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Welcome to Intuit's 2026 Investor Day. I am Kendra Goodenough, Head of Investor Relations here, and it is so good to see so many familiar faces and all of you here in sunny Mountain View. Those of us joining online, welcome as well. Happy to have everyone here today. We have a packed agenda for you. So I'm going to take just a minute to walk you through what you can expect for the day. We're going to start off with Sasan Goodarzi, who's going to take us through our company growth strategy. He's also going to share a little bit of how Intuit Intelligence really comes to life in our offerings. After that, we're going to hand it over to Alex Balazs, who's going to talk about technology and click in a little bit deeper on how that differentiates us and how that really fuels our innovation across the different businesses you're going to hear today.

We'll then move over to our business platform team, where you will hear from presenters, including Ashley Still, David Hahn, Arundhati Singh, Wyatt Jenkins, and they're going to take you through what we're doing to fuel growth in our mid-market business, the power of our accounting network, how money is at the center of everything we offer customers and what we're doing to accelerate customer growth across the platform. We will take a quick break at that point, and then we will move over to our consumer platform team, where you will hear from Mark Notarainni as well as Nick Soukas. And they're going to talk about what we're doing to rebuild the DIY tax funnel across both TurboTax and Credit Karma and what we're doing to disrupt the assisted tax market as well.

After that, we'll have our CFO, Sandeep Aujla, on stage, where he will talk about the financial perspective of all of this and how we think about our financial commitments to all of you as our shareholders. And after that, we'll take one more quick break before we bring Sasan and Sandeep back on stage to do a Q&A session to answer all of your questions. Next, I have 3 quick housekeeping items for you all. First one is the WiFi. The Intuit guest network is available. There's no passcode needed. Second, restrooms are on your back left back there by the elevators. And third, the presentation today is available on our Intuit Investor Relations website.

Next, I am going to bring the slide up with all the words. So time for our standard disclaimers. Please review the disclaimers about forward-looking statements, non-GAAP financial measures and other important information. I'd also like to remind you that effective August 1, 2026, Mailchimp is a separate reportable segment and share-based compensation expense is no longer excluded from non-GAAP financial measures. In this presentation, all prior period financial measures have been revised to reflect these changes. This includes actually nonfinancial disclosures as well, such as our total online paid customer growth year-over-year, which for FY '26 is 4% when excluding Mailchimp versus 3% as previously disclosed. Additional information for the revised financial measures can be found on the company's fact sheet on Intuit's Investor Relations website at investors.intuit.com. Okay. With that, I think we are ready to start the day. And so I am privileged and honored to get to introduce our Chairman and CEO, Sasan Goodarzi.

All right. Well, good morning. So great to see so many familiar faces in the room, and good morning to everybody and good afternoon to everybody on the webcast. So my team and I will do 3 things today. One, we're going to walk through our assessment of what's going well and areas where we are constructively dissatisfied. The second thing we'll do is to walk through specific plans as to how we're going to scale our big bets and accelerate new customer growth. And then the third thing we'll do is talk about our report card. What we are doing to monitor our performance for our customers internally every single day and what you can hold us accountable for every quarter. So with that, let's jump right in.

First, I want to start with our overall results. They were strong, fueled by our big bets. However, we fell short of our new customer targets, which impacted our tax performance where it came in below our expectations. Let me dig into both of them. Let me start with our big bets. This is an area where, if you recall a handful of years, we laid out our AI strategy across the company, and we declared 3 big bets that really allowed us to go into new markets. One was to disrupt the assisted tax segment where it's about a $35 billion-plus total addressable market. Two, to have money benefits become a core part of our platform beyond Tax & Accounting; and three, to move into mid-market. And it's taken us quite a bit of focus, investments and talent to build out our platform, to build out our go-to-market motions. And what you can see a handful of years later, it is a meaningful part of the company.

It's 30% of the company, and it's growing 30%. So the summary on this page after years of work is we've expanded our TAM. We now have a growth engine that's fueling growth in the company, and we've expanded our margins. Now when you look at each of the bets, they are meaningful in their own right. They are multibillion dollars, each and every one of them growing over 30%. And when you look at new customer growth for the Big Bets, while a meaningful part has come from upgrades within our base, we have new to the franchise growing over 15% in assisted tax and in mid-market, new to the franchise is growing over 30%. So really, the headline news for our Big Bets is it's having a meaningful impact. The penetration is low, and we're excited about what's possible as we look ahead.

Let's now talk about new customer growth, where we are disappointed with what we achieved in the past year as it was below our internal goals. Let me first focus on tax. The way we keep score in tax is total IRS share gains. And while we gained share in assisted tax, where we lost share was in DIY. And we lost quality DIY customers and the #1 reason why customers left us was price. The second is our core growth in QBO slowed in the U.S. and internationally. I will remind you, a handful of years ago, we were taking share in tax in DIY tax and our new customers were growing at 20% in the business group. So we know how to do this. It's now being able to do both, scale our bets and drive new customer growth.

So as we stepped back and diagnosed how do we ensure that we're setting up Intuit for durable long-term growth, competitively positioned to win. There's a few things that are worth talking about at the highest level before we jump in going deeper on each of them. The first is, as I just talked about, our bets are having a meaningful impact to growth. And all of our innovation, which is fueled by AI, is having a significant customer benefit, which is helping us drive ARPC growth. And because we are continuing to reinvent our work internally, we're growing our margins and we're expanding EPS. At the same time, the 3 things where we need -- 3 areas where we need to make progress are: one, we need to scale our bets. It's 30% of the company, and we need to make it a far bigger and more meaningful part of the company.

The second is accelerate new customer growth. And third, as you will see today, the incredible innovation we have in market and the pipeline of innovation that we have, it's to monetize the breakthrough adoption of that innovation. So what we're going to focus on today in the context of what I shared a moment ago is, one, how are we going to scale our Big Bets and how are we going to accelerate new customer growth. A couple of things that I'll say upfront before I personally jump in and talk about it at the company level. With our Big Bets, this has been people and time. It's taken years to build out our platform capabilities, our go-to-market motions, understand which cohorts that we can win with. And now it's about continuing to scale them. With new customer growth, this is a moment in time where now that we've built out our talent, our capabilities and the investments in our Big Bets, it's now time to do what we did before, which is new customer growth.

And new customer growth is something that we must couple with scaling our bets because we are at a size and a scale where we've built out the talent. We now have -- are positioned to really build out our base so that we can drive durable growth as we look ahead. And so we'll dig into both of these in a moment. But let me start with our strategy that is all grounded in what we are focused on with our customers. We're focused on helping consumers with their end-to-end needs, which is from building credit with the Gen Z to all the way to building wealth, which is defined by each consumer. The second for businesses is to help them from leads all the way to cash. And last but not least, with accountants, it's to help them with not only automation of their firm, but also how they shift to advisory services to drive their revenue growth.

And in this context, our total addressable market is significant. And in the last couple of years, our penetration has gone from 6% to 7% penetration. And in context of a $300 billion TAM, the size of the opportunity is equal as it relates to what we can do with the consumer platform and what we can do with the business platform. Now the thing that is very, very important to us is our purpose, why we wake up every single morning. And it is to power the prosperity of those that we serve. And so when we talk about taking market share, for us, it's meaningful because it's about helping consumers, helping businesses, helping accountants achieve prosperity as defined by them. When we talk about scaling our bets, it's helping entrepreneurs go from being a new business in a garage to scaling their business. So our purpose and what we show up to work every day deeply matters to our employees, deeply matters to the company.

In that context, let me talk about our clear and bold strategy. And this is an area where I want to spend quite a bit of time and go much deeper than I have in the past. First and foremost, the one thing that's changed is who we serve. What's the same is we serve consumers, small and large businesses, and now we serve accountants as our core customer. In the past, we've thought about accountants as a channel and as a partner. That has actually been Intuit's 40-plus year history. But that's changed for 2 main reasons. One, every accountant is going through a massive transformation of what do I now do with my firm in the era of AI. And two, there's significant consolidation happening, many PE-backed firms that are putting money in consolidating accountants, and it is a great opportunity for us to serve them as customers and be the backbone of their growth. Why? Because it helps us create a significant network effect.

You will see not only what I'll talk about, but more importantly, what the team will talk about is how that's informed and changed what we're investing in and now what's in market. Now our AI-driven expert platform has really been set out to achieve something that is incredibly bold for our customers, which is they never have to lift the finger. We automate everything for them, and we focus on intelligence, bringing the power of the enterprise in the hands of a consumer, a business and an accountant. And we refer to that as the financial system of intelligence, particularly what's possible with AI, everybody is focused on becoming that intelligent system. Our focus at Intuit is to become the financial system of intelligence. What is that? And why do we have the right?

Let me start with why we have the right. Think about 3 layers of a cake. We have decades of data and decades of contextual and longitudinal data. And when you look at the data platform that we have, and I'll use businesses as an example, where we have 10 million businesses and on average, over 625,000 data points, those aren't just data points. Those are understanding the depth of a plumber, a landscaper, a construction company, a wealth management company and understanding all of their transactions and all of their money in, money out and their behavioral data, which is trusted and permissioned on our platform. That is something that is very advantaged. The second is financial and industry expertise. The fact that we are one platform across many apps and across many workflows. We are not a one-trick pony.

We help consumers from everything that they need to do from getting access to financial products that are right for them and personalized to access to money and managing their money and to get their taxes done and for businesses from everything that they need to do from lead to cash. And when you think about one platform with all of those applications from payroll to payments, to taxes to accounting, to how you manage leads, we have all of that in one place, but it's very specific, not generic to the different industries that we serve. That's the second layer of the cake with decades of experience. And the third layer of the cake is what we have built, which is an orchestration layer with our very domain-specific AI and HI capabilities to ultimately automate everything and deliver intelligence to our customers. And this is the power of what we do in our space, which is everything has to be accurate, trusted, compliant and correct because we're dealing with people's cash flow.

And ultimately, this is what we mean by a financial system of intelligence. It is one unified platform that delivers automation and intelligence, which we ultimately refer to as Intuit Intelligence. Now I want to stay on our strategy for a few more moments and bring this to life in terms of -- the question I often get is how is AI driving innovation across your platform. And I want to share a couple of very important illustrative examples of how our strategy is driving benefits across our platform, and my team will go a lot deeper in this area. Let me start with DIY tax prep. By this coming tax season in the next few months, the majority of our DI tax prep will all be AI native. What that means is humans are simply interacting and approving decisions because we have access to think about those 3 layers of the cake to all their data, all of the domain expertise that we have and all of the AI and HI capabilities that we have.

All of it will be AI native and the focus will be on their money and connecting them to all of the capabilities of our platform. And so what you can see here is our AI capabilities at work, where we automatically get all of your data, and we have access to over 90% of all of the data that a consumer needs, a new or an existing customer. Our platform capabilities does all of the work and the customer simply can interact. They can ask questions. And if they want to go deeper that they can. And it's not just getting their taxes done, it's connecting them to money. And ultimately, it's many front doors, but one platform, getting access to all of our capabilities with our Credit Karma because our focus is Credit Karma is the face of our consumer platform. This is AI at work and the majority of our experience will be AI native. The second, AI-powered expert tax prep.

Our #1 differentiation in disrupting the assisted tax segment, which is again a $35 billion in total addressable market is scaling human accountability. Those that have others do taxes for them, what they're looking for is somebody to review, sign and take accountability for their taxes. AI can't do that. But AI is what's fueling our competitive differentiation, having the best experience, getting your taxes done the fastest because of the expert network that we have and getting you access to your money instantly because of our platform capabilities. What you see here is what an expert is looking at when they're doing somebody's taxes for them. And you can see that Intuit Intelligence, Sergio is the expert, is actually downloading all the data and in fact, going through and doing the tax return for them, but pointing out to Sergio areas where we have low confidence where Sergio needs to go in and check in this case, the RSU basis.

And ultimately, -- this is being able to do all the taxes for Sergio, while Sergio needs to be able to go in and look at areas of low confidence or areas where he uses his judgment that he needs to review. And ultimately, it's all about connecting the customer to the cash. Scaling human accountability at scale is all because of the AI investments that we've made in those 3 layers of the cake that I talked about earlier. Third area. This is significant. If you think about the business platform, we serve 10 million-plus growing customers, and they're not just generic customers. They're plumbers, they're construction companies, they're real estate companies. It's RV parks, it's wealth management, it's professional services. And what we are focused on is automating their workflows. They're not generic workflows. In this case, you're going to see a workflow for a landscaper.

Because of all the decades of permission data we have, all of the financial and industry workflows and capabilities that we have and then the orchestration layer that we've built, what you're going to see is an example of how we're automating things from quote to cash. And this is important because it's not just about automation, but the more we automate where the landscaper in this case does the work, the more it drives payments growth.

So what you can see here is all the capabilities, in this case, from lead, to estimate and invoicing, all automated for the customer. And all they have to do is, as a human, approve the decisions. And the goal is about the impact that the cash has on their business. And you're going to hear the powerful stats that we have around how this is driving time savings and better cash flow for the customer. This is the power of automation by industry because of the capabilities that we have. The next example is about intelligence. One of the most important thing to businesses is actually intelligence about their business. They spend hours trying to understand from the data that they have across multiple different apps, what's the insight to their business? What's the projection of their cash flow? How do they grow their revenue and not generically, but specifically to their business. And what we have built with our orchestration layer is the ability for a customer now to interact and ask questions like what will my cash flow forecast be based on everything that you see in my business?

Based on the seasonality of my business, if I'm a landscaper in Minnesota, where there's not much landscaping to do in the winter, what's the projection of my business and what should I do? Those are examples of intelligence. What you see here is consumptive. The more we do this better, the more the customer will consume it and the more we have the ability to monetize. So this is an example where David is asking about a revenue forecast specific to his business and his data, all in one place, all in one platform because we have the capabilities end-to-end. And not only do we prepare that for David, but we can help David answer questions like should he hire more employees? If it's a manufacturing business, should he buy more inventory. And rather than building a workflow and hope it's used, we allow David to, in essence, ask how he wants to see his KPIs on a daily basis that we can deliver to him. That's the power of business intelligence.

Last but not least, something we're excited about everything I just showed you. But this is probably the most incredible example of truly financial system of intelligence and not about building workflows. Agent Studio. So what is Agent Studio? This gives businesses and accountants the ability to build, deploy and maintain experiences that are right for them. Remember, when we talk about consumers and businesses, it's not just one generic set of needs. In the case of businesses, they're very industry-specific. What you're going to see is an example of an accountant in this case, focused on construction. Remember, accountants have many practices. They can have up to 12 different practices that practice construction, could be manufacturing, et cetera. In this case, they want to deploy within our platform through Intuit Accountant suite. They want to deploy an experience where there is a retainage experience.

As many of you know, for those of you that may not know, in construction, there's an element of retainage, which is hold money back until the job is completely done. In this case, based on all of the data and expertise that we have, you can see that the accountant in this case is uploading specific proposals for different construction companies and asking it to build retainage experience. And they can apply it to all the different construction companies that they serve. And what you see here is their library of all the different agents they've built, how much revenue it has generated for them. That is an example of treating the accountant as a customer. We have now given them the ability with Agent Studio to not only build experiences, but when it shows up in the business platform that the customer uses, it shows up with the accountant's name. This is consumptive. The more they use it, the more we're able to monetize. This is the power of AI.

The intent of what I just tried to do is to pull together for you and help you understand how AI strategically is fueling our innovation across our entire platform with the goal as one unified platform that is automating everything for customers and delivering intelligence. LLMs are important commodities. The innovation and the capabilities, we still haven't seen anything yet. And we're going to continue to leverage the capabilities of our own LLMs that we built and all the external LLMs. But what you can't copy is what I just went through, decades of permissioned data, industry-specific understanding, domain understanding and the orchestration layer that we have built to deliver specific personalized experiences for consumers, businesses and accountants. That's our strategy at work.

Now let me go back to what I said earlier. We have 2 very simple focus areas for the company: scale our bets, accelerate new customer growth. As it relates to scaling our bets, this is an area, as I mentioned earlier, it's growing 30%. It's 30% of the company, and we are very focused on scaling them with an intentional purpose of accelerating new to the franchise. You will hear my team walk through each of these and walk through how we are going to scale our bets. The second is what we are doing to accelerate new customer growth. There are 3 elements that we are focused on that you will hear the details on the rest of the day.

First is we're broadening and opening up our front doors with things like money front doors, QuickBooks Free, QuickBooks Lite and expanding our local footprint across the U.S. by 30% to have more access to not just consumers, but businesses and of course, our partnership with LLMs. This is about broadening our front doors. Second, based on all of our innovation and pipeline of innovation, there are cohorts that we are doubling down on, DIY tax customers, businesses that are new to financial software and ultimately, industry-specific innovation to drive switching. And last but not least is we are very good when we get new customers at delivering additional benefits, whether it's payments, whether it's payroll, whether it's personalized financial products on the consumer side with access to money and what I just walked you through, which is both business intelligence and Agent Studio, which solve specific problems the customer wants to solve that are all consumption-driven.

So if I were to summarize the most important thing I would have wanted you to hear from me and my team will get into the details of exactly how we're going to do what I just walked through, there's a couple of things I would say. One, if you look at Intuit's 40-plus year history, we are a company that has stood for disruption and reimagining our experiences to always be there for our customers, always lead through transformations and win. This is a very important moment for our company. And it's a very important moment where we have stepped back and objectively diagnosed what's going well and what's not going well.

And our focus of the organization, my team is very simple, scale what's working, faster than what we've even done as we look back in the last several years and accelerate new customer growth. And everything I talked about around new customer growth and what you're going to hear from the team is we've been laying the groundwork for this for the past year, and you will see tests and proof in terms of what we're scaling and why we are scaling it. So I look forward to talking to you later today about the Q&A. With that, let me turn it over to Alex.

Thank you, Sasan. I'm Alex Balazs, Intuit's Chief Technology Officer. So Sasan unpacked our financial system of intelligence, the trusted data, deep expertise and domain-specific AI and human intelligence. So my job is to show you that as AI improves, Intuit Intelligence gets stronger, not weaker. In fact, what I'll show you is that we have specifically set up an architecture for Intuit Intelligence, where as AI improves and new models are available, we can immediately adopt them and apply them to Intuit Intelligence. So a couple of key takeaways before we get started. First is that Intuit Intelligence is truly our differentiator, and I'm actually going to get into a lot of detail on that.

Second, the pace of innovation, how we work, how we build, what we're delivering has compounded our pace of innovation. And that innovation has allowed us to scale our Big Bets and accelerate customer growth. So let's go back to Intuit Intelligence, trusted proprietary data, this financial and industry expertise and domain-specific AI and HI. Individually, these 3 things are very valuable. But what makes them unbelievably valuable and why Intuit Intelligence is truly differentiated is the ability to orchestrate over these. And what you'll see is that this orchestration allows us to unlock new ways to discover customers, new ways to provide solutions and new ways for customers to discover us. Let's start with the trusted proprietary data. All the data across all of our experiences no matter where the customers arrive, feeds a common business object model. What is this object model? It combines decades of first-party data with third-party data from sources like banks and employers, and it gives it a shared business meaning.

It describes the relationship between all these different data elements, whether they're doing their books, they're doing payroll, payments, taxes. This shared business object model then creates a persistent financial context. What is this persistent financial context? It is a way that we can express this customer through the data that we have that can be taken to any experience where a problem is being solved for that customer. It used to be that we would collect data in a given experience and then we would use that data inside of the same experience. Now this data is not just persistent, but it's portable, and it allows us to express it on our platform and off our platform as well. And I'll get into more detail on that soon. So why is this important? This is what has allowed us to deliver a 0 data entry experience to 15 million TurboTax customers.

It's also the thing that has allowed us to pay 18 million employees in our payroll products totaling over $350 billion. So the data is an important start. It tells us what is. Expertise is about declaring what's next. We have spent decades developing expertise across many, many different capabilities in many different areas, 74 different financial domains, over 100 different workflows, 307 industries. So why is this important? Because we have encoded this expertise as capabilities that can be leveraged by Intuit Intelligence. Historically, these capabilities were embedded inside of our products. If you wanted to use a tax capability, it had to be used inside of a tax product. If you wanted to use a money movement capability, it had to be used inside of a money movement product.

These capabilities are now available as tools and skills that can be expressed anywhere the customer needs them. So now you could start to put it all together. Our domain-specific AI and HI. So you see there on the left, the idea of the customer workflow. Customer workflow is important because that's built how the customer wants it, not necessarily how we want it. And by Intuit Intelligence having the ability to pick the right kind of intelligence at the right moment, we can leverage that trusted data. We can leverage that deep expertise at the moment of need. We have integrated with over 60 large language models, and we automatically pick the right large language model at the right time. Sometimes that could be based on performance. Sometimes, it's reasoning power. And sometimes, it's cost.

We have the ability to pick the right one at the right moment, multi-model by design. But sometimes an LLM isn't the solution. Sometimes we have to do prediction or classification. So we pick regular machine learning. There are many times where accuracy and compliance and governance are important. We pick deterministic code. And at the time when human oversight is required, we can automatically direct the customer to human expertise. So this is the power of Intuit Intelligence. Because it's not just about taking a bunch of data and throwing it into a large language model and hoping that the outcome is correct. It's about picking the right model, the right intelligence to deliver a trusted financial outcome.

So I'm very excited about our technology strategy because our strategy is allowing us to do 2 things at the same time. Transforming the way that we work, transforming the way that we build has allowed us to compound the pace of innovation. Because we have compounded the pace of innovation, it's allowing us to scale our Big Bets and accelerate new customer growth. But let me actually go into the details of how specifically that's working. So let's start with how we build, obviously, a critical part of what we do here at Intuit. So first is deciding what we build. We've moved from product requirements documents that have been written for humans to specs that are written for agents. We've gone from basic mockups to actual working prototypes that we can test with our customers in days. When it comes to our engineers, we've gone from writing code directly, engineers writing code to directing agents to do the work for them. And it's multi-model by design.

Some of our engineers use Codex, some use Claude Code, some use Cursor. It's the right tool for the right job, multimodel by design. And when we ship, we're moving from quarterly releases to, in some cases, daily releases, continuous learning, learning from our customers, gathering that feedback, driving product market fit. Sometimes that feedback is implemented by an engineer. Sometimes that feedback is automatically processed and implemented by a model. And the proof is already there. In the first 90 days of transforming our product development life cycle, our coding velocity has improved 40%. At the same time, there was a 31% decrease in failure rate. Just let that sink in for you. We're moving faster and quality has gone up. In fact, 70% of our poll requests, the code was delivered by AI.

And we're on pace to double our velocity by the end of the fiscal year. So all of that speed, all that velocity, all that work that's being done by our product development organization has now accelerated the pace of innovation across all of Intuit. Just in the past 6 months, we have delivered AI native experiences, powerful experiences for our customers across tax, personal finance, small business and mid-market. And the really exciting part of it as well is that, as I said before, we are going to where our customers are. So many of these tools and skills and capabilities are also exposed to ChatGPT and Claude, our close working relationships with OpenAI and Anthropic has them coming to us looking for financial intelligence.

When they want to solve critical end-to-end workflows, and they need to make sure that those financial decisions are right, they're coming to Intuit. All right, so Sasan showed you a couple of use cases around some of these AI native experiences. These powerful experiences that have fundamentally changed how our customers interact with us, how their problems are solved through Intuit Intelligence. I'm actually going to deep dive into a couple of them to really go underneath the surface here and show you how we're solving this.

So let's go back to DIY tax prep. So step one is to acquire all the data. So all the data that's required is not publicly available. In many cases, this is permission data. We have access to over 90% of the data that's required for customers to solve these problems. So we can go get that permission data, put it into that common business object model that I described before, and that allows us to orchestrate the work. In fact, we create a persistent customer financial graph. So what does that mean? What is this graph? So we know, based on decades of solving these problems, what's the data that's actually required to get to an end goal. And when we go and get that data and apply it to the graph, now we know, is there any data missing? Are there any questions that we have to ask the customer? Do they need to interact with us? Or can we completely deliver them the outcome?

And in the moment when we're ready to actually do something deterministic, now we connect it to our deterministic tax engine and compliance engine to make sure that the answer is 100% right. The tax return then can be done in minutes, and that's the magic. How do you complete a tax return in minutes and yet make sure that it's accurate and correct. That is the combination of AI at the right time and deterministic code at the right time. And all along the way, we use generative AI to explain the outcome in ways that our customers can understand. All right. Let's go back to business intelligence. So this is where the persistent financial and operating context matters. So from lead to cash is actually about 5 different steps. And in many cases, where I've gone and talked to customers, what you'll see is all 5 of those steps, they actually had a different product that solved that problem, which required them to enter a bunch of information, use that one product, get an outcome like send an estimate.

And the next step along the way, they'd have to enter all the same data again, time-consuming, difficult error prone. This persistent financial operating context allows us to move their financial record forward every step along the way. The AI is grounded in these authoritative records. The data that we've collected allows us to make sure that as we move this financial context, it's actually trusted and the customer can trust the outcome. And also because we've been collecting this data for decades, we have the level of industry benchmarks that are not really available anywhere else in the industry. So once that customer has created an insight, something that they view very, very valuable to them, they can easily create a reusable skill. So what does that do? So when they create a reusable skill, they can then say, run this insight for me every month, and it will rerun with the latest financial information.

Once again, that financial context moving forward and allowing them to understand over the course of time how they're performing. All right, Sasan said it, and I will say it, too, this is one of my favorites. Spoken to a lot of different accounting firms and really understanding how they work, how they add value, how they interact with clients. And these firms have unbelievable expertise, expertise they've gathered over decades of working with clients, painstakingly figuring out how do they give advice, how do they gain insights into how these companies are doing. And this has historically been a very, very manual process. So in Agent Studio, they have the ability to use a natural language, they can describe what is this expertise? What do you normally do with your clients? How do you interact with them?

They can literally have a conversation with Agent Studio and establish what this reusable workflow looks like, and then we can show them the workflow. And it's not just a workflow. Let's go back to Intuit Intelligence, the data, the capabilities that can be trusted and connected to that workflow. So now what you see is it's not Intuit that's creating an experience based on top of Intuit Intelligence. It's actually the accounting firms themselves, and they can define the moments in time where they want to govern the execution, where they say, you know what, this is the point where I want human oversight, where I want control. And the rest of the work is done for them. The really exciting part for them on top of the fact that it's a heck of a lot easier to do this is that once they build this intelligence, this capability, they can actually deploy it across all of their clients.

So they can do the work once, deploy it everywhere and monitor the performance of those agents and over time, make it better and better. All right. The last example that I'm going to go into, quote to cash. So the quote-to-cash process is also extremely complicated because it's very fragmented. Lots of different steps along the way, lots of financial context that needs to be available in order for the customer to truly go from a lead to identify which customers they should actually go after to quoting, to getting an estimate and actually turning it in an invoice so they can get paid. So we orchestrate this capability across that financial context. So you saw the example from Sasan, the ability to basically just dump in any data they may have. If there's a persistent connection, we'll go and get the data. If they have documents, they can upload PDFs. They can connect it to a Google Drive.

Wherever their data is, we can bring it in, apply financial and industry logic and automatically move the process forward each step along the way. In the end, it can actually execute financial actions. This isn't just about insight. It isn't just about answers. It's about actually doing the work for the customer and each step along the way, carrying that financial context forward. All right. I talked a little bit about our relationship with the Frontier LLM companies. Let me just go a little bit deeper. Financial work is as much based on the trust as it is in the outcome. I personally go to Anthropic and OpenAI and Google pretty much monthly, meeting with their teams, meeting with their executives, understanding what they're building, why they're building it. And what I hear from them is, as they're looking to solve customer problems, truly be a place where customers go that they wanted a trusted partner to deliver that financial context, those financial outcomes.

And the great news for us is we have exposed it inside of these frontier LLMs. And as they become more popular, as they grow, as engagement grows on ChatGPT and Claude and Perplexity, it drives new customers to us. Let me finish with where I started. Intuit Intelligence is truly our differentiator. Our ability to combine trusted data, deep expertise and orchestrating it together with the right level of intelligence. This has compounded our pace of innovation so we can deliver to our customers faster. And that allows us to scale our Big Bets and accelerate customer growth. Thank you. With that, I'll turn it over to Ashley Still.

Thank you, Alex, and good morning, everyone. I'm Ashley Still, and I lead our small business and mid-market group, and I'll be joined by David Hahn, who leads our services group, including Money and Workforce Solutions. Together, we're excited to share the business platform strategy and progress. Today, I want to leave you with 4 takeaways. The 4 reasons we're confident in our strategy and in our growth drivers. First, we're scaling into intelligence, growing consumption and engagement of our trusted financial automation and intelligence. Second, we're accelerating customer growth, expanding the QuickBooks lineup so we can win new customers and gain share.

Next, we're embedding money experiences, making money truly central to our platform to drive adoption and ARPC growth. And last, we're fueling mid-market success and also winning new customers in the mid-market through industry additions and our accountant flywheel. We closed fiscal 2026 with solid results, growing nearly 18% to nearly $12 billion in revenue. Reflecting on our execution, there are areas where we made real progress in 2026. Both mid-market and money grew over 30%. New customer benefit and services adoption in our mid-market offerings, both QuickBooks Advanced and Intuit Enterprise Suite drove upmarket ARPC growth. And our investment in AI fueled innovation across the platform, including new product launches like Intuit Accountant Suite, the business credit card and human capital management.

And there are areas we could have done better, and we are focused on the progress needed. We need to grow new customers faster and gain share. And we need to continue to scale money and Workforce Solutions along with mid-market growth. We have clear strategies and are taking decisive action in each of these areas. Our path forward follows a simple formula: scale our Big Bets and accelerate new customer growth across all of our customer segments. Together, this formula creates a durable multiyear growth engine. The Intuit platform already serves a broad and diverse customer base from a new entrepreneur just getting started to a complex $100 million mid-market business. It also includes the accountants that advise these businesses from part-time bookkeepers all the way up to national accounting firms. 10 million businesses and 650,000 accountants work together on the Intuit platform today, spanning nearly every industry, every stage of growth, every type of business and many geographies.

Our opportunity is exciting with $186 billion in total addressable market where we are roughly 7% penetrated today. It's clear we have a significant opportunity to grow as we expand our customer base and scale our Big Bets. Our strategic priorities directly unlock our opportunity by expanding the benefits that customers tell me every day they care about the most, improving their cash flow, saving them time and money, giving them proactive insights that enable them to make the best decision for their unique situation. All of this ultimately is what helps them grow their business.

Everything starts with the problems that we solve for our business and accounting customers. So what is running a business look like today? For many businesses, the reality is it's too manual and too fragmented, like a small nail polish company that's just trying to get started, but they have to juggle 12 apps to run their business, and they can't get a clear idea of what's driving growth or costs; or a $25 million consulting firm that has to spend over 1/3 of their time on administrative work just to get a sense of project level profitability; or a construction contractor who couldn't get a timely read on cash flow, had to pass up buying new equipment and loses a big job to a competitor.

Every business that I engage with wants confidence in their decisions, and they build that confidence on trusted financial intelligence and automation. And as Sasan talked about, the world for accountants is changing incredibly fast. Their industry is consolidating, and they have clear mandates to expand their advisory practices because they offer 3x the revenue potential of bookkeeping. This shift requires firms to transform how their associates work every day by investing in technology that automates manual bookkeeping and surfaces proactive insights about their clients. This is the foundation of compelling advisory conversations and compounds the value of firms and their clients running together on our platform.

Fueling firm success is core to our strategy. We win when we solve customer problems end-to-end and customers grow with us as their needs become more complex. For businesses, we provide a complete platform with accounting, money in, money out, capital, business intelligence and much more. For accountants, we are automating their manual work, surfacing client insights and helping them manage their firm. Our durable advantage is trusted financial intelligence and automation built on shared business and accountant data that reinforces our network effect. I'll hand it to David to take you through our first 3 strategic priorities: scale Intuit Intelligence, accelerate customer growth and embed money experiences.

Good morning, everyone. I'm going to jump right into our first priority, which is to scale consumption and engagement of Intuit Intelligence. Today, 2.5 million customers actively engage with Intuit Intelligence automations and insights every month. And our customers tell us that it's driving real impact. Businesses report that they're saving 30% of their time because of these automations. And they're telling -- and 60% are telling us that they have a clearer picture of their cash flow. So at this point in our journey, our focus is to really scale this customer impact. Now you've seen this slide a few times, but it's really important. There's 2 things that we're trying to do with Intuit Intelligence. One is our done-for-you experiences. These are the automations that you've heard about. And two is the intelligence that drives action.

And really, what is underneath our advantage here is the foundation. This is the domain -- this is the AI and HI that come together to be domain-specific, the deep financial and industry-specific expertise. But most of all, what I want you to imagine is 40 years of longitudinal data around tens of millions of businesses. That's going to enable many of the examples I'm about to show you. So what does this look like in practice for our customers? Well, every day, our customers are asking questions, and they're asking questions because they've got to drive decisions. Where am I overspending? What vendors should I replace? How is my cash flow? And they're also asking forward-looking questions, questions that require help looking into the future. Can I afford to hire? Can I open this additional location? What is my projected profit for this year?

Intuit Intelligence not only answers these questions, but given that anonymized data, that longitudinal data that we referred to earlier, we're positioned to enable peer benchmarking, which helps them understand where they sit relative to many businesses like theirs. And Intuit Intelligence also, very importantly, sits across all of our services. This is not just bank data. This is not just accounting data. It knows the location an employee clocked out of to assign labor costs. It knows the project category of an expense, the instant the card is swiped. And so we see all this driving real insights for our customers because we have that end-to-end view. And we're seeing real momentum as we scale. Conversations have doubled quarter-over-quarter and new customers are engaging at a higher rate than our existing customers by 60%.

Now in addition to the insights, Intuit Intelligence also automates critical jobs by default. Now let's take bill ingestion. It's not just about ingesting the bill. It's about identifying the project. It's about continuously being able to understand how that particular expense impacts profitability. And finally, it's teeing it up so that the user can pay that bill in one click or take payroll where Intuit Intelligence literally is collecting hours from employees. It's identifying and acting to solve anomalies. It's doing tax compliance check, and it's teeing it up once again for the user's final approval. And now that Intuit Intelligence is delivering AI recommendations on more than 90% of transactions, accountants using Accountant Suite are reporting being able to spend a lot more time on the high-value advisory work, and that's the work that helps their customers really grow.

Now as businesses grow, Intuit Intelligence scales with them. Ashley is going to do a deeper dive shortly on mid-market, but I wanted to touch on a very common mid-market question. Are my projects profitable? To answer this, you need labor costs. You need vendor bills. You need expenses, you need invoices. All these data points usually live across different systems. But in our platform, the data is already connected. So Intuit Intelligence can answer these questions right away. It can set up the project, it can recommend a margin goal, it can build a budget, it can send the invoice and it can track profitability constantly. And when a business needs to do something unique, say, a permit, a purchase order, maybe a job phase, Intuit Intelligence builds custom objects automatically. More than 75% of Intuit Enterprise Suite customers use our AI agents every month.

Now I want to shift gears to our second priority. We ended fiscal year with nearly 8 million online paid customers, growing 4% year-over-year, and retention held strong at 83%. Our focus this year will be to reaccelerate customer growth through an expanded lineup and product innovation. Now I want to take a closer look at our performance over time. Since 2023, we have focused on our Big Bets, mid-market and money, and we've made meaningful progress. ARPC grew at a 16% CAGR over 3 years and customer growth for our highest ARPC cohort grew at a 19% CAGR over 3 years. However, over that time period, we did not achieve our overall customer growth goals. It moderated by 2 points year-over-year, and it decelerated by 6 points since 2023. But the progress in money is an important ingredient in the recipe going forward as we reaccelerate growth. It gives us a clear path to value across every segment of the market, including the low end, which historically has been hard to monetize.

With our expanded lineup, we have an opportunity to accelerate customer growth in every segment that we serve. For businesses without employees, many of which do not use financial management software today, we serve them with a simple, frictionless experience. For small businesses, we will convert and retain with the done-for-you experiences that we've shared earlier. And for mid-market businesses, QuickBooks Advanced an Intuit Enterprise Suite to win new to the franchise customers and better serve customers in our existing base. Across the lineup, there's an entry point and an upgrade path at every stage. Now I want to show you how this works at the low end of the market. It starts with low friction entry points, QuickBooks Free and QuickBooks Lite, much simpler experiences to get businesses started fast. And payments is included from the start. This is critically important because for many of these customers, we are seeing that literally their first invoice is paid via QuickBooks.

The customers also get exposed to the rest of our services through these experiences and have clear upgrade paths to other SKUs. The early results are encouraging. 20,000 customers in the first 6 months actively using QuickBooks Free or converting to paid offerings or payments. And as customers grow, they use more of the platform. And nowhere is this more evident than money. This year, online services grew 24% with our money portfolio, our big bet, growing 31% and our Workforce Solutions portfolio growing 17%. Our focus is to deeply embed money and Workforce Solutions to drive usage, consumption and ARPC growth. Now last year, we had 2 important launches that I'm going to tell you more about in a second, the Intuit Business Credit Card and Human Capital Management. But the most important part of this story is that we now have a complete money in, money out solution. We can automate and orchestrate every dollar coming in and out of a business.

And we have capital in the middle to bridge for when money goes out before money comes into our customers' businesses. Our scale is significant. We had $229 billion of payments and bill pay volume. That's up 30% and $355 billion of payroll volume. Now let's take a deeper look. Starting with Intuit Business Credit Card. And keep in mind, our business is literally 1/4 of their spend is their employees, everyday expenses, imagine Home Depot to buy materials for a job. And so Intuit Business Credit Card puts us in a position to help our customers with this spend. And our card is different from traditional cards. First, in the way that we underwrite. We can underwrite like we do in other parts of our capital business based on our unique data on the true health of the business, which also gives us another advantage. We can put the card directly in front of folks that we know are creditworthy. And from a value proposition for our customers, we do 2 really important things: one, control right out of the box.

Business owners care about the money leaving their business. And so before they just hand over the ability for their employees to spend money, they want to make sure the right controls are in place. And that's what a software-enabled card like ours is able to do. Second, it automates accounting by capturing receipts and other data and then putting it directly into QBO. So the accounting is done for them. The early results are encouraging. In the first 5 months, we've seen $100 million in cumulative spend and 78% of customers are spending within the first 30 days. Next, I want to talk about human capital management. Now this takes us from being a simple payroll provider to an end-to-end team management solution. And of course, we start from a position of scale. We process payroll for 18 million workers in the U.S. annually.

Engagement in our HCM features have been strong, doubling over the past 6 months. And 60% of mid-market payroll customers are already on our HCM SKUs. Now we're scaling all this at a very important time. Customers switch payroll and HR software at the end of the year. And in the past couple of years, we've heard from customers that we have not been able to win for our payroll business that this was the key. This is the piece that's really missing. So we believe this launch makes us much more competitive for the upcoming switching season. Now part of our strategy that we've talked about is the key advantage we have in terms of being able to embed money offerings deep into existing customer workflows. And we're really seeing success of this strategy, especially in bill pay and in capital. Bill Pay is now included by default in both of our mid-market offerings right out of the box. That means there's no additional purchase decision required. They just start using it. And it's working. $54 billion in volume, growing 89% year-over-year.

And capital works the same way, surfaced at the moment of need inside the money movement experiences where customers need it, payroll and payments. Loan volume has reached $7 billion and is growing 75% year-over-year. We're also finding that businesses that use capital are growing 60% faster than those that don't. So there's real customer benefit. I want to touch on payments now and the impact that Intuit Intelligence is having on it. You've heard a little bit of this from Sasan and Alex earlier today. We can now help our customers automate the work that sits upstream of payments, which then drives more payments downstream. You've seen some examples. I want to give you 2 more that are my favorites from some of the usage that we've seen very recently. Consulting firms, now they're just simply dropping in the sign statement, and we take care of all the steps after that.

We're able to build the invoice, send the invoice and collect payments. We had a membership organization. They simply dropped in their roster and Intuit Intelligence sent invoices to each member every single month. We're also embedding these capabilities into third-party AI platforms where customers are choosing our payments. Payments volume in these 3P experiences is growing 80% month-over-month. So overall, Intuit Intelligence is going to help us convert the more than $3 trillion of invoices that are already managed on our platform to convert those onto our payments rails. Now I'm very excited to bring this to life and welcome Arundhati on stage. Arundhati?

Thank you, David. I'm Arundhati Singh, and I'm Senior Vice President for our Small Business Group. Now you just heard an overview of our strategy, and I'm going to show you how Intuit Intelligence comes to life for our customers, built on our decades of proprietary trusted data, financial and industry expertise and domain-specific models. Intuit Intelligence spans QuickBooks, the Intuit Accountant Suite and Intuit Enterprise Suite to deliver personalized insights and take action on behalf of our customers.

So let's see how this comes to life for Maria. She owns a 22-person commercial cleaning services company in Phoenix, and Maria runs her entire business on our platform. Like many business owners, she starts her day on the go, on her phone. And in the QuickBooks mobile app, Maria now immediately sees a real-time snapshot of her cash position. Cash flow is the lifeblood of her business. And with one tap, Maria can now ask Intuit Intelligence to turn that real-time snapshot into a forecast of next year's financial performance. Intuit Intelligence powers key P&L insights and assumptions based on Maria's real-time accounting data, allowing her to plan for the future. It also gives her a visual breakdown of those projections with a detailed chart plotting her revenue and net income. It also allows her to run scenario analysis or adjust assumptions like her costs. And this is what gives customers the confidence to make important financial decisions. And it's how trust in our platform compounds.

As you heard David referenced earlier, that's reflected in the doubling of quarter-over-quarter growth in AI chat queries that are now driving insights, decisions and direct action across our platform. Maria can also easily turn this into a custom report that she can download to share with her team between site visits. Because Intuit Intelligence is deeply integrated into QuickBooks, Maria always gets fast, accurate answers. Work is done on her behalf in real time. She always knows where her numbers come from, so she can trust what she sees. Intuit Intelligence is her always-on business stop partner. Now when Maria next logs into her QuickBooks web homepage, Intuit Intelligence is proactively surfacing what she needs to pay attention to most with the new needs attention section.

In Maria's case, she can see that her unpaid invoices are climbing, which is a direct strain on her working capital. So she clicks to review and Intuit Intelligence is going to proactively surface to her, a list of her customers who are consistently paying more than 60 days due. It will also surface specific invoices from other customers that are dragging her cash flow cycle right now as she has to meet payroll obligations in the upcoming weeks. Now Maria isn't sure if this is just typical for businesses like hers. So she's able to ask Intuit Intelligence. How does my days to get paid compared to businesses like mine? And Intuit Intelligence can run benchmarks against anonymized similar commercial services businesses, and it surfaces something really important for Maria to know.

Her days to get paid are running weeks longer than her peers. And that is incredibly valuable data based on at-scale insights that only Intuit has. But we don't just stop at running benchmarks. Intuit Intelligence helps address this issue for the future. And it suggests that Maria create a custom automation, a weekly unpaid invoice chaser that finds open invoices, e-mails weekly reminders, e-mails a receipt once payment is recorded for any given invoice and then stops chasing that specific invoice. This takes hours of manual work off of Maria's already very full plate. So that sounds good to Maria, and she improves the automation. And just like that, her invoice chaser is active, and she's well on her way to improving her cash cycle. This is the done-for-you experience that Intuit Intelligence powers.

Now because Intuit Intelligence can see Maria's cash position, her upcoming payroll obligations and her complete underwriting profile, we're able to proactively surface a prequalified line of credit personalized to Maria's business that helps her bridge the gap between when her crews get paid and where her clients pay their invoices. And Maria is very intrigued, but she wants to tap into some human expertise. So she's able to ask Intuit Intelligence to send this offer to her accountant. And it will generate a detailed financing plan and budget worksheet for her accountant to review inside the Intuit Accountant Suite. Intuit Accountant Suite is our new platform for firms of all sizes to manage their clients and grow their practices.

It has already been adopted by over 150,000 accounting firms to drive proactive insights, automate ongoing work like monthly close and deliver seamless collaboration between customers and businesses. So within Intuit Accountant Suite, Bruce is able to review the information and sends a note to Maria about the financing terms, which she is then able to review back in QuickBooks. Reading through Bruce's note gives her the confidence to move forward with that line of credit offer. And she's able to start the application directly inside of QuickBooks. So now Maria is prepared well ahead of any potential cash flow crunch that may occur. Now Intuit Intelligence sees the whole business. It benchmarks against decades of real business data, and it closes the loop with both access to capital and access to human expertise in one flow. That's what gives customers the confidence to make important financial decisions, and it's how trust in our platform compounds.

Now let's see how the value of our relationship with Maria deepens over time. As you heard earlier, businesses manage over $2.7 trillion in invoices on QuickBooks every year. And we know that staying on top of getting paid is what keeps businesses owners up at night. It's the #1 thing. So we want to make sure that Maria is set up to get paid while she sleeps. And all she has to do is connect her Google account via our chat interface. And what that will do is allow her to set up specific parameters. For example, what folders in her Google Drive should we look at, drafts, downloads as well as what time frame to search over the last 30 days. And are there specific keywords that we should look for, such as a project name. And then Intuit Intelligence is able to take that information and automatically draft invoices on Maria's behalf as well as give her a total estimate of the outstanding potential balance that she's due.

Maria is able to tap to review all of the invoices before she decides that she's ready to send them. And once that group of invoices is sent, Intuit Intelligence will proactively offer to automatically draft future months of invoices based on that same set of custom rules that Maria set up. Maria agrees and now her invoices are truly on Autopilot. But there's more. If Maria is already working in Claude or ChatGPT preparing for a client conversation, she can now also directly invoice a new customer using our embedded QuickBooks skill. And that combined AI-powered invoicing, both inside QuickBooks and inside the LLMs that our customers are already using has driven over 80% month-over-month growth from June to July in payments volume.

Every dollar that moves through the platform makes the intelligence layer smarter. It makes the workflows tighter, and it makes the customers stickier. That helps us acquire new customers earlier in their journey and to grow with them as their needs become more complex. Intuit Intelligence delivers done-for-you experiences for customers like Maria to power their prosperity. Now I'd like to turn it over to Ashley, who will unpack how this model becomes even more valuable for the mid-market, a nearly $90 billion total addressable market.

All right. Thank you, Arundhati. You just saw how Intuit Intelligence helps run a business end-to-end, and let's jump into mid-market. So our progress in mid-market over the past year has been strong, and it gives us a clear opportunity to broaden our sources of growth. Mid-market revenue grew 39%, customers grew 28% and Intuit Enterprise Suite reached nearly $150 million in annualized revenue, a 4x increase year-over-year. Our opportunity to capture the mid-market TAM is focused on 3 levers. First, new customers. David talked about our focus in winning new small business customers, but we are also focused on winning new mid-market customers through industry additions and accountants.

Next, our existing installed base. We will build on our progress migrating and upgrading our existing installed base to our mid-market offerings through continuing to expand our go-to-market and our expert-led onboarding. And we are making very strong progress, compounding growth through greater services adoption. Our mid-market lineup is built to support all 3 of these levers from QuickBooks Online Advanced to Intuit Enterprise Suite and Intuit Accountant Suite, which I'll dive into more as well. Let me take you through each. First, QuickBooks Online Advanced is the all-in-one solution for emerging mid-market businesses. These businesses are growing fast, but they have small teams. They may still only have a part-time controller or a fractional CFO. And the last thing they want to do is have to hire an army of people to continue to scale their business.

So what they want is everything in one place without a heavy implementation or ongoing integration costs. And as David mentioned, this is exactly what we've delivered with Advanced, an integrated solution with payments, bill pay, capital, payroll, all integrated into the platform and importantly, into one simple offering. And we see the results already in customer adoption of services in advanced. Payroll penetration is 13 points higher and payments penetration is 9 points higher in advanced than in our other offerings. So this is really working. For Intuit Enterprise Suite, 2 years since launch, we have built an enterprise-ready platform with the capabilities that complex businesses need to both stay and grow with us, which is an incredibly important part of our strategy as well as to adopt our platform. Multi-entity consolidation, multicurrency, dimensions, custom controls and industry depth from the chart of accounts to relevant KPIs.

What I hear from every single CFO and finance team that has adopted Intuit Enterprise Suite is that it's their financial command center. It gives them one live view of the business to make the best decision every single day. I talked to a CFO last week of a franchise business in Hawaii, and he said moving to Intuit Enterprise Suite was like going from the rotary phone to a smartphone. So great analogy. AI agents are built in running month-end close reconciliation and accruals agentically. We actually see a 75% monthly engagement with Intuit Intelligence in IAS. And soon, businesses will be able to customize and build their own AI agents. You saw Agent Studio for the job specific to how their business works. So we are seeing meaningful ARPC growth with 2x uplift in revenue from upgraders compounded by the growth in payroll and payments penetration that's 22 points and 19 points higher, respectively, in IAS than in other offerings.

So let's go deeper on industry for a minute and why it matters so much for mid-market. It actually represents a $30 billion opportunity within our overall mid-market TAM. Mid-market businesses have industry-specific needs that are driven by their business model and their operations. So for example, nonprofits have to manage and report on grants. Manufacturing businesses need inventory accounting. And construction businesses have diverse contracts. They may have milestone or progress-based billing, and they have to manage complex payments to their subcontractors. So what this means is historically, they've had to adopt vertical point solutions or legacy ERPs. And accountants also specialize and go to market by industry, and they recommend technology platforms based on industry fit.

So we have early proof already of how we can accelerate customer growth by launching our new construction mid-market offering. We purpose-built this offering for how the industry actually works, job costing, project budgets, retainage, AIA style billing are all built in, and we built a dedicated go-to-market from demand creation to sales to customer success. In our first 6 months in market, we have seen a clear acceleration. QuickBooks Advanced saw an incremental 19 points of customer growth in construction. And IAS saw a 20% increase in new construction contracts. So this gives us confidence that industry-specific innovation will be a meaningful lever for new customer growth in the mid-market, and we're moving quickly to scale this approach to other large verticals like nonprofit and manufacturing.

We also continue to accelerate mid-market through our go-to-market expansion. We win on differentiated experience, lower cost and total cost of ownership. In sales, dedicated industry and money sellers tripled our sales productivity over the past year. And our demand engine is also maturing. Marketing sourced new-to-franchise IAS contracts also tripled over the last year. And experience continues to be a meaningful differentiator as we scale. We are delivering speed to value realization with our customer success motion. In fact, over 70% of new IAS customers adopt 4 or more unique capabilities of IAS in their first 90 days on the platform. So if you compare this to other ERPs that take 6 months, cost $60,000 and have a 50% failure rate of even getting to the starting line of adoption, we are clearly providing a truly differentiated experience.

