes selected items from our condensed consolidated statements of cash flows for the first three months of fiscal 2026 and fiscal 2025. See the financial statements in Part I, Item 1 of this Quarterly Report for complete condensed consolidated statements of cash flows for those periods.

  Three Months Ended
(In millions)
October 31,
2025 October 31,
2024 $
Change
Net cash provided by (used in):      
Operating activities $ 637  $ 362  $ 275 
Investing activities 1,198  (188) 1,386 
Financing activities (4,372) 761  (5,133)
Effect of exchange rates on cash, cash equivalents, restricted cash, and restricted cash equivalents (1) —  (1)
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents $ (2,538) $ 935  $ (3,473)

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Our primary sources and uses of cash were as follows:

Three Months Ended
October 31, 2025 October 31, 2024
 Sources of cash:

• Net sales and maturities of corporate and customer fund investments
• Principal repayments of notes receivable held for investment
• Operations
• Sales of notes receivable originally classified as held for investment
• Borrowings under our secured revolving credit facilities
• Issuance of common stock under employee stock plans

 Uses of cash:

• Net change in funds receivable and funds payable and amounts due to customers
• Purchases of notes receivable held for investment
• Repurchases of shares of our common stock
• Payment of cash dividends and dividend rights
• Payment of accrued bonuses for fiscal 2025
• Payments for employee taxes withheld upon vesting of restricted stock units
 Sources of cash:

• Net change in funds receivable and funds payable and amounts due to customers
• Principal repayments of notes receivable held for investment
• Operations
• Sales of notes receivable originally classified as held for investment
• Issuance of common stock under employee stock plans
• Borrowings under our secured revolving credit facilities

 Uses of cash:

• Purchases of notes receivable held for investment
• Repurchases of shares of our common stock
• Payment of accrued bonuses and restructuring for fiscal 2024
• Payment of cash dividends and dividend rights
• Payments for employee taxes withheld upon vesting of restricted stock units

Stock Repurchase Programs, Treasury Shares, and Dividends on Common Stock

As described in Note 10 to the condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report, during the first three months of fiscal 2026, we repurchased 1.2 million shares of our common stock under repurchase programs that our Board of Directors has authorized. On August 19, 2025, our Board of Directors approved an increase in the authorization under the existing stock repurchase program under which we are authorized to repurchase up to an additional $3.2 billion of our common stock. At October 31, 2025, we had authorization from our Board of Directors for up to $4.4 billion in stock repurchases. We currently expect to continue repurchasing our common stock on a quarterly basis; however, future stock repurchases under the current program are at the discretion of management, and authorization of future stock repurchase programs is subject to the final determination of our Board of Directors.
We have continued to pay quarterly cash dividends on shares of our outstanding common stock. During the three months ended October 31, 2025, we declared quarterly cash dividends that totaled $1.20 per share of outstanding common stock for a total of $343 million. In November 2025, our Board of Directors declared a quarterly cash dividend of $1.20 per share of outstanding common stock payable on January 16, 2026 to stockholders of record at the close of business on January 9, 2026. We currently expect to continue to pay comparable cash dividends on a quarterly basis. However, future declarations of dividends and the establishment of future record dates and payment dates are subject to the final determination of our Board of Directors.

Commitments for Senior Unsecured Notes

In June 2020, we issued $2 billion of senior unsecured notes, of which $1.0 billion is outstanding as of October 31, 2025, and is comprised of the following:
• $500 million of 1.350% notes due July 2027; and
• $500 million of 1.650% notes due July 2030 (together, the 2020 Notes).
Interest is payable semiannually on January 15 and July 15 of each year. At October 31, 2025, our maximum commitment for interest payments was $55 million for the remaining duration of the outstanding 2020 Notes.
The 2020 Notes are senior unsecured obligations of Intuit and rank equally with all existing and future unsecured and unsubordinated indebtedness of Intuit and are redeemable by us at any time, subject to a make-whole premium. Upon the occurrence of change of control transactions that are accompanied by certain downgrades in the credit ratings of the 2020 Notes, we will be required to repurchase the 2020 Notes at a repurchase price equal to 101% of the aggregate outstanding principal plus any accrued and unpaid interest to but not including the date of repurchase. The indenture governing the 2020 Notes requires us to comply with certain covenants. For example, the 2020 Notes limit our ability to create certain liens and enter into sale and leaseback transactions. As of October 31, 2025, we were compliant with all covenants governing the 2020 Notes. See Note 6 to the condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report for more information.

