TurboTax Parent Company Projects Lower Profits Despite Tax Season Marketing Push

Software giant Intuit, maker of TurboTax and QuickBooks, announced Thursday it expects third-quarter earnings to fall short of Wall Street predictions. The company plans to increase marketing and customer service investments during peak tax season to compete for more users.

The parent company behind TurboTax delivered disappointing profit projections Thursday, citing plans to boost marketing expenditures as tax season reaches its peak period.

Intuit announced its third-quarter earnings forecast would likely miss analyst expectations as the software company ramps up spending to capture more customers during the busy filing season.

Tax season traditionally represents Intuit’s most profitable period, driving strong demand for its popular financial software including TurboTax, Credit Karma, and QuickBooks platforms.

This year’s federal tax filing period launched January 26 when the IRS opened its systems to accept returns, with taxpayers facing an April 15 deadline to submit their forms.

Chief Financial Officer Sandeep Aujla explained to Reuters that the company is strategically investing more in marketing campaigns and customer assistance during the third quarter to maximize tax season opportunities and expand its assisted tax preparation and QuickBooks business lines.

For the quarter ending April 30, Intuit projected adjusted earnings between $12.45 and $12.51 per share, falling below the $12.95 average analyst prediction compiled by LSEG.

Revenue growth expectations remain solid at approximately 10%, closely matching analyst forecasts of 9.9% growth for the period.

These projections emerge as technology markets grapple with concerns that artificial intelligence tools could diminish demand for conventional software products, particularly as consumers increasingly want personalized financial advice and automated solutions for accounting tasks.

In response to competitive pressure from companies like H&R Block, Oracle’s NetSuite division, and Microsoft’s Dynamics 365 Platform, Intuit has established long-term partnerships with AI companies Anthropic and OpenAI to incorporate advanced AI capabilities into its software offerings.

“We’re paying OpenAI and Anthropic for the capabilities. We’re not paying them revenue share,” Aujla stated, noting that over 3 million customers currently interact with the company’s artificial intelligence features.

The company maintained its fiscal 2026 outlook and reported second-quarter revenue increased 17% to reach $4.65 billion, surpassing the $4.53 billion analyst consensus.