As we've discussed, accountants are an important part of scaling mid-market with over 70% of mid-market businesses working with an external accountant. This year, 25% of our new IAS contracts came from accountant referrals. And we are focused on expanding our partnerships, particularly with the top firms where we have a lot of room to grow together in the mid-market. Accountants have long worked in QuickBooks and Intuit Enterprise Suite for bookkeeping. And as Arundhati showed you, this year, we launched Accountant Suite, which is a dedicated experience that is incredibly importantly built on the same platform. It takes firms beyond bookkeeping that they've historically done in our products, delivering automation, client insights and relevant benchmarks both across their portfolio and specific to each client so that they can actually grow their advisory practices.

Accountant Suite naturally works seamlessly with QuickBooks and Intuit Enterprise Suite because it's built on the same platform, but we will also integrate with third-party GLs and ERPs to give firms true end-to-end visibility, automation and intelligence across their entire client portfolio. Firms will also be able to turn their expertise into new revenue streams by distributing branded KPIs and dashboards directly to their clients in QuickBooks and IES. And as you saw very soon, building and managing custom agents on behalf of their clients. This distribution of firm-branded dashboards and agents across our platform is uniquely differentiated. All of this is powered by the same Intuit Intelligence that delivers automation and intelligence to businesses.

Fueling accountant success strengthens our network effect. Accountant Suite users spend nearly 30% more time on high-value advisory work. And again, this reinforces their preference for the firm and their clients to run together on our platform. Let's look at Agentic Book Close and Accountant Suite. This is in the hands of select accounting firms today. Again, their hands on it with it today. It will run the month-end close end-to-end following the firm's own standard operating procedures and policies. So the firm remains in control and the agent learns with every close. The early feedback from these firms is that book close enables them to take our technology, their expertise and automation and free up their associates' time for advisory work and deeper connection with their clients. So let's see it in action. Arundhati showed you a little bit of Intuit Accountant Suite, but please welcome me in joining Wyatt Jenkins, who will show you how IES and AccountantSuite work together to accelerate mid-market.

Everyone. My name is Wyatt Jenkins. I'm the Head of Product for the mid-market here at Intuit. And I want to show you how incredible it can be when a mid-market business and the accounting firm that serve them are working from the same financial unified platform. When this happens, it creates a durable network effect where every interaction creates value on both sides. I'm going to start today by showing you how we're serving accountants. As Ashley mentioned, Accountant Suite has over 150,000 accounting firms on it today.

Then I'm going to switch gears and show you Intuit Enterprise Suite. In just 2 years from its inception, we're now at about $146 million in annualized revenue. So for a mid-market accounting -- or sorry, for a mid-market company, migrating to an ERP is a big decision. And for that reason, accountants are critical to helping make that decision. Today, we see 25% of new contracts to IES be accountant-driven. Let me show you how we're going to take and make that migration decision a lot easier within Accountant Suite. So right now, we can actually alert an accounting firm or an accountant at a firm that this particular customer is ready to graduate. Maybe we see that they have more entities or more locations or higher invoice volume.

And one of the things an accounting firm can do to really differentiate themselves with their client, they can actually build a custom version of Intuit Enterprise Suite. We call these customizations, playbooks. Let's build a playbook. You're going to click here. Playbooks are a great example of a network effect. On one side of the network, a firm is able to differentiate themselves amongst a sea of competition. And on the other side of that, a client is getting a customized version of Intuit Enterprise Suite that's for their industry and for them specifically.

In this example, the firm can type in natural language what they want or they can select from a number of templates for different industries to create a version of Intuit Enterprise Suite. In this example, Intuit Intelligence is actually going to make a recommendation as to what they should do here in construction. Now, when you go into this, Intuit Intelligence is going to start customizing everything, the chart of accounts, the cost codes, custom objects for that particular industry. And if the accounting firm wants, they can drag and drop and customize it further for a specific client. When they click publish, it's going to take this and it's going to push it to a live sandbox. In that sandbox, all of the customers' data is already there.

Now, this is that real magic moment, right? You show up to a meeting with a customized version of Intuit Enterprise Suite just for a customer that's got personalized KPIs, personalized custom objects. That really helps you differentiate. Now, if you haven't seen Enterprise Suite in a while, it's really grown up. This is that CFO command center that shows you a consolidated view of all your entities in one spot. You can dig in deep and look at different entities, different dashboards. Over here, you've got our multicurrency conversions. You can see the power of dimensions come to life within Intuit Enterprise Suite. This is job costing by cost group, which allows you to slice and dice the data any way you want.

Over here in the activity feed, you can see agents actively working on your behalf. And as we mentioned with Agent Studio, some of those agents created by your accounting firm. Below that, you can see embedded money offerings. All this is now live in Intuit Enterprise Suite. So I just walked you through the value of a playbook, the ability to customize. You can tailor it once, and then you can take that same template and you can apply it to multiple clients. Now, I want to walk you through Agent Studio. For Agent Studio, our go-to-market motion is a forward deploy. That means engineers at Intuit are going to go sit inside of accounting firms and stand it up and make sure it works great. We are currently deployed into 20 of the top accounting firms in the United States. Let's take a look at Agent Studio inside of Accountant Suite. So here, you can see there are agents that are built for the practice. This helps the practice be more efficient internally. But then you can also see agents that are deployed into clients' experiences.

Now, we are starting to hear about accounting firms create a new revenue stream by building and maintaining agents on behalf of their clients. It's an exciting time. Let's create an agent together. Here, you're going to click create agent. In this case, we're going to build a construction retainage agent. In order to do that, you're going to need the billing schedule, you're going to need contract. When you do this and you describe the agent that you want to create and you click go, Intuit Intelligence is going to get to work of building out this agent. And this combines our vertical depth and data with the firm's data, firms have been serving construction companies a very long time. So it's a combination of those 2 that make it really exciting.

The result is a fully customizable agent that you can build in just a few minutes to take over a workflow that might have taken a client days or weeks to go hunt down all the data for all the different construction projects that they're on. Now with this, you can deploy it to a single client or you can deploy that same agent to multiple clients and customize it for each one. After you save the agent, let's go back over to the client experience. Now the client -- the construction customer is going to log in, and they're going to see this agent working on their behalf, saving them time and money.

All right. For lots of customers in the mid-market, tracking something like retainage is so painful. I know this firsthand. Every single contract, you have to hold a little bit of money back until you hit a certain milestone. And if you're working on 100 contracts at the same time, 100 different projects, it gets very complicated from a cash flow perspective. Okay. Let's talk about Intuit Enterprise Suite and some of the industry depth that we want to offer. So one of the keys to growth is the depth. As you move upmarket, you're rewarded for deeply understanding the industry and the different workflows in that industry. Now we've already talked about construction. We're very excited about the results. So I wanted to switch gears and talk to you about a few industries that are coming soon.

Let's start with manufacturing. Now in manufacturing, one of the key problems is that all of your operational data where you're actually making the products are in a bunch of systems and all of your accounting data is in the back-office systems. And what this means for the CFO, is it the last one to know when a new product is unprofitable or when things go off the rails. Well, in our new manufacturing eddition coming soon, we have a native production and inventory feature set that's built directly Intuit Enterprise Suite, bill of materials, manufacturing orders, multi-location inventory, all of that is built in and tied directly to the GL.

Let's switch gears to one more industry, nonprofit. One of the hardest problems to solve in nonprofit is the fact that all the money you get has strings attached. Most grants and donations can only be spent in a very specific way. Every transaction has to be coded to the right way. This lets you move money from restricted to unrestricted as it gets spent. Our nonprofit edition, which is currently in pilot, automates fund accounting inside Intuit Enterprise Suite. It releases restricted money to unrestricted and it allows you to tag every single transaction in a way that you can build all the audits and the reports to your funders that you need to run the business.

One more exciting opportunity for us in the mid-market is franchise. There are over 3,500 franchisors in the United States, and they each bring a network of franchisees into QuickBooks Advanced and Intuit Enterprise Suite. Our franchisor console will give a single pane of glass that works across the network of franchisees. There's really 3 key benefits. Number one, you can standardize everything like the chart of accounts in terms of all your franchisees. This gives you an apples-to-apples comparison of how those businesses are operating. Number two, you can streamline cash flow and royalties between the franchisees and the franchisors. And number three, and very important, we can use AI to surface benefits across your network of franchisees in ways that very few companies can. So we're really, really excited about the new franchisor console. We can't wait to bring this to market.

All right. Wrapping up, everything you saw today is Intuit Intelligence in action, and it's a big part of how we're going to win in the mid-market. We are going to serve businesses and the accounting firms that guide them along the way. When you have both of them on the same platform, it creates that network effect. It doesn't just help existing customers, it also drives new to the franchise because accounting firms are helping customers make decisions about what they buy. Today, 70% of mid-market clients have an accountant attached, which is proof that, that 2-sided model is working. We believe this network effect not only helps businesses grow, but it also helps the accounting firms who guide them along the way.

Thanks for your time. I want to kick it over to David.

Thank you, Wyatt. We are going to end with where we started. I want to get back to our key takeaways. There's really 4 things that are essential if you've taken away anything from our plan today, anything from the energy, the demos, it's really these 4 things. We are going to scale consumption and engagement of Intuit Intelligence across the platform. We're going to reaccelerate growth through the expanded lineup and really driving share and retention in our core. We're going to embed money experiences deeply to drive adoption and drive ARPC growth. And we're going to fuel our mid-market success by winning new customers with things like the industry editions you just heard about as well as the accountant network.

Now that brings us to our long-term expectations. 10% to 15% compound annual revenue growth over the next 3 years for the business platform. We have all the growth levers available, volume, mix and price, and we're being prudent in the contribution that we assume from each. Our focus now is all about execution, expand market share, drive higher ARPC and build durable growth for the long term. Thank you.

And with that, I'd love to welcome Kendra back on stage.

All right. Thank you, David. Thank you, all our presenters so far. Before we go to a break, I just want to let you know that the snacks you're about to enjoy, coffee this morning, dessert you'll see later, it's all from small businesses that we support. And I know probably like many of you, I had an early wake-up call. So Tico Coffee Roasters was especially nice this morning. There's another one of my favorites. These Ashley's confections has -- they have these sour gummy candies that are really good. So I hope they have those today, too. With that, we are going to take a 10-minute break. Please enjoy the treats, and I will see you right back here in 10 minutes. Thanks.

All right. Believe it or not, that was 10 minutes. So please come take your seat. As everyone is coming back over, grabbing those last snacks, one quick announcement before we jump back in. After today's event, my team is going to send out a survey request. And I do ask, please fill that out. For those of you that know me, you know that I do appreciate feedback, both positive and constructive. So please share any feedback you have on the events. We do genuinely review it and think about how we can improve the experience, the day, the content, everything for you all in future years as well. So be on the lookout for the survey.

With that, as everyone is coming back to their seats, we're going to jump back into the consumer platform. And so I am pleased to introduce the Head of our Consumer business, Mark Notarainni.

All right. Good morning, everybody. I'm Mark Notarainni. I'm the Executive Vice President and the General Manager of our Consumer Group. And along with my colleague, Nick Soukas, our Head of Commercialization, we are here to share with you over the next 30 to 35 minutes our game plan to win in the consumer platform. And as we go through this session, there are 3 critical takeaways we'd love you to leave with. One, we are scaling the consumer platform. That means we are transforming Credit Karma into that daily active front door for customers to make decisions across money, tax and personal finance.

Two, we are evolving our tax growth model. We have aggressive plans to recapture DIY share and grow lifetime value with our customers. And three, we are going to expand assisted tax with a breakthrough AI-native service experiences, transparent and disruptive pricing and an expansion of our local presence. The opportunity ahead is significant. Our job now is to translate that opportunity into more customers, more share and a deeper, more valuable relationship with our customers.

Let's take a look back at fiscal year '26. The Consumer Group grew 11% to $8.6 billion, driven by our assisted tax and Credit Karma franchise. We did, however, lose 1 point of IRS share. And that means that our DIY do-it-yourself franchise did not grow at the pace that we needed. I'm going to unpack that a little bit later in the presentation. But first, I want to talk about how we're going to position the consumer platform for durable growth. First, our consumer platform actually creates more value the more our customers engage with it. Our strategy is to grow significantly our relationships with customers in that platform. And that's why Credit Karma Money will become that front door for customers' money, tax and personal financial needs.

Second, Assisted is working, but the next phase of growth for Assisted is going to be driven by an AI-native service experience, disruptive and transparent pricing models and expansion into our local markets. And finally, we will unlock our DIY funnel by aggressively competing for price-sensitive customers, growing share, rebuilding our DIY funnel and optimizing for long-term customer value. And our equation is no different than the rest of Intuit. But for the Consumer Group, what this means is we will continue to accelerate our money, assisted tax and personal finance, which is driving real momentum and has still significant headroom for growth. But in order for us to drive durable growth, we have to recapture the momentum that we've had in winning DIY customers. And the opportunity is real.

Consumers today really struggle making these financial decisions because the market is a market full of fragmented, disconnected experiences. And that fragmentation actually costs customers time and more importantly, money. Our opportunity is to eliminate that complexity by building one consumer platform powered by Intuit Intelligence. And we are maniacally focused on delivering on our customers' most pressing needs as it comes to managing their personal finances. This opportunity and these problems traverse every household in the markets that we serve. And that's why our vision is to be the financial assistant that helps our customers make smarter financial decisions and put more money in our customers' pockets. This is not another dashboard. This is not more information for a customer to process. This is delivering trusted guidance, done-for-you experiences and delivering tangible benefits, more money, less work and complete confidence in the decisions that they need to make.

And our customers need this personalized guidance across the full spectrum of decisions they may make -- they must make daily, weekly, annually and periodically when they make big high-ticket, high-value decisions. The Intuit platform and the Intuit Intelligence compounds that customer benefit and monetization over that full spectrum. Our richer data sets sharpens our personalization, better personalization drives engagement. Engagement leads to more monetization opportunity, and it all culminates with putting more money in our customers' pockets. This is the power of Intuit Intelligence and leads me to our 3 strategic priorities.

We are completely focused on our North Star. We are putting more money in our customers' pockets, 3 strategies or 3 priorities with 1 connected growth strategy. We're going to scale the consumer platform, evolve the tax growth model and expand assisted. And with the consumer platform, we can acquire a broader set of customers. With tax, there's a high engagement, high moment of time for us to engage with customers. And with assisted tax, we're able to serve more complex customers at materially higher customer value. And with Credit Karma, we have a front door to our full ecosystem of products and services, whether you're trying to maximize your tax refund at tax time, you're trying to understand and know where you stand at any moment in time with our connected accounts or maybe you're one of the 57% of our Credit Karma members that's trying to consolidate very expensive revolving debt. This is a connected platform with shared data powered by Intuit Intelligence. So let me talk about our first priority.

Our first priority is all about scaling the consumer platform. That means making Credit Karma the year-round front door financial home. We will do that by providing personalized insights and information to customers and more importantly, personalized actions based on their data and their situation. Additionally, we can turn those -- that financial context into a proactive tax engagement moment because we will see when spending patterns change or income levels change or a customer has a life event, we'll be able to identify when is the right opportunity to ensure the customer knows that we have their back at tax time. And finally, we will deepen our relationships by building out our money products, our banking services, loan products and our personal finance platform through an excellent network of incredible partners.

This will allow us to scale and create a daily active loop through banking services, where we're engaged with our customers every day. That insight builds as we engage with those customers, and that leads to more trusted guidance into bigger ticket items like consolidating debt or refinancing a home or potentially refinancing your auto and is an on-ramp to other embedded services. And this is a fundamental transformation in our business model. It's moving us away from a business model that was focused on a seasonal business that came once a year and interacted with customers once per year to a consumer platform that provides year-round consumer financial solutions.

With that, we're able to move from maximizing the revenue per customer at a transactional level, specifically around tax time, to being able to grow tax customers and expanding the lifetime value by driving cross-platform adoption. This is a massive unlock for us. And it's a product that's going from siloed products with limited connectivity and continuity to an integrated experiences based on data powered by the Intuit Intelligence system. And we will be able -- you will be able to measure our success through 3 connected metrics. First, how many of our customers are we monetizing across the platform. That's our platform customer model. Our platform customers grew 2% last year to 37.4 million.

Second metric, how are we creating value within each one of those customers? And that value is measured by our average revenue per platform customer, which last year grew 11% to $198. And of course, in order for us to return to a durable growth model, are we gaining share of IRS e-files year in and year out? This is how we will look at the success of our business and transforming into that one consumer platform. So how are we going to grow e-file share? That takes us to our second priority. We must evolve the tax model. And that starts by broadening our DIY lineup with a low-cost Credit Karma tax product. This product is intentionally designed to be simple, transparent and is designed to acquire those price-sensitive customers. We will also use DIY as an acquisition onto a lifetime value with customers. This on-ramp will allow us to prioritize customer and e-file growth over maximizing ARPC on the initial tax transaction. This allows us to grow value through the platform and the offers that we have with CK Money and Personal Finance.

And finally, we are going to scale our distribution. Alex showed you some of the distribution into the frontier LLMs, but we are not stopping there. We are embedding TurboTax in payroll and fintech platforms so that we meet customers where their tax journey starts. And we have exciting proof points this year that this new acquisition model can work. In tax year '25, we deployed Credit Karma Tax as a pilot. And what we saw was very encouraging for us. It drove 80% customer incrementality. That means that this value proposition is working in driving customer acquisition with customers that we would otherwise have lost. The other data point is that 34% of the Credit Karma Tax Gen Z customers were new to the Credit Karma platform, again, showing for us that we can use that tax moment to bring more customers into our broader consumer portfolio. And this expanded line-up allows us to compete across the entire tax spectrum.

Credit Karma will lead with a simple, free first proposition, acquiring and focused on price-sensitive customers. TurboTax, our TurboTax DIY product lineup is designed to help those customers with growing and growing complexity in their tax situations. And then TurboTax Expert Assist and Full Service is designed to acquire those customers that are seeking the confidence of an expert. And this year, because we are deploying an AI-native experience, we're going to be able to expand the single most valuable component of that interaction, which is the signature of an expert deeper into our expert assist products. This is truly going to open up our opportunities to serve more assisted customers.

More on that later when I go through our third priority. But let me just take a little bit of a deeper dive into Credit Karma Tax. This year, we delivered a product that was simple and transparent, $0 for federal return and $15 for your state with no interruptive upsells. We also built this natively in Credit Karma, which means that it's a one-click seamless start experience, bringing over all your data, making for a delightfully simple tax filing experience. And what's really important is that we saw this as an on-ramp to a greater lifetime value with customers as they're natively embedded within Credit Karma and will consume Credit Karma money products, personal finance products and ultimately, as their life changes, be able to consume assisted taxes.

And I shared with you evidence that we had during the tax season, but this product is already deployed 100% into our Credit Karma platform. And what we're seeing today is that it's delivering the highest product recommendation score that we have in our entire DIY product portfolio. We're very excited about the role that Credit Karma Tax is going to play in acquiring those price-sensitive customers. Which leads me to our last priority, expanding assisted tax. We are going to unlock scale because we are going to be an AI-native service experience with disruptive and transparent pricing. Nick is going to show you how that product is going to come to life. Very excited about the progress that the team has made here.

Second, we are going to expand our local presence by north of 30% and we're going to increase our presence in priority markets, specifically around the country. And finally, we'll be deepening our relationships with our customers beyond filing. This means for a services-based product, enabling our customers to prebook and preschedule their time with their expert or maybe have a midyear check-in with that expert or be available for any proactive engagement in the moment that you might have one of those life events where you just want to ask a question.

And we have significant momentum in assisted tax. Last year, we nearly doubled our assisted share. Additionally, we learned that our transparent value-based pricing with our $150 offer attracts new customers. 25% of our full service growth came to us because of that transparent price offer. Our job here is to scale and reach more customers. And we're enabled by the Intuit Intelligence System that is across Intuit to be able to reach customers in new and exciting ways.

And with that, I'm going to turn it over to Nick, so he can show you how this whole innovation comes to life in our products.

Thanks, Mark. I'm Nick Soukas, Senior Vice President of Commercialization for our Consumer Group. Mark just laid out our consumer strategy. And now I'm going to show you how our financial system of intelligence brings it to life through 2 customer journeys. First, we'll follow Daniel, whose journey shows how we're evolving our tax growth model to win DIY customers beyond tax season using TurboTax and Credit Karma as 2 powerful entry points into a year-round financial relationship.

Daniel is 23. He earns less than $50,000 a year and is one of 60 million Americans navigating the early stages of their financial lives. Daniel was recently blindsided by a $10,000 emergency vet bill, and he maxed out his credit card to cover the cost. Overwhelmed, he turns to TikTok for advice. And he's surprised to see that others are using Credit Karma to pay off their debt. While he's used Credit Karma in the past to check his credit scores, that's the only thing he's used it for. When he enters Credit Karma, he sees that the homepage looks different. His account balances, spending and scores are all together in one place. Daniel had previously connected his accounts, and so his dashboard is populated and already working for him. Soon, he'll be able to see our new AI-generated weekly financial insight, where he can tap View Recap for a summary of his spending and a deeper look into his debt situation.

In this case, Daniel still has questions, and so he asks Credit Karma Intelligence for help. Credit Karma Intelligence proposes a personalized plan to pay off his debt, leveraging our debt agent. And because our financial system of intelligence understands Daniel's deeper financial picture, we can provide this level of tailored advice. He taps Build My Debt Plan, and we generate a plan that accelerates his payoff date by over a year through a 0% APR balance transfer credit card. Now we don't just tell Daniel what to do. We help him act. He taps Activate Plan, and he's routed directly to the application. This card reduces his payments through lower interest powered by Lightbox, our proprietary technology that allows partners to offer highly personalized rates directly on our platform.

He taps confirm directly in the chat. And upon completing his application, he's quickly approved. Daniel's journey is one example of the scale that we're already driving as a platform. Today, approximately 1 out of every 9 credit card approvals and personal loan originations in the U.S. comes through our AI-powered platform. But for Daniel, approval is just the beginning. Year-round, Daniel also has insights from Credit Karma about his cash flow. In this case, flagging increased spending on Amazon. He can tap into for a deeper look into the breakdown of these expenses or he can simply ask for coaching about his personal financial situation. In this case, Daniel would like to visit his baby niece, but doesn't know whether it will set him back in his debt journey.

Credit Karma Intelligence looks across his debt plan, his spending and the trip costs to provide a recommendation, knowing his spending habits. It recommends traveling in May and opening a Credit Karma savings account to save for the trip instead of using his balance transfer card. Now Daniel can feel confident in his financial decisions because the recommendations that Credit Karma is providing are backed by his broader financial context. And when tax season comes around, Credit Karma will be there to support Daniel in getting his maximum refund and his money fast. Credit Karma Intelligence sends a notification that it's that time of year. It includes an estimate of his refund directly within the notification. And because we've been his savings partner all year long, when Daniel taps in, he sees Credit Karma taxes, our new completely free federal tax filing experience, where most of the work is already done for Daniel.

Credit Karma Taxes is already generating 80% incrementality and higher monetization and product recommendation scores than TurboTax Free Edition. Daniel decides that he's going to complete his taxes within Credit Karma. He sees his refund. And next, he decides how he wants to direct it. He chooses to put it into a Credit Karma checking account, where we can help him optimize his refund by recommending that he put it into a Credit Karma savings account for his next financial emergency. This is our consumer platform flywheel at work.

Now let's see how the same platform is uniquely positioned to generate new to the franchise growth through assisted tax and our trusted AI and human intelligence. Every year, 14 million assisted filers, that's people who are already paying a Pro to do their taxes, shop for a new one and about 1/3 of that switching is driven by price. Mariah is one such potential customer. She's 44, a physician's assistant and has used a CPA for years. Mariah wants to do more of the work herself, but she still wants an expert to validate, Sign and File at the end. So she decides to do some research. Thanks to our 75% AI answer presence, higher by 35 points versus the next competitor and on par with IRS.gov, we can meet Mariah where she is, such as her LLM of choice. She types her query around finding a CPA alternative and views the response. She taps the top option, which takes her to turbotax.com, where she sees a completely new offering leveraging AI to do taxes on her own, but still with an expert who reviews and signs backed by their guarantee.

She taps to get a personalized quote, answers a few questions about her tax situation, such as the states she'll file in and also her cash flow sources. And then she gets a personalized upfront price quote, nearly $100 cheaper than what she paid a Pro last year. Now what you're about to see is not full service, where an expert completes the preparation end-to-end. It's called sign and file, and it's what Mark mentioned earlier. This is an AI-native virtual experience where the customer prepares their return using AI. Then a trusted human expert reviews, signs and takes accountability for the outcome.

Mariah is intrigued, so she taps to get started. She creates her account and our immersive AI guides her through her return. She shares her tax documents by securely connecting her accounts, which in turn creates a shared data foundation. And now, the AI automates all of the preparation for Mariah . And when it's finished, it surfaces insights to let her know that it's done the work on her behalf and gotten her, her maximum outcome. At any point, Mariah can choose to ask a question by simply typing it directly in the AI chat interface. In this case, why did I get two 1098s? No more searching on the side or waiting for her CPA to respond. At this point, Mariah can choose to talk to an expert, but she's pretty clear on the response and she chooses to keep going.

Next, she completes her taxes directly in the AI interface and selects Review My Return. The AI performs a comprehensive check before showing her her refund. And now Mariah is ready for the added reassurance of an expert check. So she hands her return off to Sergio. This shift allows us to meaningfully scale our human experts through automated preparation. Coming soon, the AI prepares the return and the expert applies judgment and takes accountability at scale, enabling competitive pricing as a powerful differentiator.

Mariah can track Sergio's progress at any time on her return. She can see the changes he made and also review his notes on her file. She can choose to speak with him now, but she's actually comfortable with the changes, accepts them and proceeds. Next, she decides how she wants to direct her refund and sees an option for a TurboTax refund advance deposited directly into a Credit Karma checking account. This grants her expedited access to her funds, and so she chooses this option. She sees her previously quoted upfront price and chooses to pay with her expected refund.

And now Sergio does what AI cannot. After reviewing her return, he signs and files it, accepting accountability for the outcome. But the tax return is just the beginning because now Mariah has year-round access to a tax expert, including the suggested midyear check-in to keep her on track. And just like that, Mariah's refund lands in her Credit Karma checking account, kickstarting her broader relationship with our platform. From here, her relationship with Credit Karma continues just like Daniel's, 2 different customers, 2 different front doors, one consumer platform, powered by a financial system of intelligence. Both Mariah and Daniel show us how we're winning customers earlier, we're monetizing the full relationship beyond a single tax moment and getting smarter with every interaction. That's the flywheel. More customers, deeper relationships and durable growth for the consumer platform, where we already have 37 million customers and average revenue per platform customer growing 11%. Now I'll turn it back to Mark.

All right. Well, we are truly excited about the opportunity we have as a consumer platform to change our customers' financial lives. But I'm going to start -- I'm going to go back to where I started. We have 3 critical priority areas. This year, we will scale the consumer platform, making Credit Karma that front door to those critical decisions around money, tax and personal finance. Two, we are going to evolve our tax growth model by aggressively aggressively engaging with those price-sensitive customers, building our funnel, growing our share and growing lifetime customer value. And finally, we are going to transform Assisted Tax and expand our tax product. We're going to grow our tax acquisition of new-to-the-franchise customers with an AI-native experience, disruptive and transparent pricing and expansion into our local markets that matter most.

The opportunity is real, and we have proof points across each one of these strategic priorities. However, we have a lot of work ahead, and we are maniacally focused on executing for this upcoming tax season. With that, the consumer segment is going to grow 4% to 8% compounded annual revenue growth rate over the next 3 years, driven by 3 things: share gains in IRS e-files, scaling Assisted Tax and deepening those relationships with our customers across Credit Karma. In the near term, customer growth, we believe, will outpace ARPC. But as we rebuild our funnel, ARPC will become a contribution to increasing our growth over time. Now with that, I'm going to turn it over to Sandeep. Thank you.

Good morning, everybody. Nice to see you here on our campus. Thank you for spending part of your day with us and your continued support of Intuit. Today, I'm going to cover the 4 things that drive my confidence in the strength and the durability of Intuit's financial model. It starts with the Big Bets, each one of them growing north of 30%, together, representing about 30% of the company's revenue and having ample opportunity to continue to deliver strong growth across the $300 billion addressable market. It's our focus on accelerating customer growth, ensuring we are building a durable long-term growth franchise as these new customers continue to deepen their engagement across the platform.

It's our track record of being disciplined operators, investing in growth while expanding margins. And it's our stewardship of shareholder capital, continuing to do consistent dividend increases as well as returning capital through buybacks. When we met last year this time, I shared with you all the objectives for the year ahead. At the overall company level, we had a strong fiscal '26 across growth, profitability and cash generation. Intuit's overall revenues grew 14%, surpassing $21 billion in revenue. Our Business platform grew 18%, 16%, including Mailchimp, and Consumer platform grew 11%. With a focus of investing for durable growth while driving margin expansion, we grew our GAAP operating income and EPS 20%.

We had strong cash flow generation and returned nearly 80% of that cash to shareholders through dividends and buybacks. While we delivered on our financial commitments at the overall company level, we did not meet our expectations of performance in tax and customer growth. That performance in fiscal '26 solidified the foundation in many ways and also highlighted areas where we need to continue to evolve. Those areas include accelerating customer growth, deepening the engagement customers have across the platform and continuing to be disciplined in investing in growth while expanding margins.

Our approach to operating the company has been guided by the financial principle, and this remains durable. Our top priority is operating to organic double-digit revenue growth. I see ample opportunity across a massive $300 billion addressable market for us to deliver on this principle for years to come. We want to make sure as we're scaling the business, we are leaning into efficiencies, economies of scale to expand margin, leading to operating income growing faster than revenue. We want to be disciplined in how we deploy our capital, organic growth being our top priority, while we're disciplined about pursuing M&A where it makes sense and it meets our ROI thresholds.

We want to maintain operational flexibility, ensure that we're leaning into it from a position of strength regardless of the macroeconomic environment. And finally, continue to be good stewards of shareholder capital, leaning into consistent dividend increases and buybacks. With a 7% penetration across the $300 billion addressable market, we have ample opportunity to continue to grow. This opportunity is broad across both our Business and our Consumer platform across multiple customer needs that we are well situated to address.

The Big Bets are the keys to unlocking this opportunity and capturing more of it comes down to execution. Our Big Bets are delivering at scale. You heard how each one of them are growing north of 30%, but that growth isn't just a 1-year phenomenon. Since fiscal '23, our Big Bets have grown at a compounded annual growth rate of 30%, more than 2x the company's growth. These are no longer emerging businesses. These are delivering at scale today and will continue to do so for years to come. When you step back and look at the Big Bets, what stands out is the breadth of the performance. Each Big Bet is well north of $1 billion, delivering strong outcomes. And these Bets are across multiple customer needs and end markets.

While growing Big Bets is one side of the equation, the other side is growing the scale of the platform that comes down to delivering customer growth. This past year, we did not meet our expectations on customer growth. We lost share in tax. On the Business platform, growth decelerated 2 points. This morning, you heard from Mark, Ashley and David, the actions they are implementing to reaccelerate customer growth. While the actions differ by market, the core strategy comes under 3 pillars: broadening the front doors. This includes a more competitive, transparent DIY offering, continuing to show up local, includes a broader lineup in our business platform and a broader distribution to meet the customers where they are.

It's focusing on the priority cohorts, including switchers, non-consumptive businesses and price-sensitive consumers looking to engage across the platform. And it's continuing to deepen the customer's relationship across the platform, helping them discover and consume more parts of the platform and as a customer's needs evolve, helping them upgrade to offerings across the platform. Customer growth is a key part of building a durable growth franchise. We have a long track record of compounding ARPC across our platform, across both the Business and the Consumer platform.

On the Business platform, ARPC is north of $1,100. On the Consumer platform is nearly $200. And what stands out when you look at our ARPC trends is that at the upper end of the ARPC across both platforms, we are compounding it at a strong double-digit rate. This is our Big Bets, our platform adoption, our innovation and pricing for value working as it is intended to. What also stands out is at the lower end of the band, we are shrinking. And this is why we have a renewed focus on accelerating customer growth to refill those lower bands that over time will compound into higher ARPC. That is a key to a durable double-digit organic growth franchise.

As you heard this morning, the strategy is pretty straightforward. Scale Big Bets, accelerate customer growth. And our financial model is set up to fund both of these for success. Now let's connect the growth strategy to the financial outcomes. Our track record of being disciplined operators has led to strong growth. Since fiscal '23, revenues have grown at a compounded annual growth rate of 14%. Our approach of leaning into efficiencies, improving unit economics while investing in growth led to margin expanding over 5.5 points in the same time, driving operating income on a GAAP basis at a 23% compounded annual growth rate. This is a snapshot of Intuit's financial model, deliver strong growth, invest in what matters for the future and lean into efficiencies and productivity to have operating leverage across the P&L.

That operating leverage shows up across multiple lines. On gross margin, as an example, we expect that to continue to grow over time as model optimization, improvements in unit economics, continue to drive efficiencies, offset higher use of AI in the years ahead. Across our operating expense lines, sales and marketing, R&D, G&A, we expect them to be flat to down over time as we continue to lean into operating as a platform company. The takeaway is very straightforward. Intuit is committed to continuing to drive margin expansion even as our experiences evolve more towards services using AI and human expertise.

AI is a key part of how we innovate and how we drive efficiencies. We spent about $110 million in tokens this past year and saw strong outcomes on that spend using a 4-pronged approach. The first is what Alex touched on, a sophisticated AI optimization layer that matches the model to the outcome, balancing speed, accuracy, risk and cost. Second is the approach to continue to operate as a platform company. We build something once and use it across the entire business. It's a discipline in measuring what matters, ensuring that where we are putting our money, we're getting the ROI that we expected.

And it's our process of testing, building something, experimenting, ensuring there's quality before we start scaling it. And this approach is paying off. Our investments in AI on the tech platforms are paying off at a 4x rate, including saving 85,000 developer days and increasing our velocity of coding by 40%. Investments in AI and automation in our customer success organization drove over $135 million of savings this past year. And having an AI-first approach to customer support allowed us to address the overwhelming majority of customer outreach without ever escalating to a human expert. These are select examples, but what they highlight is that AI is a core part of how Intuit drives efficiencies and accelerates its velocity of innovation.

We are also making meaningful progress reducing stock-based compensation. It is down several points since fiscal '23, and we are committed to bringing it down to 8% of revenue by 2030, while we continue to attract and retain top talent. Stock-based compensation is a recurring expense, and we're disciplined about how we allocate it. Therefore, going forward, it is included in all our non-GAAP measures. Our approach to running the business has yielded strong earnings growth. Since fiscal '23, GAAP EPS has grown at a compounded annual growth rate of 25%. Majority of this growth came from solid revenue growth and margin expansion, while buybacks offset dilution from stock-based compensation, and this past year allowed us to reduce our share count by about 2%.

That strong earnings translates into strong free cash flow generation. Free cash flow grew at a compounded annual growth rate of 22% since fiscal '23, 8 points faster than revenue and largely in line with operating income growth. This past year, we delivered 40% free cash flow margin, including a $1.2 billion benefit from tax law changes related to R&D. But even with that context, since fiscal '23, we have delivered $24 billion of free cash flow, giving us ample optionality to invest in the business and return cash to shareholders.

And our approach to allocating our free cash flow follows a very simple sequence. By far, the top priority is investing in organic growth. This includes continuing to invest in scaling our Big Bets and continue to invest in accelerating customer growth. We want to maintain an investment-grade balance sheet and remain highly disciplined about when we pursue inorganic opportunities to meaningfully accelerate our time to market and where they achieve our ROI goals. And excess cash, continue to return that to shareholders, consistent dividend increases and a strong buyback program.

That approach of returning excess cash to shareholders has yielded $17 billion of cash being returned to shareholders since fiscal '23. That's 70% of the free cash flow we generated during that time. This past year, we returned 79% of our free cash flow to shareholders, including a 15% dividend increase and nearly doubling our buybacks. As I look ahead to fiscal '27, we have declared another 15% increase in dividends, and I expect buybacks to play a meaningful role in how we use our excess cash. With that, let me shift to fiscal '27 priorities.

The top priority, as you heard all morning, is building a durable double-digit growth franchise. That comes down to continuing to scale our Big Bets, accelerating customer growth and deepening the engagement those customers have across the platform. It's continuing to be disciplined in how we run this company, investing in what's going to drive growth in the years ahead while using economies of scale, efficiencies and technology to drive margin expansion.

In fiscal '27, we are committed to growing our EPS ahead of our long-term commitment of high teens on a non-GAAP basis, and we will remain disciplined about being good stewards of shareholder capital with dividend increases and a strong buyback program. Now let me touch on guidance. This guidance is consistent with that, which was shared on the August earnings call. At the overall company level, we expect revenue growth of 9% to 10%. That is a step down from the year before, and I'll unpack that momentarily.

On the Business platform, our expectation is revenue growth of 13% to 14%, including a low single-digit decline in our desktop ecosystem as that customer base continues to shrink with customers moving to online offerings. On our Consumer platform, we expect revenue growth of 4% to 6%, including growth of 2% to 3% in TurboTax, where we are making deliberate decisions on the DIY platform to recapture share. On the Credit Karma, we expect revenue growth of 11% to 13% as we make prudent assumptions around how partners continue to increase their spend and how we continue to take increased share of that spend. And going forward, we are also breaking out Mailchimp as a separate reporting segment to drive transparency around how we are managing it for profitability to maximize its value.

Consistent with our financial principles, we are growing operating income and EPS meaningfully faster than revenue, driving margin expansion, including a 440 bps margin expansion on a GAAP basis as we lap the restructuring from the past year and 260 bps margin expansion on the non-GAAP basis. When you step back and reflect on our performance from fiscal '23 to fiscal '26 and the guidance for the year ahead, what stands out is that Intuit is a strong compounder with a focus on driving durable revenue growth, commitment to continue to expand margins. We are delivering operating income and EPS growth meaningfully faster than revenue. This is by design. This is our financial principles working and driving how we make decisions across the company.

We are also reaffirming our long-term expectations. Our priority over the next 3 years is to scale our Big Bets, accelerate customer growth, deepen engagement those customers have with the platform. With that context, we expect our Business platform compounded annual growth rate over the next 3 years to be in the 10% to 15% range. Our Consumer platform's growth to be in the 4% to 8% range. And with our commitment to continuing to accelerate increase margins and continue to share buybacks, we expect our EPS to be -- to grow in the high teens on a non-GAAP basis during that time period.

You heard from us this morning the importance of execution. You heard from Mark, Ashley and David, the actions they have implemented to scale Big Bets, accelerate customer growth and deepen engagement across the platform. This is a scorecard that we use to hold ourselves accountable and that we will report on to you all at a regular cadence so you could continue to underwrite our pace of execution. With that, I'm going to close where I started. The 4 areas that are driving my confidence in the strength and the durability of Intuit's financial model.

It's the Big Bets, the growth they have delivered, the growth they are delivering today, and they will continue to deliver for years to come. It's a renewed focus on accelerating customer growth, something we were exceptional at just a few short years ago, and how that builds a durable long-term growth franchise. It's a track record of being disciplined operators, investing in what matters for the future while driving margin expansion. And it's a stewardship of our shareholders' capital, continuing to do consistent dividend increases and having a strong buyback program. I know we've shared a lot with you all this morning. Why don't we take a 10-minute break for you to gather your thoughts, and then I'll have Sasan join me on stage to take questions from you all. Thank you.

All right. Welcome back. We're going to open it up to your questions, and my amazing friend to my left is going to decide who to call on.

Let's start with Siti Panigrahi since he had his hand up first, and then we go to Brad.

Thanks for hosting us and Kendra and team, great job. And congratulations, Kendra, your first Investor Day here. Question I have, one message I found today. I have 2 questions. Let me start with that and second, I'll have a follow-up. One key message is you're going to focus on new customer acquisition. That's kind of the key message today. And Sasan, you know always that customer acquisition is kind of important for Intuit. You used to grow like 10% to 20% growth. What, kind of, made you not to focus on that earlier? And why you think that now you can refocus it back?

Yes. What happened and why now? Great question. Maybe I'll get us started, Sandeep. First of all, I would tell you that I personally underestimated the amount of focus and change that was required on our Big Bets. The amount of mind share, capital allocation, talent that it took to build out our platform end-to-end to really understand the go-to-market motions, all the innovation that you saw on stage and all of our progress, I totally underestimated what that would take. And that really took an incredible amount of effort in the company.

And remember, to scale our Big Bets, beyond building out the platform, beyond the go-to-market motions, we actually ignited a lot of new-to-the-franchise customer growth in context of our Big Bets. Now we're a meaningfully different place. The talent we have, the way we're organized around the Big Bets and then the progress that we have made. The second thing I would say is, I remember, I think it was 13 years ago, when I went to TurboTax, my charter was to take share. And by the way, back then, we didn't even have Assisted Tax. We didn't have any of the platform capabilities that we have today. And we took 4 to 5 points of share over a 2- to 3-year period. I was given the same charter when I went to the business group, which is take share and grow customers. We didn't have the platform capabilities that we have today.

And the reason I go back to that story is it is incredibly freeing to be clear about now is the time to do both. And I think that's the reason for why now. We have spent 4 or 5 years investing significantly in AI across our platform. It's igniting innovation across the entire company. We've expanded into Assisted Tax meaningfully. We've expanded into mid-market. Money is now the core benefits that we deliver. And now we just got to continue to scale that. And now is the time, but we've been laying the groundwork for the past year to accelerate customer growth. And it's why we chose to reset expectations to accelerate growth.

I wanted to create room for the company. I wanted to create room for my team to not only scale the Bets, but to take share. And the reason that's so important, I recognize it's obvious to say it, but the reason that's so important is when you look at the fact that 75% of the customers that came into the Assisted segment were from our DIY, those are the customers where we took share years ago. When you look at the fact that 75% of customers upgraded into mid-market, and we still have a 700,000 base left to go after, those were customers who were 4 or 5 years ago we took share. And so it's not like we forgot about new customer growth. It's not like we didn't realize it was important.

It was what it took to scale our Bets. And now we have set ourselves up for durable long-term growth by not only scaling our Bets, but going after customer growth and the room that I think I have provided -- we have provided to the company to be able to do both because it is competitively positioning us. We've got great innovation. We now can monetize across the platform. I needed to give the company room to do both, and now we're going to do both.

Yes. And just -- and the follow-up to that, probably either of you can answer is the current investor debate right now is this fiscal '27, is that a deliberate reset or it's, kind of, represents a structurally lower kind of growth rate trajectory for Intuit, all your business. So what do you need to specifically need to happen or you need to see to, kind of, give you that confidence that revenue can again reaccelerate probably to that double-digit growth rate?

Yes. Fiscal '27 is a deliberate reset. Our focus on the 3-year CAGR, as I highlighted, is continue to build upon the momentum we have on the Big Bets, continue to scale them with an increased focus on new-to-the-franchise in the Big Bets. It's a focus on accelerating customer growth. But the other thing, Siti, to complement Sasan's earlier answer, what do we have today that we didn't have 4 or 5 years ago is a true muscle around customer life cycle, marketing and management. We have gotten order management better in helping customers discover and adopt more parts of the platform, helping them upgrade.

That was the ARPC slide and how strong it was compounding the top end. So that is getting the customers in, using the muscle to get them to move up, and that's a journey, hence, the focus on the 3-year areas. So that's what we need to do. I need to demonstrate in fiscal '27 is a pivotal year and demonstrate that our execution is strong across both of those. And once we demonstrate that, I think you'll be much better placed to underwrite the CAGRs going forward. Brad, let's go to you and then we'll come to Adam.

Brad Zelnick, Deutsche Bank. Again, I echo what a wonderful day it always is and especially with Kendra leading the charge. I guess 2 questions. Following Siti's first question, you've been focused on accelerating your Big Bets and developing your upmarket muscle over the last few years. How do you think about ensuring that the organization can focus on adding customers, both up and down market at the same time? And my follow-up for you, Sandeep, is the world seems to be evolving very, very quickly. Can you just talk about the feedback loop that you have that enables you to forecast as accurately as possible in a rapidly changing world and maybe dimensionalize how your guidance accounts for perhaps a wider range of outcomes than in the past?

Maybe I'll -- if I could just take the first one around how are we going to be able to now focus on both. In the past, it was new customer growth only. Now it was the Big Bets. Now we're going to do both. How are you going to do that? And I would say 3 things. One is focus, second is mechanisms, third is monitoring. The focus is -- this is where we've matured so much over the last 4 to 5 years, where we have dedicated teams end-to-end that are single threaded with capital that's been allocated to what has to happen in mid-market. That is -- and I'm using mid-market as an example, that is a very separate team than the team that's chartered with winning customers that are either switchers or business customers that are new to software.

So it's the focus that we've put in place by teams that own different missions, different outcomes because you can't have the same team that owns both. The second is mechanisms. We collectively, and Sandeep and I have mechanisms where I spend my time going deep on products in mid-market and how we're going to win in go-to-market. I spend separate time going deep on the front doors that we talked about today and how are we going to win with QuickBooks Free? How are we going to win with QuickBooks Lite? How are we going to win with money as front doors? So we have mechanisms that are separate from one another that drives the accountability that not only we expect and we talk about with our customers, but to you all.

And then the second or the third is just monitoring. We look at KPIs. You saw what Sandeep talked about at the end. Those are KPIs that we look at on a daily basis that are very specific to what we've communicated to you all. So we've just matured over time where those are the 3 dimensions which allows us and gives us confidence to focus on both dimensions, winning on the high end, but also winning on the low end. Same thing applies to across the Consumer platform.

And on the guidance side, our approach remains durable. We want you all to have the utmost confidence in the guidance we set. And we have looked at the performance. We model out what are the things that we've tested, learned and how they will scale and make sure we have the high confidence in the numbers we put forward. So that's the approach that we took this year, consistent with the approach that we've taken since fiscal '23 when I took the seat.

Appreciate the day and the content as always, it's Michael Turrin with Wells Fargo Securities. You always give us the ARPC slide. And this year, we see the TurboTax Live number came down a touch versus last year and last year and the prior years, there had been a pretty marked improvement. And so I'm just wondering if you can speak more to your views on pricing power that you still have in TurboTax Live as you add functionality. How do you think about that? How you think about the trade-offs of the pricing between DIY and the Live strategy? And if any of that just ties back to the importance that you're articulating with top of funnel and the DIY strategy overall?

Sure. If I may, I'll get us started. So first of all, as you know, when you look at our TAM, the largest part of our TAM is the Assisted segment, which is $35 billion, where we have very low penetration, but product market fit and $5 billion is DIY. Our pricing power in the Assisted segment is unchanged. It is a deliberate intentional strategy to win on experience, to win on immediate access to your money as a consumer and disruptive price. And really, it's because of the investments that we've made over the years across our data layer, across our AI layer that allows us to scale something that is our largest differentiation, which is the human accountability.

In the Assisted segment, the thing that matters most to anyone is sign and take accountability for my return. And when you think about the overhead it takes to pay an expert, the overhead cost that you have outside of an expert, it is very hard to be able to compete at scale at the price in which we are offering, which is $150. But because of all of our investments that we've made in automation and doing the work for our experts, not only can we take share and win at that price with the best experience, but then actually deliver benefits and monetize beyond tax.

Because if you think about what Mark talked about, we finally, based on just the rearchitecture of the platform, have many front doors, but it's one platform, and it's one customer where we understand their data, we understand the contextual behavior and longitudinal data, and we can do now things for them far beyond just taxes. It's money, it's all the financial products. So the punchline is we're being very intentional with our price point. It has nothing to do with the pricing power. We have lots of pricing power in the Assisted segment, but it's actually -- our investments allow us to be the disruptor based on all the investments that we've made, and we're just being very intentional on how we do that. By the way...

Let's go to Kirk. So I'm not accused of just sticking in this and I'll come to you Raimo.

All right. Kirk Materne with Evercore ISI. Can you guys talk about what the realignment of Mailchimp means for 2 things. One, helping your customers grow. You help them manage their business really effectively, but growing was part of that. And then secondly, international. I realize you're taking a different tack with Mailchimp at this point in time, but I'm kind of curious how the strategy might evolve to have more partners that are on the sort of CRM side, if you will. Just if you could talk through that, that would be great.

Yes, for sure. Do you mind if I get to start it? So first and foremost, one of the things that we have done and what's unchanged is the customer problem. And what you saw us talk about earlier, it is really important to solve the quote-to-cash problem end-to-end because at the end of the day, it's about solving it specific to a construction company, manufacturing company, a real estate company. So the customer problem is unchanged. We have now built AI natively within our platform, the ability to be able to manage leads, manage your pipeline. And therefore, that's why the customer problem is unchanged. Our solution has changed, which is it's now built AI natively across the platform.

We started first within the low end and the QuickBooks platform. It's why what I was showing you earlier around quote-to-cash is not only automating everything from managing leads, managing pipeline to invoicing, but by doing that well, it actually drives TPV growth. So we are very invested in the customer problem. We are now currently solving it AI natively, and we'll continue to invest in that area. And secondly, ultimately, our focus with Mailchimp is make sure that we are delivering for customers and running it for profitability. And what we are scaling in QuickBooks is ultimately international. It's not just focused on the U.S.

Yes. Let's carry on Raimo.

Raimo Lenschow from Barclays. And then I know, Adam, you're next, sorry. But if you think about the strategy on low-end tax, you're kind of doing free plus or a little bit more. I can see like a harder business review in a few years because on the one hand, you do free, but on the other hand, as the customers mature, you kind of still have the TurboTax platform. Like how do you make sure that you kind of keep that separation? And how do you kind of manage that journey of the client coming in, growing, all of a sudden, then he needs to start paying more a little bit. That's kind of going to be an interesting one for you.

Yes. Again, let me -- if I could kick it off. I think Mark did a wonderful job walking through sort of in simple terms, we are positioning TurboTax for more complex DIY customers and of course, to go after the assisted segment with TurboTax Live. And we are positioning Credit Karma to go after the price-sensitive simple filers. Now remember, I said TurboTax and Credit Karma, but it's one platform. And 60% of the customers in TurboTax that have defected, they are members in Credit Karma and vice versa. And so while we are very focused on, well, how do we win and what's the positioning of the brand to win on the low end and then with TurboTax to winning on the high end, it's one platform, one data platform, one domain set of workflows and then the orchestration layer that we've built on top so that once we acquire the customers through Credit Karma, as they grow, we can ultimately get them to grow with TurboTax because it's one platform and not distinct platform.

So that's how ultimately we will grow with these customers over time. But it's important that we win these customers today at the right entry price, but then be able to deliver benefits and monetize beyond tax.