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In September 2023, we issued $4 billion of senior unsecured notes comprised of the following:
• $750 million of 5.250% notes due September 2026;
• $750 million of 5.125% notes due September 2028;
• $1,250 million of 5.200% notes due September 2033; and
• $1,250 million of 5.500% notes due September 2053 (together, the 2023 Notes).
Interest is payable semiannually on March 15 and September 15 of each year. At October 31, 2025, our maximum commitment for interest payments was $2.6 billion for the remaining duration of the outstanding 2023 Notes.
The 2023 Notes are senior unsecured obligations of Intuit and rank equally with all existing and future unsecured and unsubordinated indebtedness of Intuit and are redeemable by us at any time, subject to a make-whole premium. The indenture governing the 2023 Notes requires us to comply with certain covenants. For example, the 2023 Notes limit our ability to create certain liens and enter into sale and leaseback transactions. As of October 31, 2025, we were compliant with all covenants governing the 2023 Notes. See Note 6 to the condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report for more information.

Credit Facilities

Unsecured Revolving Credit Facilities
On February 5, 2024, we terminated our amended and restated credit agreement dated November 1, 2021 (2021 Credit Facility), and entered into a credit agreement with certain lenders providing for a $1.5 billion unsecured revolving credit facility that expires on February 5, 2029 (2024 Credit Facility).
Under the 2024 Credit Facility, we may, subject to certain customary conditions, including approval of relevant lenders, on one or more occasions, increase commitments under the 2024 Credit Facility by an amount not to exceed $1 billion in the aggregate, and, on one or more occasions, extend the maturity date of the 2024 Credit Facility by one year. The 2024 Credit Facility includes a $500 million sublimit for borrowing swingline loans and a $250 million sublimit for the issuance of letters of credit. Advances under the 2024 Credit Facility accrue interest at rates equal to (a) in the case of U.S. dollar borrowings, at our election, either (i) the alternate base rate plus a margin that ranges from 0.0% to 0.125%, or (ii) the adjusted term Secured Overnight Finance Rate (SOFR) plus a margin that ranges from 0.7% to 1.125%, or (b) in the case of foreign currency borrowings, the interest benchmark for the relevant currency specified in the credit agreement plus a margin that ranges from 0.7% to 1.125%. The facility fee ranges from 0.050% to 0.125% per ann    um. The actual interest margins and the facility fee are based on our senior long-term debt credit ratings.
The 2024 Credit Facility includes customary affirmative and negative covenants, including a financial covenant that requires us to maintain a ratio of total gross debt to earnings before interest, taxes, depreciation, and amortization (EBITDA), as defined in the agreement, of not greater than 4.00 to 1.00 as measured on a rolling twelve month basis as of the last day of each fiscal quarter. As of October 31, 2025, we were compliant with all covenants governing the 2024 Credit Facility. At October 31, 2025, no amounts were outstanding under the 2024 Credit Facility.
We monitor counterparty risk associated with the lenders that are providing the unsecured revolving credit facility.
Secured Revolving Credit Facilities
On February 19, 2019, a subsidiary of Intuit entered into a secured revolving credit facility with a lender to fund the lending products and services we offer to qualified small and mid-market businesses (the 2019 Secured Facility). The 2019 Secured Facility is non-recourse to Intuit Inc. and is secured by cash and receivables of the subsidiary, which are in excess of the amount outstanding under the 2019 Secured Facility as of October 31, 2025. We have entered into several amendments to this facility. These amendments primarily increase the facility limit, extend the commitment term and final maturity date, and update the benchmark interest rate. Under the amended 2019 Secured Facility, the facility limit is $500 million, of which $300 million is committed and $200 million is uncommitted. Advances accrue interest at adjusted daily simple SOFR plus 1.25%. Unused portions of the committed credit facility accrue a fee at a rate ranging from 0.25% to 0.75%, depending on the total unused committed balance. The commitment term is through August 31, 2027, and the final maturity date is August 31, 2028. The agreement includes certain affirmative and negative covenants, including financial covenants that require the subsidiary to maintain specified financial ratios. As of October 31, 2025, we were compliant with all covenants governing the 2019 Secured Facility. At October 31, 2025, $480 million was outstanding under the 2019 Secured Facility and the weighted-average interest rate was 5.57%.
On October 12, 2022, another subsidiary of Intuit entered into a secured revolving credit facility with a lender to fund the lending products and services we offer to qualified small and mid-market businesses (the 2022 Secured Facility). The 2022 Secured Facility is non-recourse to Intuit Inc. and is secured by cash and receivables of the subsidiary, which are in excess of the amount outstanding under the 2022 Secured Facility as of October 31, 2025. We have entered into several amendments to this facility. These amendments primarily extend the commitment term and final maturity date, increase the commitment amount, and reduce the interest rate. Under the amended 2022 Secured Facility, the facility limit is $500 million, of which $400 million is committed and $100 million is uncommitted. Advances accrue interest at term SOFR plus 1.1%. Unused portions of the committed credit facility accrue a fee at a rate ranging from 0.2% to 0.4%, depending on the total unused committed balance. The commitment term is through April 30, 2027, and the final maturity date is May 1, 2028. The agreement includes