Raimo, the only thing I would add is, as Mark shared, when we did the testing, we got 80% net new incremental on CK tax. So our approach, and this was a test like now we're going to execute that much better, is able to separate those for the customers and they're able to come in. The share we did lose on tax, many of those customers are actually active on CK, right? So we can actually capture them there. So keep that in mind. And then also the last couple of years, we've talked about how we build this seamless connection going from Credit Karma to tax. As the customer needs evolve, as they get more complex, as they want to now pay for human accountability, they could seamlessly go into TurboTax and get all that breadth of experience. So I kind of view this as a Toyota and Lexus approach. You could easily upgrade between those 2 platforms.

Adam, I know I had committed a question to you, so let me come to you and maintain my say-do. And then I'll come to you, Taylor.

Better -- sorry, it's Adam Wood from Morgan Stanley. As I said, better make it a good one now, right? So I wanted to dig in, first of all, the Intuit Intelligence platform. I guess -- and this is a big question for the industry in general. As you drive adoption of that encouraging customers to use it and not go too aggressively on the monetization side to cover the cost of that. How do you think about that balance on that platform? And then maybe at the entry-level tax side, that balance between offering the free product and then monetizing outside, could you talk a little bit about how much of the base are taking products outside of tax from you today, what you're looking at to monitor to drive that?

And maybe kind of big picture, just as you go from an aggressive price monetization strategy to more about driving adoption, driving new customers, how do you make sure you don't go too far back the other way and make sure that you keep the revenue targets and so on by addressing the monetization across all of those areas and not go too far with adoption?

Maybe we'll tag -- I'll start with the first part of your question, not to avoid the second part. I don't remember what the second one was. So really important to think about Intuit Intelligence as our platform capability to do 2 things. One is automate. The other is actually to deliver intelligence, and we have to do both. It's not one or the other. So in terms of how do you monetize that, how do you get customers to use it, we're actually not trying to get customers to use it so we can monetize. We're very focused on automation and intelligence.

So what does that mean? One of the things that not only that I show on stage, but really Ashley and David walked through was by automating quote-to-cash, that actually drives higher TPV growth because one of the biggest things that we've learned with all of our innovation in money, all of our money in and money out innovation is sometimes if you're not where the customer is doing the work, you're not going to get the payments. And so by industry, by automating from creating a quote to managing your pipeline to your proposal to your estimate, your invoice, we can drive TPV growth. And that does a couple of things. One, it drives usage of our product. It drives retention, it drives new customer growth, and it drives adoption of our services because, in essence, using our payments is no longer a choice for the customer. We're doing it for them. Of course, they can always approve or decline.

But that's where we see a dramatic impact of what's possible with Intuit Intelligence. Where it's consumptive, just to answer the other part of your question is Agent Studio. Agent Studio is remarkable because it's no longer about build the workflow and hope we've nailed product market fit for the customer to use it. It's actually about the customer in a conversational way, deploying what experience -- creating and deploying what experience that they want. And in the case of what we showed on stage, that was a construction example.

Now what Wyatt walked through on stage to conversationally create a retainage agent for multiple different construction companies based on their bill of materials, based on their proposal and then have the accountant apply that, it takes months for an accountant to do that manually. That's an example of where we talked about it's deployed now with 20 large firms. That drives consumption. If they love it and they want to use it, which they do, that's going to be above and beyond because now they're able to deploy an experience across many, many customers. That same experience we will make available for a business. And what we've learned is if you want to engage on what's my cash flow projection, what's my revenue projection, can you send me a KPI that looks like this on a daily basis, that's where it's consumption driven, and we will be able to monetize over time. And we're seeing the importance of that on our platform.

So that's how we think about the monetization of an Intuit Intelligence. One is just new customer growth, it's adoption of our services, but it's also consumption.

The other thing to keep in mind, Adam, and I'll get to your second question around tax as well, is that we serve small and mid-market customers. They don't have the benefit of investment committees to bounce ideas. They don't have the benefit of I do of an amazing treasury department to help me manage cash flow. So it's not just about putting AI in, it's bringing all that contextual knowledge across the 307 industries we serve to give them really insightful perspectives on capital management.

So in addition to getting TPV, we're deepening their relationship, helping them make better decisions that's leading to better retention, better word of mouth. So this is something that compounds over the years. That's what has me excited about the opportunity with Intuit Intelligence.

Now to get to tax. One thing to keep in mind about tax is the structure of the market and the structure of our future growth. 88% of the market and most of our future growth is going to come from Assisted. We've been doing exceptionally well. The work that we did in Assisted, what's paying off, showing up Local. That continues to compound, right? Every -- this last year, we saw customers come to Local. A lot of them are new to the franchise. Many of them pick assisted. The next year, that does even better. We've been expanding our brand equity towards assisted. All that is going to compound and keep paying off.

We also want to make sure we're refilling the lower end of the funnel, and that's what Sasan highlighted. Those customers are going to go up. Now we have a set of tools across the Consumer platform. I don't need to just rely on monetizing the tax filing experience. We see 35% of those customers see tremendous value in getting fast access to refund, whether it's paying us to get that put into their bank account, whether it's putting that into their Credit Karma Money, then connecting their payroll into Credit Karma Money and that becomes their quasi-bank account they use for going forward. These are things that we've tested. We've got data around, and that's what's giving us the confidence in opening up the aperture on the low end, while we continue to execute lights out on the Assisted side as well. Let's go to Taylor, and then we'll go to Tal Liani or...

Taylor McGinnis with UBS. Thank you all for your time today. You spoke a lot about treating the accountants as customers, but I'm hoping you could unpack the monetization opportunity and potentially how needle moving that could be in the near term. I would imagine that's going to come through a mix of the paid accountant suite as well as use of some of the agentic offerings. But of that 150,000 that are using the accountant suite, how much of that is being monetized today? And how do you see that evolving over time?

Yes. And by the way, this is an area where I spend the majority of my time with large firms and large businesses. And I would say several things. One, the Intuit Accountant Suite that Wyatt walked through, it is a platform built to help a firm run their business, run their practice and ultimately be able to manage all of their clients, even if they are not Intuit customers. We built it in an agnostic way. So ultimately, we can become their data platform because ultimately, what accountants are trying to do is have all their data in one place so that -- and that's what we want them to do so that our Intuit Intelligence capabilities, particularly the intelligence part, the power exponentially goes up because all of their data is in one place.

And when we do that well in context of then giving them the ability with Agent Studio to conversationally create experiences that they want for certain practices, that drives recommendations of QuickBooks, QuickBooks Advanced and Intuit Enterprise Suite. So our largest monetization opportunity is actually to strengthen the network effect because the more that they are leveraging Intuit Accountant Suite to be able to manage their firm and manage advisory services, the more we're seeing that they recommend Advanced and Intuit Enterprise Suite, just to use those as an example. So that is our largest monetization opportunity because, by the way, it also drives switching. When they see the power of Advanced because it's now industry-specific, when they see the power of Intuit Enterprise Suite, drop dead easy compared to any other alternative and it has intelligence, it creates a viral sort of recommendation.

The other that we'll share with you when we have proof points at scale is Agent Studio. So Agent Studio is all monetizable because they're monetizing it because in essence, they're building experiences that are unique for their customers. You may or may not have seen that when Wyatt was going through the demo, when those experiences show up in QuickBooks or Intuit Enterprise Suite, it has the name of the accounting firm on it. So the customer sees the value that the firm is creating and they're willing to pay more for it, and we get to monetize it. So that's the second monetization opportunity. Accountant Suite, if you were to go look online, you'll see a version that's free with core capabilities. You'll see a paid version. Really, our biggest opportunity are the 2 levers that I just articulated.

Let's go to Tal Liani and then Alex Zukin after that.

Tal Liani from Bank of America. I'm trying to think about your strategic challenge in simple terms and 2 sides. On the consumer side, what's the risk that free, you won't be able to monetize it? Meaning over time, the problem only gets bigger with free offerings. And then on the enterprise side or SMB side, I'm trying to articulate the issue. Why is growth slowing? Is it because of AI free again? Or is it because your product wasn't good enough, so you can improve it and then grow -- improve the growth rates going forward?

Yes. So maybe let me take on both of them and again, let's tag team on this. In the business group, it's what we've been articulating, which is we've had tremendous focus on our Big Bets. And our Big Bets around money being core to the offering across our business platform, our investments in Mid-Market are paying off. These are multibillion-dollar growth engines, all growing over 30%. And as I articulated earlier, it has taken an incredible amount of mind share, effort and capital allocation to really, one, infuse AI across all of our platform, but to really win with these Big Bets because think about it, just a handful of years when we declared what we did. We are now in the Assisted Tax market. We are now -- money is now core benefit in our platform versus before it was just tax and accounting. And we're a fairly large player in the Mid-Market, and we're just getting started.

I underestimated how much effort and focus that would take. But today, it's a meaningful part of our company. We're scaling the Bets. We have teams that are very focused on those Bets. So therefore, the reason growth was slowing was because of our focus. It's not because we didn't realize it was important. It wasn't because, I mean, our retention rate in the business group is 83%. That's flat with last year. Our retention rate in -- on tax is 76%. It's down 1 point because of these DIY customers we lost. So our retention rate is very strong. So we scaled our Bets, retention is strong. It was really now a focus on new customer growth with the intent of accelerating growth looking ahead. So that's the way I would think about the -- it's more of an execution focus versus a strategic issue.

The other thing to keep in mind is we have data points that these customers are coming in free. They're seeing tremendous value in other parts of the platform. They have multiple pain points. And previously, we had a tax solution that was independent of the Credit Karma solution. Now we combined them, we have the ability to drive that cross-sell. The thing to keep in mind that I want to also unpack on our Business platform. Traditionally, people come to QuickBooks when they've been in a business more than 2 years, right? They have a set of complexity. And as you heard David and Ashley talk about, people use multiple apps to stitch together their business.

At that point, we're trying to get them to switch from an app, right? And I talked about the priority cohorts being switchers, nonconservative businesses. Well, nonconservative businesses are easier relative to bring on because they're early in their career. We are now seeing entrepreneurial in the era of AI and new starts going up. So we can capture them earlier, the muscle we built to drive their upgrades. These are things we tested. We shared on the earnings call already with our test, we've got 20,000 customers engaging or monetizing. So these are things that actually augment our confidence in it going forward as opposed to being viewed as a strategic worry of sorts.

Alex, let's go to you.

Alex Zukin with Wolfe Research. Thank you for a wonderful presentation today. And again, great job, Kendra. I have kind of, I guess, two and a half questions. Two for you, Sasan, and one for you, Sandeep.

One of them is kind of a variant of the question you got, which is it's very clear your DIY strategy for more customers, right, grow customers and then the enterprise strategy. I wanted to ask Sasan, what gives you the confidence in the era of ChatGPT and some of the other consumer-focused AI platforms that are expanding their breadth that the monetization opportunity is the same as it was down market, where people are -- like that market isn't commoditizing to an extent where it may not be worth it to go that far down market to get customers in both tax and in the very kind of small business side.

And then on the enterprise side, obviously, Dreamforce was this week, a lot of talk in the industry about headless and not necessarily having to own the UX layer. So why or why not? And how do you guys think of that?

And then Sandeep, 30% of the business growing 30%, by my simple math is about 9%, which implies the rest of the business basically very low single-digit growth or flat. Which one of those is conservative versus aggressive? Are you -- where are you providing the space? Is it on the 30% continued growth for the Big Bets? Or is it the very low single-digit growth on the core?

Okay. Let me start with your first 2 questions. And please, if I miss any element of it, let me know. I want to take you back to very briefly what we talked about earlier today, which is our financial intelligence platform, which is all about automating everything for customers and putting the power of intelligence in their pockets. And that is no easy task unless you have what we have and what we've invested in, which is, one, we have decades of permissioned longitudinal data, and it's not generic data, right? It's specific data to every industry, every domain.

The second is the financial and industry workflows that we have, one platform, many apps and workflows, but one platform. And that's important because we're not a one-trick pony. We do everything end-to-end from helping you build credit to building wealth or from lead to cash. And then the orchestration layer that we've built on top that gives customers full power and full control if they want to go deep into a workflow, but we will also do the work for them as we presented in our product demos up here. The reason I wanted to start there is that intelligence, you can't replicate. And so call it headless, call it whatever you want to call it, that same experience will be in LLMs. It will be in payroll providers. At the end of the day, you're using our capabilities. You don't have to come "directly to us", but the reality is you know it's us, it's our platform, and we will be where customers are. And we showed that on stage. Alex walked through, as did others, our experiences in Perplexity, Claude, and ChatGPT, and they're just going to continue to get better. But remember, what's in there is our financial intelligence, which is data, our end-to-end workflow, our platform capabilities all in one place.

So that's the first thing I wanted to start with, which I think addresses one element of your question. The second is it is really important for us to be able to win DIY share, and it's important for us to win customers that are either switchers across the business platform and/or those that are businesses that are new to using financial management capability. And the reason that's important is it will matter 3 to 4 years from now. And it's why I made the comment earlier that a lot of the customers that we have today is when 5, 6 years ago, we didn't have all the capabilities that we have today, but we just had like go get share in tax and grow fast as fast as you can in the business group with accounting software. We didn't have the capabilities that we have today. But it's important to capture these customers as these customers' needs grow, we can grow with them. And so this notion of will the monetization capabilities change.

All these AI start-ups, right, which we respect are -- we're not a one-trick pony. And at some point, you have to monetize things. At some point, you have to deliver benefits. And that's why sort of going back to the core of the resetting expectations to accelerate growth for us comes down to scale our bets. They are new markets. We've gotten the product market fit. We've got teams focused on it, keep scaling it. And we're going to go back to our roots of accelerating new customer growth in the core because in this environment, we want to take share, deliver benefits, monetize while we scale our bets because then we have a durable growth model where Intuit is set up for long-term success.

Alex, on the guidance for fiscal '27, let me unpack that a bit more. One is you got to keep in mind on the DIY side, we are making assumptions around getting customers into a more competitive transparent offering. And we have high confidence in our ability to drive lifetime value of those customers. But we want to be prudent about the assumptions we make how quickly they monetize. Do they monetize 3 weeks later, 3 months later, 3 quarters later, right? And keep in mind, once tax season is done, about 3 months later, I'm into a new fiscal year. So we have to be prudent there.

Staying on the Consumer Business, Assisted Tax saw really solid 37% growth this past year. We're excited about the momentum there. But as Sasan shared in his slide, 75% of that came through upgrades. We want to be prudent on how we continue to drive that upgrade cycle going forward. Our focus is new to the franchise. That's what is next year in the guidance, I talked about Assisted being in the teens, right? So that's on the Consumer side.

So now let's move on to the business platform. Opening up the front door is paying off, and we shared that at the earnings call already and some of the early and have confidence, but again, giving ourselves flexibility on how quickly those customers adopt how the volumes grow and they continue to scale. Mid-Market, bullish about the opportunity ahead. And that is a lot on strategy and driving the upgrades. We've always talked about for the years, and you followed us for years, we talked about I've got over 700,000 customers that are ripe for upgrades. That's going to be part of the strategy. But we also shared new to the franchise is a new area we're going to further lean into. So giving ourselves some flexibility there as well.

And finally, money. So I want to make sure I touch on all Big Bets, really good momentum. But we've been deliberate, for example, on capital, how much we use of our own balance sheet. So the volumes stay good, but the revenue we book changes when we use external versus our own balance sheet. And lastly, as you move upmarket, you don't get retail pricing on payments. We book our revenues on a net basis. So those are the yields that evolve. Net-net, the takeaways, deliberate decisions outside the Big Bets to set up for future durable growth. On the Big Bets, momentum, we could not be more bullish about, but we're making some very deliberate trade-offs there as well that we unpacked throughout this morning.

Let's go to Arjun and then Paul.

Perfect. Arjun Bhatia from William Blair. I wanted to touch maybe on the Consumer strategy. And in order to just make Credit Karma the front door for consumers, I'm curious how you think about brand perception there and whether that needs to evolve, especially when we're focusing more on personal finance. And from a marketing perspective, what -- how does the strategy sort of need to evolve to make consumers aware of all the capabilities that you've now introduced inside of Credit Karma?

Yes. Thank you for the question. First of all, Credit Karma, I would tell you, has like a $1 trillion brand in terms of recognition from Gen Z all the way up to baby boomers. Did I get that right? I'm one of them, by the way. And so the brand perception and brand understanding is not only very deep, but it's also incredibly trusted because it is an agnostic platform. And remember, Credit Karma, the business model is beyond user paid. The user doesn't actually pay because they go there -- it's really a data platform. We leverage their data, of course, all with their permission and all of our AI and domain capabilities to connect them to things that are right for them in their life, whether it's a credit card, personal loan, insurance, auto loan and home loan.

And in that context, it's important to remember that this is a platform that has over 45 million monthly active users, and those users are engaging across a number of different products. And it's all the products that I mentioned. And now it's Tax. And just this last year, Tax through Credit Karma grew 50% year-over-year. And so it's about having the trust of the customer, which we have in Credit Karma, and it's about making sure that we're delivering a benefit at the time that's right for them.

And with all that as context, we are, in fact, reinventing -- Mark and Nick and his team are reinventing our entire Go-to-Market and brand building around Credit Karma because if you think about Credit Karma, it's in-app, it's behind the firewall, and there's high trust, and customers discover things in the moment in time they're in Credit Karma. We've done really very little brand building other than it's a credit monitoring app. On the customers that are in it know that. So we're reinventing what we're doing across all digital channels in terms of what Credit Karma does and the fact that it is the one place where they can truly get financial intelligence that's right for them.

Paul Mason from E&P Capital. I had a 2-part question on QuickBooks. So the first bit, just in terms of the free tier and trying to aggregate more customers, maybe if you could talk to us a little bit about what you're doing differently on the unit economics versus what you did with self-employed. I've heard historically that sort of the low ARPUs versus the cost to acquire and then the higher churn rates down at the really small end was sort of part of the problem with self-employed. And so what's sort of going to be done differently there?

And then the second bit, just in terms of your strategy around using the accounting channel to market your Mid-Market solutions, I wanted to maybe get some comments on the approach there versus sort of the approach on direct marketing. When we've spoken to accountants and bookkeepers that are QuickBooks Pro advisers, we quite often hear a bit of angst around some of the direct marketing strategies and messaging versus sort of them using them as a distribution channel. Just what you're doing to reconcile those 2 things?

Let me start and you want to add this. So let's start with the self-employed and then we'll move to the Mid-Market side. The self-employed product was built on a different platform. And the challenge there was retention. It really resonated with the gig workers, episodic engagement. And really, if the customer was successful on our platform and they wanted to move to QuickBooks, they had to cancel their account, download the data and then move over. Our free offering is on the same platform. They seamlessly -- as they consume more, as they send more invoices, they seamlessly unlock Simple Start and continue to move forward. And when they're successful, Mid-Market, we'll get them on IES on the same platform. So it's a very different core product built. On our distribution is also different as well. It is leaning into our partnerships with the third parties, LLMs, leaning into just a broader traffic that we get organically on our website. So it's really attractive LTV/CAC. That's what's giving me the confidence.

Now with that, let's shift over to the question you had on the Mid-Market. Accountants play a meaningful role in the life of the Mid-Market customers. Over 70% of them have an Accountant, and they are a critical voice. And that's why a few months ago, we made the deliberate decision at one of our QuickBook Connect conferences to pull back on our live offerings because we want to really lean into the view of accountants as a customer because one, they're a professional services firm, and we serve professional services firm; and two, we want to build, as an example, IES, it can the platform to build really amplify the network effect we have there. So that is the approach to why we are leaning more into accountants, and that's why Ashley, our Go-to-Market team, Greg and the team are focused on building partnerships with the top 100 accounting firms. You've probably seen those press releases come out. And that's key to the flywheel of new to the franchise growth that we're expecting on Mid-Market going forward.

Jared Levine with TD Cowen. I wanted to dig in on the assisted side here. So you called out pretty notable switching in the industry with price being the primary factor. You have had, I think, a disruptive price point for about 2 years now. You've had the faster access to refunds as well as the virtual experience here. But last year, still only 25% mix were new to the franchise. I guess why have you been more successful in taking share from that industry switching? And kind of what's the strategy to improve the new-to-the franchise growth on the assisted side this year?

Sure. I can get started and Mark, if you want to add after I go. The first thing is the strength of the brand traditionally in DIY, right? And so we've made investments over the years to extend our brand equity. Secondly is to continue to show up Local. Local plays a critical part in Assisted. Most people don't go to the web and search best tax software. They can look for tax preparer near me, and it's critical to start showing up local. And that really didn't start happening until late in season in fiscal '25 and really started playing off in fiscal '26. The point being these things compound over time, right? Now we have more reviews and local will play order of magnitude better. We are -- we learned which markets work better, which didn't work as well and how we change testing, et cetera, to make them all work order magnitude better.

So these are the meaningful step function changes we did make in getting new to the franchise. I believe I might get it exactly wrong, but order of magnitude, right, new-to-the franchise growth in Assisted was 15% this past year, right? And that we expect to continue to amplify as our motions are working better. It's again getting the flywheel going, and I feel really good about that flywheel.

Mark, anything you would add?

No, I would just say this year as well, we're actually enabled by -- sorry, a truly AI native experience as well, which allows us to be even more disruptive on the experience and scale our reach, which we were kind of a hybrid product before traditional workflow and AI. This year, it's a completely AI-native experience, which is going to allow us to be very disruptive on pricing even more so than we've been, but also reach more of our customers to serve them, the ones that are looking for that. So everything else that you said is exactly right.

Daniel?

Dan Jester, Bank of Montreal. Maybe to go back to Credit Karma. So there's a really interesting stat in the prepared presentation about 1 in 9 originations on credit cards and personal loans. For a business that has doubled in size over the past couple of years, it still feels like there's a lot of share that you can gain there. So I think in the past, you've talked about going into higher income consumers, you've added insurance and other features. Maybe -- just maybe spend a moment talking about what the growth drivers of Credit Karma look like over the next few years.

Sure. I want to reiterate a couple of things that Mark already talked about, but it's important in context of your question. And that is, one, you have to think about Credit Karma and the way we're positioned as the face of the Consumer platform as we look out into the market. Number two, it is a fundamental data and AI platform. And that data and AI is very specific to millions of customers that we have on the platform where we have permissioned contextual longitudinal and contributed data like their DMV information, as an example, that allows us to truly be there for them at a moment in which they need insurance. They need a car loan, a home loan, all of which, by the way, we can detect.

So the reason that's important is when you look at the growth profile of Credit Karma, we have still very low share across cards, loans, insurance, money and even tax when we look at the members that we have and who they do their taxes with. And really, the platform rearchitecting that Mark and his team have led to truly turn it into an intelligence platform because albeit we've had all of the data and AI capabilities, it has been static, leveraging customers' data at a moment in time to maybe know that they need a credit card versus an intelligent platform that proactively engages them in all virtues of their life, inclusive of what we've now deeply integrated that Nick went through up here, which is -- and by the way, we can tell you that 80% of your taxes are done AI natively, and we will review and sign and take accountability for it or however you wish to achieve your taxes getting done.

So therefore, that's why the key metrics that we now look at is Consumer platform, Customer growth, that our combined Consumer platform Customer growth go up, the ARPC across the platform and ultimately, the Assisted growth and the total share that we take in IRS filing. And so the growth profile is really higher engagement, higher frequency and monetization across all of those products where we still have very low share. And the reason -- I know many of you have been skeptical over the years on Credit Karma, but the reason we've been continuing to drive growth is because now it has become the face of the consumer platform, many front doors, one platform. And the more we can drive engagement and frequency of engagement, the more we can deliver benefits and monetize. And what's important to us is ultimately to get their taxes done through Credit Karma.

Steve, let's go ahead. Then I will come to you Noah.

Great. Steve Enders from Citi. I want to ask about IES and the strategy there. I mean the $150 million of run rate revenue in a little over a year is pretty impressive. At this time, is it primarily about scaling the Go-to-Market capabilities there? How are you thinking about future headcount additions or marketing around that? And secondly, on the product side, I guess, what more do you need to do to enhance and shift that more to capture even larger customers in the space?

Do you want me to take the lead?

Sure.

So a couple of things. First of all, it's -- your starting point is really important, which is this thing is only a couple of years old. And so there are really several things that we are focused on. One is to ensure that it's enterprise ready. And that's really important when you are talking to these larger accountant firms that love Intuit Enterprise Suite, but they also have 12 different practices, and they want to make sure that it can scale. So that's #1 focus area for the year.

Number two focus area for the year is vertical-specific. We talked about construction, but we have now so much more to do to really scale and nail construction, but then we have other verticals on our road map that we're moving very fast on like manufacturing, nonprofit as illustrative examples. That's really important because accountants and customers are by industry. And they want to know that you can help them if they're iN manufacturing because the manufacturing needs as Wyatt walked through up here are very different than construction. So we're building momentum in terms of industry-specific verticalization. That is critical on our road map.

And then the third is just continuing to automate everything. I mean one of the most profound things you heard Ashley talk about that we hear from businesses is the amount of time we save them because we're automating their workflows, but then now the intelligence that we give them in terms of what choices and decisions that they would make. And those 3 things, coupled with what we are doing on with Intuit Accountant Suite with Agent Studio that allows accountants to build specific experiences that they can deploy really creates that flywheel effect.

So I would just say we're really just getting started in terms of what's possible, and those are the big elements that you heard up on stage that are on our road map and the big deliverables for the coming weeks and months.

Noah Naparst representing Gabriela Borges from Goldman Sachs. I wanted to follow up on Tal and Alex Zukin's question. It feels like -- and I'd love your thoughts on this, but to an extent, the lines between assisted and DIY could become blurred. We're talking about the tax product becoming more AI native. Credit Karma is a bigger part of the customer base. So how do you think about this risk of where ARPUs go? Do you see a future where almost no consumer is manually punching in data? And how do you categorize that consumer? Does that become still DIY, but using AI, what price point will they be at? Just thinking about where things go.

The lines are not blurred when you talk to customers. The customers that go to an Assisted segment, they go there for one very simple reason. They need somebody forget putting their return together. They need somebody to sign it and take accountability for it. So there are no blurry lines between those that choose to do taxes themselves and those that choose to have somebody else take accountability for their return. That's why if you look at structurally at the assisted segment, it's not only been the majority of the TAM, almost 90%, but it's actually growing for that reason. Full stop, no blurry lines.

What you're hearing from us is really 3 things. One, in DIY, we are positioning our Credit Karma platform to really take share and win with simpler filers, more price-sensitive filers, which aren't always simple. Two, we're positioning TurboTax for more complex customers, whether they choose to do it themselves or choose to have somebody else do their taxes for them. But there's something that Nick and Mark both talked about that I know we threw a lot of stuff at you all today that is worth just amplifying.

Beyond what we've articulated, we're doing something we believe is quite disruptive this year, which is our biggest competitive differentiation is the fact that we can scale the human accountability because of all of our data and investments that we have made. And now there may be those that choose to do most of their taxes themselves, but ultimately I want to say, Sasan, I need you to review this, sign it and take accountability for it. We're now scaling that this year.

And if you think about -- back to your ARPU question, if you just take into account the cost of an expert, the cost beyond an expert, the overhead and to be able to scale something at $150 or in the case of, I'll do most of my taxes, but I just need you to sign it and take accountability at $99. Those are incredibly -- we're being disruptive on price. We're disrupting a segment because of all of the investments that we've made. And from a customer lens, there are no blurry lines. And it's more about economics and how you win in this environment, which is why I'll end with sort of what we've talked about repetitively in terms of what our strategy is, which is scale the big bet, which is Assisted Tax, and drive new customer growth because now we can deliver benefits and monetize beyond the entry price point in DIY. So that's the reasoning behind our positioning, but I wanted to just be clear from a customer lens, there are no blurry lines.

Just a complementary to everything Sasan shared, we're deliberate in talking about the 3-year CAGR on a consumer level. And we want you all to increasingly think about. At the low end, if the customer has a super simple need, a W-2 and a 1099, they can go to CK tax. We're totally fine with that because we have confidence in the LTV. As the needs evolve, they do the tax to DIY, but they have RSUs, they want to use the RSU agent. They want to use a deduction finder agent, they come to TurboTax, right?

So don't underestimate the power of Customer segmentation that we have done and how we get that customer to the right offering. Secondly, the core part, it's a new concept outside those who don't live in the tax world. There's a key value that customer ascribes to human accountability. That's the differentiated in assisted tax, and we see ample opportunity to grow there.

We have time for one more question, and let's go there.

It's Jamie Friedman at Susquehanna. I appreciate the incremental disclosures today, especially around services, money in, money out. I'm more of a payments guy. And my question is specifically about bill pay. So you disclosed $54 billion of volume, up 89%. It's clearly a vast opportunity in your ecosystem. I think you threw out additional numbers. So my question is, how do you monetize that volume?

We'll let David Hahn take that.

So yes, maybe a couple of things. So first and foremost, part 1 is always making sure that we have built a product that customers love. And so really, over the last couple of years, we have been focused on getting people to adopt our bill pay product. That is finally moving. And along the way, we have done some monetization work, but this is really a year where there's a couple of moves that we're going to make on the monetization side. And what that really looks like as you step back and just think about bill pay broadly, not just in this ecosystem, there is a very clear playbook around what's referred to as ad valorem, right, which is certain kinds of fees that could be related to accelerating payments that could be related to helping pay bills that are for folks abroad to international cross-border-related payments. Those are examples of ad valorem that will be capabilities that we'll be launching over this year.

And so I think the part that we have the most confidence around, again, is that getting that customer adoption, getting that customer trust, getting that workflow, getting in the flow of that money, we view as the most critical step. And now we can layer on these added services to our customers that go above and beyond what we offer today to accelerate the money, allow money to flow cross-border, for example, and other kind of ad valorem examples to really monetize that experience.

Great, David. Thank you. And maybe if I could wrap for those in the room and those on the webcast before we conclude our session, a couple of things that I would say in summary.

Intuit is a special company. And Intuit is a company that over our 40-plus year history, has always focused on reimagining ourselves and disrupting ourselves to make sure that we are there for our customers and a healthy company 5 to 10 years from now. And this is one of those moments. You're always in those moments, but this is one of those moments where our strength around doing what's right to reimagine ourselves, to disrupt ourselves is in play. And in that context, I think what's important for you to know is that what we are doing is about accelerating growth in the future by resetting expectations because we are in a unique position where we now have a meaningful part of the company that's 30% of the company and growing at 30% plus to scale that meaningfully and at the same time, position ourselves for new customer growth because of the innovation that we have in market, the pipeline of innovation that we have and the talent that we have.

And this is all to buy ourselves the opportunity to be a durable compounder and grower as we look ahead. And our report card will be daily for ourselves. And quarterly, you can hold us accountable to everything that we've said today, and we look forward to engaging all of you on the webcast and in the room every quarter.

And with that, let me bring us to a close. Thank you so much for attending. And with that, we'll close Investor Day. For those in the room, I think we are having lunch upstairs, and I have been asked to let you know that don't ask us questions down here. Let's go upstairs, and we'll open it up. See you up there soon. Thank you.

Good morning. Thanks to all of you for joining us at the Intuit session at the Goldman Sachs Technology Conference. Delighted to have on stage Sandeep, CFO, with me. Thank you for taking the time.

Thank you, Gabriela. Good to be here. You guys do an amazing conference every year, and it is our delight to be here.

It's very kind of you to join us multiple years in a row. Let me ask you to take us behind the scenes a little bit at Intuit from the last 3 to 6 months. When we listened to the earnings call, there was very much this tone that came through on we are too good at this to be losing at the entry point on price. And so maybe just walk us through how your strategic thinking has changed in the last 6 months, and then we can get into some of the specific business questions.

Sure, absolutely. I think the last 6 months and the thinking is really a reflection of the last 43 years of the company of identifying the trends early, understanding how those trends will impact our customers, how they could -- what's the best customer benefit we could deliver and making sure that we execute on that come out bigger, better, more relevant in the life of our customers.

The company about 4 years ago, started focusing on the Big Bets. And 4 years ago, the question was, hey, could Intuit actually go upmarket? Could Intuit really be a meaningful player in the fintech? Could Intuit really go beyond DIY tax to assisted tax? And we shifted our focus and investments to those areas, and they did exceptionally well and each one of those growing north of 30% of Big Bets, reflecting nearly 30% of the company's revenue.

But when we looked at the last year, we realized we wanted the best we could be in going to the franchise customers. And as a company that's north of $21 billion in revenue, we need to be exceptional at both. So that performance in '26, which is quite strong, solidified the foundation, but also clarified the agenda for the year ahead, which is continue to scale the Big Bets. It's a $300 billion opportunity. We're still in the early innings, but also meaningfully scale the platform, which comes down to scaling new to the franchise customers.

There have been some conversations that we've had in the last year in the software space globally on the nature of deterministic versus nondeterministic with AI algorithms. And especially now as you're embedding more AI into your own products, I would love to hear your view on how do you think about this deterministic, nondeterministic taking the best of AI with the best of workflows?

AI is an exceptional capability and intelligence in terms of rendering answers in terms of providing intelligence. But what really makes AI powerful is the context around it. For us, we have hundreds of attributes per -- hundreds of thousands of attributes per small business, 85,000-plus attributes per consumer.

And that financial context, deep domain expertise, deep industry expertise, knowing exactly how a nonprofit works, how a plumbing company works allows us to really maximize the benefit of AI through Intuit Intelligence and deliver them free experiences for our customers that are truly relevant. So as AI proliferation continues to grow, as AI becomes even cheaper to adopt by leaning on our moat, it's allowing us to even greater serve the customers in a very relevant way.

There is a fair number of moving pieces at Intuit over the next year, which I would imagine made the forecasting process a little more complicated than usual. One of the questions we get from investors is, look, we really want to buy the stock, how do we get comfortable that estimates are troughing and that numbers have been derisked? How would you answer that question?

First and foremost, I will start with the history. We are always prudent in terms of the numbers we put out there. We want you all to have the utmost confidence in those numbers. And our record has been at the company level to always deliver on our commitments. And so that approach, that principle remains consistent. What we are doing in fiscal '27, our agenda, as I shared, is very clear, continue to grow Big Bets, grow new to the franchise customers.

And as we lean into scaling new to the franchise customers, we are giving ourselves the opportunity to make sure that we are building a durable long-term franchise. These are going to be customers that are the lifeblood of future revenue. And our focus is to have a company that is durably delivering double-digit top-line growth and through our disciplined approach to running the company, delivering EPS in the high teens. That is the business we are building in '27 and our guidance and the 3-year CAGRs we have put out there are a reflection of the commitment towards that.

The 3-year CAGRs are important, too, because they allow us to talk a little bit about this concept, I think you introduced in the last several weeks of a J-curve. What do you mean by a J-curve? What does that mean about not just FY '27, but what the 3-year CAGR looks like?

So let's take a couple of examples to unpack that J-curve. And we were very deliberate, by the way, about being 3-year CAGR versus just the arbitrary long term. But let's go through the J-curve, starting with our tax business. We have a business that is addressing a customer needs and getting the filing. We did 39 million filings last year.

But we also realized that in a price-sensitive consumer base, those were AGI adjusted gross income of $50,000, we weren't the best we could be, and we lost share. So we've been deliberate about being competitive and transparent on pricing at that level because now we have spent the energy over the last few years to build a wholesome consumer ecosystem, where we do not need to lean into just monetizing the tax filing.

We could have these customers monetize through early access to money. Through using -- putting the refund into Credit Karma money and using that account year-round as their day-to-day banking app to get credit cards, personal insurance through consumer apps. So that is a very deliberate investment we're making in fiscal '27 to take a hit on ARPC, get these customers in and monetize that through higher lifetime value as we take share of the tax filing.

So that means in '27, the revenue takes a hit. But in the long term, the lifetime value is there. Then if we -- similarly on our business side, we are continuing to scale our Big Bets. The breadth of those Big Bets give us opportunity to have strong revenue growth for years to come. Just since fiscal '23, to put this into context, the Big Bets CAGR is over 2x the overall company's revenue CAGR. So that strong trajectory is going to continue, but we also need to get better at new to the franchise customers.

So we are broadening the front doors. Getting these customers in through QuickBooks Lite, QuickBooks Free. So in early months, they're not as high in revenue. But as we continue to lean into a muscle of driving adoption of our platform, cross-sell, these customers become very meaningful ARPC contributors over time.

So that, in essence, is the J-curve, continuing to have access to all the levers across volume, mix and price, but really leaning into the volume and mix to make sure we're setting up the business for durable long-term double-digit growth.

There is a secular change here that I want to spend a couple of minutes on, which is SEO. What can you share with us on -- for either of those examples that you were giving either on the tax side or the GBS side, how important is SEO to your top of funnel? And are you seeing an evolution -- the concern is that there is an air pocket as we move from SEO to AI engine optimization. Maybe help walk us through how we should think about that.

SEO is not a big contributor to our business on the QuickBooks side. It's about 20% and even less so on the tax side. The other thing to keep in mind is we have exceptionally strong brand and brand recognition. And some of the data out there is the top 25 brands tend to show 10x more in AI search in terms of recommendation.

So what we're seeing is that where SEO is having an impact as people go to AI rendering, that traffic we are capturing through AI, GEO. And the good thing is that traffic converts order of magnitude higher, multiples higher. So net-net, that this shift could actually end up being a benefit to us just given the underlying core strength of our brands and how they're showing up.

Are you already seeing it as a net neutral or benefit? Or is there a period of time where even though it's less than 20%, where it ends up being a medium-term headwind?

As I've engaged with our go-to-market teams, we are not seeing it as a headwind. In fact, the conversation goes more towards the excitement that we are seeing it in GEO and the excitement of how highly that traffic is converting because people are coming in with a lot higher intent of conversion when AI is sending them versus when SEO was sending them.

Let's talk a little bit more about QuickBooks. Intuit is unique in having the insight that you do into all of your SMB customers. And in the past, you've shared some really interesting comments on the health of the SMB ecosystem. Bring us up to speed, how would you describe the health of the SMB ecosystem given all of the AI secular disruption that's happening this year?

The SMB macro, SMB, means -- yes. The macro remains quite stable. The 2 metrics that are my favorite to look at are the cash reserve that these customers have and the hours worked. Both the cash reserves and the hours works are up for the small businesses and even more so for the mid-market businesses. So they continue to be stable.

We continue to see goodness in terms of revenue growth for sectors such as manufacturing, IT services and the areas that are a little softer than what they were maybe a year ago are some of the consumer discretionaries. But net-net, I would frame it as a stable macro environment for the SMB segment.

Let's go a little bit deeper into what you alluded to earlier, which is the pricing change on QuickBooks. So the last time we think you had a free edition for QuickBooks was QuickBooks Desktop back in the 2000s. Tell us a little bit about the cohort that you think you can reach by offering the free version of QuickBooks?

If you allow me, I'm going to steer it a little bit because that -- the Desktop was before my time at Intuit. But let me bring it back to some of the iterations we had on the lower end of QuickBooks during my decade at the company. We see the opportunity to get customers earlier onto our platform. For context, QuickBooks is a great platform for you to run your business, but we typically see that businesses have been out there for 2-plus years before they reach a level of complexity where they want to invest to onboard into QuickBooks.

And we tried a few years ago to try to get customers through what we call a self-employed -- this self-employed offering was built on a different platform. So meaning if you adopted self-employed and your business was successful, and we do it to see that over time, businesses on QuickBooks tend to be more successful than the macro, you had to cancel your subscription, download all your data and re-onboard onto QuickBooks Core. So that didn't really quite pan out.

What we have built now in QuickBooks Lite and QuickBooks Free is a bare-bones QuickBooks offering. This is an offering, for example, you could onboard into super easily. We've done massive product innovation to get you onboarded, start sending your first invoices. Before you even hire an employee, you hire a contractor, you could onboard that contractor on our payroll offerings. And over time, as you grow, you very easily get into simple stack on the same platform. And when you're immensely successful on our platform and our mid-market business making $50 million, $60 million a year, that same platform extends all the way to IES. So that's a net new change.

And the other thing that allowed us to lean in heavier here going forward is the capabilities we built around life cycle marketing. Around 4 years ago, we didn't have the best-in-class life cycle marketing motions. Today, as we look at the progress we made getting customers that come on to our platform to discover and adopt multiple parts of the platform to drive deeper consumption of the multiple parts of the platform, the higher ARPC that we get over time, that is giving us the confidence that there is an opportunity to go with the smaller businesses and the earlier entrepreneurs to capture them early and help them grow with us over time.

The ARPC argument, I think, is a really good one. Let me ask you about the imperfect nature of the data set. What I mean by that is you have these cohorts that have been part of Intuit for many years, but none of them look quite like this new cohort that you're trying to reach to expand the top of funnel. How do you take that data set on customer journey and to your point, on life cycle marketing and now apply it to this new cohort where we can argue there are some parallels, but it is a new cohort.

It is a new cohort, and this is where product innovation comes in. Entrepreneurship is a very lonely skill. These folks don't have investment committees to vet and run ideas with. These folks don't have teams like I do to vet and run ideas with. And this is where Intuit Intelligence, helping them onboard Intuit Intelligence and be able to have a conversation, "Hey, I've got these jobs does it make sense for me to hire my first contractor? Should I have this first employee?"

You start deepening that engagement, and we know that matters for entrepreneurs, whether they're in year 2 or month 2, right? So that know-how applies. We also know what are the trigger points at which people want to adopt payments. What are the trigger points in which they want access to capital and how much data we need to be able to underwrite that capital to them?

At which point do they start having a need for business card, which is even earlier than access to capital. These are all the capabilities in our portfolio that we've added meaningfully over the last couple of years that position us. So the learnings, the know-how is applicable to year 2 business and equally to the month 2 business. But it's really the portfolio that we have now that allows us to be able to sell to these businesses earlier.

You alluded earlier to the proprietary data set that you have through the QuickBooks business, through GBS broadly. And I think being able to take that proprietary data set and turn it into agentic functionality is a huge opportunity. So there are a couple of hurdles along the way, and we can almost describe it as adoption versus monetization.

So let's take adoption first. The example you and I have talked about is the automated reconciliation on the accounting. So when an entrepreneur is trying to reconcile the books at 10:00 p.m., it's magic. It happens. What can you share in terms of how you get over more of the learned behaviors to get entrepreneurs over that hump of actually using some of the AI tools?

The key is that you can't have AI seem like a side gimmick. It has to be core to the fabric of the offerings that you're delivering. These entrepreneurs aren't living in our world, which is they want to geek out on the latest tools, right? They are trying to run a business. They are working 80-plus hour days. They're running this business, but also raising a family or have lives outside of it.

So what we have done is integrated AI into the core offering. The example you and I talked about someone sits down on a Thursday evening after running a bakery all day and want to do their books, they had already had a habit of knowing it takes me about an hour to get this stuff done. They log in. We say, "Hey, Intuit Intelligence has done all this job for you. Is this right? Anything you want to change?" Wow, that's amazing. Let me just change these 2 things and have saved them hours and that's saving them 12 to 14 hours a month.

But also beyond that, we understand how a plumber works. We understand how a nonprofit works. So when a nonprofit administrator, for example, logs in to do their books, we've already said, by the way, we have tracked that this is how these donations were spent. And they already link up to the constraints that the donors have put on there. And we've already generated the letters and the documentation you need to send back to these donors. So that comes from our domain expertise. That comes from having supported millions of customers across multiple industries.

And that is what's allowing us to really take the power of AI and put it and amplify it significantly and make a meaningful change in the lives of our customers. We're not asking them, "Hey, do you want to play around with the side gimmick?" We're just doing it for them and allowing them to stay with the delight when they log into QuickBooks and experience a new product.

How do you track it?

How do you track the usage?

Yes.

We are -- in fact, one of the things that we talked about our CEO staff earlier this week is we have a full proliferation of dashboards we have so instrumented. We're tracking a few golden metrics that really matter. How many people are logging in, how frequently they're logging in and most importantly, how many people are allowing our Intuit Intelligence to take action on their behalf because it's not just about giving them advice, but taking action, and that's the key differentiator. And all of those metrics, we are very pleased with the progress the team is making.

So the other half of this question is, how do you monetize this?

There are multiple ways to monetize this. One is by building AI into the core fabric of the offering, we gain pricing power. And the recent price change we did, the communication leaned into all the innovation we baked in. Most of the innovation was AI enabled. A lot of the innovations save people hours, which were very tangible benefits that resonated with their mind when they saw the price change, help people get paid multiple days early. So that's one way.

Second is we're early in this journey, but what we're seeing is AI is driving better discoverability, better consumption. And also, as we do more actions on behalf of the customer, it opens up the aperture for downstream monetization capabilities, which we are -- given the early innings we are in driving AI adoption and proliferation across our base, we are preserving the optionality for downstream in terms of monetizing that consumption.

Say more on that. How do you mean?

For example, when people are using AI, they have an ability to discover our payment offerings more, sending them more payment-enabled invoices and making -- getting that monetization on payments is what we do today. But downstream, it could be that we could have Agentic offerings, which we just manage the treasury function for them and could monetize that separately.

These are things that we are building that we have optionality for downstream. But right now, the focus is to drive adoption, drive repeat usage and have more customers allow us to take action on their behalf, not just us to render advice to them.

I want to ask you about the Big Bets in QuickBooks moving upmarket. We've seen many software companies go from being very SMB focused to try to moving upmarket. And the go-to-market changes, the competition changes, it takes longer. I know that you're actually well into this journey. So how is it going? What -- are you noticing any change in the competitive landscape? What has been your learnings from the last year that now allow you to lean into that?

We have been very pleased with the progress we're making in mid-market, not just in the accounting side, but also the adoption of services. We talked about mid-market customers having 9 points higher payment, 15 points higher payroll. And that allows us to get the customers into these offerings and monetize them.

But if I step back, here's the opportunity that got us into mid-market. These mid-market customers, their needs have gone complex. And they faced 2 choices neither which that was ideal. One was stay on QuickBooks where they are bursting at the seams or hire administrative staff and spend 6 figures to migrate into an ERP that's overkill for the solution. So we came up with QuickBooks Advanced. And we came with IES that is an end-to-end platform with integrated payments, payroll capital that addresses their needs and is the right offering for them. IES goes even further than Advanced by being -- having industry edition around construction at this point, but we're looking at other industry editions, multi-entity, et cetera. But these are the right for them offering.

Then we saw that there were 800,000 customers in our own base that were ripe for this upgrade. And we started sharpening our skills in driving product market fit, driving the upgrade motion, while also spending some energy sharpening our teeth on new to the franchise acquisition. That did really well. 3/4 of the growth in mid-market came from the upgrade motion. And we are now looking forward to leaning into the new to the franchise.

There continues to be tremendous opportunity to upgrade. There are around 700,000 entities in QuickBooks that could upgrade into Advanced or IES. So we're leaning into that. But we want to go new to the franchise. And here's the other aspect that is really going to be an accelerant going forward is our partnership with accountants. 70% of mid-market customers have an accountant and accountants are a massive influencer in terms of what they adopt.

And we have been deepening our relationship with accountants. We declared accountants as a customer, not just a partner several months ago. So this is further strengthening the network effect we have across accountants and the businesses to get the flywheel going on mid-market, but I think it will also have benefits to us beyond the mid-market segment.

That all makes sense. Let's talk about tax.

That's it.

I'd love to spend a little bit of time on the vision because I think the nature of tax and with Credit Karma now and with a number of other products you've announced along the way, you can provide something much more comprehensive and take something that's episodic to more recurring.

That's right.

What does that look like? If I'm a TurboTax customer, how do you get me to engage across more parts of the consumer platform?

So to your point, tax is a very, very deep engagement, but 2 days a year. And what we have spent time since the acquisition of Credit Karma, but really leaned into the last 2 years when we restructured the organization to put Credit Karma and TurboTax under one leader is to build a comprehensive end-to-end consumer platform.

And that allows us to really lean in, particularly for the price-sensitive consumers to give very competitive tax solution, which could be free or very low because we see them monetizing other areas. We saw 35% of the customers pick access to their refund faster. Keep in mind, this is the biggest check most people in America get all year, and they would love to get that a few days early. We saw them engage across Credit Karma to get a new personal loan, maybe a 0% balance transfer loan to pay off their debt early.

So we now have that broader aperture of what we could bring. That's allowing us to be more competitive on the tax side and monetize the customers. So that is a new capability that's allowing us to have a different go-to-market approach going forward. So one of the focus areas is rebuilding that DIY funnel so we can retake share in tax because we are definitely not the best we could be given having lost share in the last couple of years.

Sasan made a comment on fundamentally reinventing the tax experience with AI. You and I even talked about how -- look, if you just give consumers historically the end number on how much they owe or how much they refund is, there's a little bit of skepticism if you don't actually go through the questions. So what does this mean to fundamentally reinvent TurboTax with AI?

That fundamental reinvention extends across both the go-to-market and the product. So let me touch on the go-to-market side. The go-to-market side is, if you think about TurboTax Core, that product is one of the best tax filing solutions out there. It is resonating. It has 76% retention rate and the innovation we built in there, including AI agents that help folks identify deduction they might have missed.

They help people who get paid with the RSUs adjusted tax basis, which is yielding to thousands of dollars that people are leaving on the table because the tax basis weren't right. So that is resonating. But we are also seeing that we were losing a price-sensitive consumer that didn't ascribe as much value to all that product innovation and wanted the right price to value for the tax filing, but is willing to engage in other parts of the platform. So that's the go-to-market evolution we're making that you'll have more front doors into the tax solution, and we will monetize them in other ways.

Now on the product side, TurboTax, we are reimagining with AI first. Everything from data ingestion to a user interface that could be a natural language conversation. And that is going to be applicable to the vast majority of the tax filers out there. So that is across both the go-to-market and the product innovation. We're fundamentally rethinking the tax solution.

You've talked about probably the 2 most important pain points that I have with TurboTax. So maybe just a little bit more here. How do you make the data ingestion easier?

It comes with persistent connections, partnerships with a lot of the players. Intuit data exchange is one of the best out there in terms of connections we have to FIs as well as partners such as ADP, Paychex, et cetera. So imagine -- and I'm not sure who Goldman uses for the payroll provider, but ADP. Gabriela, next year, when you go in, we have like, Gabriela, we have your W2 -- if you have the same bank connections, we have information from GS PWM, et cetera, let's get your filing done in 15 minutes. And hopefully, you will also pick human accountability and take the assisted offering, and that's the approach.

What about the UI?

The UI will be very different. The UI will be much more user natural language-based interface. If you have been using TurboTax for years, you know that interview process, you go through multiple screens. That had its purpose. In fact, to your point, when you go through the interview too quickly, people like, I must be leaving some money on the table. This can't be this easy, right?

So you have to have the right pace -- but AI empowers us to have a much more easy and natural language conversation. And in that journey, as we're going across doing a tax filing, describe to you exactly what's happening in the background of some of the changes this year versus last year. So every step is giving you immensely more confidence in the filing that you're doing.

Absolutely. Okay. Let me ask you about your partnerships with the frontier models. We had a lot of questions on, for example, Salesforce and what they announced with Coreforce a couple of weeks ago now. You've actually had relationships with both Anthropic and OpenAI for some time. Do you need a formal partnership like that? Or do you already get what you need out of that relationship? And what does healthy look like between a software company and a frontier model relationship?

We are top intent is to be where the customers' eyeballs are. So we want to make sure we're showing up in these AI models. But more importantly, there are -- there's a lot of innovation happening at the cutting edge. So we are leaning into the partnerships. For example, the Astra model, our CTO was one of the very few CTOs invited to this early preview, having access to Mythos from Anthropic.

So these are things that are helpful as we are making sure we're staying ahead of the innovation and really thinking through how this innovation connects to the benefits that customers are seeking. So we'll continue to lean into those, and we've been pleased with how those partnerships have been going.

And I know you get -- I think you got asked this 2 quarters ago, the Fox and the henhouse question on look, tech partnerships come and go. At any given time, could one of your partners decide that they want to get more competitive? How do you apply that? Or how would you answer to investors that have that concern about Anthropic and OpenAI?

So there are moats and there are principles, right? So you have the data across millions of customers, the know-how across certain industries, the know-hows across certain domains. It's also how you structure the partnership, what visibility the partner gets into it, what renders on the partner, but the know-how remains with you. So these are things that we are very cognizant of as we make sure we're building a durable long-term growth franchise.

The other question I wanted to ask you, so I remember during this tax season, to the best of my knowledge and to the best of your data, I don't think you saw an impact from AI native competition. Is that a first -- so we have a little bit of a sense of what AI native competition could look like versus 6 months ago, where I think it was mostly theoretical.

When you look at some of the initial AI native tax offerings out there and your product team extrapolates, okay, this is what this could look like 12 months from now and you have your own road map, of course. Where do you think the moat that Intuit has in TurboTax gets stronger? And where do you think AI native companies might actually have a leg to stand on?

Yes. So there are a couple of prongs to this question. One is on the DIY side, which is, as we shared, we are fundamentally reimagining across both go-to-market and product. And that is making sure we stay ahead of the curve in terms of the customers' expectations and really what's possible with AI. But more importantly, I bring us back to where the growth opportunity is with TurboTax. 88% of the market is in assisted tax, right?

And what people are attracted to assisted tax is outsourcing to human accountability, right? So that is something that AI is not going to be able to go after. AI is actually a help to us there because we're using AI with our experts, the humans on our platform to improve the unit economics and be even more disruptive in that space to be able to take share. So I actually see AI in the tax code as an accelerant to ambitions to take share in the assisted tax.

Let's stay on this because I think it's super interesting. I think this argument on can the humans that offer assisted in the classic market, the classic professional services market that historically you've gained a lot of share from. Could they also now turn around and say, well, it's a lot easier for us to use AI as part of our processes. Our time spent per tax return is going down. Therefore, we can now be much more aggressive on pricing such that you now have a pricing question also on the assisted side?

So on the assisted side, our strategy is to be price disruptive. In fact, this past year, we had an offer out there for $150 to get your taxes done in assisted method. In assisted, what people are really looking for is to get human in the loop, and we call it have human accountability. And different people put different pricing in it. It pains me tremendously when people -- very simple tax filings, $50,000 adjusted gross income, walk into one of our competitors and pay $400, $500 to do a tax return because we could do it for a fraction of that cost. So I think using AI, being able to having the ability to be price disruptive is actually on strategy for us and it's actually an accelerant for what we're trying to do.

I want to spend a couple of moments here on some of the feedback that you've gotten from your Investor Days over the last several months. I'm curious from -- this is a question about discovery value in the stock. I'm curious if there are things that you've heard from the Investor Days, especially as you go into next week, which have made you think, this is not actually well understood. We can do a better job explaining XYZ such that a year from now, investors will understand better why this is important for the industry?

Yes. I think as I think through the year from now, there are a couple of things that the investor will have a different perspective on. It is what is the focus on the new to the franchise customer growth. It is building that durable long-term customer base, expanding the customer base that allows us the opportunity to drive better mix and monetization down the line. We continue to scale our Big Bets.

And you'll see next week when we unpack even more data on the Big Bets. The breadth of performance is impressive across all of these Big Bets. They have multiple billion dollars driving customer growth and revenue growth at a very healthy rate. They transcend multiple customer pain points and different markets. So we're not just betting on one market, one customer base. But we need to complement that momentum we have in the Big Bets by also scaling the platform. And that's an area where if you go back just 4 years ago, we were delivering order of magnitude higher new to the franchise customer growth.

And it's because of our deliberate focus and investments towards the Big Bets that took some of the focus off of new to franchise growth. So we're going to reinvigorate that. So a year from now, it will be very clear that Intuit's say-do is still there. When we say we are going to do X, we actually do it. And we are saying we are going to continue to scale Big Bets and grow new to our franchise customers. And that is what investors will look back and see that, that is a consistent delivery for Intuit.

It's a perfect place to leave it. Please join me in thanking Sandeep for his time.

Great. Thank you, Gabriela. Thank you, everybody.

Good afternoon, ladies and gentlemen. My name is Bo, and I will be your conference operator today. At this time, I would like to welcome everyone to Intuit's Fourth Quarter and Fiscal Year-end 2026 Conference Call. [Operator Instructions]

With that, I'll now turn the call over to Ms. Kendra Goodenough, Intuit's Vice President of Investor Relations. Please go ahead, ma'am.

Good afternoon, and welcome to Intuit's Fourth Quarter Fiscal 2026 Conference Call. I'm here with Intuit's CEO, Sasan Goodarzi; and our CFO, Sandeep Aujla.

Before we start, I'd like to remind everyone that our remarks will include forward-looking statements. There are a number of factors that could cause Intuit's results to differ materially from our expectations. You can learn more about these risks in the press release we issued earlier this afternoon, our Form 10-K for fiscal 2025 and our other SEC filings. All of these documents are available on the Investor Relations page of Intuit's website at intuit.com. We assume no obligation to update any forward-looking statement.

Some of the numbers in these remarks are presented on a non-GAAP basis. We reconciled the comparable GAAP and non-GAAP numbers in today's press release. Unless otherwise noted, all growth rates refer to the current period versus the comparable prior year period, and the business metrics and associated growth rates refer to the worldwide business metrics. A copy of our prepared remarks and supplemental financial information will be available on our website after this call ends.

With that, I'll turn the call over to Sasan.

Thanks, Kendra, and thanks to all of you for joining us today. We closed fiscal year 2026 with solid results. Full year revenue grew 14%, and we expanded operating margin again this year. This drove full year GAAP and non-GAAP diluted earnings per share growth of 20% for both. Our Big Bets, assisted tax, money and mid-market collectively grew 34% and represented 30% of full year revenue. At the same time, our results highlighted areas where we need to further evolve. Namely, in key parts of our business, we need to grow new customers at a faster pace.

As we enter fiscal year 2027, we are deliberately shifting our execution and investments towards accelerating customer acquisition and market share growth while continuing to scale the areas of the business that are working well. We have already taken decisive action. We are sharpening our product and lineup strategy to accelerate new customer growth while continuing to scale our Big Bets and increase adoption of platform services. These actions are designed to strengthen our competitive position and set Intuit up for durable growth over time.

Today, I'll cover the opportunities we see ahead, the changes that we are making to capture them and our progress to date. I have a great deal of conviction in our strategy to win as an AI-driven expert platform by creating a unified financial system of intelligence. We bring together decades of trusted proprietary data, deep financial and industry expertise and domain-specific models built for accuracy and compliance to increasingly do the work for our customers and help them achieve better outcomes. Our innovation is creating a future where consumers, businesses and accountants can simply approve financial decisions or collaborate with a brilliant virtual team of AI and human experts while our platform works around the clock to power their prosperity. This is always-on financial intelligence.

Our 3 Big Bets defined where we are concentrating our focus: scale done-for-you experiences, putting money at the center of everything we do and win in the mid-market. We are executing with greater speed against these 2 clear outcomes: grow new customers to capture market share and increase adoption of platform services to drive higher ARPC. For businesses and accountants who are helping them grow and run their businesses end-to-end, from accounting and human capital management to payments, [ build a ], financing and marketing automation. Across our business platform, that translates into a clear growth strategy, bringing more new customers onto the platform from early entrepreneurs to mid-market businesses and grow with them over time as they adopt more services and their needs to become more complex.

In fiscal year 2026, we prioritized scaling our mid-market and money offerings, focused on delivering greater value to our existing customer base. That delivered meaningful progress, with revenue from our online money portfolio growing 31% and mid-market revenue growing 39%. That growth demonstrates the value that we are creating for existing customers as their needs become more complex. The opportunity now is to complement that strength by accelerating new to the franchise growth.

Total online paying customers were 8.9 million at the end of fiscal year 2026, growing 3% year-over-year, which is about 2 points lower growth than in the prior year. As we enter fiscal year 2027, we are broadening our focus to acquire significantly more user franchise customers to increase our market share while scaling our Big Bets to position the business platform for reacceleration over time.

A key component of our [ newer franchise ] strategy is widening the front door with QuickBooks Free and QuickBooks Lite. These offerings create low-friction entry points to reach millions of businesses earlier in their journey and build a relationship with them from the start. We recently introduced QuickBooks Free, and early results are encouraging. As of last month, we had more than 20,000 customers either actively using QuickBooks Free or who have converted the paid offerings with monetization, driven by payments adoption and upgrades to more comprehensive offerings. This is the model we intend to scale: acquire more new customers earlier and grow with them as their needs become more complex. That model becomes even more valuable as customers grow in the mid-market, a nearly $90 billion total addressable market.

Our progress in the mid-market has been strong and gives us a clear opportunity to broaden the sources of growth. Mid-market customers grew 28%, with roughly 3/4 of the additions coming from upgrades or desktop migrations. This reflects our success moving existing QuickBooks customers into higher-value offerings, with our go-to-market emphasis weighted towards our existing base.

As we enter fiscal year 2027, we are deliberately increasing investment in direct [ new to the ] franchise acquisition to expand our reach and broaden the sources of mid-market growth. We have tangible proof points that give us confidence in our ability to accelerate [ Direct's ] acquisition. [ New to the ] franchise mid-market customers grew over 30% this year. And Intuit Enterprise Suite annualized revenue surpassed $145 million in Q4, a 4x increase from last year.

Our industry-specific approach is also attracting new customers. The launch of Construction Edition drove an incremental 19 points of growth in QuickBooks Online Advanced customer additions in construction, while new Intuit Enterprise Suite contracts in construction increased 20%. These results demonstrate that industry-specific innovation can be a meaningful new customer growth lever, and we are moving quickly to scale this approach across more verticals.

Accountants are another important part of scaling our mid-market new customer pipeline. This year, they grew 25% of our new Intuit Enterprise Suite contracts. And to strengthen our network effect, this month, we launched breakthrough AI native innovation in Intuit Accountant Suite, bringing together practice management, portfolio-wide insights, books close and tax workflows in one experience. accountants using Intuit Accountant Suite report spending nearly 30% more of their high-value time on advisory work, and over 150,000 accountants are already on Intuit Accountant Suite platform. Together, these proof points give us confidence in our ability to expand our reach in the mid-market, not only by growing with businesses already on the platform, but by bringing significantly more new customers directly into the franchise.

What makes this opportunity especially powerful is 1 unified financial platform serving businesses and accountants across their journey. From an entrepreneur just getting started to a complex mid-market business, we can bring customers onto the platform, solve more of their needs over time and help them run more of their business in 1 place. And the more businesses and accountants we bring together on the platform, the stronger the network becomes, driving greater engagement customer growth and adoption of services while creating more value for both sides.

A foundational part of that advantage is Intuit Intelligence. Powered by our financial system of intelligence, it brings done-for-you experiences to life, moving us beyond software that simply records transactions to a platform that increasingly does the work for our customers. Intuit Intelligence combines the context of a customer's financial life and data with our deep domain and industry expertise, advanced models and workflows built for accuracy and compliance. It understands what is happening in a customer's business, anticipates what needs attention and turns insight into action. It keeps books current, surfaces anomalies, forecasts cash flow, performs scenario planning and initiates workflows to get worked on, on their behalf while bringing in human expertise when needed.

The early proof is encouraging. Millions of customers are using our AI-native experiences, getting paid 4 days faster and reducing manual work by 30%. And among more complex businesses, over 75% of Intuit Enterprise Suite customers use our AI agents every month to keep their books current, automate transaction work and close faster. Our focus now is to scale that value across a much larger customer base. As our customers grow, we have the opportunity to grow with them by managing more of their financial and workforce needs in 1 place. Money and Workforce help us deliver that value while creating a significant opportunity to deepen customer relationships as they adopt more [indiscernible].

We are seeing strong evidence of this today with significant opportunity ahead. Businesses managed over $2.7 trillion in invoices through QuickBooks every year, and total online payment volume, including Bill Pay, grew 30% to more than $225 billion for the full year. And as customers grow with us, they adopt more of the platform. QuickBooks Online Advanced U.S. customers have a 13-point higher payroll penetration rate and a 9-point higher payments penetration rate than core QuickBooks Online customers. This demonstrates the opportunity to grow the value of a customer relationship over time by solving more of their needs on 1 platform.

We continue to expand that opportunity by putting money at the center of the platform. Our recent launch of the Intuit Business Credit Card brings another critical financial capability directly into QuickBooks experience, creating more opportunities to deepen engagement and drive additional value for customers. As we look ahead, our priorities across the business platform are clear. We will widen the front door with QuickBooks Free and QuickBooks Lite to accelerate new to the franchise customer growth, continue to expand our reach and momentum in mid-market, scale consumption and engagement of Intuit Intelligence and drive greater adoption of Money and Workforce services. Our focus is to execute against both sides of the equation, bringing more customers onto the platform and growing the value of those relationships over time to expand market share, drive higher ARPC and position the business platform for durable long-term growth.

Now shifting to our consumer platform. Revenue grew 11% this year, and we are seeing strong growth across assisted tax, personal finance and money. At the same time, we lost quality DIY customers to lower-cost providers. I will unpack that shortly.

We now understand what needs to change and are focused to rebuild that customer funnel while continuing to scale the areas where we are seeing strong momentum. Our growth opportunity is to use TurboTax and Credit Karma as powerful entry points to bring more consumers into the platform, grow our share of total IRS e-filers and deepen those relationships across their financial lives to drive higher platform ARPC over time.

Our financial system of intelligence enables us to do that by helping consumers make smarter financial decisions year-round, whether connecting them to the right credit cards, personal loans, auto loans, home loans and insurance, helping them manage their money or filing their taxes. We're already having a significant scale to build from. This year, we helped customers file 39 million tax returns, facilitated over $120 billion in tax refunds and leveraged more than 70,000 tax and financial attributes per consumer to deliver deeply personalized experiences.

We see significant opportunities to expand the value of these relationships. Today, approximately 1 out of every 9 credit card and personal originations in the U.S. comes through our AI-powered platform. Over the last 2 years, our share increased approximately 3 points in credit cards and 4 points in personal loans as we gain share with both consumers and financial [ plate ] partners. Revenue for our personal finance key growth offerings, insurance and home loans, grew 44% this year while connected financial accounts grew 104%. Consumer money revenue grew 26%, and we delivered more than $29 billion in fast money refunds this tax season, up 79%.

This is the power of 1 consumer platform. The more customers engage with us across their financial lives, the more context we have to deliver personalized value and the more opportunities we have to grow the relationship beyond a single tax transaction.

Now let me address how we're evolving our tax growth model. Historically, our DIY model optimized for tax revenue and ARPC [ repricing ] and upgrading customers into higher-value offerings over time. That model worked for many years, but the market has changed. Consumers have more low-cost alternatives, and we lost quality DIY customers to low-cost providers this year.

Price is now the #1 reason customers leave TurboTax. We now know what needs to change, and we are already putting that plan into action to rebuild the DIY funnel and grow our share of total IRS e-filers. We are making the entry experience more competitive and clear on price and expanding the distribution so customers can discover and access TurboTax where they already are, including through leading LLM experiences and new payroll provider partnerships.

We are also fundamentally reinventing the tax experience with AI and expect to deliver a completely AI-native experience for the vast majority of tax situations, from document first intake that dramatically reduces the work of filing, to a copilot that can take action directly on the return and seamlessly hand off to an expert with full context while credit, deduction and compliance agents help customers maximize their outcomes with greater accuracy. This approach also changes how we think about the economics of the customer relationship. This means we are deliberately accepting lower initial DIY tax ARPC to acquire and retain more quality customers, grow e-filer share and create greater lifetime value as they engage across the consumer platform.

We know the value of winning these customers extends far beyond the tax return. Customers using both TurboTax and Credit Karma generate approximately twice the average revenue per customer of a single product customer. And Credit Karma members' filings with TurboTax grew more than 50% this year. These results demonstrate the opportunity to monetize consumer relationships beyond the tax. Our focus now is to term the changes we are making to pricing, packaging and distribution into significantly more quality DIY customers entering the franchise.

DIY is also an important funnel into assisted tax, 1 of the largest opportunities, and approximately 88% of TurboTax's total addressable market. We're disrupting this category with an AI-native virtual experience that combines the speed and productivity of AI with something customers deeply value and AI cannot replace: a trusted human expert who reviews, signs and takes accountability for their return. Our ability to deliver that human accountability efficiently at scale, together with competitive pricing and compelling year-round benefits, is a powerful differentiator.

TurboTax Live customers grew 38% this year. Over the last 2 years, we've been very successful in helping existing DIY customers realize the value of Assisted. More than 3/4 of TurboTax Live customer additions in fiscal year 2026 came from DIY upgrades into Live. While this demonstrates the value of our Assisted offers, the mix also makes it clear where our next opportunity lies.

Looking ahead, we expect DIY upgrades to moderate from these strong levels and more of our Assisted to growth to come from new to the franchise customers. We saw encouraging progress this year, with new to the franchise customers and Live growing 15%. We're investing to accelerate that growth by expanding our local efforts through targeted customer outreach, improved digital discoverability and referral programs, while remaining competitive on price and scaling our AI-native platform to help experts serve more customers with greater efficiency.

At the same time, rebuilding the DIY funnel gives us a larger pool of customers we can serve as their needs become more complex. Taken together, our priorities across the consumer platform are clear: rebuild and grow the DIY funnel with a more competitive price value equation; accelerate new to the franchise growth in Assisted; use TurboTax and Credit Karma to bring more consumers onto the platform; and deepen engagement across money and personal finance to grow platform ARPC. Our focus is on both sides of the equation, bringing more customers into the franchise and creating greater value from those relationships over time to position the consumer platform for durable growth.

Let me close with this. This is an important moment for Intuit. We finished fiscal year 2026 with strong momentum across our Big Bets, while our results also highlighted where we need to accelerate progress, particularly in growing new customers. We understand the gaps. We have a clear plan to address them, and we're already taking decisive action.

Fiscal year 2027 is about executing this plan with speed and discipline. We are making deliberate investments today to strengthen our competitive position, accelerate customer growth and position Intuit for durable growth and reacceleration into the future. We know what we need to deliver, and we will hold ourselves accountable for the progress.

With that, let me turn it over to Sandeep.

Thank you, Sasan. Our fiscal 2026 results include total revenue growth of 14% and GAAP and non-GAAP operating income growth of 20% and 18%, respectively. Our full year GAAP and non-GAAP diluted earnings per share each grew 20%. Our fourth quarter results include: revenue of $4.4 billion, up 14%; GAAP operating income of $475 million versus $339 million last year; non-GAAP operating income of $1.4 billion, up 43%; GAAP diluted earnings per share of $1.34 versus $1.35 last year; and non-GAAP diluted earnings per share of $4.03, up 47%.

Now let me turn to the business segment results. Starting with the Global Business Solutions segment. We continue to make progress serving businesses with our all-in-one business platform and Intuit Intelligence that bring done-for-you experiences powered by AI and human expertise. GBS revenue grew 16% for the full year, in line with expectations. When excluding Mailchimp, GBS grew 15% during the quarter and 18% for the full year. Online Ecosystem revenue, excluding Mailchimp, grew 20% for the quarter and 23% for the year.

We saw continued momentum in mid-market again this quarter with Online Ecosystem revenue for QBO Advanced and Intuit Enterprise Suite growing 38%. Online Ecosystem revenue for our small businesses and the rest of the base grew 14% this quarter. Our overall growth in Online Ecosystem revenue was driven by strength across both Online Accounting and Online Services. QuickBooks Online Accounting revenue grew 20% in Q4, driven by higher effective prices, customer growth and mix shift. For the full year, revenue grew 23%. Online Services revenue grew 15% in Q4 or 21% excluding Mailchimp, driven by Money and Payroll. For the full year, revenue grew 16% or 24%, excluding Mailchimp.

Within Money, Q4 revenue growth was driven by Payments, Capital and Bill Pay. For Payments, revenue growth reflects an increase in total payment volume per customer, customer growth and higher revenue yield. We also had a onetime benefit from services provided to a new partner during their launch. This partnership will contribute to ongoing Money growth.

Total online payment volume, including Bill Pay, grew 32% in Q4, reflecting our continued momentum in payments and adoption of our Bill Pay offering. Online payment volume growth, excluding Bill Pay, was 21%. And in Capital, revenue growth continues to be driven by working capital loans to small businesses. Loan volume through QuickBooks Capital increased 54% to $1.9 billion this quarter. The Q4 deceleration in Capital revenue growth is due to a deliberate increase in the mix of loans that we sell through our forward flow partners, which have a lower revenue yield.

Within Payroll, Q4 revenue growth reflects mix shift, customer growth and higher [ attractive ] prices. And for Mailchimp, Q4 revenue was down slightly year-over-year. As shared in our press release today, Mailchimp will be a separate reportable segment beginning in fiscal 2027.

As you heard from Sasan, Customer growth is a key part of our strategy, and we understand the need to accelerate growth. Total online paying customers grew 3%. And U.S. QBO customers grew 6%, excluding self-employed. In mid-market, we saw 28% customer growth in combined QBO and Advanced -- QBO Advanced and Intuit Enterprise Suite customers. Upgrades within our existing franchise will remain an important part of mid-market growth as customers become -- customer needs become more complex.

At the same time, we are increasing focus on new to the franchise customer growth to expand market share and broaden the sources of durable growth over time. Online Ecosystem ARPC growth continued to accelerate in fiscal 2026 to 15%, driven by strong adoption of our online services, including adoption by mid-market customers as well as value-based pricing for expanded and enhanced offerings.

Turning to Desktop. Desktop Ecosystem revenue grew 3% in Q4 and 6% for the full year. For QuickBooks Desktop Enterprise, revenue grew 4% in Q4 and 11% for the full year, with Q4 deceleration driven by more customers migrating to QBO Advanced given its compelling product capabilities.

Now turning to our Consumer segment. Q4 Consumer segment revenue was $930 million, growing 14%. And for the full year, growth was 11%. TurboTax revenue grew 7% for the full year, driven by momentum in the Assisted category. TurboTax Live revenue grew 37% for the full year, while customers grew 38%. We are pleased with our progress against our Big Bets to deliver done-for-you experiences to customers with a unique combination of AI and AI-driven human expertise. And the growing success of our local expert strategy this year sets a strong foundation to build on next year.

For DIY, we are clear on the need to evolve our business model and to better serve customers with our all-in-one platform, engaging them year-round to support smarter financial decisions. ProTax Group revenue was $647 million in fiscal 2026, up 4%. Credit Karma revenue grew 16% in Q4 and 20% for the full year. For the quarter, growth was driven by personal loans, auto insurance and credit cards.

Shifting to our balance sheet and capital allocation. Our financial principles guide our decisions, and they remain our long-term commitment. We finished the quarter with $7.2 billion in cash and investments and $7.7 billion of debt on our balance sheet. In June, we issued $1.75 billion in senior notes, which further strengthens our liquidity to address debt maturing in fiscal 2027.

We significantly increased our share repurchases in fiscal 2026, with $2.1 billion of stock repurchased during the fourth quarter, an increase of 179% compared to the same period last year. For the full year, share repurchases were $5.5 billion, up 96% versus last year. And these repurchases drove a 2% reduction in weighted average diluted shares outstanding has been more than offset dilution from share-based compensation. This acceleration reflects our strong conviction in Intuit's long-term growth opportunity, and we expect share repurchases to remain a significant component of our capital allocation strategy in fiscal 2027 and beyond.

The Board approved a quarterly dividend of $1.38 per share payable on October 16, 2026. This represents a 15% increase versus last year.

Now before I move to guidance, I want to share 2 reporting changes we are making effective August 1, 2026. First, as we are now managing Mailchimp as a separate operating segment from Global Business Solutions, Mailchimp will be a separate reportable segment beginning in fiscal 2027. Second, share-based compensation expenses will no longer be excluded from our non-GAAP financial measures. We view share-based compensation as the recurring component of our competition program and believe including this expense in our non-GAAP financial measures reflects our core operating results. It also reinforces our focus on managing all expenses and driving operating leverage over time. Our fiscal 2027 and Q1 guidance reflect both of these changes, and additional information can be found on our fact sheet posted on our Investor Relations website.

Now turning to our fiscal 2027 guidance. Our guidance reflects deliberate choices to accelerate customer growth, increase market share and strengthen the long-term durability of our growth model. As a result, along with dynamics across our businesses that I will walk through, we expect total company revenue growth to decelerate in fiscal 2027.

Therefore, for fiscal 2027, we expect total company revenue of $23.279 billion to $23.512 billion or growth of 9% to 10%. The deceleration from the prior year is primarily driven by Desktop Ecosystem, TurboTax and Credit Karma. We expect Global Business Solutions segment revenue growth of 30% to 40%. For Online Accounting and Online Services, we will continue to increase customer value and deeper engagement, with growth driven by ARPC expansion due to higher effective prices and increased adoption of services. Online Accounting growth includes continued upgrades as customers need to become more complex, along with higher effective prices. At the same time, we are increasing our focus and investment and new to the franchise customers to broaden the sources of growth over time.

Online Services growth will continue to benefit from growth across Money and Payroll, partially offset by moderation in Capital revenue growth as we increase the mix shift to loans we sell through our forward flow partners, which have a lower revenue yield. For Desktop Ecosystem, we expect revenue to decline in the low single digits, primarily due to continued migration of customers to online offerings, including QBO Advanced, where we can better serve their increasingly complex needs.

We expect Consumer segment revenue growth of 4% to 6%. TurboTax revenue growth will be 2% to 3%. Our guidance reflects the deliberate actions we are taking to improve the price value equation in DIY, broad quality customers and increase our share of total IRS e-filers while continuing to scale Assisted Tax. These actions result in lower tax ARPC in fiscal 2027, but are designed to strengthen the customer funnel and create greater value across the consumer platform over time.

Our TurboTax guide assumes total IRS filers remained flat year-over-year. TurboTax Live revenue growth should be mid-teens with a deceleration due to fewer DIY upgrades to Assisted Tax following strong success over the last 2 years [ FSI ] noted. We are focused on accelerating the growth of new to the franchise customers given this is critical for durable long-term growth.

Credit Karma revenue growth should be 11% to 13% as we continue to increase engagement and therefore, monetization across our platform, our guidance reflects a prudent stance on the pace at which we expect to continue gaining share of partner demand following the strong growth in fiscal 2026. ProTax revenue growth should be approximately 2%. And we expect Mailchimp revenue growth to be flat to down 1% year-over-year, with higher effective prices expected to offset the increased churn. As we realign our internal structure under which Mailchimp is managed, we are focused on maximizing its value and delivering strong profitability.

Now to operating margin. We expect margin expansion driven by savings from Workforce, changes announced last quarter and continued efficiency gains, both in how we serve our customers and how we work. We expect those savings to be partially offset by deliberate choices we are making this year to increase investments in areas such as sales and marketing as we focus on growing our new to the franchise customers as well as product innovation.

GAAP diluted earnings per share is expected to be $20.12 to $20.36 or a growth of 22% to 24%. And non-GAAP diluted earnings per share is expected to be $22.88 to $23.12 or growth of 23% to 24%. This includes a $5.81 impact from share-based compensation expenses. We expect a GAAP tax rate of approximately 27% in fiscal 2027.

For the first quarter of fiscal 2027, we expect total company revenue growth of approximately 11%, GAAP diluted earnings per share of $1.71 to $1.75 and non-GAAP diluted earnings per share of $2.44 to $2.48, inclusive of a $1.48 impact from share-based compensation expenses. You can find our full fiscal 2027 and Q1 guidance details in our press release and in our fact sheet.

As we enter the year, we are operating with a relentless focus on execution against the priorities we have laid out today. And as we look beyond fiscal 2027, our goal is to be a durable double-digit revenue growth company over the long term. The actions we are taking now are designed to strengthen the durability of our growth model. This will ensure we have all levers for growth available: volume, mix and price, but we are being prudent in the contribution we have seen from each in our long-term expectations.

Additionally, we are providing long-term expectations at the segment level only, as this allows us the flexibility to lean into investments where we see momentum and can therefore scale the most successful growth initiatives. First, the Global Business Solutions segment. We expect revenue to grow at a CAGR of 10% to 15% over the next 3 years. As noted, we have been prudent on the contribution we have seen for each lever of growth while focusing on strengthening the durability of our model. Growth will continue to be driven by Online Ecosystem, including scaling our mid-market business and increasing adoption of our Money and Workforce services.

Next, the Consumer segment. We expect revenue to grow at a CAGR of 4% to 8% over the next 3 years. Growth will be driven by increasing share of IRS e-filers, scaling Assisted Tax as we grow new to the franchise filers and driving consumer platform ARPC growth as we increase engagement of our personal finance offerings. Disciplined capital allocation has long been core to how we run the company, and that will remain true in the years ahead.

We are focused on investing with conviction in the highest-return growth opportunities while continuing to drive efficiency across every business. We are committed to delivering margin expansion at the company level even as the mix shifts to our services that include more AI capabilities and human expertise given our operating discipline, efficiency gains and share-based compensation expense leverage.

For share based compensation, we committed last year to lower the percentage of revenue by at least 1 point over 3 years. We are on track to be at 9% of revenue by fiscal 2028. While share based compensation continues to be important to recruiting and retention tool for top talent, we will scale this cost at a slower rate than revenue. And today, we are furthering our commitment. We now expect share-based compensation as a percentage of revenue to be 8% by fiscal 2030. And lastly, we remain committed to delivering annual non-GAAP EPS growth of at least high teens over the coming years. This commitment has been updated due to the inclusion of stock-based compensation expenses, as noted earlier.

With that, I'll turn it back over to Sasan.

Thank you, Sandeep. We're laser-focused on the areas where our execution did not meet our expectations, particularly in new customer growth, while continuing to scale the Big Bets that are driving our momentum. Our priorities are clear. The organization is aligned, and we are executing with discipline to deliver measurable progress in fiscal year 2027.

Intuit has navigated periods of significant transformation before, and each time, we have emerged stronger by staying relentlessly focused on the customer and moving with speed. This moment gives us the same opportunity. I have tremendous belief in our team. We have the best people in the industry, and I know what we can achieve when the entire company is aligned on what matters most and moving with conviction. This is how we are operating in fiscal year 2027. I'm energized with what's ahead and by what the team can accomplish for our customers and our shareholders. We look forward to going deeper at Investor Day next month.

With that, let's turn it over to your questions.

[Operator Instructions] We'll go first this afternoon to Brad Zelnick with Deutsche Bank.

And Sasan and Sandeep, I appreciate you taking the opportunity to rebase the business in fiscal '27 focused on new customer acquisition and set up for an even brighter future. But what supports your confidence that this year is, in fact, the bottom of the J curve and that you're not experiencing some structural change perhaps brought on by AI?

Yes, Brad, thanks for your question. I think the place I would start is I'm resetting expectations for the company because this is the perfect time to do it where we can play offense. And it comes down to 2 things. One, we're going to continue to scale our bets. They will continue to be the fastest-growing part of the company. And even within our Big Bets, we're going to really double down on acceleration of new to the franchise.

Now at the same time, with all of our AI investments we're making to make our experiences far better, we're really doubling down in core areas where I'm personally dissatisfied and hold myself accountable for the lack of performance, which is DIY tax and on the low end in the business group. And I would just tell you that, Brad, it's important to go back to history. When you think years past, we were very focused on market share gains and new customer acquisitions. And in TurboTax, we were growing customers double digits. In the Business Group, we were growing customers north of 20%.

We have to shift to really focus on building this agentic platform that we have built out to become the financial intelligence layer for our customers and really focusing our capital, our mind share on 3 bets: Assisted Tax, Money and Mid-market. And now that's 30% of the company growing 34%. Going forward, we're going to do both, and we know how to do both. And when we focus on the company on achieving the outcomes we set out to achieve, we've always demonstrated that we can achieve it.

I think what's very different is now we have a platform with a lot more services, a consumer platform with a lot more services, a business platform with a lot more services, serving new areas like assisted tax and mid-market. And I think with the focus on scaling Big Bets, the focus on taking market share, particularly, by the way, where the future of disruption can in fact come from AI, we will be the disruptor. And I'm eager to demonstrate that in the coming years. So that's our approach. It all comes down to [ say you in ] execution. So I would just say stay tuned.

So next question, please.

Certainly. We'll go next now to Kirk Materne of Evercore ISI.

Yes. And I appreciate the color on the forward guidance. I assume I'm maybe had some questions on is there a slippery slope in price for tax, meaning it makes a lot of sense to sort of go after and be aggressive at the DIY market from a price perspective. But does that cut into your ability to take price in the assisted market? And I realize you're sort of more of the price disruptor in that market. But I was just kind of wondering if you could walk us through that, just to make sure we have a sense of why sort of changing the strategy of the low end, does it also bleed up to maybe change the strategy in the high end as we look out a couple of years?

Yes. Sure, Kirk. Let me take your questions as you stated it. The market structure and the consumer behavior is very different in the assisted versus DIY. And it comes down to 1 very, very important and simple thing. And that is those that choose to have somebody else to do their taxes for them are looking for someone to own the review, own the signature and own the accountability of the review.

And in that market, we have built out a virtual expert platform where what you have to be great at is scaling humans, and we've done that with AI. And so we can now do anybody's taxes for them at a very competitive price. And we now have the consumer platform benefits across money, across financial products to monetize beyond tax.

From a structure of the market, assisted is very different than DIY. I think if I go to DIY, the reason we're changing our approach is because we have lost quality customers, DIY customers, to low-cost providers. And we've demonstrated that we can deliver benefits and monetize across the consumer platform. And when you look at what we just talked about a moment ago, the customers that use both TurboTax and Credit Karma, their ARPC is twice what it is if you only use 1 product, and those customers grew 50%.

And so what we want to do is really double down on winning at the right price entry point in DIY tax because we know we can deliver benefits and monetize across the consumer platform. But also remember, by acquiring these customers, we can grow with them over time. 3/4 of our TurboTax Live customers actually came from DIY. So we've demonstrated the ability to deliver benefits and monetize. And for us, it's actually a proven model. And now we can do both, not only serve assisted and win, which is 90% of the total addressable market, but make sure that our top of the funnel, which is DIY, is very, very strong. And that's the choice that we're making strategically.

We'll go next now to Raimo Lenschow with Barclays.

I get all the comments on tax on the GBS business. This time last year, we talked about like 15% to 20% growth in the long run. Today, you're talking 10% to 15%. The 1 question I'm getting from a lot of investors is that kind of pressure from like new entrants coming in there? Or what's driving the big delta there? Could you just kind of clarify that a little bit?

Yes, sure. We are creating the pressure. We are not being pressured to make the change. And the way I would sort of talk about it is, one, a lot of our growth in the business group is actually coming from mid-market. We grew 39%. New customers grew 28%. Our overall customers will be 28%, new customers to the franchise grew over 30%.

And mid-market customers are really important because of the adoption of services. When we look at our QuickBooks Advanced offering, which is in the mid-market, payroll penetration and payments penetration are 12 to 9 points higher. And so one, we want to continue to scale mid-market. We want to continue to drive the adoption of our services. And because of all of our AI-native sort of investments that we've made to become truly an AI-native ERP and serving both sides of the network, both the accountant and businesses, we want to continue to scale that. We want to continue to accelerate.

And this has, by the way, taken years of work to be able to position our platform both from a product standpoint and a go-to-market standpoint to be able to serve mid-market. And we now want to double down in the area where we were not as focused as we need to be on new customer acquisition. And I want to give my team, I want to give the company flexibility to make sure that we are competitively positioned in the [ low end ] with all of the investments that we're making across AI to truly become the financial business intelligence layer, I want to make sure that we win these customers at the low end. And frankly, with a trusted brand like us with a great product winning customers in the low end, I can grow with them over time.

And I want to reset expectations of a franchise that can grow at 10% to 15% to give my team, give the company the opportunity not only to scale mid-market, but to accelerate customer growth and accelerate market share. I'll remind you of the day...

[Technical Difficulty]

Ladies and gentlemen, thank you for standing by. We apologize for that technical difficulty. At this time, our speakers are back in conference. Please proceed.

I'll hand it back over to Sandeep to finish the response to that question.

Raimo, going to add a couple of factors to complement to what Sasan shared about the GBSG long term, 10% to 15%. Just a reminder to also keep in mind the Desktop is nearly a quarter of the GBSG business, and that is an ecosystem we expect is going to be declining. But outside of the Desktop, the areas that you have to underwrite confidence in the GBS, the mid-market only because it's a bit continue to grow at a very strong momentum as we shared.

Thank you for the question, Raimo. And so we'll go to the next question, please.

Certainly. We'll take that question now from Siti Panigrahi of Mizuho. And it looks like we might have lost Siti. We will circle back to her. We'll go next now to Taylor McGinnis of UBS.

You placed a big emphasis on growing new customers, and you mentioned earlier that online customer growth decelerated to 3%. So could you just comment on what you are seeing as the drivers of that slowdown and what might have changed? And then secondly, just given the size of the QuickBooks business today, maybe you can talk about what's giving you guys comfort that...

[Technical Difficulty]

Ladies and gentlemen, again, sorry for the continued technical disruption. Again, we are back live in the conference. And Taylor, we are back on your question.

Perfect, yes. I'll just repeat it in case you guys missed the beginning of it, but you placed a big emphasis on the new customer growth, mentioned online customer growth, in particular, decelerated. So maybe you could just talk through the drivers of that? And then secondly, just given the size of the QuickBooks business, what gives you a runway that -- or comfort that there's still runway ahead?

Yes. Taylor, let me jump in with the question. First and foremost, I would start with our TAM. We have a nearly $200 billion total addressable market, which is only penetrated by 7%. And so one, the TAM is quite significant.

Two, I would just remind us of the evolution where we've been really focused on building out our agentic platform and focused on mid-market. And really by focusing on mid-market, focusing on our services around Money and Workforce solutions. It's been a teacher of the cohort of customers we're winning with the go-to-market motions, the platform motions that have been in place. And that's really what's driving the significant growth going forward.

And we know how to acquire new customers. And this is why I would take us back to history, where we were growing double-digit customer growth on the low end. But now we're in a place where not only have we scaled our platform to be able to serve mid-market, we want to accelerate our growth in mid-market and accelerate our acquisition on the low end.

It's also taught us a lot around how to position our product and how to position the go to market. So with the introduction of QuickBooks Free and QuickBooks Lite, which has been recently introduced, we have over 20,000 customers through the last month that are active not only in QuickBooks Free and/or they have upgraded to upper SKUs, and we're monetizing payments.

And so one, the TAM opportunity is there. Two, we have really learned how to drive the growth that we need in mid-market, and we're going to continue to scale that. But then third, we have the right product with the right focus in our go-to-market to accelerate growth on the low end. And that's what gives us, one, confidence in building a competitive position and the durability of the model as we look ahead to set ourselves up for the future.

Thank you, Taylor. Next question, please.

Certainly. We'll go circle back now to Siti Panigrahi at Mizuho.

Going back to the guidance, you sharply lowered both GBSG and tax. And how much of this really you're seeing the pressure in the market versus you're kind of getting some sort of conservative in your guidance? Specifically tax now 2% to 3% even with the TurboTax Live going mid-teens, you get almost 8-point growth. It seems like on the standard, again, you are expecting another double-digit decline. How much of that really seeing the pressure versus you could see some sort of pressure from AI or something unfortunate challenges you might see? That's [ all we expect into ] your guidance.

Yes, Siti, I would start with, I'm resetting expectations so that we can now do 2 things well. One is what I'm actually quite happy about, which is our growth that's being generated by our Big Bets. So when you look at assisted tax, money portfolio across consumer and business platform and mid-market, it's at 30% of the company growing over 34%. I want to continue to scale that, and I want to actually double down on new to the franchise acquisition, which we talked about earlier.

At the same time, we cannot accept the quality DIY customers that we lost in tax. And so what we are doubling down on is ensuring that we can be competitive on the low end. Because we know there are 2 things that we can do well. One is provide benefits to these DIY customers that's beyond tax that we can also monetize. But also, these are customers that we can grow with over time.

A bunch of them over time go to TurboTax Live, which is the assisted segment. And so this really positions us competitively and durably to feed our growth model. And by resetting expectations, it gives the company, it gives our team a chance to really drive durable growth. And yes, we are being prudent with how we're thinking about our guidance. We're being prudent of how we're thinking about long-term expectations because I want to make sure that our say-do is there, and I want to make sure that we build a durable model going forward. And those are the reasons in which we've made these decisions and choices.

Thank you, Siti. Next question, please.

Certainly. We'll go next now to Arjun Bhatia with William Blair.

Sasan, maybe 1 for you just on timing. I think you sort of did a great job laying out the strategy and trying to get net new onto the platform. But when you think about the growth drop and the reacceleration, is fiscal 2027 enough to implement the changes you're looking to make in the business? Or is there a chance this transition can flip into perhaps fiscal '28 before we see the reacceleration in growth?

Yes, it's a great question. I'll say 2 things as context before I answer your question. One, what I'm really happy about is our progress on our Big Bets, both the scale of revenue, the size and scale across the company. And now we have an opportunity to accelerate new customer acquisition even across our Big Bets. So it's important to start there because that's a significant and material part of the company. It's a very large TAM. We have a very strong innovation pipeline, and we want to continue to scale our Big Bets.

At the same time, I'm not happy in 2 areas: DIY tax and the fact that our online paying customers only grew 3%. And both of those, we know how to do well. And the history, again, is very important to look back on because these are both areas where we grew customers double digits. But because of our evolution to focus on our Big Bets, we now need to be able to do both because I'm not satisfied with where we are.

With that said, with both of them, we've already taken decisive actions and put the actions in place, both in terms of how we pursue winning quality DIY customers, and we already know how to monetize them. But also what we've already launched with QuickBooks Free and QuickBooks Lite that is driving up our traffic and the 20,000 customers that we -- I just shared earlier based on new launches. And those are important context relative to we're doing this from a position of strength. And because AI is fueling a lot of our innovation on the low end, I want to make sure that a trusted brand like ours, when it comes to compliance and accuracy, I want to be able to increase our share because these are the customers we can grow with over time.

In terms of answering your question about will this pay off by 2028 or is it going to take longer, I think I would just say, I'd rather say do speak for it. I want to talk to you guys about our results on a quarterly basis, share the progress that we are making. And I think you will then be the judge of how quickly we are executing against these plans.

I have confidence because we're scaling the bets today. I have confidence because we've driven new customer acquisition in the past. Now we focus the company on both. Let's watch our quarterly results. We'll update you, and you'll be the judge of how that's going to impact 2028.

And that was our last question. So Bo, I will hand it back over to you.

Thank you very much, Ms. Goodenough. Ladies and gentlemen. Again, that will conclude today's Intuit's Fourth Quarter and Fiscal Year 2026 conference call. We'd like to thank you all so much for your time and participation. You may disconnect at this time.

All right. Hi, everyone. Welcome you to this Mizuho Technology Conference, and it's a pleasure to host Intuit. And we have Mark Notarainni, EVP and General Manager, Consumer Group. And those who don't know, Consumer is a big one. It's TurboTax and Credit Karma. And Mark leads both the one.

That's right. Yes.

Welcome you to the conference.

Thank you for having me. I appreciate it.

The topic du jour is TurboTax. That's what we're going to focus on, but we'll do cover Credit Karma. All right. Just -- I mean, in your recent Q3 results just came out, you talked about weakness in the tax business, TurboTax business. And in terms of your expectation for the fiscal year, you lowered it to 7% from 7.5% to 8% previously. Let's start with your puts and takes for the tax business.

Sure. Maybe I'll start with what worked and then maybe I think the takes are what didn't work well for us this year. What we're really excited about right now is our continued growth in our assisted category. We grew 38% in customers, 36% revenue growth. And that's a really critical category for us. It's the category that we're newest in, and it's the largest category in all of tax. It's actually -- it's 7x larger than the DIY category itself.

And so we're very excited about our progress there. Two, we're really starting to emerge as a consumer platform. We grew our TurboTax customers that started in Credit Karma 54% this year. That's 25 points higher than the year before. And the reason why that's very important for us is because Credit Karma and that platform gives us an opportunity to serve and grow with our customers year-round versus the 2 times a year that we get to interact with them on a tax business.

And then finally, there are 2 other things that we're really excited about. One, our growing and continued focus on Money. Money is at the core of the whole tax product, right? It's the largest refund for many customers, and we continue to see growth and adoption of our fast money products. And that also starts to establish a bigger relationship with our customers year-over-year. And then we're very excited about AI. AI has truly changed our product from the way that our customers start and to how they use the product throughout the course of filing their taxes.

And I'll give you one example of that. Our digital assistant this year was 100% generative experience that drove 15 million interactions with customers, had an index -- a contact rate that indexed down in the mid-70s. So customers are engaging, filing their taxes and not having any friction in having to stop and call our call center to get help. So we're very, very excited about what AI is doing for us. Now the takes side, I'll start with the biggest challenge we had this year is the IRS category did not materialize the way that we have seen historically.

Historically, the CAGR, the long-time CAGR of the IRS category is about 1% growth each year. This year, we believe it's going to contract 30 basis points. And then underneath that, the e-file growth is about half of what we normally see. Our long-time CAGR on e-file growth is about 2%. And this year, we expect the e-file growth rate to be about 1%. So both of those things combined really impacted the DIY business more than any business. And we're the category leader in DIY. So it was a big impact on our year this year.

And then the second thing and more in our control is how do we serve customers at -- that are under 50,000 and specifically the value seekers within that category where they're very sensitive to the pricing of tax. And that area is a very high churn area in the industry itself, and it was high churn for us, and we need to reestablish our experiences there across our platform to make sure that they get their best tax outcome, but they stay with us long term.

Okay. I mean that's a great detail. We'll definitely talk about the part that worked well at TurboTax Live. But I want to go through the part that didn't work. First, you talked about let's go to IRS filing. It was down 30 bps, usually 1%. And I think you talked about this is like 2 million units. That is the most significant industry-wide contracts probably post-COVID. So to start with, why did you see from an industry perspective, this past taxes? Like why do you think this happened, this occur?

Yes. We're still researching and ensuring the season is not over yet. The season ends actually October 15. So we need the whole season to mature, and we need to spend the time over -- between now and then really researching why this happened. And we just don't have that answer yet, but it was definitely an impact that we saw across the category.

Okay. And then other part is the e-filing business, I think which you said 1% growth. I think that's another area investors are thinking that is kind of a good growth kind of acceleration there. So what's your exposure there in terms of total returns, including -- I think there is manual part also there, you can do manual and e-filing. So help us understand that part.

Yes. So over the years, there's been a shift out of paper returns, manual returns and into e-file. And e-file did grow this year or we expect it to grow even 1 point by the end of tax season. But historically, that growth rate has been 2%. And so what we anticipated was a reduction in paper returns that would shift into software, DIY, and that just did not materialize this year. There were some regulatory changes on how funding gets done, et cetera. We're exploring all of those, but we just need to see the season fully materialize to understand the full impact. But our projections right now that we look at is a contraction of 30 bps overall and only 1 point growth in e-file versus 2 that we expected.

Okay. If I switch to the TurboTax Live, that's a pretty strong growth, 36% revenue growth against 47% growth a year before. And now it's almost 51% of your TurboTax revenue. That's a solid. That's the growth part of the business. Help us understand what's helping you seeing this kind of momentum last year. What are the drivers? What's working? And what still you need to work?

Yes. That's -- so there are 3 things that are really working for us right now in assisted. One, it's a really great product for people that want the assurance and the confidence of an expert. And that shows up with our current customer base in DIY that have a life event and require the help of one of our certified experts to help them through this tax year or it's a fully assisted experience, and that manifested itself this year in our local distribution. We opened up about 500-plus service centers around the country. What that unlocked is the digital footprint to be able to match customers locally. And that allowed -- can you guys hear me?

No. There we go. So the local expansion that we drove allowed us to attract previous year assisted customers that we had not historically won before because the decision on taxes for the assisted category is very much driven by who's next to you and who's close to you and understand your tax in your area. So that expansion really helped us acquire more customers, and we saw significant new acquisition through that channel. And then the third piece in assisted is we -- because we are built on the technology platform, and we have AI plus our artificial intelligence plus our human intelligence actually on the same platform, it allows us to scale more efficiently, which in turn lets us have a very aggressive price point.

And so when we started this journey last year, we said there were 3 things that we wanted to do. We wanted to compete on an experience. We wanted to be faster than anyone, and we want to do it at the best price point. And faster was not just actually finishing the return, but actually getting people money fastest as well. And so that's the -- those 3 things came together and gave us a really good foundation to start to be more disruptive in the assisted category.

Now you guys always talked about this branding, local strategy, product. The other things you have to do to get into the market. When you look at the TAM for Live or the assisted part, like that's a massive market compared to DIY, 87 million tax filers in that space.

Still file, yes.

That's still you have to penetrate and then 15 million probably, go out of that -- go to tax stores. So if I may ask, like where do you see the traction right now? Is it within that 15 million tax tour where people are -- that's an easier one to capture? Or is there 87 million other remaining?

Yes, it's a great question. And I would say there are really 2 answers to that. One, in the assisted category, overall, there are about 14 million people that switch every year, whatever form they were in, whether they're in a tax store or an independent tax professional. And so those are opportunities. So that's really a big area for us, those 14 million. And then the rest is a little bit of a mix of tax stores as well as independent pros.

But it's much more what we're seeing is the idea of our experience, our price point and our local presence that's unlocking us serving both tax stores and independent pro company customers. And then the third area for us is the expansion of business tax. It's opened up a whole new category to serve customers where we haven't been before. And those small business customers that we're attracting right now tend to be at the small end of the small business, either newly formed or small. And they file their business tax and their personal tax together. And so when they make that decision of who's going to file their business tax, the personal tax comes along with that as well. So it's another area for us to grow.

Yes. I mean if I look at the slide, your TurboTax Live, it has live full service business tax and live itself. Is there a way to discuss or you can talk about the growth of each of that within that segment?

We usually don't -- we don't -- we talk about it live at the overall category. I could try that, but yes. We are -- the reality is we're growing across all 3. And each one provides a distinct value to the customer that's looking for that type of service.