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certain affirmative and negative covenants, including financial covenants that require the subsidiary to maintain specified financial ratios. As of October 31, 2025, we were compliant with all covenants governing the 2022 Secured Facility. At October 31, 2025, $400 million was outstanding under the 2022 Secured Facility and the weighted-average interest rate was 5.32%.
On November 1, 2024, another subsidiary of Intuit entered into a secured revolving credit facility with a lender to fund the lending products and services we offer to qualified small and mid-market businesses (the 2024 Secured Facility). The 2024 Secured Facility is non-recourse to Intuit Inc. and is secured by cash and receivables of the subsidiary, which are in excess of the amount outstanding under the 2024 Secured Facility as of October 31, 2025. We have entered into several amendments to this facility. These amendments primarily increase the commitment amount. Under the amended 2024 Secured Facility, the facility limit is $300 million, all of which is committed. Advances accrue interest at daily simple SOFR plus 1.15%. Unused portions of the committed credit facility accrue a fee at a rate ranging from 0.2% to 0.4%, depending on the total unused committed balance. The commitment term is through November 1, 2027, and the final maturity date is November 1, 2028. The agreement includes certain affirmative and negative covenants, including financial covenants that require the subsidiary to maintain specified financial ratios. As of October 31, 2025, we were compliant with all covenants governing the 2024 Secured Facility. At October 31, 2025, $300 million was outstanding under the 2024 Secured Facility and the weighted-average interest rate was 5.37%.
We monitor counterparty risk associated with the lenders that are providing the secured revolving credit facilities.

Commercial Paper Program

Under our established commercial paper program, we may issue and sell unsecured short-term promissory notes (commercial paper) up to $1.5 billion. The maturities of the commercial paper may vary but will not exceed 397 days from the date of issuance. At October 31, 2025 and July 31, 2025, no amounts were outstanding under this program.

Cash Held by Foreign Subsidiaries

Our cash, cash equivalents, and investments totaled $3.7 billion at October 31, 2025. Approximately 11% of those funds were held by our foreign subsidiaries and subject to repatriation tax considerations. These foreign funds were located primarily in India, the United Kingdom, and Canada. We do not expect to pay incremental U.S. taxes on repatriation. We have recorded income tax expense for Canada, India, and Israel withholding taxes on earnings that are not permanently reinvested. In the event that funds from foreign operations are repatriated to the U.S., we would pay withholding taxes at that time.

CONTRACTUAL OBLIGATIONS

We presented our contractual obligations at July 31, 2025 in our Annual Report on Form 10-K for the fiscal year then ended. There were no material changes outside the ordinary course of business to our contractual obligations during the three months ended October 31, 2025.

RECENT ACCOUNTING PRONOUNCEMENTS

For a description of recent accounting pronouncements, if any, and the potential impact of these pronouncements on our condensed consolidated financial statements, see Note 1 to the financial statements in Part I, Item 1 of this Quarterly Report.

ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There were no material changes to our quantitative and qualitative disclosures about market risk during the three months ended October 31, 2025.
See Part II, Item 7A of our Annual Report on Form 10-K for the fiscal year ended July 31, 2025 for a detailed discussion of our market risks.

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ITEM 4 - CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures
Based upon an evaluation of the effectiveness of disclosure controls and procedures, Intuit’s Chief Executive Officer (CEO) and Chief Financial Officer (CFO) have concluded that as of the end of the period covered by this Quarterly Report on Form 10-Q, our disclosure controls and procedures as defined under Exchange Act Rules 13a-15(e) and 15d-15(e) were effective to provide reasonable assurance that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified by the Securities and Exchange Commission and is accumulated and communicated to management, including the CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.
Changes in Internal Control over Financial Reporting
There were no changes in our internal control over financial reporting that occurred during our last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Inherent Limitations on Effectiveness of Controls
Our management, including our CEO and CFO, believes that our disclosure controls and procedures and internal control over financial reporting are designed to provide reasonable assurance of achieving their objectives and that they are effective at the reasonable assurance level. However, no matter how well conceived and executed, a control system can provide only reasonable and not absolute assurance that the objectives of the control system are met. The design of any control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. There are also limitations that are inherent in any control system. These limitations include the realities that breakdowns can occur because of errors in judgment or mistakes, and that controls can be circumvented by individual persons, by collusion of two or more people, or by management override of the controls. Because of these inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

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PART II - OTHER INFORMATION

ITEM 1 - LEGAL PROCEEDINGS

See Note 11 to the condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for a description of legal proceedings.

ITEM 1A - RISK FACTORS