But you still feel comfortable with your strategy that -- I think you talked about 17% to 20% TurboTax Live growth at the Investor Day. So you still feel comfortable.

We're not changing our long-term growth.

Okay. Okay. So if you look -- if I look at the business, 51% of that live growth growing at this point, let's say, 17%, 20% or not changing. But the question next comes is that how can you at least stabilize the DIY other part of the business? Because if you can maintain that business, right now, in our estimates, probably declined 14%, 15%, that -- what are the things you can do to at least minimize that churn or at least stabilize that?

Yes. Our DIY business is a great business for us, and there's a little bit of distinction on the 14%, 15%. A lot of our customers in DIY have these life events and require the assistance or searching the services that we have within our Live product. And so many of them trade up into our live product. So that's a big area for us to be able to serve those customers and not have them to defect. On the under 50,000, those value seekers, it's -- that customer base churns a lot in the industry. And the way that we'll be able to solve that is, one, we have to make sure that we're delivering a model that delivers value to them beyond taxes because they shop for the lowest price on tax only.

We believe we're uniquely positioned because of the consumer platform that we have to be able to be aggressive with our tax business, but monetize through value-added services. Some of those value-added services may be a fast money product, right? Where you can get access to your refund fast. That's very important to that customer base. We also know that the customers that we have that are in TurboTax and in Credit Karma consume services at a higher rate across the platform. And we're uniquely positioned with Credit Karma with a suite of financial products from loans to credit cards to insurance, where we can actually add value to that customer every year.

We can save them money every day during the year, which will then create loyalty in the tax product when it comes to tax time. They're 80% done with their taxes and they won't go anywhere else, and they'll stay within the franchise. So at the heart of our DIY business, is really getting and connecting price and value and creating the flywheel within our platform so that we can actually engage with those customers every year, every day during the year in those critical financial decisions that they make throughout the year.

Okay. So there is a price value mismatch that you're trying to...

At the low end, yes.

At the low end. And in terms of, I think this is a question we're getting like have you started seeing that towards the end of the tax season, beginning throughout that? Or basically, the question is, is that the issue you saw on the top of the funnel? Or is the conversion retention, like where exactly the weakness you saw when you saw the data.

For the -- it's every -- it's at the top of the funnel when you're shopping. We see some in our shopping experience, and that's where we have to connect the value and the price better together. Generally, when they get into the product and they're in the right product, they will finish and file with us.

The other question we're getting is where do you believe those customers, the low end, who leave TurboTax? I mean, where are they going? Is that the lower-priced aid providers, free filing options? Or do you see...

It's -- this business is incredibly competitive. And so the customers have a lot of choice to go to either another DIY. We also see customers that leave and go to assisted as well, right? Because of a life event or something that they've lost confidence in themselves being able to file their return. And so we see it kind of going in those directions. We have an opportunity to ensure that those customers know we're still new in the assisted category. We're known to be a software company. So we still have a lot of work to do to build our brand and the knowledge that our customers have of our full suite of products. We saw progress there, but we can do better.

And then the second is we really need to ensure that we're providing more value beyond taxes. And that's an area where no one else can really do that in the industry other than us. No one else can actually get you access to the fast money, help you make better decisions with that refund, get you into investment vehicles that savings accounts or pay off debt like we can. And so that's where we have to really focus our efforts is making sure that those customers that are searching for assisted know that we're there and we can help them. Good progress, we can always get better and then really connect our ecosystem and our platform together so that we're constantly providing value beyond tax for those customers that are looking for value beyond tax.

So just to clarify that value beyond tax now that Credit Karma and TurboTax under you, that's where the potential is where you can bring value to those customers with Credit Karma.

Absolutely. And that's where we saw really great momentum this year. We grew -- we had 54% growth in customers that actually started their tax journey in Credit Karma. That's 25 points higher than the year before. And so we see the power of the consumer platform actually starting to come together.

Right. And other topic on AI displacement concern, like Sasan has always been saying that Intuit is an AI beneficiary and not a victim of that. And did you see any kind of filers switching to any DIY kind of solutions? Or did they use ChatGPT file somewhere else? Any kind of data you think you have seen?

I think we see the traditional players that's right now where they're going. We do see some of the new AI start-ups, but not at scale right now. Our customers, and we believe that there is very -- that we need to be where customers are going. And so we see people interacting with ChatGPT. We see them interacting with Claude asking their questions, either when they're in session with us or they start there. And we've embedded our experiences into both Claude and into ChatGPT. And we're excited about what we learned there. So we will continue to do that.

The other piece that we've shifted and we have seen the shift from SEO to GEO. And we were early on in that migration, and we really saw great momentum there in terms of our content being referenced and being able to also do some work within those LLMs. So for instance, in ChatGPT, you could actually find one of our service centers and actually schedule an appointment with a tax professional in the embedded flow of ChatGPT last year. So we're meeting customers where they are. We're enabling them within the product also to connect.

And then we also have our own digital assistant that we deployed last year, and it drove 15 million interactions and over 1 trillion tokens consumed there and drove a higher conversion rate as well. So it drives confidence within the embedded product. What's really important in tax and I think in personal finance is you have to be very deterministic. You can't -- it has to be -- compliance is important. Your money and your outcomes for that money is very important. And so we believe that we're uniquely positioned to both engage and embed as well as deploy those capabilities directly into our products and help customers make the right financial decision.

Right. I want to drill a little bit deep into this integration with OpenAI. It was, I think, middle of the tax season, you announced that -- help us understand like what you achieved so far. But as you think about in the future, I'm pretty sure your team must be working on, do you see ChatGPT as another funnel to get more? Or is the experience that at the ChatGPT, you can get your tax done. And when ChatGPT is doing that, it can leverage your Intuit LLM or SLM, you can say. What's your strategy? How are you thinking about that evolving the ChatGPT?

So it's definitely going to be a funnel, right? GEO is here to stay. Customers are going to start there and ask questions. And so we want to make sure that our content is showing up that we're referenced and that they can easily connect into our products. We did deeply embed certain components of our product into OpenAI and Claude this year. And we learned a lot. It did not provide a lot of outcomes for us, right? Still super early. Customers struggled to connect accounts within the LLMs. That's not unique to Intuit. I think that's just in general.

And so we're exploring and continuing to iterate with them. We're very pleased with all of our partners across Gemini and our relationship with Gemini, ChatGPT and Claude as well, like we are very much embedded and working through different iterations for both personal finance and for tax.

One question I always get here is that, yes, OpenAI or ChatGPT or Claude, they don't file taxes. They just can answer your question, all that. But there is another breed of tools they're building on top of this OpenAI or ChatGPT with the API. But as you see those kind of emerge, what will be their business model? Are they going to charge? Are they going to pay? Because you also use AI too. So what do you think like in next 2, 3 years? I mean, this year, we didn't see that many. But as we see next few years, let's say, more AI-based tools evolve, what will be the monetization strategy? Because they have to pay for tokens.

Yes. I think the monetization strategy right now for us is we have to focus on the what drives the best experience, what drives efficient experiences and then how does that lead to conversion and consumption of our products. And what we see right now with like that digital assistant as an example, is it consumed a lot of tokens, but it made us more efficient in our call rates into our call centers and it drove conversion impact. So it's worth the investment for us to help our customers navigate confidently, not have to call and have a higher conversion rate. And so that's how we're thinking about it.

When you look across our assisted category, we believe it's an incredibly large opportunity to drive more efficiency and transform that experience away from data entry into advisory. So where the systems do most of the work, ingest the data, apply their content to the tax return and then provide advisory recommendations to the expert to talk with the customer through. And so that's a big shift and will allow us to actually serve more customers and drive better efficiencies in that experience, which will then allow us to be aggressive on our pricing.

Since you lead the TurboTax group, I want to ask this question, how is your product changing with AI? Are you -- I know you have been historically, you have seen TurboTax change a lot. Questions, rule-based. Now are you leveraging AI? So your next future TurboTax product will be as good as some of the competitors may be on top of LLM?

Yes. It's -- TurboTax historically has been built on an interview, right? The interview was the big breakthrough that we invented, and that was just a workflow. This year, we enabled about 90%, it's actually 93% of forms consumption and application -- automatic application through LLM-based models. So we would go get the document, translate all the information and apply it to the return. And that allowed us to remove the interview. And so that's really by the end of tax season, our new customers, we're not really seeing an interview process. They were seeing an AI-first experience. Data was collected, applied and then next best actions were recommended versus forcing a customer -- and I say forcing, but giving a customer an experience of a very long interview.

So we've embraced AI, and we had to change our whole product underneath that in order to enable it. And we did that by first peak last year. And so by the end of tax season by April 15, it was an AI-first experience. Our digital assistant was there as a side car. We loved what we's saw with our digital assistant. You can start to see how we will explore opportunities for us to be even more conversational in our experiences with our customers and will enable us to truly go to the next level. But the interview for the most part is behind us. And that's a big change because the interview launched our business in TurboTax.

The reason I asked that question is if you offer AI-based solutions, somebody else, but it comes to the cost. How can you monetize that? So I want to dig into your opportunity because now Credit Karma is with TurboTax under your leadership. So where do you see the opportunity? Let's say, you try to address this low end offering free competitive solutions like that. But it's ultimately the ARPU that matters for you. That's what drives your growth. Yes. One part is you talked about last year, early refunds. -- early refunds. -- that one. First of all, how did -- how was that this year versus last year?

Yes. We had -- we delivered $25 billion of early refunds to customers this year. So it was very successful for our customers.

Okay. And then what are the other opportunities that you can monetize this base, right? That's the story of I think, Center for Consumer Finance. That was the vision when you acquired Credit Karma.

Yes. And so we think of it as really jobs to be done across the consumer platform. So for, let's say, the under 50,000 customer base, a large part of those customers are just starting in their credit journey. So this year, we've launched an early thin file, no-file product within Credit Karma, where customers can actually start their credit journey. That's usually where your financial journey starts. I need to start building my credit. So we have that. So that's one job to be done is building and managing your credit.

Another job to be done is your money in and money out, right? So we have Credit Karma money, which is allowing customers basically a banking experience all digitally delivered that enables them to get access to money through -- fast access to money through their paycheck advance type products. That's also started to get traction. The reason why I start there is those jobs are happening every day, all year round for that customer segment. When they do and start their credit journey with us and we engage with them year-round, we will have the data and information for them to complete their taxes during tax time, and it won't be -- it will be more natural for them to stay within our product.

We see that where our customers that -- our credit customers, they've consumed one or more products within Credit Karma, their loyalty within the tax product is higher. And so building that -- those onboarding opportunities through credit, through money, through personal finance decisions like debt consolidation, those are all capabilities now that we have within Credit Karma. We engage with those customers, solve a big problem that they have, build a relationship with them. And then when tax time comes around, it's a very natural progression to get their taxes done within our consumer platform.

Yes. That sounds like the strategy of your competitors who probably took away some of your low-end customer. That's how they're monetizing offering free tax.

Yes. We see that emerging more. That's just still early, but we definitely see that as an emerging competitive play as well.

Okay. Then another question going back to the live side, which is doing well. But how do you think this AI is going to change, whether it's monetization, whether the ARPU or even improving your -- in the margin or efficiency? How do you...

Yes. I think it's all of the above. It definitely will help us scale our business. No question about that. It's going to change the way that service is delivered. Service up to this point has been workflow-oriented, not advisory oriented. And so that change is happening where workflow is being automated, data in, data attribution or content attribution, completion of a tax return, all being automated. You throw the human element to drive the confidence and the advisory services. And that's how we see our assisted business.

That allows us to be very disruptive from an experience standpoint, from a pricing standpoint and from an outcome standpoint as well. We can start to shorten the cycle from a customer starting their return to finishing their return and getting their refund pretty significantly, and that time to money is very important for consumers.

Okay. Probably last question under your leadership, Credit Karma, I think 19% growth against such a tough comp. Phenomenal job. Doing well. But TurboTax Live, you have challenges as well. Like next 1 year, until the next tax season start, what's your focus going to be?

Yes. I think it's going to be in 3 areas. One, we've got to continue our momentum in assisted tax. That's the $88 million that you referenced before. And we're still very early in that stage, and we need to continue to grow share there. So you'll see a lot of focus on that. You will see us focus on our DIY business and building new ways for us to serve customers in the consumer platform, which connects into the Credit Karma. And what we're really focused on now is creating the services and products that allow us to engage through our consumer platform to allow us to engage with our customers every day.

They're making decisions on where to spend their money, on how to save their money or how to invest their money. And our platform right now can do all of those for a consumer. And you will see us driving much more engaged experiences, which will help solve money problems or the money questions and jobs, the personal finance jobs and then ultimately lead to a done-for-you tax experience that is less stressful and better outcomes and faster for you.

Yes. We always think fear and greed drives people pay for tax because you want to maximize your tax return, and you don't want to get audited by the IRS.

Exactly.

Hopefully, you'll continue to do that and customers will keep paying you. Thank you so much for joining us.

Thank you, Siti. Appreciate it.

Thank you, everybody, for joining us. I'm Samad Samana. I cover software at Jefferies. My colleague, Brent Thill, cannot make it in person. So I'm here substituting. Hopefully, I do a good job. From Intuit, we have Sandeep Aujla with us. Thank you so much for joining us today. How are you?

Good, Samad. Good to meet you, and thank you for having me. And thank you all for being here.

So I appreciate it. I figured we'd dive right in. There's a lot going on in the world of software and at Intuit specifically. Let's kick off with the business that I think most people are very, very familiar with, which is TurboTax. You recently gave some guidance around that. What maybe drove that lower fiscal '26 guidance of 7% versus 8% previously? And was it purely DIY low-end filers? Were there other factors? Help us unpack and think about that.

Yes, and I'm happy to address that. I think it's helpful to just set the context at the overall company level. At the overall company level, we took guidance up for fiscal '26 from previous 12% to 13% revenue growth to 13% to 14%. We took the guidance up on operating margin. We took the guidance up on operating income. We took the guidance up on EPS, non-GAAP. And on GAAP, it was impacted by the restructuring charge we took. Otherwise, ex restructuring, we took the guidance up there as well. So overall, at the company level, strong performance.

Now I get to your question on tax. Tax was really a story of 2 cities. We did really well in the assisted tax category, customers growing 38%. Revenue is growing 36%. It is one of our big bets. It's 88% of the opportunity in TurboTax, and we executed quite well. Area where we were not the best we could be is DIY tax to your point. And there were 2 components there. One is that we were expecting it to be a normal tax filing year, about a 1% increase in filers. Filers this year is going to be flat to down maybe about 30 bps. That's about 2 million filers in the macro. And as the largest market provider, the largest share in the DIY, that has an outsized impact on us. That's one.

And secondly, it is with the customers who make less than $50,000 in annual gross income. We do well, and we serve many millions of these customers really well. They keep coming back year after year, picking the same SKU. Millions of them also use our assisted category, but there's a subset of those that are price sensitive. They're looking for more of a value-based pricing than our traditional complexity-based pricing. So you'll see us going forward continue to execute well on the assisted side, but also play offense in our core and have a value-based lineup. And we are able to do that because we have a Credit Karma asset that we can look at this holistic as a broader consumer offering. So it's no longer about just tax or Credit Karma, but holistically, how are we driving the lifetime value of these consumers across the broader platform.

Got it. I -- for one, I'm a long-time TurboTax user, great experience. Now the question that comes up, let's rip the Band-Aid off on it, which is around AI and taxes, right? There's a lot of debate there. Do you expect AI can ever prepare tax returns of average to higher complexity given the need for 100% accuracy? Or is there any swim lane in which it will be impossible for AI and/or where is it possible?

Look, I think when it comes to taxes, the name of the game is confidence. And confidence comes through a mix of having a trusted brand, having an experience that is trusted and having a brand that will stand behind you. I think AI will be an augmenter in taxes. AI will help -- and we are using AI to help people find new deductions for people to get their tax basis right on their trades for us to serve our customers more cost effectively, improving our unit economics. But it is hard to simplify it into saying that AI will be able to do taxes end-to-end because not about just using the tax code and filing other tax forms, that's the easiest part. But the whole engine of tax preparation has to do with getting all these data in, in a seamless way accurately.

It has to do with understanding how taxes work and having done hundreds of millions of tax returns and knowing exactly based on the person's demographics or the ZIP code, what questions to ask to make sure they're getting access to every refund they're entitled to. And on the back end, being able to file those taxes with the IRS, being able to have access to when they are getting their refund and giving the customer the refund multiple days earlier. That matters because for many people in North America, it's the biggest check they get all year. So net-net, I think AI will be an augmenter and not a replacement to the traditional tax filing experience.

Very helpful. And maybe let's transition to TurboTax Live. It's now more than 50% of total TurboTax revenue. You're expecting kind of 15% to 20% annual growth there. Does this improve the prospect of faster combined growth for assisted and DIY tax? How should we think about the impact of TurboTax Live?

We feel really good about the progress we're making in the assisted tax category. The growth you shared about 36% revenue growth in TurboTax Live, a testament to that progress. But we also, as I shared in the answer earlier, want to make sure that we are playing offense in our core, the DIY tax. So that's an area where as we play offense and as we think about how do we monetize the customer and drive a greater lifetime value of the customer by maybe giving them a value-based pricing on the tax filing, but delivering them other offerings that they see tremendous value and are willing to pay for, such as faster access to refund, access to financial products on Credit Karma.

Those are all the things that we are continuing to invest in. But as I look across those 2, there will be some near-term trade-offs when it comes to revenue in the DIY. So that's something I want to be very mindful of that as we continue to feel good about the TurboTax Live that we are also making sure we're setting up the overall tax business for a very successful performance in the years ahead.

I know we've largely focused on the consumer or individuals. And I think that's -- when I think about TurboTax, that's generally what I think about as a user but business tax is an opportunity as well. How did business tax do this tax season? And how long do you think before that can become a material revenue driver for the business?

Yes. Business tax was a tailwind to the overall growth rate for the TurboTax Live business. And we see a continuous opportunity for us to scale that for the years ahead as we continue to bring together the opportunities from our consumer side, but also the know-how we have on QuickBooks. So it's -- we're still in the early innings on Business Tax Live, and I think it's going to be a nice tailwind for the overall live tax business for the years ahead.

So out of curiosity, what are they -- what are the businesses that are not using TurboTax today, which -- what are they typically using? And what's the -- is the acquisition model there largely focusing on existing QuickBooks customers? Or is it a broader opportunity set to bring new businesses to QuickBooks potentially?

So one, keep in mind that business tax, we always had a TurboTax product that businesses could use. But it's really a new to the franchise opportunity for us. Many of them are using assisted tax filers. So think of this as your small tax preparation shops or your other assisted offerings that people use. So that's why we're excited about business tax because it gets us into that $10 billion opportunity. That is largely an assisted tax opportunity right now and also synergistical with the QuickBooks business.

Great. So let's switch gears and unpack a different part of the business. Let's look at GBS. That's an area where you raised guidance to 16% from 14% to 15%. On the other side of that, there's maybe a little bit of a timing element where growth decelerated to 15% from 18% implies a little bit of a slowdown in F 4Q as well. Can you maybe discuss how each of the businesses within GBS are trending, excluding Mailchimp, just so we get a sense of what's going on inside of that business?

Yes. GBS continues to perform well. The areas that truly excite us around GBS. And personally, the area that I'm the most excited about across all of Intuit Inc. is mid-market, the 38% growth this past quarter, and we are still in the early innings there. IES is scaling nicely, and I think it's going to be a meaningful tailwind to mid-market growth in the quarters and years ahead as well as the services. Services growth continues to do well. Our payments volumes were up 18%. We continue to innovate on those offerings. And as we execute well on the mid-market side, that's going to, of course, have a -- serve as a tailwind to services revenue growth as well since half of the -- over half of the opportunity in the $90 billion mid-market addressable market is in services.

So these are tailwinds to the GBS business that I feel good about. Overall, in the business, the accounting side, online accounting continues to do well. The Q4 decel that folks have called out has to do with the fact that we don't have pricing this Q4. And so we are lapping over the pricing from last year Q4. So that was the trend there. And on services, there were some onetime factors from a year ago. But if you look at the Q3 run rate in services growth is a healthy 22% ex Mailchimp. So that's a healthy growth rate going forward that we feel good about.

So I want to pull on the mid-market string a little bit more. I think, again, you guys are very strong in some key categories. What's the primary competitive advantage that you have inside of this -- with your mid-market solutions? And do we think that this will be a material tailwind for growth for some amount of time?

Yes. So if you think about the mid-market customers, so these are customers making $2.5 million plus. Between $2.5 million to $10 million, our QuickBooks Advanced offering really resonates with them, $10 million plus, IES becomes more of the product that they choose. And what they are looking for is, hey, I'm using 10 to 15 apps to run my business. Give me one holistic platform that can run end-to-end, everything from the ledger to paying my employees to getting paid to getting access to capital. That's what we bring. So we win on price, we win on experience and the total cost of ownership. That's a key differentiator.

The other moat we have in this area, the other opportunity we have is the strong relationship with accountants. We have 1 million accountants on our platform. And we are increasingly focused on deepening our relationship with the accountants to have them be a net promoter because there is such a key proponent that are driving the end customers the decision on which platform to adopt to increasingly recommend our mid-market offerings. So those are the differentiators that we have going in, and those are the differentiators that are helping us win and continue to build the momentum in mid-market.

So I want to switch gears a little bit, maybe a little bit more challenged segment or piece of the business, which is Mailchimp. Revs were down slightly year-over-year for the last few quarters. When do you expect that business to stabilize if you do? And let's contextualize that with the recent RIF that was announced as well and how that maybe impacts Mailchimp's trajectory?

Yes. So Mailchimp is a business that we are focused on continuing to help it scale at a good rate. But where we are right now, we think it's best to think about Mailchimp as analogous to how we run our desktop business, which is flattish growth, but high profitability. And we continue to make progress serving the mid-market customer really well in Mailchimp. Our sales force there is having a lot of success getting mid-market customers to adopt and grow on the Mailchimp platform. But the area where we have work to do is on the small businesses, really nailing the first-time use experience and getting them to adopt and more importantly, expand the book of business they have on Mailchimp. But in the near term, I would think about Mailchimp as a business that is stable and high profitability for us, allowing us the opportunity to reinvest the profitability into our growth drivers or return that capital to shareholders through buybacks.

Understood. Maybe on a different product line. You recently launched QuickBooks Workforce after an acquisition of GoCo. How should we think about this product? Is it an expanded payroll solution? And maybe how has the reception since the launch been? And payroll is near and dear to me because I cover that space at Jefferies. So now we're back into my category.

Absolutely. So just setting a little bit of context. Remember, when I talked about earlier the $90 billion opportunity in mid-market, majority of that is in services and payroll is a key component of the services. Every mid-market customer has employees. And traditionally, we didn't have a payroll offering that resonated with them because what we had was small business payroll. But what these customers are looking for is a holistic human capital management solution that allows them to do everything from opening up requisition, managing onboarding, talent management, et cetera, on the platform. And through the acquisition of GoCo as well as the work our teams did organically, we now have that complete offering that we call QuickBooks Workforce.

It's only been out there for a few weeks. So it's still early innings, but this is the one that I'm really excited about given the early feedback we're getting from our customers and the early feedback we're getting from our accountants. And the excitement really comes from how it sets us up to continue to drive mid-market revenue growth in the quarters ahead as we continue to scale overall customers, but now have an offering to cross-sell to them that will really meet their needs, which we didn't have previously.

And I know you mentioned that it was prior -- previously more small business payroll. Does this change maybe the ideal customer profile as well to a slightly larger type of customer or more mid-market? Just help us think about how the reception has been through different kind of customer sizes in your installed base.

So what it does is expands the set of customers that it resonates with. Our core payroll still resonates really well with our bread and butter, which are the traditional QuickBooks customers that have anywhere from 1 to 6 employees. But for people in the mid-market space that have 25, 50 employees, that offering didn't resonate. So this now opens up the aperture of who we can serve with our payroll offering. So it's accretive to the overall solution.

Understood. They pay me by the number of AI questions I ask. So back on to that topic. I'm curious, there's -- we talked about the impact of AI potentially on the tax side of the business, but there's a bunch of different AI native, and I'm putting in that in air quotes on purpose because no one's really been able to define what that means to me yet. But if I think about Campfire, Rillet or Digits, are you seeing these AI native players have -- are you seeing them more in the competitive landscape? And how do you think about maybe the competitive differentiation that Intuit has versus some of these start-ups?

Yes. And I agree with you. There's a lot of fashionable terms, AI being one of them. When it comes to these mid-market customers, what they're looking for is an end-to-end platform, connects to the answer I gave earlier, they're using 10 to 15 apps to run their business, and they want to bring all that into one holistic offering. And what these competitors have is an amazing ledger, but it's targeted at a very slim sliver of the industry that they're going after. We have more of a horizontal offering. We have an end-to-end platform. that is not just a ledger, but it is a payment solution, lending solution, employee management solution, customer management solution, and that's what's really resonating with these customers.

Additionally, a key factor in the mid-market space becomes accountants who are a key influencer. And we have 1 million of these accountants on our platform. They're not just our partners. They are our customers. And we are building offerings such as Intuit Accountant Suite, IAS, kind of confusing with IES, but IAS is the platform that the accountants will use to run their practice, manage their employees and manage their end customers.

So that further strengthens the network effect. We have between 1 million accountants and 10 million businesses on our platform. So for us, the end-to-end platform, the network effect we have. And on top of that, IES also being an AI native offering really does resonate competitively in the marketplace. One other thing since you get paid by AI that I'll add on the AI side, AI is really opening up the aperture on our ability to drive adoption of our platform. It is one of the hardest things about QuickBooks since it's a horizontal thing was just getting onboarded and really nailing the 25% to 50% of QuickBooks features that were relevant to you.

What we are able to do with AI capabilities is really have an easy onboarding offering. And once we get to know, which we do pretty early in the onboarding process, what type of business you are, let's say, you're a plumber. And we've served tens of thousands of plumbers on our platform. We know exactly what matters to you, exactly what the KPIs are that matter to you. So using AI, we're able to make QuickBooks feel like it was built for the industry, and that's what the customer feels. And that's a big unlock that we didn't have previously. So in addition to the mid-market, which I previously answered, AI has further tailwinds that I think are underappreciated for the QuickBooks franchise.

No, I think that really resonates. It's almost allowing you to create a more verticalized experience without having to pick and choose each one and AI is unlocking that for you.

It is. And I call it thin sliver verticalization. If you look at any vertical offering, there are usually 4 to 5 things that really matter. And we can nail those 4 to 5 things on our core platform. So we continue to have the benefit and the addressable market that comes by being a horizontal player. Then using AI, have enough thin sliver verticalization so the customer feels this product was made exactly for the industry.

Let's transition. You mentioned Credit Karma earlier. I want to maybe briefly touch on that. It's seen a good amount of success despite maybe some macro cross currents and some other peers that are struggling. What do you attribute the success of Credit Karma to? And then I have a couple of follow-ups.

The success of Credit Karma comes down to just a relentless focus on what matters most to the partners as well as the consumers on that platform. It's that focus that is allowing us to continuously increase the share of wallet from our partners, whether it's on credit cards, whether it's on personal loans, whether it's on the insurance side, our partners are seeing better ROI by being on our platform. So they're sending us more of their business. And certainly on the consumer side, we're able to give them an experience that truly is differentiated. To give you an example, on -- let's say you're looking for a credit card. And a lot of the customers are barely prime or about to be prime. And our Lightbox offering before they even fill out an application and it hits their credit file, they can know, hey, you have a really good chance or not a good chance of getting approved here.

So they're not spending time filling an application where they have a good shot. Because if they file for a credit card and get dinged, the customer who are just barely prime could get dinged down to subprime that has consequences on the cost of interest and access to other loans. So these are things that are resonating to both sides of the network. And so leaning into the network first, driving the goodness in Credit Karma.

Beyond that, one of the things we've done over the last 2 years is really lean into the synergies between Credit Karma and TurboTax by operating as one holistic consumer platform. And that has given us the benefits such as customers who have both TurboTax and Credit Karma, 30% higher ARPC because they're consuming more of our platform. Customers from Credit Karma going into TurboTax, up 54% this past year. So these are the platform synergies, the growth synergies that we are really unlocking by running it as one cohesive business under one leader.

And is that integration largely complete? Or is there more progress that needs to be made there? How satisfied are you with that integration of Credit Karma and TurboTax?

The traditional definition of the word integration is complete, but the experience, it continues to evolve and continues to get better. As an example, this year, if you were a SimpleTax filer, you got into Credit Karma, we're like, your tax file is almost ready. It looks like you have a $2,000 refund and many of them went into TurboTax. Over 80% of the simple filers taxes are already done. That's a net benefit, just highlighting that there's continuously work we're making, but it's not integration work. It's just creating an experience that's unmatched by anyone else in the industry.

Understood. Before we move on to the margins part of the conversation, I did want to end on one last question, which just given the news this week about confidential filings, OpenAI and Anthropic are on everybody's mind as well as this little company called SpaceX. What's the Intuit's relationship with OpenAI and Anthropic? And what do those integrations look like? Are they driving traffic to the platform? How should we think about maybe those 2 specifically in Intuit?

Yes. Our goal is to be where our customers are where the eyeballs are. And with that, we have partnerships with both OpenAI and Anthropic that we feel really good about. With OpenAI, we are the only one who is approved for secure document uploads. On Anthropic, I think we are in the top quartile for all the relevant apps that are in our field. So for both of those partnerships, we feel really good about how they are -- how we are positioned and the opportunities that they provide for us and our customers. But again, it's early innings, but feeling really good about both of them.

Great. So I think Intuit has always been considered best-in-class in terms of margins. I think 41.2% this fiscal year for op margin, up 100 basis points, third year in a row of robust expansion. How should investors think about the op margin improvement pace going forward? And do you look at AI as a headwind or a tailwind to that over, let's call it -- let's define that over a 12-month period and maybe a longer-term period?

Yes. Look, we are a company that has always believed in being disciplined in how you run the company, making sure that expenses are growing slower than revenues. When you look at us on a revenue per employee basis, we are order of magnitude better than our peer set. And that isn't by accident. That's always based on discipline. And that discipline comes from economies of scale. That discipline comes from making sure we're allocating towards our big bets and being conscious about the unit economics across the entire spectrum. And then also more recently from continued AI, but over time, using technology to drive the cost down. So I think whether it's the next 12 months or next several years, I continue to feel good about the opportunity to continue to expand margins for the company.

Understood. The company recently made a very tough decision to do a reduction in force. Could you maybe unpack the rationale for it and which parts of the business were most impacted?

Yes. The rationale for the changes and these changes are always challenging, and we take them to heart and close consideration. There were 3 objectives. We wanted to make the company flatter. We wanted to make the company more focused. And by doing that, we wanted to make the company faster, move faster. And across those 3 objectives, the areas we made changes, we reduced the layers of management across the board. We looked at areas where now that we are running Credit Karma and TurboTax together as one holistic platform where there were redundant functions to address those.

We looked at Mailchimp that was historically staffed for success to staff for the new growth profile, which is kind of a flattish revenue but higher profitability. And then we looked at some functions that we thought we could rightsize to drive more principal-to-principal engagement across the company. So these are all areas that led up to those objectives I talked about, and I think sets up the company well for the years ahead.

And how should we think about what the time line of when we'll see those savings? And how much will be reinvested versus maybe going to the bottom line?

I would say majority of these savings are going to the bottom line. Our focus as a company is continue to invest in the parts of the business that are working exceptionally well, namely our big bets, right? All 3 of them are growing north of 30%, and we continue to see opportunities for them to play an ever greater role and ever greater scale across the company. So that's the key focus for where these savings will go. But we think there's an opportunity for -- whether it's 60% or 80%, we are still fine-tuning those for those to flow to the bottom line. And that's how we're thinking about it at this stage, and that's what gives us the confidence to guide to the mid-teens plus EPS growth in the year ahead.

And I'm curious, a lot of companies have made some tough choices recently, Atlassian, Block to name a couple. And AI was cited internal AI use cases. I'm curious if that influenced Intuit's decision more productivity via AI tools internally? Or did that play a role at all in the decision?

These changes were not AI focused. These were related to the areas that I talked about earlier, connecting to the 3 objectives I talked about, flatter, faster, more focused organization.

Understood. Just kind of tying this together then with the company's commitment to delivering at least mid-teens EPS growth over the coming years. Can you unpack that commitment? And what are some of the key drivers or factors in achieving this?

Yes. As I step back and we think about this era, I think it's going to be transformative, not just for Intuit, but for the industry overall. And as I think about the company, there are so many parts of the area that are working exceptionally well, in particular, our 3 big bets that we declared and as I highlighted a couple of minutes ago, are growing north of 30% and I feel really good about that. But there is part of the area where consistent with our history over the last 43 years of setting up the business for success for the decade ahead, we want to make sure we're playing offense on our core. The DIY tax where we started the conversation, we want to make sure we evolve that from a complexity-based pricing to a value-based pricing.

That is going to have some near-term revenue trade-offs. And that is one thing that we wanted to take into mind as we thought about how we indicate the opportunity for the year ahead. In addition to that, we talked about Mailchimp was traditional staff for growth. I think it's going to be flattish. Desktop was this year growing mid-single digit. I think it's going to be low-single-digit decline in the year ahead. So I think as I think about the year ahead, there is a bit of a J curve in terms of the growth rate. But we wanted to also highlight that we will continue to run this company in a very shareholder-friendly way, leaning into strong EPS growth. So I was very deliberate in making that statement about the growth being in the mid-teens or higher on the EPS side. And we will continue to lean into shareholder-friendly way by returning capital to shareholders through strong dividend increases as well as strong buybacks.

Understood. Maybe to wrap things up, there's a lot of change going on both inside of Intuit, the software industry more broadly. As you think about the next 12 months, what are you most focused on as a management team at Intuit?

The things that we are focused on as a management team, first and foremost, are continuing to massively scale our big bets and having them play a bigger and greater impact at the company, continue to scale assisted tax, continue to scale mid-market, continue to drive platform adoption. So those are the areas that we are most focused on. We also are making sure that we're setting up the business well for the decade ahead. And that comes down to playing offense on the core consumer tax DIY business.

That also is around opening up the aperture on setting up QuickBooks to go after the solopreneurs that we traditionally haven't focused as much on, particularly in the era of AI, I think you're going to have a lot more entrepreneurs and new business formations. And we want to make sure that we are capturing these entrepreneurs earlier in their journey and helping them grow on our platform as they go from being solopreneurs to hopefully mid-market businesses over the coming years. And we are going to continue to be focused on expense discipline and driving margin expansion and operating this business in a very shareholder-friendly way to have strong capital returns. So both on the setting it up for the growth side as we get through this bit of a J-curve in the near term as well as continue to drive margin expansion. I feel really good about the long-term prospects of how this business grows on margins and the top line.

Great. Well, thank you so much for joining us. We really appreciate it and look forward to -- appreciate learning more about Intuit today and look forward to seeing the progress in the coming months.

Absolutely. Thank you.

Thank you.

Good afternoon. My name is Cloe, and I will be your conference operator today. At this time, I would like to welcome everyone to Intuit's Third Quarter Fiscal Year 2026 Conference Call. [Operator Instructions]

With that, I'll now turn the call over to Anne-Sophie Seigneurbieux, Intuit Senior Vice President of Investor Relations, Corporate and Strategic Finance. Ms. Seigneurbieux?

Thank you, Cloe. Good afternoon, and welcome to Intuit's third quarter fiscal 2026 conference call. I'm here with Intuit's Chairman and CEO, Sasan Goodarzi; and our CFO, Sandeep Aujla.

Before we start, I'd like to remind everyone that our remarks will include forward-looking statements. There are a number of factors that could cause Intuit's results to differ materially from our expectations. You can learn more about these risks in the press release we issued earlier this afternoon or our Form 10-K for fiscal 2025 and our other SEC filings. All of those documents are available on the Investor Relations page of Intuit's website at intuit.com. We assume no obligation to update any forward-looking statements. Some of the numbers in these remarks are presented on a non-GAAP basis. We've reconciled the comparable GAAP and non-GAAP numbers in today's press release. Unless otherwise noted, all growth rates refer to the current period versus the comparable prior year period and the business metrics and associated growth rates refer to worldwide business metrics. A copy of our prepared remarks and supplemental financial information will be available on our website after this call ends.

With that, I'll turn the call over to Sasan.

Great. Thank you, Anne-Sophie, and thanks to all of you for joining us today. We delivered strong overall results this quarter with Q3 revenue growing 10% as we made significant progress executing on our AI-driven expert platform strategy. As a result, we're raising total company guidance for revenue and all non-GAAP metrics for the full fiscal year. We delivered significant growth in key areas across the company, assisted tax, money, portfolio and mid-market, all growing north of 30%. We also experienced headwinds with the most price-sensitive segment of DIY filers in TurboTax, which I will unpack shortly.

First, let me reground everyone in our durable strategy to win as an AI-driven expert platform. In our category, accuracy, compliance, security and trust of financial decisions are critical given the liability that comes with us. Our powerful combination of proprietary data, domain-specific AI platform capabilities and AI-powered human expertise is setting the standard for trusted financial intelligence. Ultimately, customers by confidence, not code, which is why they spend at least 7x more on accounting and tax experts than on software alone.

Intuit brings together data, AI and human expertise into a single system of intelligence that does the work for customers. Our platform enables businesses to manage from lead to cash, and consumers from credit building to wealth building all in one place so they can make high stakes financial decisions with confidence. As we look at our overall performance, we see both exceptional momentum and meaningful opportunity. Our big best of ignited growth engines, assisted tax money portfolio and mid-market that are all growing north of 30%. Our focus now is on scaling these growth engines will even greater speed and impact.

Let's now talk about our overall consumer performance and tax. Our consumer platform grew 8% this quarter, credit carbon grew 15%, and we expect TurboTax to grow 7% for the full year. To set context, total IRS filers are expected to decline by approximately 30 basis points this season, representing a gap of roughly 2 million units versus macro expectations and the most significant industry-wide contraction since the post-COVID tax season. As the category leader, this headwind impacted results among both existing and new customers across all demographics.

Against this backdrop, we expect TurboTax online paying units to grow 2%, driven by share gains among higher ARPU filers. We also expect ARPU to increase 11%, reflecting continued demand for assistance and faster access to refunds. We saw significant strength in an area that's critical to our strategy and long-term growth formula, disrupting the $37 billion assisted tax category, 88% of the total TurboTax TAM. We expect TurboTax Live customers to grow 38% this year with new TurboTax Live customers up 29%, excluding the impact of onetime offers. Our local expert strategy played a key role in TurboTax Live acquisition with 36% of those acquired through local channels being new to TurboTax.

As a result, we expect TurboTax Live revenue to grow 36% this year, well above our long-term expectation of 15% to 20% revenue growth. TurboTax Live will therefore represent over half of TurboTax revenue, up 11 points versus last year, a significant milestone in our journey to disrupt the assisted category. This is a testament to the value we're delivering in a high stakes regulated environment.

Shifting to the DIY segment, representing a $5 billion TAM or 12% of our total TurboTax TAM. I'm constructively dissatisfied with our performance. We faced pressure among the most price-sensitive DIY filers earning less than $50,000 a year. We locked on price. To reaccelerate this part of our business, we will evolve our business model by delivering the right lineups and price points to meet simple filers needs at the low end and lean into the power of our broader consumer platform to monetize beyond tax.

The flywheel effect we saw across our consumer platform this season gives us further confidence in our strategy. Average revenue per user is approximately 30% higher for customers using both TurboTax and Credit Karma compared to customers using TurboTax alone, and we are seeing over 35% of TurboTax customers adopt our fast money offerings. As a result, we expect to deliver 26% revenue growth across our consumer money portfolio this year.

We also saw the impact of improved end-to-end consumer experiences. Credit Karma members with simple tax situations could have up to 80% of their taxes done before even starting in TurboTax. This is helping drive a 54% increase in tax filers who start their filing experience in Credit Karma this year, up 25 points. This progress underscores our ability to drive ARPU expansion by deepening engagement, delivering more value across the consumer platform and monetizing beyond tax.

To summarize, in a $37 billion assisted TAM, we expect to grow TurboTax Live customers 38% and revenue 36%, representing over half of our TurboTax franchise. We have significant momentum and confidence in our trajectory. Our plan is clear. First, build on momentum with TurboTax Live, where we have the largest TAM and a significant ARPU opportunity. And second, evolve our DIY business model to deliver the right value at the right price point for the most price-sensitive filers and monetize beyond tax with our consumer platform. We're confident in our platform assets and proof points to deliver on our long-term growth goals.

Now turning over to our all-in-one business platform that's becoming the control tower for businesses and accountants fueling their growth and consolidating their tech stacks. Starting with mid-market. Our AI native platform continues to gain traction in a nearly $90 billion cap. In Q3, online ecosystem revenue for QBO Advanced and Intuit Enterprise suite grew approximately 38%. We're scaling our direct sales team by approximately 30% as we shared last quarter, and stellar productivity continues to improve. This translates to 37% quarter-over-quarter growth of total Intuit Enterprise suite contracts.

In our money portfolio, we're making strong progress by putting money at the center of everything that we do. Total online payment volume grew 30% this quarter, including [ Bill Pay, ] reflecting continued momentum in helping customers get paid faster and manage cash flow more effectively. We are growing our line of credit offerings with buy now, pay later, directly embedded within QuickBooks and the launch of Intuit business credit card. These additions will get small and mid-market businesses even greater access to capital and control over the financial operations.

Across the platform, we continue to scale new AI capabilities, bringing together insights, forecasts and industry-specific KPIs so our customers can run their business and grow with confidence. Our AI agents are delivering value at scale with our accounting AI agents, powering recommendations across more than 50 million transactions each week and business tax AI agents, identifying millions of dollars in deductions.

Looking ahead, we are launching a sweeping expansion and a new lineup of our AI-driven expert platform in August. This represents a significant step forward a unified system of intelligence that serve as a strategic control tower for both businesses and accountants seamlessly moving from insights to autonomous execution. On a single platform, accountants can run and grow their practices while managing and advising their clients. And based on their partnership here, we will connect them with the new customers to fuel their success and strengthen our network effect.

Businesses operate from the same control tower, where AI agents don't just surface insights but take action across the business to manage performance, KPIs and complete critical workflows autonomously, all in one place. With a base of approximately 10 million business customers and 1 million accountants. This breadth of data, customers and an ecosystem of industry-specific domain expertise fueled a powerful network effect and durable competitive advantage. Underpinning all of this is our commitment to trusted intelligence. Built on 4 decades of leadership in accuracy, compliance and security, our platform enables customers to operate with confidence, making better decisions and running their businesses from a single integrated platform.

As we evolve our lineup with expanded functionality, we expect to take pricing actions at the higher end of our portfolio, reflecting the increased value we are delivering to customers. We will also introduce a consumption-based model for our AI and human intelligence services enabling customers to scale usage and unlock greater benefits and business outcomes. Based on initial test, we see the strongest adoption among more complex customers on the Advanced and [ Plus ] offerings.

We are also expanding our offerings to meet the needs of the next wave of entrepreneurs. With a 94% year-over-year increase in people planning the start of business in 2026, we launched QuickBooks Free and QuickBook Light to provide a low friction entry point for millions of new businesses. These tiers ensure that early-stage businesses scale they grow with the Intuit platform.

Before I wrap up, I want to address the decision we announced earlier today. We are reducing our full-time workforce by 17% to simplify our organizational structure to become a faster, leaner and more focused company. We are at an important inflection point with strong category leadership and multiple growth engines across our three big bets. To fully capitalize on this opportunity, we must operate with greater velocity, urgency and discipline. These deliberate actions are about scaling our wealth engine and strengthening our core.

We're sharpening our cost structure to deliver durable long-term growth and margin expansion. This is how we built the next chapter of Intuit, services as software powered by data, AI and human intelligence. We're positioning the company to deliver durable growth you can count on.

Let me now hand it over to Sandeep.

Thanks, Sasan. We delivered solid third quarter company-wide results for fiscal 2026, exceeding the top end of our guidance across revenue, operating income and earnings per share. Our third quarter results include revenue of $8.6 billion, up 10%; GAAP operating income of $4 billion versus $3.7 billion last year, non-GAAP operating income of $4.7 billion versus $4.3 billion last year, GAAP diluted earnings per share of $11.09 and versus $10.02 a year ago and non-GAAP diluted earnings per share of $12.80 versus $11.65 last year, reflecting our overall disciplined approach to managing the business, including continued AI efficiencies.

Now turning to the business segments. Consumer platform revenue grew 8% in Q3, driven by TurboTax, which grew 7%; and Credit Karma, which grew 15%. ProTax revenue was in line with last year. Beginning with TurboTax. While we did not have the overall tax season we expected, we made significant progress against our strategic priority of disrupting the assisted category. As Sasan shared, we expect TurboTax Live customers to grow 38% this year, and revenue to grow 36%, well ahead of our stated long-term growth expectations of 15% to 20%. TurboTax Live will, therefore, represent 53% of total TurboTax revenue this year. These results reinforce our conviction in our strategy to deliver a powerful then for your experiences for customers with a unique combination of AI and AI-driven human expertise.

Overall, we expect total online paying units to grow 2% this year on share gains from higher ARPU filers. We saw strong monetization across simple and complex filers, driving an expected 11% increase in ARPU as more customers chose assisted offerings and faster access to reforms. In total, we expect to deliver more than $25 billion in refunds through our fast money offerings this year. Our priorities are clear, both on our exceptional momentum in TurboTax Live, where we continue to see significant ARPU opportunity and evolve our DIY model at the low end to better serve price-sensitive filers. We know what we need to do, and the team is well positioned to execute given the strength of our assets across TurboTax and Credit Karma.

Within the ProTax Group, revenue in Q3 was in line with last year. For the full year, we expect ProTax Group revenue growth of approximately 4%.

Turning to Credit Karma, where revenue growth of 15% reflects continued momentum with our members and partners. On a product basis, personal loans accounted for 9 points of growth, auto insurance accounted for 5 points and home loans accounted for 1 point. Overall, we have conviction in our strategy and confidence in the actions we are taking to serve consumers with our all-in-one platform, engaging them year-round to make smarter financial decisions by delivering tensor experiences AI-powered local tax expertise and faster access to money.

Turning now to the Global Business Solutions Group. We continue to make progress serving businesses with our all-in-one business platform and delivering [ tons ] for you experiences paired by AI and human expertise. Global Business Solutions Group revenue grew 15% during the quarter or 17% excluding Mailchimp, while all an ecosystem revenue grew 19% in Q3 or 22% excluding Mailchimp. This growth is underpinned by continued momentum in mid-market with online ecosystem revenue for QBO Advanced, and Intuit Enterprise suite growing 38%. All-in ecosystem revenues for small businesses and the rest of the base grew 16%.

In Q3, we delivered strong growth in both online accounting and online services. QuickBooks Online accounting revenue grew 22%, driven by higher effective prices, customer growth and mix shift. All-in services revenue grew 15% in Q3 or 22% excluding Mailchimp. This growth was driven by money, which includes payments, capital and bill pay as well as payroll.

Within money, revenue growth in the quarter was driven by payments revenue growth fueled by customer growth and increase in total payment volume per customer and higher revenue yield. Total online payment volume, including bill pay, grew 30% in Q3, reflecting a continued momentum in payments and adoption of our bill pay offering. Online payment volume growth, excluding bill pay, was 18%.

Within payroll, revenue growth in the quarter reflects mix shift, customer growth and higher effective prices. Earlier this month, we announced a lot of QuickBooks workforce and advanced integrated suite of offerings, transforming how we -- how businesses run their human capital management end-to-end, and we're excited about the opportunities on lost, particularly for mid-market customers. Within NetSuite, the revenue was down slightly versus a year ago as we continue to focus on improving churn and acquisition among smaller customers, while building on momentum in SMS and the mid-market.

As part of the workforce changes announced earlier today, we are rightsizing our investment in Mailchimp. Overall, we have confidence in our strategy and online ecosystem growth continues to be strong. This performance underscores powerful traction across our growth vectors and positions Intuit to lead and win over the long term.

Turning to desktop. Desktop ecosystem revenue grew 6% in Q3, with QuickBooks Desktop Enterprise revenue growing in the high single digits.

Now shifting to our balance sheet and capital allocation. Our financial principles guided decisions, they remain our long-term commitment and are unchanged. We finished the quarter with approximately $6.8 billion in cash and investments and $6.2 billion in debt on our balance sheet. We are leading meaningfully into share repurchases this year. We repurchased $1.6 billion of stock during the third quarter, more than double the same period last year. In the first 3 quarters of fiscal 2026, share repurchases are up over 60% versus last year.

This reflects both our strong in long-term trajectory and believe that our shares represent compelling value at current levels. We maintain our aim to be in the market each quarter. The Board approved a quarterly dividend of $1.20 per share, payable on July 17, 2026, this represents a 15% increase versus last year.

Delivering long-term shareholder value is central to how we manage the company. We continue to execute on opportunities to drive margin expansion over time through a disciplined approach to capital management and ongoing efficiency gains. As Sasan mentioned, we announced today the decision to reduce our full-time workforce by approximately 17%. This leaner structure will accelerate how we operate with greater focus, speed, agility and an even stronger commitment to profitability.

We are committed to delivering annual EPS growth of at least mid-teens over the coming years. While these decisions are never easy, they are a reflection of our disciplined approach to capital management, and we are confident it will ultimately allow us to deliver durable revenue growth, expanded margins and growing capital returns to shareholders over the long term.

Moving on to guidance. We are raising total company guidance for revenue and all non-GAAP metrics for the full fiscal year. Guidance includes total company revenue of $21.341 billion to $21.374 billion, growth of 13% to 14%. Our guidance includes Global Business Solutions Group revenue growth of approximately 16% with desktop revenue growth in the mid-single digits. And overall, consumer group revenue growth of approximately 10%. The consumer group outlook is supported by TurboTax growth of approximately 7%, credit coming growth of approximately 19% and pretax growth of approximately 4%.

GAAP diluted earnings per share of $15.79 to $15.84, growth of approximately 16% and non-GAAP diluted earnings per share of $23.80 to $23.85 growth of approximately 18%. We expect a GAAP tax rate of approximately 24% in fiscal 2026. Our guidance for the fourth quarter of fiscal 2026 includes total company revenue growth of 11% to 12%. GAAP earnings per share growth of $0.73 to $0.79, and non-GAAP earnings per share of $3.56 to $3.62.

As a reminder, guidance for GAAP metrics include $300 million in restructuring charges related to our workforce changes. You can find our full fiscal 2026 and Q4 guidance details in our press release and on our fact sheet.

Lastly, I'd like to officially welcome [ Kindra Goodnuff ] to her new role as Intuit's Vice President of Investor Relations. I know she is looking forward to partnering with you all going forward.

With that, I'll turn it back over to Sasan.

One of our biggest strengths as a company is taking a day one approach to fueling long-term success, which is the most important thing to do in the era of AI. We are redefining the future of trusted financial intelligence to take advantage of our $300 billion in TAM by: One, aggressively scaling our growth engines already growing over 30%. Second, reimagining our business model to win in our core category; and third, sharpening our cost structure to become leaner and faster, delivering long-term value for both our customers and our shareholders. As a management team, we take pride in reinventing ourselves, and that is exactly what we are doing.

With that, let me now open it up to your questions.

[Operator Instructions] We'll take our first question from Keith Weiss with Morgan Stanley.

I think the focus is going to be on sort of the tax results and the disappointment there. I wanted to dig in on that side of the equation first, there's this feels a little bit like 2023, 2024, right? The overall tax filings were disappointing, losing share at the low end of the market. And it sounds like that scenario, putting out a low-end SKU was a decent fix and got TurboTax back on track. But this environment is different, right? We're thinking about emerging competitors. We're thinking about Gen AI changing the competitive landscape. So how good is that analogy or '23, '24, or how do you have to differently kind of fix the business today versus that period?

Hi, Keith. Thanks for your question. I think a couple of things that I would say. One is One of the things that we were very assertive and aggressive in tackling to win customers that are less than 50,000 in income was really around onetime offers to get up into the franchise and ultimately be able to grow with those customers. I think the thing that we have learned is two things that are very different. One is we need a durable approach to winning with these customers that are, again, less than $50,000 in income. And secondarily, we now have incredible capabilities to monetize beyond tax, which is a lot of what we referred to just a moment ago around the ARPU increase when you look at TurboTax plus Credit Karma, our ARPU is well over 30%. And our TurboTax customers attach the money offering. And so what's very different is those two things, when you durable approach and a durable model, to win with these customers, and you need a durable way to be able to actually monetize beyond tax, of which we have. And I think to make it real [ free ] for you and everybody else is, it's a shift from complexity base to value-based. And what that means is if you earn less than $50,000 and you have a W-2, you may fall into a SKU that's free, but if you then have a W-2 you donate it to a charity, you may fall into a SKU that you have to pay for. And these aren't, by the way, customers that are just free. These are actually customers that are paying other competitors. But the shift from complexity to value base is that based on the value that these folks that are less than [ $50,000 ] are looking for, we're going to have a model where we are very competitive on price. But then we have significant ARPU opportunities that we've already proven that where we can monetize that actually allows us to make up from a monetization perspective from other benefits that we deliver. So that's what's very different than 2023. And I would just tell you that none of this has anything to do with AI. This is all about being priced right for customers that are less than $50,000 in income. They're actually willing to have experiences that are far worse for them as long as the price is right. And that's the approach and the shift we will be making in our model as we look ahead.

And so one thing I would add it -- just one thing to add. In the case segment, there are millions of customers that we serve exceptionally well. Millions of them are using our live offerings. And many of them come back and use the same SKU over and over again. What Sasan is referring to is the price-sensitive segment of the under [ $50,000, ] which is a segment of under [ $50,000 ] not the entirety of under [ $50,000, ] so just distinction I wanted to call it as well.

Hi, Keith, thank you for your partnership over the year. I think given your retirement, this is your final call. We appreciate the partnership we poured to Intuit over the years. Thank you.

Thank you so much. Appreciate this.

We'll move next to Siti Panigrahi with Mizuho.

Sasan, if you see some of the areas doing well, your assisted category mentioned mid-market origin money. But then there are segments that drag on the business. So I have a high-level question. As investors now, they are concerned about this AI disrupting software in terms growth rates, how do you give the confidence to the shareholder that Intuit can continue to deliver that durable growth and margin expansion, especially area you think your focus are growth drivers. And you talked about that services as a software, why do you think that's the right approach to deliver the durable growth.

Yes, Siti, thanks for your question. I think that the place that I would start is when you think about the consumers, businesses and accountants that we serve. These are high state decisions that these constituents make. And let me just for a moment, focus on businesses and accountants. When you think about what we have created is an end-to-end platform that's actually a system of manage your business, to run your business and to grow your business. And remember, businesses are trying to manage customers. They're managing cash flow. They're trying to understand which customer customers are profitable. They're managing money coming in and money going out. They're managing payroll and they're ensuring that they can be compliant and have their taxes done and booked on right. We have created a platform, a true control tower that not only help businesses grow and run their business. but we're actually with our launch of our Intuit accountant suite and have created a network effect where these same accountants are not only able to grow their firm, grow their practices and manage their clients but also be able to now provide expert services because every business has to have an accountant to be able to help them with advice, books and inventory decision as an illustrative example. And so when it comes down to running a business, that's why we bet the entire company on data AI and one of the largest network of AI-powered expertise, which is our accountants, to really fuel the success of businesses. And I think a really important proof point around that is our growth engines. And when you look at our growth engines, you've got mid-market, you've got our money portfolio and you've got to assist the tax that's growing north of 30%. That's a substantial part of the company, which brings me to the second point I wanted to make, and that is when you look at the total addressable market of taps, 88% of it is assisted. And with assisted tax very similar to the importance of accounting and bookkeeping. Customer spend over 7x on people to help them make decisions versus just software and code. And we have a platform where all-in-one that has both technology and people on one platform to help customers get their taxes done right. And we're -- you can see from our results. We really are just at the beginning of what's possible in assisted tax, and that's going to be a fuel for years. So if I were to put a bow around it, what gives us confidence and what should give you an investor confidence is; one, we are actually looking to scale our growth engines even for and taking things like assisted tax money and mid-market that are already growing north of 30% and scaling them faster. Two, we're actually reimagining how we continue to win in our core and core tax is an illustrative example of we serve millions of customers very well that make income less than [ $50,000, ] but there is a smaller set of price-sensitive customers where we can now durably change our model because we can also monetize beyond tax. And this is a company that is very focused on effectiveness and efficiency of how we run the company, which is partly albeit a very hard decision why we reduced our workforce by 17% because it's all in service of less layers, less coordination rules much more efficient and effectiveness in how we run the company. That's what gives us the confidence and the durability of both the top line growth and margin expansion, and you can expect this company to grow EPS, GAAP and non-GAAP, north of 15%. So probably a longer answer than you were looking for, but I want to unpack it holistically.

Take our next question from Brent Thill with Jefferies.

This is Sang-Jin Byun on behalf of Brent Thill. Just maybe a couple of questions around the tax side. You mentioned the IRS files will be down about [ 30 ] basis points. I'm wondering if you made no color as to why they may be versus a typical growth of [indiscernible]. And as you look forward, the assisted tax that has been so strong to offset whatever margin pressure you had on the DIY side. I mean, wondering how you think about that going forward, whether the system is more than half.

Sure. Let me thank you for your question. Let me start with the last question first. The reason we are really bullish about just our consumer platform trajectory and growth moving forward is I think the biggest highlight from this tax season was really around 1, assisted segment performance. When you look at new assisted customer growth, it grew 9%. When you look at total customer growth, it grew 38%, and our revenue grew 38% and -- or 36%, I should say. And now it's 53% of our entire franchise, and that's up 11 points over last year. And we continue just to be at the tip of the iceberg in terms of what's possible because what we did with our local strategy really worked this year. And Credit Karma is becoming a meaningful impact because there's a 54% increase in filings of taxes through Credit Karma. Those are big highlights. And as you look at us continuing to scale, pursuing 88% of the total addressable market, it gives us a lot of confidence. In the DIY segment, remember the goal that we've articulated is that we want to maintain revenue share. And we actually expect this year to maintain our revenue share in the DIY category. And in that context, that's why we feel very good about a business model change for the price-sensitive segment of these folks that are [ $50,000 ] or less because these folks are paying. They're just overall price sensitive to what they pay. And we're going to evolve our model to not only be competitive on price but then be able to monetize the [indiscernible] tax. So that's overall what gives us confidence irrespective of the total silence. So now let me get to that, which I think was the initial part of your question. We expect that the total filings will decline about 30 basis points and -- or 30 bps, and we expected it to go off one. Now by the way, files will be up on, but we actually e-file doesn't include the manual [ filers. ] What we saw this year across the entire base is there was a big chunk of manual filers that just did not file. And as a category champion, this was really just within DIY. It's worth about 2 million units. But I think the reason I'm reiterating is irrespective of total filings is when we look at our assisted opportunity, and when we look at our opportunity with our model change in DIY, that's what gives us confidence as we look at it, irrespective of whether or not the total IRS returns grew at 1 point or it's flat year-over-year.

John, the one factor I will also add is your question around the growth we're seeing in associated tax. Sasan mentioned how we are scaling a number of customers. The other things that I find really encouraging is as we are adding new customers such a healthy rate. We're also seeing retention go up. The retention was up 2 points in TurboTax Live, it's another factor to play into how this offering is really resonating with our customer base.

We'll take our next question from Brad Zelnick with Deutsche Bank.

I wanted to ask a little bit more about the restructuring, which I know you take very seriously. And I appreciate it's intended to best position the company ahead for durable long-term growth. But can you share more detail on how much might be attributable to AI efficiencies and perhaps a structural shift from labor to tokens? How much is rightsizing Mailchimp, and how you're thinking about reinvesting the savings?

Yes. Thank you for the question. Let me start it off, and I'll tag team with Sandy. First of all, Brad, as you mentioned, these, for us, are always very hard decisions because at the end of the day, we're in a people business and culture matters a lot, and we don't take decisions like this lightly. With that set, and it's very important for us as a company, one of the things that, Brad, we take a lot of pride in is to treat everything that we do like it's day 1. So today is day 1 as a CEO and as a management team, what would we do? And really, let me tell you what this is not about. This was not about AI. As you know, we are very invested in AI and the tools that we use internally, which is what's driving a lot of our efficiencies and margin expansion. And also AI is embedded in everything that we do that helps us serve customers, which is what's fueling our growth. We always look at how we can continue culturally to have a company that the company of builders and move fast. And one of the things that we've been really studying for the last year is beyond the tools that we are putting in place across the company what is actually the biggest blockers and what's getting in our way. And really, there are several things that led to this 17% reduction. The first is we significantly reduced the number of management layers and to reduce the complexity of information flow of how fast we make decisions so we can push decision-making through our frontline folks that are the builders. The second, by reducing and looking at reducing the number of management layers, it also led us to reducing the number of what we call coordination heavy roles that we had in place. By the way, these could be PMO biz ops, more products and designer -- product managers and designers that you may need because of what's possible in terms of how fast you can build. So that was the second big area. And I would say that the third big area was now that we've put TurboTax and Credit Karma together as a unit and as a platform. We got to a place where as we are concluding all of the integration work, we had a lot of duplication. And so we reduced the number of roles that were, in essence, duplicates. And then last but not least, that's worthy of mentioning is really sizing and resizing Mailchimp in context of the growth opportunities ahead. Those are all, I would say, the main drivers of the restructuring. And if I take it back to what are we doing with the restructuring, where is it going I would say there's three things that matter most, again, with a sort of a day 1 mentality and mindset. One is making sure that we feel good about our growth engines. When you look at assisted tax money and mid-market, they're all growing well north of 30%, and we want to be able to scale those faster. The second is we want to -- we imagine, particularly in DIY tax, how we ensure for a certain segment of customers that are less than [ $50,000, ] how do we ensure that we can win with those customers. And then third, by being faster, flatter and more focused it allowed us to look at the workforce reduction. So a big chunk of this, you can count on it to go to margin expansion and EPS growth. And a smaller part of it is going to go to scaling the growth engine because we actually feel good that the growth engines are are actually funded quite well just because of the productivity that we're seeing internally. So again, probably the longer answer than you were looking for, but I wanted to unpack it and just, Sandeep, would you add anything?

Sasan -- I covered it, Brad. For me, as a management team are responsibilities to deliver for all of our stakeholders, our customers and our shareholders included in that. So as Sasan mentioned, we're investing in our 2 big bets, and we're playing offense in our core, where this is different than the actions we took in 2024 is, as Sasan mentioned, majority of the cost reductions we expect to flow to the bottom line. And at the core, this is all about the three Fs that an called out, focused organization, flatter organization, faster organization. Let me also touch on merchant because you asked about that specifically. With the actions we're taking there, we believe the Mailchimp revised cash flow profile will generate more value into it than a third party is likely to pay for that asset in the current equity and debt environment for software. That's another consideration that you all should have in mind as you look at what we're doing with Mailchimp.

We'll move next to Alex Zukin with Wolfe.

I guess maybe in the spirit of Keith's and Siti's question, I think one of the main questions today is whether the performance around taxes, if there's anything structural that is changing? It doesn't sound like it's AI. It does sound like it was maybe a bit of a surprise. So maybe walk through why what kind of surprised you specifically? And is there any structural change that you feel like could actually impact the durability or the shape of growth going forward, and how some of the changes that you -- kind of what changes are you making on -- with kind of the rightsizing of the employee base to get in front of that specific dynamic?

Yes, Alex, thanks for your question. And I'll actually start with the essence of your question, which is structure. And when you look at the total tax TAM, it's $42 billion. And out of that $42 billion, about $37 billion is assisted. And we are structurally very advantaged to go after that 88% of the total addressable market, and it shows up in our results. Our penetration is still incredibly low. And you can see that although overall customers were 38%, new customers in the assisted segment grew 30% or 29% and revenue at 36%. So we're structurally advantaged there. Why? The reason we're structured advantage is we have built out a virtual expert platform that is all driven by all of our data engines and data ingestion capabilities, AI that does a lot of the -- I mean this is what we're doing is incredibly complex from matching customers that are right experts that are routing to the capacity planning, to doing a lot of the work for our experts or our experts can manage the relationship with the end client. And structurally, we went on experience. We went on price and access the fast money and other benefits that we provide across our consumer platform. So we have a big structural advantage there. When you look at the DIY segment, it's $5 billion of the total spend. And within that $5 billion, there is an element of that spend that is -- those that are [ $50,000 ] and less in income. And within that, Alex, there are those that are very price sensitive. I would just say that this is an area that has been not just net up on us. This is an area where we've been very focused on what's the best way to win these very price-sensitive customers. And the biggest thing that we have done in the last 3 to 4 years is onetime offers. And I would think durably the biggest thing that we have learned is these customers hear about price. And they care about price. They're willing to pay for benefits beyond tax. But what they care about is can they come back in the same SKU the next year. And this is the thing that Sandeep was touching on earlier, where a lot of the customers come back in the same SKU year after year. And so what we are doing [indiscernible] do durably different for a very small segment of the DIY segment that are less than $50,000 is a durable model change, where we are competitive on price where we can ultimately monetize with benefits that are outside of tax. And now we have all the capabilities to do that where we didn't several years ago. So to sort of zoom out and answer your question, we're structurally advantaged for almost 90% of the TAM. And we now have all the assets and capabilities to be able to go after those that are less than [ $50,000 ] of income and particularly that segment that is very price sensitive. And actually anything that we put our minds to, we can turn around fairly fairly quickly. All of that really is irrespective of the workforce reductions that we did. And I think that was one element of your question. We've done this from a place of strength. We're placing the roof while the sun is shining to make sure that we can be more focused, faster and flatter in an environment where we want to be able to move faster than entrepreneurs, but at the scale of the company. So I would not connect the workforce reductions at all to DIY tax. There discretely different choices and decisions.

I appreciate that's on. I guess maybe on the GBSG side, you highlighted meaningfully increase in headcount and sales capacity last quarter. you highlight the traction around with attracting top sales talent to the org and impacts kind of the outputs that you're seeing from that initiative in both the quarter and the pipeline.

Yes. I'm really glad you asked that, and I want to just actually amplify something Sandeep and I touched on in the script, but it's really important. There are -- and I'll answer your question around sales productivity. There are two very important in line with our strategy, important pivots that we have made. One is we've traditionally thought about Hilton as partners and as a channel. The strategic pivot we've made because of what's possible, and what's ahead of us, which I'll get into in a moment, we are treating accountants like customers. The reason that's important is when you look at our platform and your question on sales. We now have one single unified platform that accountants use to not only run their firm, run their practice, but to be able to manage all of their clients that are Intuit clients and be able to use all of our capabilities to not only drive automation within the firm to drive their profitability but actually to also be able to deliver added value services that they can monetize and drive their revenue growth. The reason I mentioned that is we, based on what we are launching in August, will actually also have opportunities to monetize based on consumption, not just subscription. A few examples of that would be AI agent builder capabilities that helps them customize industry-specific KPIs and reporting that they can monetize. But based on their usage, we will monetize on consumption. And that is now leveraging the distribution of customers that they have that otherwise we wouldn't monetize in the past. That's a very important strategic way to think about accounts. At the same time, businesses are using the same platform, but it builds for that. And the reason I wanted to share and start with the control tower where it's one platform and really strengthening our network effect is that's where our added sales force goes into play, where they are now selling an end-to-end platform that's a unified platform, not only to get more end businesses on our platform, but to actually get accountants to accelerate the number of customers that they bring on to our platform. And so we're seeing productivity improvement. We've opened up the aperture where we're now really pursuing more new to the franchise beyond going after our base. And the productivity has increased, and it shows up in a 37% quarter-over-quarter contract increase in duet enterprise doing. So again, probably a longer answer, Alex, than you were looking for, but I want to unpack the pivots because they're actually important for our long-term growth.

We'll take our next question from Taylor McGinnis with UBS.

Maybe on the Global Solutions business group. So it looks like excluding Mailchimp, there was a bit of a deceleration in the online businesses, particularly on the services side. So I'm wondering, one, can you provide a bit more color on what drove that in the quarter? And then secondly, as we look at the Global Solutions business group growing at 15%, any changes to your level of comfort in the 15% to 20%? I know you mentioned actually just now on some newer AI solutions. So any upcoming monetization or pricing efforts that could potentially be a tailwind there?

Taylor, on the services, let me start there. What we are seeing is services performance continues to be strong, both including and excluding Mailchimp, but the delta you're seeing versus Q2, in Q2, we had benefits from tax-related the things in the payroll side, the 1099s and other things that we charge separately for. So that's what drove a bit of that decel in Q3 versus the Q2 print. In terms of the broader GBSG, we remain confident in our strategy around the mid-market. As Sasan mentioned, there's a lot of headroom with IES. We're scaling up our sales force. We see a meaningful opportunity for us to drive new to the franchise growth with our counter partnerships as well as our sales force. And there's still tons of opportunity in our base that the team I'm confident will execute on and get those into yes. You also saw us launch QuickBooks workforce. That gives us confidence in driving platform adoption and taking up payroll offering to something that really resonates with the mid-market. And we're continue to do product work on both QuickBooks Advanced and IES to provide deeper functionality that resonates with the more complex customers. So these are all things that in addition to the work we do on the money platform that we talked about previously that gives us confidence in a strong turbo growth on the Global Business Solutions platform.

We'll move next to Kirk Materne with Evercore.

Just one for Sasan and then a follow-up for Sandeep. Sasan, you mentioned that what's going on in tax has nothing to do with AI. That makes sense. AI has kind of got more powerful than last year. But can you just talk about what you are seeing with AI, whether it's with your tools or competitors, and why you feel that, that trend with models getting more powerful over the next year and coming years doesn't sort of disintermediate some of the strength, frankly, you're seeing in the assisted category. And then for Sandeep, can you just talk about Mailchimp, what rightsizing means in terms of the drag on the overall sort of GBSB business? Can you kind of keep the drag to a minimum while obviously taking up the cash flow from that business?

Yes, Kirk, thanks for your question. And let me take it in a couple of parts just to ensure my answer is specific and not generic. First of all, on assisted tax, it's important to start with the customer. And that is customers that the 88% of our TAM that go to somebody else to do their taxes for them, has nothing to do with how good software gets. This is all about confidence. And they want somebody else to do their taxes for them because they want to delegate the liability of these very high state decisions for somebody else to ensure that they are accountable for it and that have confidence in the outcome. So it's really important to recognize that over the years, if you look at the structure of the market, the money that's spent on tax experts, accountants and bookkeepers. If you look at the structure of the spend, it's actually gone up in the last 5 years in the last year. Does it matter how good technology becomes for that customer. They want to ensure that they have the confidence that building the business the right way, that they're getting their taxes done correctly, whether it's a consumer or business. So with all of that set with the customer sites and with our declaration years ago where we've built out a virtual expert platform that's all driven by data, AI and AI-powered human expertise, this is where we're structurally advantaged to be able to virtually get your taxes on of the best experience at the best price and provides you benefits like fast access to money, which is quite significant. And I think it shows up in our results, particularly when you look at new assisted customer growth. So from a -- the role that AI plays, it's really important to recognize that the majority of people are buying confidence to get assistance. And it's irrespective of how much software improves, it helps us actually serve them. So that was really assisted tax. I also want to touch on the business platform, the whole fuel of our growth in mid-market, in money, the system of intelligence that we have created as a control tower to help businesses and accountants run their business for accounts to serve businesses is all driven by data and AI. And it's important to recognize that businesses, while they use Google, they use LLM to do searches, to queries, you can't run your business within LLM because you're managing your books, you're managing your money, you're managing your payroll and accuracy and compliance of doing that matters and running a business is mission critical. And so the psyche of businesses is such that -- and accounts is that they need us to be their AI platform to provide expertise so they can run and grow their business. And I think the biggest thing that our partnership with an entropic and an open AI really fuels is -- when you look at our $300 billion in total addressable market where we have 6% penetration, is actually opening up the funnel for us with high intent customers that are just getting started that may want to start with basic capabilities like invoicing, and how do I manage my customers, and we help them do that by connecting the Quickbooks within an LLM, but once they actually become a legitimate business, they want to run their business on our platform, and that's where what we've built, which is really a network effect where accountants recommend us, they use our platform to run their firm and the business, that's where we are very much differentiated with all of our data, AI and expert capabilities that we've invested in. So again, hopefully that answers your question more specifically around how we think about consumers and businesses.

And Kirk, let me address the second phase of the question on Mailchimp. Part of being a disciplined operator is that you could do multiple things at the same time. So our merchant team will still be focused on driving product improvements to resonate the product with the small businesses, driving SMS and other innovation adoption, driving mid-market sales. But we are also looking at the cost profile and adjusting it commensurate with its growth profile. So think about the desktop business where we are able to run that business for solid profitability and then take that profitability, that cash flow, and we invest in our growth engines, the 2 big bets that we've been calling out on this call and also to take those cash flows and return them to the shareholders. As you know, where the market is right now for software generally and particularly where the market is for the segment of software that much operates in the terms of revenue you can get from a third party just aren't there right now, and that's what we are making sure we're running this for profitability and maximizing the value for our shareholders.

We've reached the end of our question-and-answer session. I would now like to turn back to management for any additional or closing remarks.

Great. Well, thank you for all the questions, and we look forward to talking to you next quarter. Bye, everybody.

Ladies and gentlemen, thank you for participating. This concludes today's conference.

Excellent. Thank you, everyone, for joining us. My name is Keith Weiss. I run the U.S. equity research franchise covering software here at Morgan Stanley.

And really pleased to start out my conference talking with Intuit CEO, Sasan Goodarzi. Sasan, thank you so much for joining us.

Thank you for having me. Happy Monday, everybody.

Excellent. So maybe to start off, you guys just reported Q2 results last week. A really impressive set of results. Beat revenues -- almost every segment, beat revenues. Operating margins came in well ahead of expectations. EPS, you beat EPS by 12.5%. Can you talk to us about what's going on under the hood? Like what are the developments that you guys are seeing thus far in your fiscal year that's enabling you to put up those results, to beat on the top line and bring more leverage and beat on the bottom line the way that you did?

Yes. Sure. So just as context, we ended our last fiscal year growing 16%. And to Keith's question, first half of the year, we actually grew 18%, and Q2, which is what we just announced, was 17% top line growth.

And really, the drivers were across the entire business. Our Business platform grew 18%. And within our Business platform, a key metric we look at, which is one of the company's big bets, is mid-market. That grew 40%. And our Consumer platform grew 15%.

And the double-click that's really worth calling out there is TurboTax is off to a very strong start; it grew 12%. By the way, while the IRS returns, because early tax formation is not where we thought it would be, IRS is down actually 5 points. But our growth is up 12%. And then Credit Karma is really doing its job contributing to tax growth, and that grew 23%. So as you said, every part of the company, strong growth.

The why is it's our AI-driven expert platform strategy, which we declared 7 years ago. And what we said we would create is a platform that combines technology and human intelligence, to deliver experiences that are done for customers. And that's unlocking our total addressable market. It's unlocking accelerated ARPC growth. And it's accelerating our margin expansion, because everything that we've done is tech-led.

And I'll just end with the following, which is, in this environment, you don't hear much about AI and HI. In our category, the combination of AI and HI is actually what's unlocking the growth that we are experiencing, because our category is a category of one. We are in a category where customers make high-stakes financial decisions. And consumers and businesses and accountants, if they get those decisions wrong, the liability is incredibly high, which is why they demand expertise. And it's the combination of those 2 that's driving the growth. So we're excited about not just the quarter, but the years to come.

Yes. I'm going to go off script a little bit, but the AI-driven...

I love it when we go off script. Let's do it.

Excellent, let's do it. So that AI-driven expert platform, it's what's gotten me really excited about Intuit. And it took me a while to get it, right? You guys came into the market earlier before any of us were talking about ChatGPT or agentic or anything, talking about this AI-driven platform. And I remember the first time I really dug into is when TurboTax Live came out, right? And as a software guy, my immediate reaction is like, this can't be good, right? You're putting people into a software process. I'm a software guy, I like the gross margin behind software. I don't like the gross margin behind people. It's how we've grown up, right, in this industry.

And then we started digging in and we did some surveys of people who were using the service. And at the time, this is probably like 6 years ago, the average interaction time was 12 minutes, of how long people spent using this service. The average payment was $89 at the time, right? So you guys were monetizing over $360 an hour, right, for this service, which is well ahead of what you would have paid if you went to, like, well, if you used your Full Assist service.

But what it really dawned on me was how valuable putting a person into the process at exactly the right time, right? And that's what the platform is all about, is how do we make sure that we have that human intelligence part of the equation, how could we get the confidence of having a person to ask the question at exactly the right time so it has extraordinary value? Not just the value of a tax professional that bills out at $30 an hour.

Yes. I actually think that's like one of the most important question you could have asked, so thank you for going off script. A couple of things I would just amplify in what you said. One is our total addressable market is over $300 billion. And we have 6% penetration, up from 5% last year. And the majority of our addressable market is what we call nonconsumption. People are using still, believe it or not, shoeboxes, Excel spreadsheets, Google Sheets. And people, experts, whether it's a tax pro, accountant, bookkeeper for consumers' businesses influence half of that TAM.

Why? Because it's customer-backed. Customers demand experts in this environment. In fact, right now, Gen Z are the biggest consumers -- one of the biggest consumers, of experts, because they want somebody to own the liability because these are high-stakes financial decisions.

And the reason that's so important is that's what's unlocking our TAM. That's why when you look at 6, 7 years ago, we were, I don't know, growing high single digits. And I think we were, I don't know, $7 billion, $6 billion in size. And today we're over $20 billion growing twice the rate. That's not an accident. And that's accelerated in -- because of all of our investments in AI and HI.

And beyond unlocking TAM, the reason it's unlocking ARPC is exactly what you said. These are -- we call them super humans. They're AI-enabled experts that sit on our platform. We do a lot of the work for them. But the customer ultimately wants the certainty and the confidence, which is why they want to engage with them. So they pay more. And because they're so efficient because we've automated a lot of things for them, for the experts, we make more ARPC, and then our company margin has expanded.

I remember you pushing on me 7 years ago saying, "You're going to screw up your margins." And you look at where our margins are today versus 6, 7 years ago: bigger company, growing faster and margins are expanding. And it's exactly the premise that you articulated.

Yes. And that same analysis shows that gross margins for that TurboTax Live is actually be higher than your overall company gross margins. And now that same AI-driven expert platform is in other areas of your business. It's in QuickBooks Online with the Assist products and payroll. And Full Assist is the big one.

So I want to start there on the tax business. Last year, you guys exceeded your original guidance. You exceeded consensus expectations on tax. But you had a -- you used the phrase constructively dissatisfied, with what happened in the FY '25 tax season. Can you explain to us, like what were the areas that you were dissatisfied with? Because I mean, you beat expectations, the margins were good. What were the areas that you saw for improvement, number one? And number two, how are you addressing those as we head into the 2026 tax season?

Yes, yes. So just for context, right, the total addressable market in tax, business tax and consumer tax, is about $40 billion. And the assisted is 7x bigger than do-it-yourself. Do-it-yourself is just -- is $5 million (sic) [ $5 billion ]. And the reason I start there is the -- last year, we delivered 10% growth in TurboTax. And we were constructively dissatisfied because ultimately we have created software-as-a-service that delivers certainty and confidence, and we were learning a lot, Keith, in terms of how to show up locally.

So what was happening last year is we're within 80% of all the households and businesses in the United States, because we have a massive virtual team of experts that sit on our AI platform. But when folks Googled or used an app to say "A pro near me," we never showed up. And so we did a lot of work, that started actually paying off like the last 3 weeks of the last tax season, where we started showing up locally.

The second is we've been a software company. And so when they engage with us, we made them go through a bunch of screens before we engaged them with an expert. This is a service. They just -- they wanted, "Where is my expert? And do my tax for me. That's why I came to you." And so the last 3 weeks of the tax season, I would say the last 2 weeks, we had a lot of momentum that delivered that 10% growth.

And the reason I shared we were constructively dissatisfied is because there were so many of those things we didn't get right. The experience was not where it needed to be. Customers couldn't find us. They would see our ads in a digital environment and on TV, and then they'd go try to find us and we wouldn't be anywhere near that. And what we've learned is customers don't actually want to come to your office, but they want to engage virtually. But the confidence that you're within a 10-mile radius of their household gives them confidence to go with you. Well, we didn't show up.

We addressed all of that for this year. So we have 600 local service centers now, with a couple of flagship stores. And that's all in our guidance, right? It's all tech-led. So it's like it didn't even move the needle. So we're expanding margins in this context. And that's all to show up locally.

So what's different this year is we -- and by the way, there's no destination. We're going to get a lot better. But we show up locally. We've removed a lot of the friction upfront so that when you engage with us, we can connect you to an expert. And then our experiences are elite in terms of the experience that we deliver, hooking you up to an expert that's right for you, not a general expert. Best price. Access to fast money through Credit Karma.

So those are all the things that's in place, which is, by the way, why -- there's only 6 weeks left in tax season. And last week, when we had earnings, I said, hey, we're halfway through tax season, and I love what we're seeing.

Got it. So at the end of last year, it was actually at your Analyst Day, I was talking to Sandeep, the CFO of Intuit, about those last couple of weeks of the tax season. And he was saying, when you guys got it right, when the local search was really hitting, the conversion was 5x what you'd been seeing earlier. So when we look at what you've been seeing thus far in tax season, overall filings down 5% for the small part of the tax season that was in your quarter, but TurboTax growing 12%. Is that like 5x better conversion starting to play through more broadly through the entirety of this tax season?

Yes, and. So really, all the things that was accelerating the last 2 weeks of tax season, because a lot of the things that we worked all year on and the learnings that we had were in place the last 2 weeks of last tax season. And by the way, we had 6, 7 months to improve upon that. That's what's in play now. And of course, our results were through January 31, which is we were up 12%, but our commentary was beyond January 31.

And so a couple of stats that I would share is, based on the fact that people can now find us generally if they Google us or if you're in any of these apps and you want to Google us, we had 5.1 million visitors to our local landing pages or to our stores through February 6. 5.1 million. All of last year, it was 4.2 million. So not only are we getting much more demand because we're actually showing up, most of these customers are prior assisted customers and conversion has improved. So long answer to your question is yes.

Got it. So the near term sounds solid, right? You guys, entering a much larger market opportunity, 7x the size of the DIY market opportunity. The go-to-market motion seems to be getting a lot crisper. You guys are seeing good uplift. But let's be honest, this isn't what the market is worried about, right? I mean the market is concerned about terminal multiple risks. They're concerned about new entrants into the market. Let's hit that head-on. The pushback that I hear all the time is, can't ChatGPT do my taxes? So what's the -- you guys have all said it to me, so don't giggle, right?

The very people that have told you this are laughing at you now.

And it's going to get worse, right, as these solutions get better at tool use and they get better at interfacing with other websites. Like what is the fundamental moats for TurboTax versus a like agentic computing vision of where the agents are just going to do my taxes for me?

Yes. I love the question. Let's sort of start at the top because this infatuation with LLM I think has superseded just thinking through things logically. And we're not on the outside looking in when it comes to LLM usage. So let's start, one, with the category. It's very important.

We are a category of one because of customers. And so consumers and businesses make high-stakes financial decisions. And the decisions you all make every year, if you have a side business or your own taxes, those are high-stakes financial decisions. And the liability of getting those wrong is very, very high. And therefore, it's why customers demand a -- they don't demand software. They demand a service that comes with confidence and certainty to help them with those high-stakes decisions.

And the stat I always like to remind us of is we actually are seeing Gen Z be the bigger consumer of these expert services. They may not want to see you on video, but they're actually -- because they don't want to be liable for these decisions. What are these liabilities? It's the, if you get payroll tax wrong, if you get your quarterly business tax wrong, if you get your consumer tax wrong. Somebody has to stand before those that are penalizing you, like the IRS, and stand behind that liability. Well, an LLM is not going to do that. So one is just from a category perspective.

The second is, to specifically answer your question, our advantage is the combination of the data that we have and the longitudinal behavioral data that we have. Two, it's our AI platform. And our AI platform, the majority of it is machine learning and knowledge engineering, the lesser part is LLMs. Knowledge engineering is about correctness, it's about accuracy, it's about compliance. And then the third is what I mentioned earlier, it's HI. So it's a combination of technology and HI.

By the way, I'm answering your question around terminal value and perpetuity. I'm not answering your question about the here and now, just to be really clear. So this is a question about what we are doing and how we view things. And therefore, that's our advantage.

And I think the thing that's important to understand is we've built -- the brains of our AI platform, we've built Intuit financial large language models. It's our models that get trained by the data, the customer data doesn't leave our 4 walls. And we use open source, we use OpenAI, we use Anthropic, we use Llama, for things that are context to us, not core.

And the reason I'm walking you through this detail is that LLMs have significantly improved the speed of coding. They have significantly improved our ability to ingest data even faster. They help with agents talking to agents and actually what we do, which is our agents need to also be able to hand things off to a human expert. At the end of the day though, LLMs need to know where the source of truth is. They need to know what is the source of truth, where is the source of truth, how decisions get governed and what actions are allowed. And in our space, that's everything because it's about accuracy, it's about compliance and it's about correctness.

And so therefore, this notion of, "Well, LLM can do everything" is actually absolutely incorrect because the correctness and the accuracy it cannot do.

Last thing, if I could end with this because I think it's very relevant to your question. So that's really -- that's our advantage. That's why we win. It's our scale. It's our trust. It's what we've built. Is you have to look at market structure. We've never won because of code. And just because you can do more code faster and there can be more things that are free, that already exists today. Across everything that we do, the market structure is such that there's a bunch of players and a lot of things are free. At some point, you have to make money, I believe, that's the way earnings work. Is that right? Is that still the case?

Once you become public, yes.

Yes. And that's actually why our relationships that we have announced with an Anthropic and OpenAI, which we can get into in a moment, are so important, because they wanted to partner with us, and we wanted to partner with them, because they don't want to deal with the liability of these high-stakes financial decisions. And we are playing chess, not checkers, which is we want to be everywhere customers want to be, if they choose to want to be there.

Okay. Can I add 2 things, just to get your view on them, and then shore up my argument? In addition to the data, right, and I think data is a foundational platform for making use of any of these agentic community solutions, is critically important. And it has to be, to your point, a source of truth, has to be the correct data, has to be well-governed, right? So you have the correction protections around it. So that's a big part of it.

But there's also integrations that you guys have put together over decades, into every financial services partner, every payroll company to get the data in. And you guys have some pretty impressive stats in terms of how much of the filing gets done for you just because of those integrations.

And then further on down the line, it's the -- I mean, you also have to submit, right? So you need the underlying rails to submit the taxes, but also the ability to get your refund faster, right? How important is that for your end customers, like the ingestion of data, making it easier to do your taxes from the get-go, but also the ability to get a refund faster? How much of a of value proposition is that for the end customer of TurboTax?

Yes. It's actually a great question. Let me say 3 things. One is everything that you just articulated, all the integrations that we have to every state, to every county, to the IRS, with all the financial institutions, to do all the things that you just articulated, that takes years to replicate.

But let's say, for the sake of the argument, it can be replicated overnight. It can't, but let's just say it can. Our real advantage is what I said a moment ago. It's about we deliver accuracy, compliance and correctness for high-stakes financial decisions with the combination of technology and HI, which is what our customers demand.

And even if those integrations can be replicated overnight, which they cannot be, but let's say they can, what customers care about is, if I'm a business, it's my cash flow, it's my books being right so my taxes are done right because there's huge penalties. And if I'm a consumer, it's actually all about accuracy and compliance because they don't want to deal with the government. And did I get my maximum refund, which is guaranteed by you, Intuit, and/or did I pay the least, following the law, of course? That's what the customer cares about. And that's really ultimately our advantages, that you cannot replicate with LLMs.

And I would just say that we're on the cutting-edge of not only the LLMs that we've built within Intuit because it's core around accuracy, but our partnerships, right, whether it's open source or Anthropic and OpenAI -- and part of those partnerships is about getting access to the frontier models. And so we're on the cutting-edge of what's possible. And what I would tell you is I love LLMs, but they're also commodity. They're all going to keep improving. But what's not commodity is accuracy, compliance and correctness.

Got it. So let's talk about those relationships a little bit. You signed a relationship with OpenAI last fall. Gives you access to all of their users, right, in terms of they're going to see your data. You signed another similar partnership with Anthropic. Can you talk to us from the Intuit side of the equation, what's the benefit that you're going to get from these partnerships? Yes, you have access to the models, you have access to their users. How does that benefit the top-of-funnel, if you will, for Intuit?

On the other side of the equation, maybe address the investor concerns that I hear all the time. And it's some form or fashion of you're letting the fox into the hen house, right? They're going to get access to your data. They're going to understand who your users are. You're giving some of that key IP, some of that key assets that Intuit have built up over the decades away to these competitors that are into your backyard?

Yes. So we're doing none of that. Let me now explain. So there are 3 principles in our relationship with OpenAI and Anthropic, and by the way, our relationship and my relationship with both Sam and Dario, and our teams, I have a lot of respect for what they're doing, and these partnerships are ultimately going to be very good for customers. But let me go back to your question, there are 3 principles.

One is that we own the customer experience. The second is the data, the data model, the AI capabilities, they are in our platform. So everything is through APIs and MCPs. We don't share any data. We don't share any domain-specific. There's no knowledge sharing. And by the way, they're really not interested in the knowledge sharing because they do not want to deal with the liability of these financial decisions. That was what was enticing for them, which is "We want somebody that has done this and we trust, and really understands AI and HI," which is Intuit.

So principles are we own the customer experience, the data models, the AI models. They're all in our platform. So anytime you're engaging with our experiences, and you know it's us, we're not in the back office. Anytime you're dealing with a financial question, you know you're dealing with our brands. But you're in our platform through APIs and MCPs, and nothing is shared. And that's in our contract. And we have governance model around it.

And third is we don't share in the economics. And so this is -- so those are the 3 principles.

Now to answer the other part of your question, we see this as a big top-of-the-funnel opportunity with OpenAI. And with Claude, we see it potentially as maybe top of funnel, not really. It's more about solving the long tail of things that's context to us, particularly, like for larger businesses and mid-market.

And so therefore, let me give you an example. With Claude, we think this could be really helpful in terms of accelerating verticalization across industries. So let me give you an example.

First of all, the customer doesn't know what's -- the customer is on our platform. But in the case of a construction company, and every construction company has like 5% of their KPIs, they want to look at what's specific to them. In the case of a construction company that wants to look at their project time line, their lean waivers, their subcontractor payments, and then what does that mean to their cash flow. To connect those 4 or 5 things, that's a long tail of what a construction company would need to see. A roofer would need to see something different. An architect would want to see something different.

So now on our platform, Cowork is actually fired by our AI brains. Because remember, at the end of the day, whatever the deliverable to the customer, it has to be accurate, it has to be compliant, it has to be correct. And so the customer can now say, "I want to see this and we'll create a KPI on the dashboard." That's context for us. We don't need to solve these long tail of things. But the real core for us is that what we deliver to them is correct, is compliant.

So that's an example of our Cowork integration. The customer doesn't know. The customer is on our platform and they don't really care. But if they say, "Hey, I want to see this KPI in this way," we can now create it for them. Our brains is driving the creation of that. But then in terms of the LLM that we would use, that's on top of our LLM, in that case, it would be Cowork. Multiply that by hundreds of different industries, that's the nature of the partnership.

I'll end with where I started. This is the top-of-funnel opportunity for OpenAI -- with Open AI. And for Anthropic, we see it as an opportunity to accelerate serving a lot of long tail of industries and verticals particularly being disruptive in mid-market.

Got it. That's a great segue into the Global Business Solutions side of the equation. One of the opportunities that we're most excited about is Intuit Enterprise Suite, right? The ability to not just go upmarket into the mid-market, but also create more verticalized solutions and do more for those customers, right? And if we think about that through the lens of this AI discussion that we've been having, I think most investors would agree that small businesses aren't looking to buy code themselves a general ledger, right, or a core accounting system. That's not what they're trying to do.

What they are looking to do is automate the white space around that, the processes of what does my working capital look like, or what do my KPIs look like? So it sounds to me that the relationship with something like Anthropic is about you utilizing those tools, those modules as a part of your system to be able to attack that white space. So can you talk to us about the white space that you guys see for QuickBooks particularly going upmarket into verticals? And how do you monetize that over time?

Yes. So let me start with it's a $90 billion total addressable market. So it's 1/3 of our $300 billion in TAM. And by the way, that's businesses sort of up to $100 million. We don't plan on stopping there. We will probably go up to $1 billion in size. We don't want to serve enterprise, but this TAM will become far bigger over time.

The value -- and we have thousands and thousands of customers now in Intuit Enterprise Suite. And just as a reminder of what we shared last week at earnings, mid-market is growing 40%, our contracts quarter-over-quarter up 50%. New to the franchise is meaningful. And accountants are starting to drive a meaningful part of that. That's up 10 points quarter-over-quarter. And we're actually now expanding our sales force another 30%, just in terms of the results that we're seeing.

Back to your question, the opportunity for us is we win on experience, total cost of ownership and price. And so for customers, it's actually not about the white space that you were asking about. For customers, the biggest thing for them is they're saving a ton of time. And because now they're seeing everything in one place, it's actually accelerating their revenue growth.

In fact, we had a third-party study done by Forrester. They're seeing a 300% ROI: 1/3 of it revenue, 1/3 of it's cost synergies, 1/3 of it is everything is in one place, so the profitability is going up. It's becoming a competitive advantage for them because now they see everything in one place and they can make better decisions.

The Anthropic example I used was that becomes an ability for us to be able to help them with KPIs they need to see. That's the long tail. But by doing that, they can actually compete and win and make better capital allocation decisions. And I think that back to your question around monetization, not only are we upgrading from our base, we probably have 700,000 up to 800,000 in our base that are fit for either QBO Advanced, which is mid-market, and Enterprise Suite, but there's also a meaningful nonconsumption opportunity that's new, which is starting to accelerate. So both are a huge opportunity for us.

Let's come back to the AI-assisted platform for experts. Where does Live touch this? And how has Live adoption been in QBO, because you have Live versions there? And then when you bring accountants into the conversation, accountants have always been part of the top of funnel and pushing people towards QuickBooks. Are they now more of a part of the conversation of how are you utilizing it? Like what services are going around it? And does that improve attach rates of those online services?

Yes. So I love the question because it goes back to QB Live is HI, human intelligence. And as a reminder, it went up 50% quarter-over-quarter -- or sorry, last quarter it was up 50% over last year, which means that we have figured out the demand side and how to deliver against it on the business platform, which is leading to something that you all should be expecting from us in the quarters to come, which is our biggest surprise in the last quarter was we -- QB Live, HI, and the Business platform have sort of been attached. And based on the work we do with customers digitally, they'll say, "Hey, can I have a human help me?"

We ran a test, and the test was, well, what if just like TurboTax Live, it's actually just part of the platform? And that there are certain jobs that we would solve as part of the platform. For new customers, get them onboarded and get them their first benefit. And for existing customers, there are certain things we would do to make sure their books are clean and accurate, because there's a lot of help customers need to make sure they're compliant. We were pleasantly surprised by the test results.

And so therefore, to answer your question, what you can expect from us as you look ahead is a potential change in our lineup where it's the digital platform and HI that's included for certain bodies of work. The reason this is really important is, one, it will lead to a subscription price change for the larger customers. But two, any time a human expert is attached to one of our customers, attach is up 22 points. Payroll and payments attach is up 22 points. That's significant. And that's all because of the benefit of the platform.

So what you can imagine zooming out is our AI expert platform truly at work where it's become a service, it delivers confidence and certainty, and it's unlocking our TAM, it's unlocking ARPC. And because it's all digitally driven and technically driven, it expands our margins.

Got it. I need to touch on the part of the equation that's been a little bit more frustrating, which is Mailchimp. The industrial logic of Mailchimp makes a ton of sense, right? You're do everything in the back office. Like you're saying, small businesses want to see everything in one platform. They want perspective on spending on marketing, what is it resulting in terms of the bottom line. What have been the rough spots on Mailchimp?

I know it's more so the low end of the marketplace, but you guys do a lot in the low end of the marketplace. And are you still as convicted that you guys could turn it around? Because it's like the target date for turning around seems to have kicked out a little bit into next fiscal year.

Yes. So I'm more frustrated than you are, and so is our team. So 2 things I would say. One, we are absolutely in love with the customer problem. And we have a lot of conviction, especially for smaller businesses. For mid-market, we want to be and are the AI-native ERP platform that ultimately will eat up payments and payroll. In the large mid-market, we don't have to help customers with growth because there's other platforms that can integrate into our platform. But for SMBs, we have a lot of conviction that we want to solve this growth problem.

And we're not in love with Mailchimp. So we're very focused on the upcoming milestones. And really comes down to -- we're actually getting traction with larger customers. It comes down to just a leaky bucket with smaller customers. And particularly, it's customers that pay us less than $200. That's where our attrition is too high. And the reason we pushed out the growth rate of what that segment could be into next year is we want to make sure we get this right.

But I'll end with where I started, we're in love with the problem. We're never as a company in love with our solutions and are willing to do whatever it takes to solve the customer problem and accelerate growth.

Got it. And I want to end on sort of taking the AI conversation and turning internally. Intuit has done a great job of expanding margins over time. You've done some layoffs like over the past 2 years to garner more -- really not garner more efficiency, but get the right people in place. When I talk to Sandeep, he feels like there's a lot more that can be done.

Can you talk to us about the internal use of generative AI, the internal use of AI, which you guys have been doing for a while? What does that mean in terms of the potential for further efficiency and further leverage in the model? But also the pace of innovation, how quickly are you guys moving being able to utilize these tools?

Yes. I love the question. So the way I would answer the question in terms of what our focus is, we are a company that is all about execution and all about discipline on what matters most to customers. How do we deliver undisputed benefits with high velocity? And how do we ensure we're productive in the way we do it?

So a lot of our margin expansion hasn't been -- I think everybody uses AI as the reason or the excuse for margin expansion. A lot of what we've done is just purely services, APIs, automation and, yes, AI is an element of it. And that's what's led to our margin expansion, while, by the way, we've got 3 growth vectors, right? Where AI and HI is a growth vector, money is a growth vector and mid-market is a growth vector.

And 2 things I would leave you with. One, we are entirely focused on growth, and I truly do not worry about margin expansion. We're going to continue to expand margins, just because of the way we built the company internally and the discipline that we have.

Two, I mean, our coders are delivering 40% more code now versus even a year ago. But we have declared internally that we actually want to 3x our velocity from where we are today because of all the foundational elements that we built. That means we're going to take 10,000 builders and turn them into 30,000 builders, right? It's hard to compete with that when you've got a company of our scale that's now, from where we are, 3x-ing velocity.

That will not only lead to undisputed customer innovation and benefit and growth, but it will expand our margins, because we can do a lot more with a lot less. And that's what we've built for internally the last 7 years. So you can expect continued margin expansion. When you always hear that confidence from us, it's because of the internal discipline that we have.

Outstanding. Unfortunately, that takes us to the end of the time. But great conversation, Sasan. Thank you so much for joining. Thank you.

Thank you for having us.

Good afternoon, everyone. My name is Bo, and I will be your conference operator today. At this time, I would like to welcome everyone to Intuit's Second Quarter Fiscal Year 2026 Conference Call. [Operator Instructions] With that, I will now turn the call over to Ms. Anne-Sophie Seigneurbieux, Intuit's Senior Vice President of Investor Relations, Corporate and Strategic Finance. Please go ahead, ma'am.

Thank you. Good afternoon, and welcome to Intuit's Second Quarter Fiscal 2026 Conference Call. I'm here with Intuit's Chairman and CEO, Sasan Goodarzi; and our CFO, Sandeep Aujla. Before we start, I'd like to remind everyone that our remarks will include forward-looking statements. There are a number of factors that could cause Intuit's results to differ materially from our expectations. You can learn more about these risks in the press release we issued earlier this afternoon, our Form 10-K for fiscal 2025 and our other SEC filings.

All of those documents are available on the Investor Relations page of Intuit's website at intuit.com. We assume no obligation to update any forward-looking statements. Some of the numbers in these remarks are presented on a non-GAAP basis. We've reconciled the comparable GAAP and non-GAAP numbers in today's press release. Unless otherwise noted, all growth rates refer to the current period versus the comparable prior year period, and the business metrics and associated growth rates refer to the worldwide business metrics.

A copy of our prepared remarks and supplemental financial information will be available on our website after this call ends. With that, I'll turn the call over to Sasan.

Thanks, Anne-Sophie, and thanks to all of you for joining us today. We delivered an outstanding quarter with Q2 revenue growth of 17%, clear evidence our strategy is working with strong execution across our 3 Big Bets. This performance underscores how our AI and human intelligence platform innovation is fueling Intuit's growth and delivering significant customer benefits. We are a category of one because our platform is mission-critical to our customers' financial lives.

In our category, accuracy, compliance, security, reliability of financial decisions and the liability that comes with it are critical to our customers. It's our advantage, and it's why we win. Intuit is fueling the success of our customers with innovation that enable businesses to operate from lead to cash and help consumers from credit building to wealth building, all in one place with confidence that it's done right in a regulated environment. This means Intuit is delivering financial intelligence at scale.

Our success rests on our powerful combination of proprietary data, domain-specific AI platform capabilities and AI-powered human intelligence, which we'll refer to as HI. And as we scale, the business model strengthens. The more customers we engage, the more insights we gain, which improve recommendations, outcomes and value for every customer. That creates a powerful network effect that reinforces our competitive advantage with our nearly 100 million customers and a system of AI agents and AI-enabled experts fueling ARPC growth and margin expansion.

Our system of intelligence combines AI and HI to deliver done-for-you experiences with accuracy, compliance, security, reliability and data privacy that create a durable competitive advantage. This foundation delivers what matters most to customers, when it comes to financial insights, money management, taxes, bookkeeping and accounting, leading to a complete confidence in their high stakes financial decisions. We're setting the standard for trusted financial intelligence, and this advantage defines our leadership for years to come.

Our momentum is fueled by 3 big bets that represent the company's largest growth vectors across $300 billion in TAM, where our penetration today is 6%. The first bet is delivering done-for-you experiences powered by AI and HI, creating an entirely new category. Second, accelerating money benefits by putting money at the center of everything that we do for our consumers and businesses; and third, fueling mid-market success with a disruptive AI-native ERP platform.

Let me start with our all-in-one business platform, where we deliver done-for-you experiences powered by AI and HI, driving growth, saving customers time and money and consolidating how they run their business in one place. We are continuing to see momentum with our virtual team of AI agents. Over 3 million customers have leveraged agents to do the work for them with all-time repeat engagement of more than 85%.

In January alone, our accounting agents saved time and delivered impact for our customers by categorizing over 237 million transactions. This represents over half of all the transactions categorized that month. Our business tax agent is putting more money directly back into our customers' pockets, uncovering an average of over $1,000 in incremental tax deductions. Our AI and HI capabilities are not only automating tasks and workflows, but driving consumption and adoption of services like payroll and powering QuickBooks Live customer growth of over 50% in Q2.

Given this success, we are rapidly scaling the rollout of Intuit Intelligence, a revolutionary system of intelligence that fundamentally changes how customers engage with our platform to run their businesses. Leveraging Intuit's proprietary data, domain-specific AI platform capabilities and human intelligence, it delivers done-for-you experiences with complete customers. Customers can ask anything. For example, who are my most profitable customers? What are my top expenses and how can I reduce operating costs? How can I grow customers?

Intuit Intelligence provides grounded answers in their own proprietary data and will take action on their behalf through automation and with a seamless handoff to a trusted AI-enabled human expert. This represents a profound shift because now it's done for you with confidence. And because Intuit Intelligence uses deterministic domain-specific models that are built on decades of trusted proprietary data, its recommendations are personalized, accurate, reliable and compliant. This is intelligence rooted in lived financial reality, not generic large language models.

The value of Intuit Intelligence is unmistakable. Over the past year, our real-world testing has shown that when AI and HI come together in a single integrated experience, customers can achieve better outcomes and it positions Intuit for sustained double-digit revenue growth as it unlocks our TAM. We're also making strong progress accelerating money benefits by putting money at the center of everything we do.

We saw total online payments volume for our payments and bill pay customers grow 29%, reflecting continued momentum in helping our customers get paid faster and better manage their cash flow. Bill pay volume nearly doubled as we continue to see breakthrough adoption. Turning to mid-market. Our disruptive AI-native mid-market platform is fueling the success of growing businesses, and we are further scaling our investment in product innovation and go-to-market motions to accelerate customer adoption.

In Q2, online ecosystem revenue for QBO Advanced and Intuit Enterprise Suite grew approximately 40%. The combination of continuous platform innovation and faster onboarding is driving significant customer value. With our Intuit Enterprise Suite product release in February, we are deepening our capabilities in the largest verticals within our nearly $90 billion mid-market TAM.

We just launched a construction edition for Intuit Enterprise Suite, the first in a series of industry-specific AI-native ERP solutions designed for the mid-market. Construction firms face highly complex financial and project workflows, yet many still rely on fragmented systems and manual processes that limit visibility, slow decisions and increase risk as they scale. Built on our AI-native ERP financial platform, this construction edition brings financial and project data together in a single system, combining the rigor and control of an ERP with the flexibility, speed and intelligence modern businesses need to operate and grow with confidence.

Lallier Construction, a family-owned construction leader based in Colorado, is using Intuit Enterprise Suite as a single source of truth across 5 divisions, turning fragmented financial data into decision-grade insights. By automating hundreds of intercompany invoices, they've reduced peak month-end reconciliation time by approximately 90% and reclaimed 16 to 18 hours of accounting work per week, shifting their team from manual cleanup to real analysis.

Because IES offers multidimensional tracking across departments, locations, projects and product lines, Lallier now has the accurate P&Ls for each division with the visibility to support their goal of tripling revenue over the next 3 years. Shifting to go-to-market. We're excited to expand our direct sales team by approximately 30% as we're seeing seller productivity continue to increase. New IES contracts grew nearly 50% quarter-over-quarter with a meaningful acceleration in new customers added to the franchise, underscoring the significant headroom we have for IES beyond fueling expansion within our base. We're also seeing continued momentum with our accountant partnerships. This quarter, we signed partnerships with several top 20 accounting firms eager to build reseller practices, including Citron Cooperman and Eddie Bailey.

The progress we are making with our early accounting partners, supported in part by the launch of new wholesale billing capabilities drove accelerated growth with nearly 1/3 of new contracts influenced by accountants recommendations in Q2, 10 points higher than Q1. We continue to make progress with Intuit Accountant Suite, an AI native offering that transforms accounting firms' efficiency and effectiveness in managing their clients, firm and workforce.

This platform significantly deepens our partnership with accountants and encourages them to migrate clients to QBO Advanced and Intuit Enterprise Suite, fueling faster mid-market penetration. We're seeing strong initial adoption and feedback, particularly around the incremental value firms are getting by managing their operations and gaining valuable insights all in one place.

Turning to our consumer platform. Our strategy is to win as an all-in-one AI-driven expert platform in service of building credit to wealth year-round. While overall IRS returns were down more than 5 points through February 6, we delivered 12% TurboTax revenue growth this quarter. 2 strategic areas of standouts that contribute to our momentum, winning in the assisted segment and the outsized role Credit Karma is playing to accelerate tax growth.

Starting with done-for-you experiences. This season, TurboTax's AI-driven features such as dynamic navigation to streamline tax prep, agentic experiences like the stock basis agent and personalized recommendations are accelerating tax completion and delivering a faster, more confident filing experience.

Our AI-powered automated data entry has been used so far by over 80% of our customers, saving them significant time from manual data entry. Last year, we saved our customers over 6 million hours of work, while putting more money in their pocket. This year, our new AI agent automates the rigorous manual work required for cost basis adjustments, a task customers often choose to bypass due to its complexity, lowering taxable income by an average of $12,000 compared to those that filed without the agent.

All these improvements also fuel the productivity of our AI-enabled experts serving customers in the assisted category. In Credit Karma, domain-specific AI agents such as our refund Assistant, debt assistant and tax assistant are delivering done-for-you personal finance, tax and money experiences with better financial outcomes. These agents, along with new features like Cards Optimizer and Credit Spark promote engagement throughout the year.

In addition, our new AI-powered year-round tax insights are driving stronger tax intent. Early tax demand from Credit Karma members has been exceptionally strong, highlighting the strategic advantage of an integrated consumer platform. Shifting to our go-to-market approach in tax. Our investment in proprietary data, domain-specific AI platform capabilities and AI-enabled human intelligence is fundamentally transforming and disrupting the assisted tax category.

The tax category, which is 7x bigger than the DIY category is all about confidence. When customers choose assisted, they demand a human expert in their corner to deliver peace of mind in a high-stakes regulated environment, where they face significant liability if they get it wrong. With our unique platform advantage, Intuit delivers certainty and customer confidence with expert level accuracy, compliance and reliability backed by our guaranteed best money outcome. That's why we're expanding our local presence with AI-powered virtual and in-person filing options, delivering a uniquely warm, modern experience with confidence, the best price and faster access to money.

We now have approximately 600 local service centers, including several retail locations and 1 flagship store, making local expertise more visible and accessible than ever. This expanded footprint is enabling us to serve customers where they are and establish our expertise locally, driving more engagement with a previously untapped customer base. We have seen 5.1 million total unique visitors to landing pages and in-store visits through February 6. That's compared to 4.2 million for the full season prior.

The majority of these are prior year assisted prospects, and we're seeing strong early engagement with experiences that enable these visitors to connect with an expert immediately or schedule an appointment for later, building a strong pipeline for our robust assisted offerings, including business tax. Lastly, our Fast Money offerings reflect a seamless connection across our consumer platform that gives customers faster access to their largest paycheck of the year.

With Credit Karma's AI assistant, consumers get always-on financial guidance that helps them make smarter decisions and build stronger financial futures year-round. We're seeing compelling early demand for faster access to refunds. We're off to a strong start in tax, growing revenue 12% in Q2, while IRS returns are down 5 points as of February 6.

As anticipated, we're seeing higher consumer interest in our AI-enabled expert assistance and Fast Money capabilities. We're pleased with early momentum winning in the assisted segment and driving incremental tax demand with Credit Karma, highlighting the flywheel effect across our consumer platform.

Our strategy is expanding our share of TAM, increasing ARPC and contributing to our company margin expansion, all fueled by AI and HI. Our platform has become a service that delivers peace of mind, certainty and confidence. Zooming out, we're helping shape the future of financial intelligence by working with leading AI companies to meet consumers and businesses wherever they choose to work and get work done.

These companies partner with Intuit because in a high stakes regulated environment where customers face significant liability if they get it wrong, they demand more than generic LLM recommendations. They require intelligence that is personalized, accurate, compliant, reliable, secure and drives real action on their behalf.

In our category of one, it's all about customer confidence and financial decisions and the combination of data, AI and human expertise is essential to success. That's why we have built a system of intelligence with APIs and MCP that spans a customer's financial life across their apps and data and is not confined to any one system. Our platform is designed to transcend and orchestrate across any system or app, so whether the data sits with Intuit or elsewhere, we can connect it, interpret it and help customers act with confidence.

Earlier this month, we launched all 4 of our apps in OpenAI's App Directory. And this week, we announced a multiyear game-changing partnership with Anthropic to advance highly personalized experiences for consumers and businesses. Powered by Intuit's decades of deep domain expertise and proprietary data models, the Intuit platform will become the foundation, where businesses can build and customize secure, accurate, compliant AI agents for a long tail of industry-specific needs using Anthropic's Claude, Agent Builder.

Intuit will also bring personalized tax, finance, accounting and marketing capabilities to millions of Claude and Cowork users. Our AI-driven expert platform strategy is unlocking our TAM as evidenced by strong first half revenue growth of 18%. As a category of one leader, we provide the trusted foundation for high-stakes financial decisions, delivering the reliability, accuracy, security, compliance and privacy our customers rely on to act with confidence. This is the next chapter of Intuit, service as software built on data, AI and HI, delivering double-digit revenue growth with expanding margins.

Now let me turn it over to Sandeep. Thanks, Sasan.

We delivered a strong second quarter of fiscal 2026 across the company. Our second quarter results include revenue of $4.7 billion, up 17%; GAAP operating income of $855 million versus $593 million last year; non-GAAP operating income of $1.5 billion versus $1.3 billion last year, GAAP diluted earnings per share of $2.48 versus $1.67 a year ago and non-GAAP diluted earnings per share of $4.15 versus $3.32 last year, reflecting our overall disciplined approach to managing the business, including continued AI efficiencies.

Turning to our business segments. We continue to make progress serving businesses with our all-in-one platform and delivering done-for-you experiences with expertise. Global Business Solutions Group revenue grew 18% during the quarter or 21% excluding Mailchimp, while online ecosystem revenue grew 21% in Q2 or 25%, excluding Mailchimp.

This growth is underpinned by sustained momentum in mid-market with online ecosystem revenue for QBO Advanced and Intuit Enterprise Suite increasing 40%. As Sasan noted, we are seeing continued productivity gains from a dedicated mid-market sales team and are expanding capacity by nearly 30%, supported by attractive LTV to CAC economics.

Online ecosystem revenue for small businesses and the rest of the base grew a strong 18%. In Q2, we delivered robust growth in both online accounting and online services. QuickBooks Online accounting revenue grew 24% from higher effective prices, customer growth and mix shift. Online services revenue grew 18% in Q2 or 28%, excluding Mailchimp.

This growth was driven by Money, which includes payments, capital and bill pay as well as payroll. Within Money, revenue growth in the quarter reflects payments revenue growth, which was driven by customer growth and increase in total payments volume per customer and higher effective prices. Total online payment volume, including bill pay, grew 29% in Q2, reflecting our continued momentum in payments and adoption of our bill pay offering.

Online payment volume growth, excluding bill pay, was 17%, largely consistent with the last several quarters, including a 1-point impact from the winter storms last month. Within payroll, revenue growth in the quarter reflects mix shift, customer growth and higher effective prices. Within Mailchimp, revenue was down slightly versus a year ago as we continue to strengthen the platform for durable growth.

We are seeing encouraging momentum in the mid-market with continued larger customer wins, improved retention and growing adoption and usage of SMS. At the same time, progress in improving churn and acquisition among smaller customers is taking longer than expected. We continue to focus on improving go-to-market and product experience and now expect Mailchimp to return to double-digit growth sometime beyond fiscal 2026.

Overall, we have high confidence in our strategy and the online ecosystem momentum is very strong. This performance underscores powerful traction across the growth vectors and positions Intuit to lead and win. Turning to Desktop. Desktop ecosystem revenue grew 10% in Q2 and Desktop enterprise revenue grew in the high teens in Q2. We continue to expect desktop ecosystem revenue to grow low single digits in fiscal year 2026.

Turning to our consumer platform. We continue to make progress serving consumers with our all-in-one platform that engages them year-round to make smarter financial decisions by delivering done-for-you experiences, AI-powered local tax expertise and faster access to money.

Q2 revenue grew 15%, driven by Credit Karma revenue, which grew 23%. TurboTax revenue grew 12% and ProTax revenue grew 7% -- within Credit Karma, revenue growth reflects continued momentum with our members and partners. On a product basis, personal loans accounted for 10 points of growth, credit cards accounted for 9 points and auto insurance accounted for 4 points. As a reminder, in the second half, we are lapping the strong growth we saw in credit cards and personal loans a year ago.

As Sasan shared, we are off to a strong start in taxes season and are excited about the opportunity ahead for our AI-driven expert platform to deliver the best experience, speed to money and best price for our customers. Now shifting to our balance sheet and capital allocation. Our financial principles guide our decisions. They remain our long-term commitment and are unchanged.

As we have shared before, we are executing on opportunities to drive margin expansion over time given our disciplined approach to capital management and ongoing efficiency gains from leveraging AI and automation. We finished the quarter with approximately $3 billion in cash and investments and $6.2 billion in debt on our balance sheet.

We repurchased $961 million of stock during the second quarter. Given the current stock price and our strong confidence in the momentum of our business, we are continuing to meaningfully increase our share repurchases this year. We maintain our aim to be in the market each quarter.

The Board approved a quarterly dividend of $1.20 per share payable on April 17, 2026. This represents a 15% increase versus last year. Moving to guidance. We are reaffirming our fiscal 2026 guidance. This includes total company revenue of $20.997 billion to $21.186 billion, growth of 12% to 13%. Our guidance includes Global Business Solutions Group revenue growth of 14% to 15%. We have high confidence and a lot of momentum in achieving Global Business Solutions Group revenue guidance for the year.

Our guidance also includes overall Consumer Group revenue growth of 8% to 9%. This outlook is supported by continued strength and momentum across the portfolio, including TurboTax growth of 8%, Credit Karma growth of 10% to 13% and ProTax growth of 2% to 3%, giving us high confidence in achieving our Consumer Group guidance for the year. GAAP diluted earnings per share of $15.49 to $15.69, growth of 13% to 15% and non-GAAP diluted earnings per share of $22.98 to $23.18, growth of 14% to 15%.

We expect a GAAP tax rate of approximately 23% in fiscal 2026. Our guidance for the third quarter of fiscal 2026 includes total company revenue growth of 10%, GAAP earnings per share of $10.56 to $10.62 and non-GAAP earnings per share of $12.45 to $12.51. You can find our full year 2026 and Q3 guidance details in our press release and on our fact sheet.

With that, I'll turn it back over to Sasan.

Great. Thank you, Sandeep. We're excited about our progress and the momentum across our growth vectors and our opportunity to increase Intuit's total share of our $300 billion TAM. With that, let's open it up to your questions.

[Operator Instructions] We'll go first today to Siti Panigrahi with Mizuho.

Sasan, you delivered a strong Q2 results, no doubt about it. But as you can see right now, the market is worried about AI disrupting software and in fact, your business, less QuickBooks but more tax. Can you help us understand like what is the disconnect? Where do you think market is wrong? And where do you see the opportunity for you and that you are not getting disrupted by AI, rather you're going to benefit from AI?

And Sandeep, a quick follow-up. I want to ask here that people are pointing to your Q3 operating margin guidance, which was Q2 was strong. Is there any safety in expense?

Yes. Siti, thanks for your question. Let me take the first part of it. First of all, I would just start by restating that we are a category of one in that the category that we operate in is a regulated environment. And in that compliance and security and accuracy is everything for customers.

In fact, customers demand human expertise because what they are very focused on is in their high-stakes decisions, whether it's a consumer, business of any kind or an accountant, getting it wrong means huge, huge liabilities for the customer. And that's really the context behind the category, which really informs our advantage. We have a regulatory-driven advantage. We have customer-driven advantage.

And when you look at where we are today, our entire platform is fueled by data, AI and HI. And in fact, when you look at the results that we're delivering, where we ended last year, the momentum we've had in the first half of the year, it is actually unlocking TAM. It's unlocking ARPC and it's unlocking margin expansion. So I think our results speak for themselves in terms of how it's fueling our success.

And our perspective is it is all about focusing on customers, all about putting points on the board. And it's also -- the thing I would point out is it's why companies like OpenAI, companies like Anthropic look to the partnership with us because at the end of the day, they see and understand that this is a business that comes with a lot of liability and LLMs can't just create the platform that we've created overnight.

But most importantly, what we've really created is the combination of technology and human intelligence all in one. So we have truly become a service that delivers high confidence and high certainty. And I would just end with where I started. That's why our results are so strong, and that's why we are so bullish about not just the rest of the year, but frankly, our trajectory going into the future.

Let me touch on the margin. But before I touch on margin, one thing I would reinforce is Sasan's point around the partnerships we're doing with these big LLMs. As you can see, the partnerships we are doing, other software companies are doing, these LLMs are looking to work with us and not against us.

So I think that's a key component to keep in mind and the customer benefits that we are delivering through our platform and are really resonating. In fact, one of the things I would highlight is we always had the thesis that AI and HI is a true differentiator because AI is the middle to middle and to be end-to-end, particularly when you're making high stakes, high liability financial decisions, you need that HI plus AI working together.

And we've been testing this actually in our business platform in the marketplace, a lineup that includes AI and HI. And I would tell you, this was my biggest surprise. I was pretty confident that they are there with our thesis. But the customer reaction has been tremendous, way out doing even our own expectation. And right now, we're thinking through how we incorporate this AI and HI into our lineup just by seeing how well the tests are resonating. So I just wanted to add that point to your question around AI and our differentiator.

Now let me touch on the margins as well. Siti, you followed us for years, and we operate to delivering margins for the full year. I feel super confident in our guide for the full year. I feel super confident in my ability to deliver the margin expansion for the full year. And what you're seeing in Q3, a couple of things. One is we overdelivered Q2.

As Sasan mentioned, it was a slow season to the -- slow start to the tax season. So you had some cost, marketing and customer success costs that move from Q2 to Q3. And secondly, as the teams looked at some of the tests, we saw a meaningful opportunity to shift some spend to maximize ROI into Q3. So that's really all that you're seeing in the guide. So taking into account the Q2 over delivery and the fact of our long tradition of ensuring we deliver margin for the full year, and I feel pretty good about it.

We'll go next now to Brad Zelnick with Deutsche Bank.

It's Nick on for Brad this evening. I'd actually like to build on Siti's question a bit here. When you're talking about the power of AI and HI together, as models continue to improve, how do you see that balance between AI and HI shifting? And where do Intuit and it's customers stand to benefit the most from these models as they continue to advance?

Yes. Thanks for your question. Let me maybe break it apart into important segments of the company. First and foremost, our entire disruption in the assisted tax segment, by the way, both assisted consumer tax and assisted business tax is entirely driven by data, AI and HI. We are winning based on our scale of the best experience, the best price and the fastest access to money.

And as I said a moment ago, customers -- I mean, if you look at the size of the assisted category, it's more than 7x the do-it-yourself category. And the reason is that customers demand an expert to help them with their decisions and to help them with their liability. And so one area based on 7 years of investments that we've made that we're really benefiting from is disrupting the assisted tax segment, right? This was a segment that grew 45% last year, well over $2 billion in size.

And we are seeing incredible traction, not just through February 6, but we've got 2 months of tax season under our belt. We have about 6 weeks left, and we're seeing incredible traction with our assisted offering. So that's one significant area, where it's a tailwind for us. And I think we're just scratching the surface of the disruption.

The second area is we're actually winning in mid-market because our entire platform is based on AI and HI, where we are now fundamentally an AI-native ERP platform, where we're doing the work for customers. And when you look at some of the customer benefits that we are seeing from a reconciliation -- peak reconciliation being done 90% faster at month end to 17 hours a week of accounting work that our platform does with not just AI, but our HI that comes with it.

Our platform is beyond self-funding. It's actually digitizing and driving growth in mid-market, which is why we're seeing the acceleration. It's why we're seeing accountants actually embrace our platform. The third is I want to amplify what Sandeep already said, but it's just a really, really important point that Sandeep made.

As you recall, last year, we rolled out a series of AI agents on our platform. And those AI agents were accounting agent, payments agent, finance agent. The accounting agent is saving customers 12 hours a month. Our finance agent is delivering automated P&Ls and automated cash flow statements. It's saving customers 17 to 18 hours a week. We're putting more money and faster money, I should say, into our customers' pockets, whether it's our payments AI agent and/or our tax agent, where it's actually helping our customers with reducing their reductions.

And all of that is actually fueling QuickBooks Live. It's up 50% year-over-year. So that's where AI and HI is feeling the customer benefit, but it's actually completely self-funding, which gives us a lot of pricing power. And that's really the point Sandeep was making is what we have learned beyond the benefits that we're delivering since last July and how it's actually fueling adoption and consumption of our HI services, which is QB Live.

What we learned in test is that when we actually offer it as a combined experience, both technology and human expertise, customers are actually willing to pay more for it. Why? Because it comes down to helping them fuel their success, making sure that they're confident in their liability. And so that's informing the future, which I want to just spend one more minute on the future. We're going to be -- we're assessing and we're going to be rolling out AI and HI now as part of our lineup with certain jobs that we will solve based on all the test results that we've seen, where we'll see over time, an increase in actually subscription prices where it's actually saving customers a lot of money.

But two, we're actually seeing consumption. So there are certain things we're going to include in the lineup and then certain things that we are seeing in our test results that will actually drive consumption of payments, consumption of payroll and actually consumption of more expert services. And so that's really sort of a primary example in assisted tax in mid-market and really across our business platform, how AI and HI is actually fueling the growth that we're experiencing, and that's what gives us confidence, not just for the rest of the year. We have a lot of confidence in the year, but just as we look at the next 2 to 5 years.

We'll go next now to Keith Weiss with Morgan Stanley.

Congratulations on a really solid quarter. I was going to ask about the new Anthropic deal that you guys signed in the quarter. Something that you guys are really excited about. We could see that excitement in the press release. I would say investors are a little bit less excited because of the uncertainty that it brings.

And I think the core of the uncertainty is the idea of you're letting the fox into the henhouse, right? Is Anthropic and the Anthropic model going to be able to get access to all your good proprietary data, access to all your customers to your workflows and therefore, be able to replicate your business.

Can you talk about the -- one, the relationship itself what's so exciting from the Intuit part of the equation. But maybe touch on the controls that you have? Like how do you keep that bear case scenario from happening? How can we help smooth maybe some of those concerns from investors?

Yes, Keith, thanks for your question. I want to just start with the why, why these partnerships. And Sandeep touched on this, but this is probably the most important premise that is important to be understood, which is, in this case, both OpenAI and Anthropic, one, they're wonderful partners. But two, they are very interested in this partnership because they actually see and understand the regulatory environment and the high-stake financial decisions that customers make and how important accuracy and compliance and safety is and the fact that customers actually demand the combination of technology and human expertise.

And that is not an easy thing to replicate. Frankly, in some ways, this addressable market is too small for them to even worry about, and that's why they rely on us. So the why is really, really important because they're heavily relying on us to provide the experience, which gets to the second question that you asked, and that is -- or the first question that you asked, and that is the way we -- the relationship is constructed and the way our platform is constructed is that customers are -- when they engage, they're using our platform.

In essence, it's through APIs and MCPs where -- and it's in the contract. This is beyond how the experience works is that the data doesn't leave our 4 walls, the AI capabilities, which are domain-specific that we've built doesn't leave our 4 walls. And it's about delivering the experience that the customer needs, whether it's within OpenAI or in this case, Anthropic.

And from an economic perspective, we own the experience and the relationship, and we don't share in the economics, while at the same time, we've committed to continued use of external LLMs, which is part of the Anthropic deal. So the element of how the experience works is no customer data is shared, no domain expertise is shared. And frankly, they have 0 interest in it because of where I started and the interest of the partnership with them.

And I think the last thing I will just end with is our fundamental goal is to be where the eyeballs are. We want all of our platform capabilities to be where customers are. And we are working daily on improving the experiences. It is yet to be determined whether or not customers actually will want to engage in their finances with us through these apps. So we're working on the experience. We're very excited about it. We believe the biggest opportunity is really new customer growth. But we actually need to determine whether or not customers are willing to engage with their finances through the apps. But that's what gives us a lot of excitement around the deal.

And Keith, one thing I would add is when customers think or investors think about the relationship we have with these LLMs, in addition to everything Sasan mentioned, the moat that we have comes from our proprietary data. And Sasan sure that, that data is not leaving our 4 walls that stays here. So that's not being impacted.

Our moat comes from being the core of the flow of funds, whether it's access to capital, whether it's hours worked by the employees, whether it's money flow, that's not being touched by these LLMs.

Our moat comes from human intelligence being a massive differentiator, particularly in areas that we play with, which is high stakes financial decisions, high liability, regulatory decisions, that's a moat that remains with us. So that's the one where I would ask folks to step back and look at what generates the moat and how that moat remains untouched. And in fact, it's being augmented in this new era of AI.

We'll go next now to Steve Enders with Citi.

Okay. Maybe I'll just kind of continue the line of thinking on the AI side. Just as you work and partner with these model providers and you have your own internally built agentic capabilities as well. Just how do you think about what makes sense for you all to kind of focus on? Where does it make sense to rely on some of these third parties? And maybe where does kind of the rubber meet the road in terms of what that means for the customer experience moving forward?

Yes. I'd say that's a really great question and an element that I forgot to share in answering Keith's question. So we think about it in the realm of context versus core. And for us, core is what we talked about, which is we are all about delivering done-for-you experiences with AI, data and HI to help you from lead to cash and to help you from credit building to wealth building.

And so all of our investments over the years with the proprietary data, data models, our domain-specific AI models, which, by the way, to a lesser extent, is actually LLMs. The majority of our AI capabilities is actually knowledge engineering and machine learning. And of course, we've built out our Intuit financial large language models that really works in a very complementary way to deliver these experiences with confidence where there's a lot of liability for customers, which is why there's so much demand.

And if you think about our category, demand is high and supply is short because there's not too many that do what we do end to end. That's core. And when you think about what context is the part of the alignment that we have, like, for instance, with Anthropic, where for mid-market customers, if there is a customer like a construction company that is looking to look at their project plan, look at their lean waivers, look at their subcontractor payments -- and then they're looking to actually understand the combination of those and the impact it has to their cash flow.

Our customer now on our platform, because remember, it's our AI models, data models and HI that drive the end experience can now -- they don't know what they're using, but they're using some of the capabilities with Claude, Cowork to actually be able to create a dashboard to see the long tail of things that, that construction company needs to see.

And by the way, every construction company wants to see different things. Every roofer wants to see different things. Every architect wants to see different things. That's context for us, right? Because we don't want to go out and build the long tail of things, but it actually allows us to disrupt industry-specific verticals.

That's an example of context. Another example of context is for Anthropic and OpenAI, context for them when a customer is in their app is what's the customer's intent. That's core to them. And once they identify what the customer wants, then it becomes very much our skills, our experiences is what the customer use and they're in our platform.

So this is back to where I started. This is very much about context versus core. And from our perspective and the LLM providers, it's actually a very clear cut how we are partnering to deliver experiences for customers. So hopefully, that helps, but that's really the way we're executing the experiences and how the models actually work.

We go next now to Mark Murphy with JPMorgan.

I'll add my congrats. Sasan, you had mentioned twice that IRS returns are down 5% year-over-year through February 6. I assume you mean that more as a timing difference this season, perhaps because I think some of the reports are showing that IRS staffing is down 27% versus last year, maybe it takes longer up.

So is it just more back-end loaded tax season? Or are you trying to signal anything about the full tax season? And then secondly, Sandeep, can you comment on some of the economic health indicators that you sometimes say like number of employees, hours worked, the cash balances, credit scores, et cetera, just whether you think there's been any change there?

Yes. Mark, let me just take both of those and then see if Sasan has something to add on top of my answer. So on the first question, what we wanted to highlight with the fact that the IRS was down 5 points through February 6, that was simply -- we were highlighting the timing, but we wanted to showcase that, look, IRS is down 5 points through February 6 and our business, TurboTax revenue was up 12%.

Now you can compare that to last year, Mark, you followed us for years. Last year, IRS was down about 8 points through February 7, and our business was up 4%. So we're just highlighting what's giving us the confidence going into this tax season. So that's purely timing and more just giving a comparison to external versus our performance during the similar time period.

Now getting to your to your second question, Mark, remind me of your second question, sorry, quickly blanked on it.

If you could just comment on some of the economic health indicators like cash balances, and hours worked and credit card. The reason I'm asking, Sandeep, is the consumer confidence scores, there was a minor bounce last month. But outside of that, they've looked pretty awful for a while, and yet you've had a better, more positive read on it and very, very strong results. And I'm just wondering if that's continuing.

Of course, Mark. So there are 2 metrics that I look at as my own personal leading indicators when I look at the health of the business. One is -- and this is my Uber metrics, like what are the stats on the number of hours being worked by the employees of our customers. Those are up around 4% or thereabouts, which is actually stronger in January than it was in the October time frame.

So that I continue to feel good about, and it's actually improved from about the October time frame. The second thing I looked at is what are the cash reserves because cash on the balance sheet, cash in the bank matters so much, and that's stable. Mid-market and small businesses are actually up. The micro businesses are down a bit. So -- but net-net, across the overall SMB space, it's very stable.

The other metrics that we look at are more secondary, but still helpful is what's the business to revenue, and that's remained stable over the last 3 months. Mid-market is up kind of a little above -- around 6%. SMB is up low single digit and micro is down single digit, but generally, the health is good.

IT services, nondiscretionary is doing well. Advertising, retail, discretionary is seeing some declines. Ancillary on the profit side is up several points over the last 3 months through January. And on the profit side, we've seen good performance by IT services, manufacturing and wholesale trade. So putting aside all the noise we might see in the press and everything else, when I look at the pure quantitative stats in the business, I continue to feel good about the health of the business.

On top of that, I'll also remind you, Mark, and you followed us for years, so you know this, but just for everyone's benefit, we have a well-diverse base of customers across multiple customer sizes, multiple industries, multiple geographies. So that's also something additional to keep in mind as you think about our business and the health of the economy.

We go next now to Alex Zukin with Wolfe Research.

Maybe just 2 quick ones for me. Sasan, I guess to the part about AI, the partnerships that you've talked about, obviously, some amazing growth again in GBSG. I wanted to ask how durable are some of the trends that you're seeing over the course of the next few quarters and even beyond that?

And then to the Anthropic partnership specifically, I think you did a great job laying out how it is going to improve the customer experience. You've talked about how the data is not going to leave. But maybe talk about just the specific monetization plans, how it impacts potentially gross margins?

And then, Sandeep, just as a follow-up on Mailchimp. I think the language moved to returning to double digits beyond fiscal '26. Maybe just give us a little bit more color there and your thoughts about kind of both the key unlock and what happens if it can't do that?

Yes, Alex, thanks for your question. I'll jump in on the first one. Listen, the thing that is very exciting for us is AI and HI is foundational to our platform and fueling our growth. And we talked a lot about what those proof points are. It's not a side project for us. We're not looking on the side to figure out how to monetize AI to make up for the core. It is fundamental to our platform.

But that's juxtaposition against 3 growth vectors. And so to answer your durability question, we feel very good about the durability of what we are seeing. One growth vector for us is how we're disrupting assisted tax, which is both for consumers and business. And you saw in the last several years, how our trajectory has fundamentally changed. And last year, it was a $2 billion-plus business growing 45%, and we're seeing incredible traction so far this year.

And by the way, we've seen enough of the tax season to know how it's going to play out and our confidence in tax season. So that's very, very durable. And in fact, every day that passes, we build momentum because of all the investments that we've made. Second, mid-market is very durable with all of our platform innovation, with our go-to-market motion that we're building, and you can see it in our results, right?

Contracts quarter-over-quarter continue to be up 50%. Our accountants are now starting to contribute to new customers to the franchise. It's up 10 points over the last quarter. New customers to the franchise is actually meaningful now. It's not just our base, and we have a long ways to go in our base. And that's why we're expanding our sales force. So that's durable.

And then third is, I think Sandeep said it really well, with all of our AI and HI innovation on the business platform, we've actually been beyond the significant savings, both time savings and money impact that it's having for businesses, which, by the way, makes our platform beyond self-funding that gives us a lot of pricing power. We were very surprised to see in our testing that customers -- new customers and existing ones want the combination of both as part of the platform.

And that will impact how we think about not just subscription pricing, but consumption. So what we are seeing is very durable and not just for the next couple of quarters. We've been focused on these 3 growth vectors for some time, and we're seeing the impact of our investments. Last thing before I turn it over to Sandeep, you asked about economics. Both with OpenAI and Anthropic, we do not share in any of the economics. Whatever the usage is by our customers, it's the same economics, if the customers come to us directly.

And we're just really focused on the experience. And I think we have a lot to prove together as to whether or not customers actually want to engage through these LLM apps. But we enjoy all of the economics. There is no margin expansion. I think the thing you can expect from us, Sandeep said this earlier, is continued margin expansion at the company level.

Alex, let me build on that and also touch on your point around Mailchimp or a question around Mailchimp. When it comes to AI, keep in mind, the margins are driven by the monetization. We've got 3 levers for monetization. One is pricing for value. When Sasan shared that the accounting agent is saving people 12 to 14 hours a month, we know that people in North America value their time around $75 an hour. So that's $900 plus of value we're delivering.

So we can take a cut of that, and that's great margin that goes to the bottom line. Secondly, our agents, our AI is serving up capabilities across our ecosystem at a time of need. So we're switching the conversation from being a sales pitch to helping address the customer need. As an example, our customer could have a payroll due tomorrow, but the invoice is not going to get paid until next week with a click of a button, they get access to the capital loans, payroll is done. The employees are paid, employees are happy next week when the customers pay the invoices, the agent automatically pays down the debt.

Thirdly, and this is a key point for us all to keep in mind, AI drives a seamless connection to HI. And we know in HI, particularly QB Live, we see 22 points higher ecosystem attach. So in addition to HI being a higher revenue upsell when they engage, they have to pay us more for the human expert. We also know when they end up talking to human expert, they end up consuming even more of our ecosystem. So all of that stuff is top line massively accretive, which will then drive the margins.

Now let me get to Mailchimp. Look, as a company, we fall in love with our customer problems, not the solution. Our focus and our attachment as a business remains to that core customer problem versus an attachment to any one particular solution. We are evaluating the path to continue to scale Mailchimp and how we can best address the customer need and also evaluate how Mailchimp fits as part of our set of offerings, and we will continue to evaluate our portfolio offerings. All options, as I've shared before, are on the table, and we'll make sure we keep you all apprised as we narrow in on the options.

We'll go next now to Gabriela Borges with Goldman Sachs.

Sasan, I wanted to ask you a little bit of how you see the general purpose knowledge intelligence tools evolving. So specifically something like Claude Cowork. Where do you see the boundary at some of your leading-edge SMB customers between the types of tasks that they can do with core to cowork or a general purpose intelligence tool versus where Intuit really excels with some of the domain-specific intelligence. How do those 2 ecosystems work together?

Yes, Gabriel, thank you for the question. It's really a fairly clean cut, which is the moat that we have, the advantage that we have to deliver for our customers is proprietary data, it's domain-specific AI models, which is knowledge engineering, machine learning and our Intuit financial large language models, coupled with human expertise, HI.

And as I mentioned earlier, in an environment where it's a regulatory environment, it's about high-stakes financial decisions where the liability is high, compliance and accuracy and privacy and security is everything for customers. And it's important to note because facts are friendly that with our $300 billion in TAM, people, experts impact over half of the spend in that TAM because it's customer backed. And that structurally has not changed in the last 10 years. It hasn't changed in the last 6 months.

And in fact, based on our innovation on AI and HI, as we talked about earlier, we're actually seeing an acceleration of the need of combining both the technology and human expertise because of the notion of confidence and certainty in things done right. That's really the fine line back to specifically your question when we think about why an OpenAI and Anthropic is so interested in us because we do that very, very well.

And why we are interested in a partnership with them beyond being where the eyeballs are, the example that I would use when you look at our capabilities versus like Claude Cowork is we're actually very excited about the -- making the capabilities, the Claude Cowork capabilities available in Intuit Enterprise Suite.

And why? Because there are things that Claude Cowork does that we don't need to go build. It's context for us because -- if you take the example that I used earlier, which is a construction company, I won't reuse that example, but I'll use the example -- a very real example of a restaurant that is located in the tourist area and wants to actually understand what are the tourist trends, how does it get impacted by weather? And ultimately, how is that connected to taking their POS data, their Intuit platform data to get daily updates and forecast as to what their traffic into their restaurant could be.

We don't need to go build an LLM for that, but we can integrate, which we are, Claude Cowork into our platform, and it's the brains of our platform is delivering the accuracy and the compliance, but the LLMs of Claude Cowork actually allows the customer to see the specifics of what they need to be able to better run their business.

Now the customer doesn't know what they're doing, what they're using. All they care about is they're asking for this KPI to be present to them. So that's where we're very clear in our partnership. And by the way, we both see the need of what's context versus core and vice versa. And that's just a real-life example of where the lines are.

And Gabriel, if I can add my lens to it, the way I think about it, any financial recommendation, any business -- core business recommendation, anything you could think of as the office of the CFO, office of the COO, office of the CEO is core to us. So when we talk about our financial agents saving 17 to 18 hours, a month, 69% reduction in the time to get analysis, that's core.

Accounting agent, that's core. Payment agent getting people paid 5 days fast, that's core. Payroll agent identifying anomaly, saving people multiple hours and getting the payroll, that's core.

Now I'll give you an example from a recency bias, but it's a very good example to make it real. I recently visited with a winery in Napa. They give you free shipping when you buy a case. But they have to decide, do I ship this bottles from Napa to Denver ground, which is the low cost to me better margin? Or do I ship it 2-day air because they don't want the wines to get frozen. Now they can use Claude on our platform, so on our real estate, right, to see what the weather pattern is and then the agent could pick what that shipping should be.

That's something that we don't need to build because a thin sliver, as Sasan said a long tale. So that is not -- that's more of the office of the shipping department. So that's not core to us. So that's kind of how I very simply think about what's core versus what's context for us.

And ladies and gentlemen, we have time for one more question today. We'll take that now from Daniel Jester with BMO Capital Markets.

Great. Maybe on the 600 service centers and the in-person opportunity in tax, maybe how are you judging the success of that? I think as we've been listening to the whole call, we've been hearing the combination of human plus intelligence means that, that's the optimal way to see the path forward. And so I guess as you think about the in-person opportunity in tax, what's the takeaway so far this year? And how are you thinking about it going forward?

Yes. Thanks for the question. First of all, I'll start with the stat we talked about earlier because it's just, again, facts are friendly. Through early February, we had over 5 million customers that visited either our landing pages and/or a store because of the 600 centers that you just alluded to. And that's through early February, like February 6.

All of last season, it was 4.2. So that is a very important stat from the perspective of we want to be where the customers are. So one, by having these 600 locations, it allows us to actually show up locally in search. Visibly be seen. And two, it gives customers confidence that we're local, albeit the majority of the engagement is entirely virtual. So really, we're tapping into a customer base that allows us to unlock the TAM based on all the capabilities that we now have across our platform with AI and HI. But that's the importance of the centers. And again, it's all tech-driven and it's powerful because of the traffic that it ignites for us.

Thank you very much. And Mr. Goodarzi at this time, sir, I would like to turn the conference back to you for any closing comments.

Okay. Awesome. Well, thank you, everyone, for your wonderful questions. We look forward to seeing you between now and then and look forward to talking to you about our Q3 results. So until then, be safe, be good. We'll talk to you soon. Bye, everybody.

Thank you very much. Again, ladies and gentlemen, that will conclude today's Intuit Second Quarter Fiscal Year 2026 Conference Call. Again, thanks so much for joining us, everyone. We wish you all a great remainder of your day. Goodbye.

Welcome to our next session. Really happy to have you on here with us, Mark. Maybe just talk a little bit about yourself and your role at Intuit and then we can take it from there.

Sure. Sure. Yes. I'm Mark Notarainni. I have the pleasure of leading our consumer team within Intuit. And that really encompasses TurboTax, Credit Karma and our ProTax Group. So really serving consumers' financial needs. I've been with Intuit now for 18 years in this role for -- coming up on 3 now. Super excited to be here and really looking forward to talk about the future of our consumer platform.

The -- and it's kind of funny because like you can't go to these tech conferences, don't start on AI to talk about.

It's kind of a big deal.

We had it enough, I don't know why. Can you talk a little bit about the thinking from the interim management team and how that has evolved in terms of like what AI means for you guys?

Yes. AI is an incredible opportunity for us across all of Intuit, both our business platform and our consumer platform. It really enables us to do done-for-you experiences for customers, right? So -- we've been, in the case of TurboTax, an incredible platform that's been driven by a linear interview process and what AI has enabled us to do is ingest -- get data, ingest data, apply data and personalize an experience that basically enables us to do much more of a done-for-you experience, bringing your data, get the work done for you without having to put in information and then get you the best outcome so that you could finish and file in the case of TurboTax.

In Credit Karma, it enables us to do -- be much more helpful to a customer because of the data points that we have. We have about 70,000 data points on each consumer. And that enables us to actually personalize experiences beyond credit cards into personal loans, into debt and debt management. And so really truly becoming a daily interactive product for our consumers and solving real problems every single day. That's all enabled by AI.

Yes. And then can you talk a little bit about the evolution or like the actions you guys have taken to be ready for that and then I'm thinking like there's like a harmonization of the technology, there's a data platform, et cetera. Like it sounds all very simple. It's like, yes. And reality is often kind of a bit tougher to...

It's much harder yes. So there's -- the first thing is making sure that we have the data organized, right? And that's a big part of our platform is our data and what we call our data services. So we have the ability to aggregate and collect data that's very, very important for driving your personal finances. So that's really a transformation that we had to drive. Our data was locked up in different products, and we had to organize it in a way where it could be consumed real-time by a product.

And so that's been a big transformation. We also, in the case of TurboTax, right, we're a 40-year-old company. And so we had to modernize our platform across our tax product. We had to do that in QuickBooks as well because it's been around. And one of the things that is very unique, and I think this is important for anybody going through an AI transformation is you have to have the culture for change. So Intuit has been around for 40 years, amazing -- 40-plus years. We started off as a DOS company. It turns out that the technology that used for DOS doesn't work in the world of AI, and we've been able to migrate, manage through really big technology shifts.

This one is super fast and more impactful than the Internet or mobile for sure, that preceded it. So it really -- like Intuit is a culture of change. And we just really leaned into it and adopted it and understood what it could do to solve customer problems. AI could do, yes.

And if you think about then the -- at least like I don't know if you had it, but like when ChatGPT came out with this horror scenarios, because ChatGPT can do your taxes, then I was like, okay, well, I don't need to do tax anymore, et cetera. Like talk a little bit about the journey that you kind of experience in the discussion internally, but like also like in terms of how you want to position yourselves?

Yes. So from -- at the core, we declared being an AI-driven platform, human platform about 7 years ago. So we've adopted AI very, very early on in that transformation and believe that it could transform our experiences. ChatGPT and other LLMs came on to the scene and drove a lot of traffic, a lot of engagement with customers. But doing taxes, managing books, accounting, payroll, all the things that we do. It's not just about general questions and answers. Data is incredibly important.

Security, accuracy and confidence are all things that are incredibly important that Intuit has built into both the consumer platform and our technology platform. So what we view with the ChatGPT, and we've already -- we just announced our OpenAI agreement is we need to go where customers are. And what we love about what's happening there is, obviously, 800 million weekly active users, but it's a way to interact with the customer and get them into the right products that are best served for them, whether it's TurboTax, Credit Karma or QuickBooks, and that's what we view as the future of -- as an opportunity and less of a threat and much more about meeting customers where they are and helping them get the answers they need and then getting them into our products and solving their problems.

Yes. I mean, did you see it in the change in the ecosystem as well. If I think about the tax consultants, et cetera, that they kind of come down as well? Or were they always like...

I think there's always -- like in every transformation, I could tell you in terms of like the tax professional. When we launched the TurboTax Live 8 years ago, one of the big fears that our experts had our tax pros was video. And that was a big hurdle. And so there's change is my point is very common. And you have to manage through it. What we have, we have about 13,000 tax pros on our platform. They absolutely love it. They're a little bit afraid at first, but they're much more worried about am I able to do my job effectively and drive the accuracy for my customer.

And so that's kind of the basis of their concern. And once we show the capabilities and once we started doing and removing mundane tax tasks, and actually enabling them to serve customers, which is what they really love to do and solve those problems and drive confidence for those customers, they've really adopted AI, and we really don't see that as a challenge within our platform anymore. They're kind of over the change curve on that and actually see the benefit.

And then as part of that, like let's talk a little bit about TurboTax, we want to do assisted we're kind of moving in a way up market. There seems to be like a huge opportunity because there's still so many people that are kind of doing that. Like talk a little bit about the evolution of your capabilities and where you are on that journey?

Yes. So there are about 88 million Americans that still file their taxes through what we call the assisted category. So it's a huge, huge market. It's about a $37 billion TAM. So it's an enormous opportunity for us. The technology investments that we made starting 7, 8 years ago in TurboTax Live, have only gotten better and much more advanced, which enables us to serve more customers. That's the way we see it. So it started with, I had talked about video. It started with being able to work from home and virtually, that all enabled us to start to scale.

But AI and Generative AI, in particular, has accelerated our opportunities to serve those customers and move upmarket because our experts are no longer doing things that consume the time away from a consumer or away from a customer that actually empowers them to serve more and more customers because that work is being done for them.

And so that's how we start to think about it. It also allowed us to branch into new types of services that we launched 2 years ago, but really last year was our first GA year was business tax, and small businesses and helping serve them because we could start to build a product using AI that was focused on our customers' behalf. AI is transformative for us in many ways, certainly in the product experience and our expert experience.

But our developers are 40% more efficient with AI, right? So that enabled us to go build a biz tax platform, which would have taken us a long time before. But because of how our developers are aided by AI and much more efficient, we can build faster. On a customer success side, as an example, we see this year about $135 million of efficiency opportunities, and that efficiency translates into our ability to serve more customers, right? So it's very, very powerful for us across the board, customers experiences and our internal operations.

What is the one of the messages that came from you guys for a long, long time on tax words that had too many dropouts. So people started it, they didn't get comfortable and then kind of dropped out went to the tax guys then afterwards. Like how is Gen AI in theory helping that it should be the ability to do a lot more handholding, interact with ChatGPT at the moment, it's like there's a lot of like handholding capabilities like, is that one of the factors that you kind of consider in terms of like changing that conversion rate?

Yes, absolutely. And I like the handholding term. It really is, as I had mentioned earlier, TurboTax was a very linear interview process that required everybody to go through hundreds of questions, and that's where you saw a bunch of fatigue, right? Because many of the questions didn't really apply to you as an individual. And what AI and where we're -- what we've built now is an AI-driven experience that uses data to actually personalize that experience and only offer up the questions that are relevant to you, which shortens the time for you to actually complete your taxes.

We saw a 12% reduction last year in tax prep and we expect further refinements in that. That creates confidence. And then what it also enables us to do is infuse human intelligence. We talk about AI and HI and that has been infused into our product, which really helps with the confidence factor of getting the most refund or paying the absolute requirement -- required payments that you have to make, if you owe money. So it's very, very important, the combination of AI plus HI.

Yes. And then where do you see that market in a way, ultimately play out, like is there a certain limit how much of a tax return you can do and at some point, it just gets too complex? Or is now like the ability there in theory, everything is just that inertia on the consumer side that is...

In AI. In terms of being able to do it -- driven through AI. We believe -- so AI for...

And assisted, yes.

It's the combination of the 2, AI plus HI, but also within our HI capabilities. Generative AI is a component, right? LLMs are a component of our offering or our ability to deliver, but we also have advanced machine learning in there as well, which is really also helping us drive breakthrough. And so when you look at our products next year, it will be 90% enabled by HI. And then once -- and but it's less about doing your taxes in that way. That's a great confidence builder for customers. It's also the knowledge that you have a human that can help you answer that last mile question or give you that last mile of confidence that you're doing everything right and you're maximizing your return.

Yes, yes. I mean -- and how do you think -- I'm kind of leading to that famous question from the Analyst Day of the long-term ambition of 20%. You're part of that, you're part of the organization. If you think about that, the -- like if you -- like doing more assisted drives growth, like you get more people in there and potentially at a higher price point. How do you think about that trajectory in terms of how you can kind of do that from a timing perspective, like is this kind of like a gradual uplift. Do you think like a little bit this year and then step changes because more and more people get comfortable. How do you think about that? .

Yes. Certainly, the 20% is an aspirational target internally it's meant to motivate us. What we do believe is that by focusing on the consumer problems or the small business problems, we have an opportunity to get to a 20% growth in the company. And with the advent of -- and the emergence of Generative AI plus our Human Intelligence, we have an opportunity to solve more of those problems more frequently. And so we have an incredible consumer platform that goes well beyond taxes now. Credit Karma helps customers manage their credit. It helps them get the best loan. It helps them save money.

And so that flywheel within that consumer platform allows us to be a much more relevant part of our consumers' lives every single day, which then gives us opportunities to serve them and drive towards that 20% growth in the consumer platform. The same thing could be said for our business platform as well.

Talking a little bit about the different groups. So on our side, we're all focused on like, okay, we have a big assisted category, you guys move up market, more customers there that you can deal with that you never dealt with at the higher price point, thank you very much. But the low end is still kind of important because it's the younger generation often come like that, the top of the funnel. Talk a little bit about what you're seeing there in terms of trends? .

Yes. So certainly, digital native, mobile is at the forefront of our Gen Z strategy. We're also very aware of price sensitivities there. So we've launched breakthrough offers like our mobile app offer that is a free offer for new customers to file their taxes for free. But it's also what we see is that Gen Z, in particular, has a real desire and still has confidence issues and likes to engage with our expert system. And so we're trying to make that much more accessible to them through our mobile experiences, we're decomposing our services, meeting them where they are with their questions so that they can file confidently.

Many of them are new, right, the first-time filers. And so it's a very daunting experience because they are -- there's a lot of fear associated with that. And for many of them, most of them, it's a very large refund. And so they want access to that. So we also look at how can we provide value-added services that are meaningful to them, things like fast access to money or 5 Days Early product was very popular because they -- no matter what they want their money as fast as possible.

And so that's how we think about addressing that category. We also believe that within Credit Karma and the $140 million member base that we have there, it's a large population to be able to help because as they're engaging with Credit Karma to get credit cards or get personal loans, it's a natural extension at this time of year for them to come in and start to do taxes. And we're making that very easy for them to do that.

And then what's the -- have you seen any change in terms of who you're kind of seeing there? You used to -- the classic H&R Block that was always there at TaxAct. Like do you see any changes in terms of someone new coming up? Or is there the world changing there?

Yes. So what we do see is they love mobile. They expect everything to be on their mobile device. They embrace these new ways of engaging with our experts, right? So we're not a traditional assisted. We have a lot of capabilities that are natively embedded in their app. So the app plays a huge part of attracting that customer base.

And then we do know that they're also heavily engaged in Open AI and ChatGPT. And so we need to be in those categories and helping answer their questions as they're asking them in those LLMs as well. And we're very excited about what we're doing with Open AI over the coming month here to embed our experiences for the ChatGPT users.

Yes. Yes. Okay. Perfect. And then moving on a little bit, Credit Karma. It was more cyclical than we initially can afford. Now it looks like we're kind of coming out the other end, like can you talk a little bit about your learn -- when you start to own assets to kind of now your learnings and how that's kind of influencing what you want to do with it going forward?

Yes. This is where we believe there's just an incredible opportunity to help customers make more personal finance decisions daily. And so our focus right now is to really how to -- is how do we drive that engagement on a daily basis with our Credit Karma members. So we're deploying a fleet of agents that we're calling assistance from starting with like a refund assistant. You get a $4,000 check through tax, what do you do with it, right? What do you do with that money and what's the best application for it.

So our refund assistant we'll know what kind of -- what's your debt portfolio, right? 57% of Credit Karma members have revolving debt. So we can help them make better financial decisions based on that moment in time that they get that big refund, maybe pay off some of that debt, maybe rotate it into something that's more advantageous for them, how do you set up high-yield savings and really start to get them on a journey of a financial health, right? We also have the debt assistant that will be constantly working in the background for our members and surface opportunities for them to make better debt decisions on a year-round basis.

We have Credit Spark. Credit is a huge problem for Gen Z, right? Not problem, but it's a -- they're new to it. And so Credit Spark is an agent that we're deploying that we'll look at where their spending habits are and make recommendations and -- for them to leverage like things like utilities or rent and to improving their credit score real time. And that will be very powerful for them as they start their financial journey. So that's how we think about Credit Karma. It's an incredible platform that has 43 million monthly active users, and that just gives us an incredible opportunity to engage every day in those everyday decisions that members have to make.

And what can you do there on the on the product side or the offering side to kind of maybe remove some of the cyclicality. Remember, we kind of started with like 25% plus growth, then we went kind of -- then we went down. Now we're coming back up again. Like Is there anything to -- way to smooth it out? Or is that kind of something that we kind of need to appreciate it -- appreciate as a kind of what it is, yes.

Yes. No, it's a great question. So one, there is experience. And that's really solving more problems for customers, right, and members, right? So that's all the agent work that we're doing that I had talked about. And that's all based on the data that we have on customers and their connected accounts, and that allows us to spread our -- many years ago, we were largely a credit card business. Now we've expanded verticals as well, right? We've got personal loans that's growing significantly. We've got insurance. We've got new markets and new opportunities in other areas like home and we have Credit Karma money that we need to invest in.

That's a daily app. So there's also an expansion of the services that we can offer for customers. And that will spread out risk and also enable us in good times, right, in good macro times or maybe bad macro times, be able to offer the financial advice that they need and take action against. And that's really the promise that we see within the Credit Karma platform.

Yes, yes. And then is there -- if you think about Credit Karma connects to TurboTax, if you think about it also go to the other side of QuickBooks like how was that connection -- is there -- yes.

There is a cohort of small businesses within Credit Karma that we can offer business loans, too, for sure. And that's actively worked. But what we're really excited is with our business tax offering, right? Because that job to be done taxes for a small business is very difficult and can be very impactful to the operations of their business. And so we deployed biz tax last year at scale, and we were very excited about the breakthrough that we got there.

What we have an opportunity to do is that moment in time that, they're filing their taxes, is to start to establish a relationship with them through QuickBooks on a year-round basis. And there's a lot of opportunity because not all of our customers are already QuickBooks customers that are coming in. That allows us to then really get them into a QuickBooks product that's right for them, that helps them manage their finances year-round versus coming to us with a spreadsheet, and saying, what do I do? How do I file my taxes. And so that's another flywheel, if you will, within our -- within the broader Intuit ecosystem that we're really excited about.

Yes. Okay. Last few minutes I want to spend like as we're moving closer towards the tax season now, we're in December. Like you talked a little bit about making your onboarding easier. Like how do you think about the new tax season if you kind of plan it out? Like is it kind of what I learned last time around, I tried to change it, or like how does that process work for you? .

Yes. So there was a lot that we learned through last tax season that carries forward in this year. And there's a lot more new innovation that we're deploying. So we're very excited about this tax season. One, we have been deeply embedded within Credit Karma and those monthly interactions are helping us smooth that onboarding experience and really make it much more natural to go from Credit Karma into TurboTax data experiences.

The other is we're going big with our local presence, right? We're opening up 600 service centers, 20 retail stores, roughly 20 and 1 flagship. And what that does is it unlocks the whole category of customers that are interested and someone doing their taxes that's close to them. And when we did that last year, and we did it towards the tail end of last year, we saw a 5x engagement rate with our experts. And so we've really refined and built some incredible new innovation that's going to allow us to meet those customers in the communities that they're in with the best expert network that's out there in the industry.

What's the -- I mean the counter argument for that is like you're rebuilding what was there before. Like what's different about this local versus...

One, is our brand. Our brand is super powerful. Two, is that we're a technology-first view. So -- in our platform. And so you don't have to come in with papers. You don't have to come in with anything, you just show up and then we can engage with you and then we connect all your accounts, and that's when the magic happens, and it's much faster. So that we really focus on experience. Our price points are very attractive for our full service, and then you get fast access to money, right?

Again, it all comes down to the money and how fast can I get it into my account for a vast majority of Americans. And that's where we're really uniquely positioned over any other service. And then now with Credit Karma, we can take that refund and make it go much further, right? And so that's the last step that keeps us engaged and they come back to us. And with every -- the 5x engagement was a massive breakthrough for us because it was within a 50-mile radius, right, of an expert. We're like, okay, that means a lot, right? Being local means a lot to consumers. And so we're doubling down on that.

Yes. Yes. That's kind of -- yes, after all these years, there's a new learning, yes.

Yes, that's what's fun about experimenting.

Yes. No, okay, that's interesting. Then last question for me. So there is growth, and you kind of guide for that. There's also then the profitability envelope that you have to kind of achieve those things. Talk a little bit about that dynamic of growth versus margins that you have to live with. .

Yes. It's -- we manage at a portfolio level, right? We have many different ways that customers monetize with us, and that gives us a lot of flexibility to lean in and look at it at a portfolio level. It is something that we as a team in the consumer group, and I know they do in the business team as well, look at every day and how do we make those investments and how do we model those investments that may show monetization somewhere else. But we get -- engage a customer is really what we need to stay focused on.

Yes. Yes, yes. Okay. Perfect. I think that's a good closing statement, actually. Perfect. Thank you, Mark. Really enjoyed our conversation. Thank you.

Thanks.

Thank you.

Excellent. Thank you, everyone, for joining us. My name is Keith Weiss. I run the U.S. software equity research franchise at Morgan Stanley. And very pleased to have with us this morning from Intuit, CFO, Sandeep Aujla. Sandeep, thank you so much for joining us.

Keith. Good morning. Thank you for having me.

Excellent. So exciting time at opening -- sorry, exciting time at Intuit right now.

I'd open as well, but more exciting in Intuit.

I'm presaging my first question here. There's a lot going on at Intuit. Some really interesting initiatives in the mid-market. I think it was a very important tax season last year and a couple of breakthroughs. And I definitely want to dig into all of those details. But I thought we could start with the newest news item, which was the OpenAI partnership. And I think this is a really interesting 1 to dig into because there's still a lot of debate amongst investors trying to understand the nature of that relationship, but also a lot of fear amongst investors in terms of potentially letting the fox into the henhouse, if you will, that there's been concern about OpenAI or just LLMs in general, emerging as a competitive dynamic for tax. So can you talk to us maybe a little bit about the relationship, the nature of the relationship and how you guys get comfortable with that potential risk, if there is 1 at all?

Yes. Let me start out by just sharing the premise for the relationship. For us, we want to make sure that our products are showing up with eyeballs are. We have nearly 100 million customers. OpenAI has 800 million weekly active. So even a reasonable level of conversion, that could be a meaningful impact on our net customer growth. So that's exciting for us.

And for OpenAI, what they want to do is they've identified select industries where they want to make sure that the answers are not just generalized based on public information, but very specific tangible that the customer could actually take action on. And we happen to be 1 of those industries. And so what you'll see as we launch these experiences in the coming days and weeks, is when a customer has a question around taxes, has a question on the financial situation or has a question around their business, how to grow their business, how to manage their accounting more likely than not, [ Intuit ] come up and they'll have an opportunity to come to our app on open engage with our app and get answers that are very tangible and very actionable. So that's the premise and why we're excited about it.

In terms of our -- the question you had around the potential worries, the data privacy, the data governance, that does not change. It's our data. The customer's interaction is going to be on our platform. The economics -- the unit economics to us remain unchanged. So I think it's absolutely a win-win situation for both us as well as OpenAI and most importantly, for the customer who will get very tangible and actionable perspectives from us.

Got it. So it kind of sounds like from an Intuit perspective, this is a new marketing channel. This a place where you could expose not necessarily an advertisement, but some -- a little bit of your product, a little bit of the data, a little bit of your know-how about tax consumer finance to the end customer. And then it's basically a link through to the broad application. If you really want to get down to business, if you will, if you want to do your taxes, if you want to get that credit card, you're going to be going to an Intuit property to transact that.

That's exactly right. And I encourage the capital allocators interested in this to go to our website. And we -- in the press release, we have embedded a short video on what these experiences look like. And then, of course, in the coming days and weeks, we'll have the real live stuff out there that people could play with them, actually get a feel for how this will interact and it will be very much in line with what you're stating. And we want to make sure that the customer knows that their relationship, their engagement is with Intuit, and that's a very important part of the relationship we want to preserve, and you'll see that come across with experience.

Got it. So we're heading into tax season, always an exciting time at Intuit. Maybe just high-level thoughts, how are you guys feeling going into this tax season? And is anything changing versus what was the game plan. I'm sure you're not going to give us a whole game plan, but what the game plan was generally going into last tax season?

Yes. Our tax Super Bowl starts in a few weeks here. What's really exciting for us, Keith, going into this tax season is, it's a continuation of the momentum we bought last year, those things that we executed last year and just doing it this year and doing them that much better. So there were 3 key levers that drove the experience and the outstanding outcomes we had last year, double-digit overall growth in tax, 47% growth in assisted tax.

The first and foremost was marketing. We are continuing to invest in expanding our brand equity from do-it-yourself taxes to this is where you get -- come to get your taxes done for you. And we are starting to market early because 30% of people who do the tax-assisted way, make the decision in the fall well before January when we're traditionally market. We learned from last year, we honed our marketing this year. And now we're also making a damage warmer than the leads we got in the fall. We're keeping them warm after up until February, March when they start doing their filing. So that's one.

Secondly is showing up local. Local matters tremendously when it comes to assisted taxes people are looking for tax people near me, and we had 400 locations last year. But the big thing was we just start showing up organically in the Google search, Yelp search until March because we needed reviews, we needed to verify the locations. So I didn't have the full season of benefit last year. This year, we get the full season of benefit and into 400 locations, we have 600 locations, and we know local matters tremendously 5x better conversion and just the confidence that people have.

And thirdly, it's the better to get experience with Credit Karma. You have 40 million monthly active users of Credit Karma. Most of them are not using us to do their taxes. So that's a massive opportunity for us to get them from Credit Karma into TurboTax and have their taxes done in a very bespoke, beneficial way to where they feel that they are part of the 1 ecosystem, whether it's getting their taxes done in a matter of minutes, but most importantly, getting access to their money quickly through Credit Karma money.

Got it. I want to double-click on the assisted side of the equation. That was really the -- from my perspective, the eye-popping number and the tax results last year, how well you guys -- you accelerated that live program and assisted was a big part of that. And what's so important about that is the expansion of the market opportunity. So correct me if I'm wrong, but you -- I think you've talked about DIY is about a $5 billion annual opportunity, getting into assisted takes you to $35 billion.

That's right.

So a big expansion. The localization, there's always something that piques my interest, but also gets that you're a little bit worried with Intuit. Like when you guys went into assisted, as a software analyst, we're like, wait a second, people are getting involved in the equation. Is that going to be more expensive? Is that going to be higher gross margins. But with the live offering over the past couple of years, you guys have proven out an ability to do live at very good gross margins. Now the more recent 1 is localization. The storefronts popping up that Intuit is part of the Intuit network. Should we be worried about that dragging on gross margins or dragging on OpEx and making it less profitable for Intuit overall?

Yes. I'll start at the top. You should not, and investors should not be worried about our ability to continue to grow our revenues faster than expenses, which is our top 2 financial principles, thereby leading to margin expansion.

Now let me get into your question around real estate and localization. Local matters a lot when it comes to unlocking the $35 billion assisted tax category. And what matters in local is that folks just want to have the confidence that there's tax prepared near them if they want to show up in person. As an example, I wanted to make sure that my Morgan Stanley adviser was near me, even though I've really interacted in person and I just do it over Zoom. And our full-service customers even tell us to that effect that 39% of them just want a 0 touch experience. But they just want the confidence of having someone local, and we see that manifest in 5x better conversion.

So with that, local is important, but we wanted to do it in a very asset-light way. So the 600 location we have, they are short term, a year, a couple of year type of leases. They're asset-light. They're not a big expense. They're all part of the guidance. And as I look at the ROI on the spend and how it manifests itself in better conversion and the growth in assisted, it's a very solid ROI as well. So it's an area that I think is very much on strategy and it being asset-light, make sure that we continue to have the software-like margins that we've been enjoying.

Got it. And you talked about the expansion from 400 locations to 600 locations. The rationale being if there's an adviser within 50 miles of the potential tax customer, there's a 5x conversion, right? Is there some formula that we should be doing in terms of understanding the extent of -- is it going to go to 600 locations to 800 or 600 to 6,000 based upon that 50-mile radius?

Yes. I think the way to look at it is if you look at the U.S. population, this is largely a U.S. discussion or on assisted tax at this time, there are select markets where the concentration of population is. So the 600 may go up a little bit, but it's not going to go up multiples, right? So right now, as I've talked to our go-to-market teams, the 600 feels like a pretty solid number. It'll be 'till the 600, and I wouldn't worry too much about us meaningfully expanding that in the near to intermediate term.

Got it. So when we're talking about the opportunity on assisted, maybe you can help us compare and contrast sort of the journey that an assisted customer takes versus the journey that a DIY customer takes? So we've been trained by Intuit to think about top of funnel, about free to paid conversion. With assisted, what's the dynamics in terms of getting an assisted customer to switch from his current relationship, because they have some relationship [ that makes them switch to ] assisted to use an alternative product like Intuit?

Yes. So there are around 11 million customers that switch every year. And a primary catalyst for them to switch is typically that they had a less than ideal experience with their prepared this year or the secondary is that the complexity increase, for example, they bought a house. So they're -- for me, my kids start to going to college and like how does that play into my taxes and I want to talk to a tax adviser. And the way the experience works is they typically look for a prepare. It usually starts with either search like tax preparer near me or they will look for a word of mouth type recommendations. And that's where we want to make sure we're showing up both in terms of local as well as early marketing because most of them are going to have that less than ideal experience around the fall when they're doing their tax filing. And they'll show up, they'll reach out, and we'll get them in touch with the expert that will share with them what the experience is, what the pricing could look like and how we do the assisted tax filing and then lead them into opening up an Intuit account and continuing that journey with us.

That's the typical approach for the assisted area. On the do-it-yourself, folks will typically start out, go online, try to find out what's the best tax preparation software depending on their level of complexity, some are free, some want to get a premium offerings such as our TurboTax Deluxe. Some will want to talk to an expert to have a question or 2. So that's a more broader spectrum of the level of engagement, whereas assisted very much to start sat by them looking for preparer and wanted to engage with the human being. Traditional service-oriented model.

Got it. Let's talk briefly about the top sustaining the top of funnel when it comes to the DIY side of the equation. We've talked for a long time about sort of free being a good top of funnel mechanism. Last year, you guys saw an additional decline. I think it was about 2 million unit decline in the paying nothing customers. Is that something we should be concerned about in terms of mainly the top of funnel is getting skinnier or are you guys just being more selective in terms of who you're targeting based upon what you know about who's more likely to convert?

Our strategy when it comes to taxes is quite simple, disrupt the assister tax category, maintain our dollar share in DIY. And that's what you'll see us execute. This past year, we were deliberate about investing in our marketing campaign to expand the brand equity, as I shared earlier to from DIY to this is how you do taxes, meaning we can do the taxes for you. And we -- as part of that strategy, we saw some less units on DIY. We also saw some DIY customers switch to assisted tax as the complexity evolved a bit. But looking ahead, I feel confident in our ability to both disrupting growth assisted tax category as well as maintain our dollar share in DIY across delivering value, delivering a superior experiences, helping customers get their taxes done 12% faster as we did this past year, half the customers getting the tax in less than an hour. All these things matter tremendously to the simple filer who is doing DIY or free. And also keep in mind that Credit Karma is a big funnel here for us, those 40 million-plus monthly active users, many of them not doing their taxes with us are in the category such as a sub-100,000 income band that is a part of the area that we need to make sure that we are having success with to maintain our dollar share in DIY.

Got it. And I guess the other side of the equation is also retention, improving our retention is a great way to keep up units. Can you talk to us about how trends in retention have been going over the past couple of years and what you guys can do to improve that retention over time?

Yes. The way we think about retention is retention on our platform, so less about DIY versus assisted. As I shared earlier, I -- may be assisted this year just because of increased complexity. And next year, my complex is status quo and I go back to DIY. Our retention is quite high. It's near 80%, almost like a SaaS-type model. In fact, 1 of the most amazing things for me is when I was onboarding and learning more about the tax business is that folks think of this as an episodic annual engagement. It very much behaves like a SaaS model because people have an amazing experience, and most of them come back to next year, and that shows up in the strong retention we have.

Got it. You mentioned Credit Karma, like you said, it's a little bit of a pivot to the broader business. How much juice is there left to squeeze, and I guess I've had Credit Karma on board for a couple of years now. You've had programs to sort of bring the 2 together and use Credit Karma is that lead generation tool for tax. Is there anything new, any new dynamics in that, that's going to enable that relationship to keep yielding, if you will, for TurboTax?

Credit Karma is giving us a lot of juice, and there's plenty more to get for years to come. The business grew 27%. As you know, this past quarter. It's been growing north of 18% CAGR since we acquired it. And we continue to have success in delivering innovations to our partners. We continue to take more share of the spend and in our customers just getting a superior experience on our platform.

As I look forward, we have a massive opportunity to unlock the -- continue unlock the prime segment. We are getting more prime-oriented inventory. For example, cards that would be applicable to them. We are bringing in innovations such as My Cards, where many of us who are prime customers want to be able to track our credit card rewards and see how to maximize those benefits. We're building that on there. And we are also going to be looking at expanding into new growth verticals such as HELOCs, home equity loans or mortgages to complement the verticals we have across credit cards, personal loans and insurance. So much to go across Credit Karma. But the bigger opportunity for open up the aperture is across the consumer ecosystem. Last year, Credit Karma gave a point of -- contributed point of growth to TurboTax. I think there's much more to come there. And that's going to come from us getting those 40 million-plus monthly active users to follow with TurboTax, getting their refund put into Credit Karma money, driving the year around engagement and that's going to be the powerful unlock that you'll see start to manifest this year and continue to gain momentum in the years ahead.

Got it. A lot to talk to in both Credit Karma and TurboTax, but I want to make sure that we focus some on the Global Business Solutions segment. Also a lot going on there. So the -- to me, the big story, right, and Intuit is this move up market. We've been moving upmarket for a while now. We've gone QBO, QBO Advanced. But now we have Intuit Enterprise suite, right? Can you talk to us about what the Intuit Enterprise suite enables where it lets you go in terms of customer size, market opportunity versus what you're able to achieve, where are you able to go with the QuickBooks Online Advance?

Sure. Traditionally, the QuickBooks Business served the small businesses they would grow with us, and you have businesses from new stores up to $2.5 million, $5-ish million opportunity set. And we see an opportunity to go into the mid-market that we define as customers making $2.5 million to $100 million in revenue. And that's not a very steadfast bar. We can serve customers well over $100 million but that revenue represents a complexity of those customers.

Advanced works exceptionally well for those up to $10 million. Once you get above $10 million, your complexity sets and you have multiple jurisdictions, you have multiple entities, you're doing cross-border transactions, you're doing multiple currencies. And that's where IES is really resonating for those customers who make over $10 million in revenue. We are focused on 4 primary verticals right now, construction and fuel services, nonprofits, professional services and manufacturing and wholesale and having good success there. Our quarterly product releases are resonating well. The July product release resonated strongly. We shared that contracts were up 50% from Q4 to Q1. As a result of that, we pushed out the November release and thus continue to drive product market fit. So solid momentum in that business.

What also excites me is the improvements we make in the go-to-market side. Our sales force around 250, the productivity continues to go up. And that's giving us the confidence that we will be scaling that sales force as we exit the year. And secondly is the partnerships that we're doing with the large credit firms, particularly the tech forward firms. And they are eager to get new logos onto our platform onto IES because they're seeing the benefit of cost of ownership, the onboarding, the ease of use. So there's a lot of momentum getting built in IES and that's driving our confidence in what that's going to impact, that's going to help on the P&L in the years ahead.

Got it. In that go-to-market strategy, I think you could course correct me a little bit because I've been focusing a lot on the opportunity within the base, right, to basically to better retain graduates, like the companies that exceeded that $10 million, they would go to a competitor because they didn't have the ability to consolidate or some higher level of functionality. How should we think about the -- like the opportunity and the go-to-market focus of retaining the base versus like you're talking about actually going out and getting net new customers to the platform?

Yes. I think they are both massive opportunities for us in terms of driving the top line growth. So when you look at customers or businesses in $2.5 million to $100 million range, there are about 1.7 million of them out there. 800,000 of them are already in our base using non mid-market-oriented products within QuickBooks. So that's an opportunity for us to upgrade them to the products that are more suitable for their needs, whether it's QuickBooks Advanced or IES. And that's been a larger focus. About 80% to 90%, depending on the month of our deals are coming from those customers upgrading and we're seeing them pay 2x more when they upgrade because of getting an order of magnitude better product. And the beauty of this is that our sales force is having a conversation with them, and we're getting them to not just upgrade the ERP but also discover parts of the platform such as payments, payroll that they could be attaching which meaningfully drives up the ARPC that we're getting.

So that's been the focus, but we're also having a sales force sharpen its teeth by going out and hunting for new accounts. And we're having success. We are winning some from competitors, but they're also plenty of greenfield opportunity, people who haven't adopted financial management software who are coming in and using IES. In fact, most of the growth of the new logos is people who don't have financial management software and that's, I think, going to be unlocked.

But like any growth journey. Keep in mind, we've only been in the market for about 14 months with IES. You have to hone in your selling motions on the existing base and the upgrade cycle and then go external for the new logos. That's going to be the journey we take here. And the accounting partnerships are going to be a massive tailwind in driving the new logos because they're having those conversations with potential new customers. They have a huge influence in -- on the mid-market customer and what services platforms adopt. So I think that's going to be what will start showing up in the quarters ahead.

Got it. And a couple of months back into a connect, you guys released the Intuit accounting suite. To what degree does these 2 kind of come together, giving the accounts a more robust kind of solution of their own to be able to better help you service a more complicated customer?

Yes. If you step back and reflect on accounting firm, they are kind of a mid-market business themselves. Their professional services organization. They are looking to consolidate their tech stack. They're looking to massively continue to improve the efficiency and the productivity of their workforce. And that's what we enable with IES. We can consolidate the spend, give them better visibility into their practice where there's opportunity to unlock productivity, drive better partnership with how much their workforce does and how much they can outsource to us through our live experts. And this will be an opportunity for us to continue to deepen our partnership with accounting firms, but also give them an incentive to drive more business to us, particularly on the mid-market side.

Got it. You talked about online services, the potential for higher attach. If you wanted to give me a Christmas gift, attach rates would be a great Christmas gift in terms of Intuit. But any color you could give us, one, just on sort of the attach rates and sort of the uplift that you see with the mid-market customers? Because it just naturally feels like there are larger customers that have higher payment volumes. They have higher employee counts, right? There's a bigger opportunity for online services. So maybe talk about the -- a lot of the services have been around for a while, payments and payroll. And then also the opportunity from the agentic side of the equation because you guys have been rolling out a lot more functionality, how are we seeing that come into the P&L?

Yes. So services excites me a lot because I view the services business as a call option on the success of our customers. As they scale and their payment volumes grow, they hire more employees. Our unit economics also continue to improve. And what we see, particularly with the mid-market customers, they tend to attach services a lot more. We see about 9 points higher payment attach. We see about 7 points higher payments attached. And the other thing is that what our history has shown us is that when we put a human in touch with our customers, such as when a live expert is talking to the customers, our QuickBooks Live customers have around a 22-point higher attach rate of platform services than those who don't use QuickBooks Live. So we need now to think about the mid-market customers, they are talking to a salesperson who could truly unpack to them the power of the platform and how that could help this customer run their business more efficiently and improve their net working capital position and just to utilize the platform to their benefit. And that's the excitement that we have around mid-market and the services attach going forward.

Got it. The next extension of kind of that online services is going from what has traditionally been very much a back-office-focused platform, at least kind of in our nomenclature in financials, payroll payments, to more CRM focused with Mailchimp. Mailchimp has been, I would say, the more difficult child versus Credit Karma, which has worked splendidly well. Mailchimp has had some growing pains. But you guys are very confident in the potential for acceleration in Mailchimp into the back half of this year. Can you talk to us about some of the fixes that have been put in for Mailchimp to improve that product market fit? Maybe some of the early signs that you guys are seeing that gives you that confidence in an acceleration into -- or exiting this year?

Yes. As I look at the Mailchimp business, there are strategic actions we have taken that gave us the confidence and the potential ahead. We are continuing to see success with the mid-market customers. As we improve the functionality on that product, the mid-market customers adoption has gone up. We added more salespeople, the salespeople productivities are ramping up ahead of our own internal expectations. So that's an area of encouragement.

Secondly, as we have rolled out new functions features such as SMS and just improved the onboarding flow, particularly for the small customers where a lot of this problem developed as we built the functionality for the mid-market customers, we just made the onboarding flow and the discoverability of features to get the speed to benefit harder for the small customers. I kind of compare it to in your world is like someone wanted to go to Yahoo Finance to look up a stock quote, I put a Bloomberg terminal in front of them, right? And we have now simplified that onboarding flow and that's getting better product recommendation scores. Now we are dialing up the marketing spend. And the thesis is that as we dial up the marketing spend, the funnel continues to perform, and that drives the growth. And we'll start to see this play out a lot more in the February, March time frame. As you can imagine right now, with the holiday season coming up, folks aren't looking at platform switching. But once we get past the holiday season into February, March, that's when we'll really start getting a solid read in how our thesis is playing out.

Got it. I think we have time for 1 last question. I want to kind of wrap this all up on the margin side of the equation. A lot of really interesting opportunity for Intuit on the top line growth side of the equation. You're unlocking big new market opportunities on assisted, big new market opportunities in the mid-market on the GBS side of the equation, you are adding salespeople to go after these. You're adding locations, yet you remain confident in margin expansion in revenues outpacing the level of expense growth despite having some really good product initiatives to invest behind. So how are you thinking about that balance? And what helps drive the additional leverage in the company?

So first and foremost, we want to make sure that we are putting fuel on these growth vectors. And 1 thing that I do as I look at where expenses going that ever increasing portion of that is going towards a 3 big bets, they were done for experiences, driving end-to-end money solution and unlocking the opportunity in mid-market. And we are seeing over 40% of our spend go towards those big bets and expect that to scale up to 60% in the near term and over to 80% over the intermediate term.

And in terms of what the confidence for margin expansion comes from, it starts with traditional focus on expense management, making sure dollars are going towards the things that are going to be needle movers for the business. And being really disciplined about cutting areas that aren't paying off to the level that they should be. It comes with operating at increased scale and just having economics second with the skill, so for example, when my payment volume goes up 29%, I'm not increasing my brisk team by 29% or my payments. So a lot of that flows straight to my bottom line. And then using technology whether it's AI, robotic product automation or other technology to improve the productivity of our workforce. With AI, we're delivering about $135 million in savings in customer success, organization just this fiscal year. We unleashing the productivity of our developers north of 30%, we are using AI across our marketing function, our sales function, increase the productivity of the sales team.

So these are all areas that we're still in the early innings, and I see so much more that it could play itself, including AI going from an add-on complement to the work that our teams are doing to actually replacing and taking over the full work that the teams are doing, that's giving me the confidence in the ability to continue to scale margin for years to come.

Outstanding. Unfortunately, that takes us to the end of our time, but thank you for sharing a very exciting story. I'm very excited about Intuit, and I'm sure everyone out here is as well.

Thank you, Keith. Thank you, everyone, for your time.

Okay. Hello, everyone, and welcome back. For those in the audience that don't know me, my name is Taylor McGinnis, and I head up the SMID-cap application SaaS space here at UBS. And in this next session, we have Intuit and more specifically, the CEO of Sasan. So Sasan, thanks so much for being here.

Thanks so much for having me.

Perfect. Before we get started, just let anyone know if you have a question, you can enter them into the app and then I'll try to save some time at the end to address those. So with that, Sasan, should we kick it off?

Yes. Let's do it.

Perfect. Lots and lots to talk about with Intuit. There's lots of exciting things going on. But I think most topical, at least as of late amongst the investor conversations that we've had is the OpenAI partnership. So could you talk a little bit more about the structure of that partnership? How do OpenAI and Intuit both benefit in this? Is it as simple as Intuit has a great top of funnel opportunity? OpenAI has this multiyear partnership where Intuit is investing in OpenAI. Maybe you can just talk through the key opportunities.

Sure, sure. Well, first of all, we're really excited about the partnership. And the premise of it is we want it to be where the eyeballs are. And so the essence of the relationship is such that OpenAI is they're an agnostic platform. They want to make sure that if a consumer or a business is in there asking questions about anything, whether it's fitness, medical, that they get an answer that's very objective. There are a few areas and a few categories where they have been looking for a very deep partnership based on what's important to their customers. We happen to be in that category.

And in essence, anything to do with accounting, tax, bookkeeping, money. So if you're a consumer looking to build your credit score, you have questions around taxes, refund, if you're a business that's looking to grow your business and manage your cash flow, they wanted a partnership where they can deliver very deep personalized experiences versus what today are good answers, but they're generic. And that's where the premise of the partnership came in. And so the way it works is actually quite simple. If you are a customer and you are asking questions around financial management, any of the topics that I just mentioned, more than likely, Intuit will show up. And the experience is with Intuit. The relationship is with Intuit.

And so if you're asking questions about taxes, refunds, what the consumer is going to see is Intuit TurboTax. And when they click on it, they're in the Intuit TurboTax app. And so -- because that's how we can deliver personalized experiences because as you can imagine, in the world that we live in, accuracy, security, privacy matters a lot. And so in essence, the experience is -- and the relationship is with the Intuit app, whether it's Intuit QuickBooks, Mailchimp, Credit Karma or TurboTax. And it's a huge opportunity for OpenAI because customers can remain in ChatGPT. But when it comes to things that they care deeply about, they can get personalized answers inclusive of human intelligence. And so our experts can show up right within ChatGPT, but the relationship is with the Intuit app.

For us, it's a great partnership because it's a huge new customer growth opportunity because you have 800 million active weekly users in OpenAI, and it's a great opportunity for us to expand who we serve. And the principles for us was the customer relationship and the experience needs to be with us. The data and models have to be protected, has to be within our platform. And it's a big win-win for the company. So we're excited and stay tuned. We're going to be launching in the weeks and months to come, and it should be a great opportunity for consumers and businesses.

Perfect. And another big investor focus is what OpenAI and a lot of these model providers do. right? So there's one concern that do these model providers start to create their own AI agents or AI solutions and start to push into the application layer. I think this partnership is very interesting, and it begs the question on does OpenAI actually benefit more from partnering with the SaaS companies as opposed to going head-to-head potentially in the future. So I'd love to get your thoughts on that, number one.

And then number two, maybe you could talk about the scope of the $100 million multiyear investment with OpenAI. Is that just for frontier models? Does that include other AI solutions? Any color I think you could give there would be helpful.

I actually love the question because if I could, I'll just start with market structure. I mean if you think about what is it that we do? We deal with people's most personal financial information, right? It's taxes, it's accounting, it's bookkeeping, it's money. And the market structure is such that people spend a lot of money on people helping them with those things. And so human intelligence matters a lot. And what we do isn't just about a few LLMs. It's actually about data, it's data services, it's protection, it's accuracy, it's trust, and it's bringing the human intelligence to the forefront for customers.

And I think that's why this partnership with OpenAI is so important and why it was also important to them is because they get to deliver something that requires accuracy and confidence right within ChatGPT with a brand that's extremely well known and takes customer trust and accuracy and security very, very seriously. So that's why this is such a win-win. And as we more broadly think about what's possible with LLMs, what we do is far bigger than what an LLM can do because domain expertise, data, security, a lot of what I mentioned matters a lot. With all of that said, we have invested heavily in our own Intuit financial large language models. It's part of our AI platform and because domain expertise matters. And our LLMs have agency and authority to deliver against the experiences that I was just talking about.

And then we will, depending on the experience, use other LLMs. So we were big users of open source as an example. And with OpenAI, part of the partnership is continuing to invest more in their frontier models as one of several external LLMs that we'll use. And we're excited about what's possible because we get the team with them closely, we get to co-create together. And I think it's an opportunity for us to just be where the eyeballs are and serve the prosperity of consumers and businesses. So we're excited about it.

Perfect. And let's dive a bit deeper into Intuit's own AI ambitions and goals that has set. So Intuit has its own AI agents. So can you talk a little bit about how adoption is trending maybe compared to your initial expectations? And if you were to guess, when do you think we get widespread production use, adoption of these AI agents?

I love the questions that you're asking. For us, AI agents is just one element. And I'll come back to your question. The whole platform that we have built is based on data, AI and HI. And for us, human intelligence matters a lot because if you think about consumers and businesses, they spend a lot of money on experts to help them with taxes, to help them with accounting, to help them with advice, to help them with bookkeeping, to help them with money management. I would make it sort of a similar parallel to technology is an enhancer for nurses and doctors as technology is an enhancer for financial management.

And so for us, the use of AI and HI is very important. So today, we have over a $2 billion business that's all HI and AI growing at almost 50%, which is TurboTax Live and QuickBooks Live. That is a huge sort of beachhead for us in terms of an example of how AI and HI is working. In terms of AI agents more particularly in what we launched 4 months ago, we have over 2.8 million customers that are using our virtual team of AI agents. So we launched, as you know, a payments AI agent, accounting AI agent. And customers don't care about AI agents. What they care about is do the work for me, get me paid faster, make sure my books are right, make sure my accounting is right. And the way we've launched these AI agents is they're connected to human agents, a real live expert that can help.

And so we have 2.8 million customers using it in 4 months. Our repeat usage is over 80% in the last 4 months. And the 2 most popular AI agents is our payments AI agent, and it's our accounting AI agent. Our AI accounting agent is saving customers over 12 hours a month. That's dramatic because it has a real profound impact on profitability and growth. And it can hand off a thing that it's working on to a human expert, which is important because then the customer has confidence and we get to monetize it. The payments AI agent, those customers that are using it are getting paid 5 days early.

So these are like -- if you think about it, these are like tangible impact. And the more time passes, the more we continue to optimize these experiences, we're going to get to a world which is our vision, and that is done for you experiences. We are helping you from lead to cash, manage your growth, manage your cash flow, manage your experiences. And we believe that technology will always have a dead end, which is where our human intelligence comes in. We have over 13,000 experts that sit on the platform, on the AI platform and are there to serve customers and adoption of both of those matter a lot.

Perfect. So the early usage trends sound really constructive and really positive. In terms of how that's translating to the P&L, any early indication that you're seeing this translate into additional upsell opportunities, direct monetization opportunities increased retention. How, I guess, are you seeing that evolve? Not to throw too many questions at you, but you also introduced Intuit Accounting Suite. So maybe you could just talk a little bit about that product and also the monetization opportunity there.

I would say everything on the platform that's been fueled by data and AI is created several huge growth vectors for us that we're experiencing today. And I think over time, it will just accelerate. One is mid-market. Our mid-market business, which is all built -- it's a native AI-driven ERP platform, serving larger businesses is growing at 40%. That's a new growth vector for Intuit.

The second is what we talked about earlier, which is disrupting the assisted segment. That's a $2 billion business growing 47% and our penetration into that addressable market is like a couple of percent. That's a huge growth vector. And the third one, which is actually fueled by a lot of our AI investments is our money portfolio, which is like payments, bill pay, line of credit is growing at 36%, and it's $1.5 billion.

So you start adding these new growth vectors, multiple billion-dollar businesses growing at 40%, 50%, all of this is fueled by data and AI. And the way we think about it is not just our customers adopting AI agents because customers don't care about AI agents. What they care about is grow my top line, grow my profitability, get the work done for me. And that's what's really fueling our growth. And I just think we're sort of at the beginning of the next growth curve.

Yes. So let's talk about that next growth curve because another top investor question that we get is Intuit put out ambitions to potentially get to 20% growth by 2030. So how do you get there? So maybe you could just unpack some of the growth drivers that you're most excited about.

Yes. It really -- it will come down to 3 things for us and executing on all of those 3 things in a sustained fashion. And in no particular order, it's mid-market. Last year and last quarter, mid-market grew 40%, and we need to sustain that. And that's almost 1/3 of our total addressable market. Our penetration is a couple of percent, and we win on experience, price and total cost of ownership. And so we have a -- and if you go out and talk to customers that are using our Intuit Enterprise platform, I think you'll hear their excitement and the impact that it's having to their bottom line. So mid-market is a massive opportunity and continuing to grow that.

The second is assisted tax. We need to sustain the growth that we're experiencing. And then third is the combination of all of our AI and HI innovation drives adoption of our services like money, like payroll as an example. And those 3 things, sustaining that at the level that it's growing today, we grew last fiscal year, we grew 16% and anything is possible.

Perfect. So focusing in on the Global Business Solutions Group. So revenue growth last quarter was 18%, really strong, and I think stronger than what some of the investor expectations out there were. So part of that strength came from the accounting side. There was a nice acceleration there. I think some of that was due to price timing. When you look at some of the other businesses in online services, there was a little bit of a decel. Mailchimp, it sounds like it's still on this ramp to recovery.

So when we think about durability of that business going forward over the next couple of quarters, how would you characterize the potential for that? And then also, too, what could be some of the drivers that could be catalysts, right, for growth durability as we think about the remainder of the year?

Yes. Just to build on the essence of your question, if you break down our overall online growth just from last quarter, it grew 20%. Accounting grew 25%. And services grew 17%. And if you exclude Mailchimp, it actually grew 26%. Really, the big drivers of it is, one is, as we bring on larger mid-market customers, there is a lag from when it shows up in accounting revenue and then when it shows up in services because first, they come on to our financial management platform, which shows up in accounting revenue. But then over time, we're able to get them to use all of our money services and our payroll services.

So really, the biggest driver of both adoption of money and payroll is all the work that we've been doing around AI and HI. And specifically, what I mean by that is the more we do the work for customers, the more we digitize and pay their bills for them with their permission, the more we help them understand they have access to line of credit, the more we help them with payroll at the point of need and do it for them, the more they adopt our services, which is what we're starting to see more so than even before.

And HI. So QuickBooks Live is how it shows up when we report. That was up 61% in terms of customer growth. Any time there's a human attached to our platform, the use of our services go up. And so those are the largest drivers of just sustainability of the growth. And as I said earlier, when we really hum on all 3 cylinders, mid-market, adoption of AI and HI and of course, separately assisted tax, that's what's going to sustain the growth.

Yes. So knowing that mid-market is crucial for this strategy, let's talk a little bit about IES. So and the customer feedback that we picked up, initially, I know you and I were talking about this earlier, it's been pretty constructive. And there's obviously a big opportunity for Intuit to be the consolidator across payments, money and additional adjacencies. So are we at the point where IES is prime time, ready to go? Is it possible that we could see momentum pick up even more than what we've seen to date? And are there any additional steps that Intuit needs to take to further unlock this growth opportunity?

Yes. So IES, just as a reminder, we launched it a year ago, September. So we're sort of 14 months in. And I love the traction that it's getting, particularly because of the word of mouth from customers, and you all did a great study talking to customers. So what you said is more important than what I'm about to say because it's customer back. With all of that said, sort of 14 months in, we have an enormous opportunity to accelerate penetration of this $90 billion TAM because we now have proof that we win on experience, price and total cost of ownership.

Forrester did a study that our customers are seeing a 300% ROI over a 3-year period, at least based on the first year on the platform, it's projected to be 300%. And it's driven by 1/3 of it is revenue growth. The other 1/3 is efficiency. The last 1/3 is they're just paying less. They're paying us more, but they're spending less because they're using less apps. And so the way we accelerate that to get to your question is 3 things: awareness, it's continued platform innovation and our accountant partnerships. We're just starting with awareness. I mean we were just like at the faith conference in New York. We're starting to get out to conferences where the CFOs are to get the word out. That's just an example.

The second is our platform innovation is now industry-specific because if you're wealth management, if you're a real estate, if you're a construction company, you want to see yourself in the platform. You want to be able to see KPIs, dashboards, segment reporting that's specific to your industry. We're accelerating our launches in those areas.

And third is, as you know, we've been -- I spent a lot of my time with large accounting firms as does my team. And they're very important, the larger firms, particularly because they're PE-backed, most of them. They have pressure to grow. And we have an opportunity to digitize not only their practice, but help them digitize the businesses that they serve. And the partnerships that we're announcing with them are very important in the medium and long term because we have an opportunity to then take their 15 practices that they have, the businesses that they serve and digitize all of them with something that is easy to use and very, very price competitive. So those are the 3 levers to accelerated growth. And I think momentum should only pick up as we look ahead.

Perfect. Moving to Mailchimp. That's been an area where growth has been a little flattish more recently. You still have ambitions to accelerate that to double-digit growth exiting this year. I think when we talk with some investors, I think there was a little bit of confusion in terms of what has been some of the headwinds related to growth. It sounded like maybe it was more down market. It sounds like the recovery, at least as of the last earnings call, might be a little bit more driven upmarket and some of the increased demand you guys are seeing there. So can you just unpack for us what has been some of the source of pressure that you've seen within that business? And what's going to be the unlock to getting to double-digit growth as we exit the year?

Yes, for sure. First of all, I'll start with the obvious, which is the performance has been disappointing, and it's a drag on our growth, and we have every intention of changing that. With that said, it's actually really simple. It's -- the biggest issue with Mailchimp is customers that pay less than $200 a month. We're actually seeing great impact and growth with larger customers, but it's such a small part of the base that it doesn't yet show up in growth. But the singular issue is customers that pay less than $200 a month. And specifically, it's immediate access and speed to value.

And so a lot of the launches that we have that we just had in the last quarter that we have in the coming quarters is to go after, for instance, a real tangible benefit is, if I'm a small business, I want to see the reporting and the segmentation and the data and the data analytics instantly when I get up and running within the first 3 to 5 days. So those are the very specific things that we're going after to reduce the attrition. If our attrition was at acceptable levels, this would be a double-digit growing business today. So that's what we're going after is customers that pay less than 200. And our expectation is that we'll see the growth ramp up sort of in the back half of the year, particularly like in the fourth quarter.

Perfect. Appreciate all that clarity. That was really helpful. Let's talk TurboTax. So last year, TurboTax Live, the assisted category had a breakout year. I think the comment that you gave on the earnings call was you're the most bullish you've ever been on this upcoming tax season. So can you just unpack what's driving that optimism? And as you look at last year, the 40%, 47% more specifically year-over-year growth that you saw in live, I think a big investor question that we get is how sustainable could that be going into this year? Do you have enough incremental opportunities to continue to lift growth? So what are your thoughts there as well, too?

It's amazing. There's only a couple of things people remembered from our last earnings. Well, this was one of them. And so I'm glad that landed. And it was very authentic. First of all, it's -- there's no silver bullet. This is an accumulation of all the work that we have done. And as I look at we had a lot of momentum in the last couple of weeks of tax season last year. So we're always at work for tax season. We never stop. And we scaled a number of big things at the end of last tax season, particularly in the assisted category and what we launched within Credit Karma, and we had a lot of momentum coming out of tax season.

So that, coupled with all the innovation that we've put in place, messaging, positioning, packaging and the innovation on -- for the assisted segment, which we just tested in what we call our October peak, the volumes are not the same, but they're enough to really run water through the pipes, gives us a lot of confidence that we can sustain growth.

And to answer your question, I think this will be a question, by the way, if we're on the same stage 5 years from now, you'll be asking the same question, which is how can you sustain that growth. It's an important reminder that just in tax, people spend over $35 billion to have others do their taxes for them, both consumer and business. And we have a $2 billion business growing 47%. So we're just at the tip of the spear in terms of like what's possible. The penetration is still very low. And based on all the work that we've done, marketing, positioning, packaging and the experience improvements, I think this is something we can sustain for some time to come.

Yes. And so thinking about the DIY part of the business, how much of the assisted success that you saw last year was converting the DIY base into that assisted category? And the reason I ask is because I think it helps frame the opportunity, what you're chasing today, what that ultimately might evolve into to the extent that you could start to penetrate that assisted category more. So one, that being the first question.

And then the second question is, as you think about Intuit's ability to maintain its share within the DIY base, any new initiatives this year that you think would be meaningful to that as well?

Yes. It's a great question because it's the source behind our strategy to be one platform where you can do taxes yourself, we'll do it with you or we'll do all of it for you. And all of that is integrated deeply into the Credit Karma platform, where we have 43 million monthly active users. And that's important as a starting point because you have millions of customers in the past that loved TurboTax, but they would have a change in their life and then they would leave to go to the assisted segment. And even within the assisted segment, there's more than 10 million churn where I may not like the experience you delivered last year if you're a mom-and-pop shop pro and I may go somewhere else. And so now our platform takes advantage of all of that.

And so to your question, our growth last year, it's an and. It came from not only customers that had a life change and wanted the confidence in the expertise that went to TurboTax Live, but also just brand-new customers, new to the franchise that came from the assisted segment. And that's really our sweet spot. That's our formula, which is to be there for customers and grow with them as their life changes, where in the past, we would lose those millions of customers, now they can grow with us and to be disruptive to the assisted segment that today is very manual, very time consuming, not transparent in pricing and now you can get it done virtually with a great experience. And I think that is what's going to sustain the growth moving forward.

To answer your question specifically about DIY, I think we're very well positioned to serve customers in DIY. One of the things that I think is a shock to many when I share it is the biggest consumers of expertise and expert help is Gen Z. And so the fact that we have made expert help available to DIY and we can monetize how we give you early access to your refund and what to do with your refund is a monetizable event for us, and it gives us the ability to continue to maintain our 85% plus share in DIY. So I feel like we're positioned really well for DIY. The big opportunity is assisted.

Perfect. You mentioned it briefly earlier, but can you comment on how Credit Karma ties into all of this and how Credit Karma continues to benefit from your efforts on the tax side. But then also to zooming out more broadly, it sounds like there has been great execution on the Credit Karma side. We've seen that in the numbers. You've seen that in the share gains that you guys have talked about on the earnings call. It sounds like there's still runway left to go there. So maybe you can unpack that a little bit more, too.

Yes. I'll actually start with the zoom out, which is we bought Credit Karma ultimately to have a platform that consumers can engage year-round. And when it's tax time, their taxes are done for them or we'll do it for them. That was the whole purpose of Credit Karma. And so the reason Credit Karma is performing better is because of all the innovation that we've done, leveraging data, AI to deliver personalized experiences on an ongoing basis. And that's why when you look at Credit Karma performance, the majority of it is just very good execution by the team.

With that said, TurboTax and integration of TurboTax into Credit Karma plays a very critical role. Last year, Credit Karma contributed about 1 point of growth in TurboTax. We would just expect that to grow over time. The whole reason we bought the business is deep integration.

Perfect. And as we wrap up 2025 and all investors in the audience are trying to think about 2026. I know Intuit gets great data, right, on overall SMB health. I'm sure you're talking to customers constantly. So what's the vibe out there? How are customers thinking about spend going into next year relative to what we saw this past year?

As a reminder, we serve 100 million customers, right? 10 million of them are businesses and the businesses that we serve, we're not concentrated in any particular industry. We serve a lot of different industries. That's an important context before I answer the question. I would use the word stability with businesses, profits are stable. Now there are certain industries like lending and real estate that are lower profits, industries like manufacturing and insurance that are stronger profits. But overall, I would use the word stable.

And consumers -- listen, the job market is still strong. And credit balances are up, credit scores are down, but consumers are still spending. They're just very particular what they're spending on. So I would expect stability going into next year, at least it's what we see with our data.

Perfect. Okay. Well, with that, we're up with time. So we'll leave it there. Thank you so much, Sasan, if I were to give a round of applause. And thanks, everyone, for listening in.

Thank you for having me.