Intuit Aktie

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.

Good afternoon. My name is Leo, and I will be your conference operator. At this time, I would like to welcome everyone to Intuit's First Quarter 2026 Conference Call. [Operator Instructions]. With that, I'll now turn the call over to Kim Watkins, Intuit's Vice President of Investor Relations. Ms. Watkins?

Thanks, Leo. Good afternoon, and welcome to Intuit's First 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 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 statement. 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.

Thanks, Kim, and thanks to all of you for joining us today. We delivered an outstanding quarter with Q1 revenue growth of 18%, reflecting the exceptional momentum we have across the company. Our AI-driven expert platform strategy is fueling strong growth by helping businesses manage from lead to cash and consumers from credit building to wealth building, all in one place. We're becoming the system of intelligence, leveraging data, data services, AI and human intelligence, which we will refer to as HI that everyone depends on to power their prosperity and fuel growth. We're doubling down on the three big bets we shared at Investor Day, which represent our largest future growth opportunities.

First, we're delivering [indiscernible] for you experiences with AI and HI where customers never lift a finger, but are always in control; Second, last month at Intuit Connect, our flagship event that reaches the leading accounting firms and mid-market businesses, we brought to life the power of our AI-driven expo platform strategy. We showcased our all-in-one business platform, we're a team of AI agents and AI-enabled human experts automate tasks, workflows, business functions and provide a single pane of blast for customers' KPIs and dashboards all in one place. We also shared the strong early impact of our AI agents, delivering just after 4 months in market.

We marked the 1-year anniversary of Intuit Enterprise Suite, our AI native ERP platform that is disrupting the mid-market, we're proud of the massive advancements we've made, including serving industry-specific needs and building more sophisticated go-to-market motions, including partnering with accounting firms to add new customers to our platform. We introduced Intuit Intelligence a revolutionary system of intelligence, where customers can ask anything. For example, customers can ask questions like, how can I accelerate revenue in the next 6 months? How can I improve margins? Can you show me how to lower my cost of goods sold? And can you add the performance of my top sales reps to my dashboard. Using customers' data and any external data they wish to upload, Intuit Intelligence delivers accurate, personalized and actionable answers and will execute on a customer's behalf or and off to a human expert. We have thousands of customers in beta and plan to be GA soon.

And finally, we unveiled Intuit accountant suite, an AI-native offering that will transform accounting firm's efficiency and effectiveness in managing their clients, firm and workforce, all to fuel their success. The suite provides client management and collaboration, multiservice delivery business planning and team management all in one place, soon, we'll be launching more advanced capacity planning, productivity and collaboration capabilities, and over time, firms can integrate to other functions. This is a game changer and significantly deepens our partnership with accountants feeling faster mid-market penetration. And for accountants that drives tech stack consolidation and efficiency for their firm and encourages them to migrate clients to QBO Advanced and Intuit enterprise fleet. Attendees walked away from Intuitive away by the amount of innovation in the last year and a clear message that we are well positioned to fuel their growth.

We're continuing to see momentum with our virtual team of AI agent with 2.8 million customers leveraging these agents to do the work for them. Our accounting agent is saving customers up to 12 hours a month and our payments agent helps customers get paid on average 5 days faster. We recently launched a payroll agent that automates tasks that typically take mid-market businesses 2 to 3 hours to complete each month, such as collecting hours directly from employees, spotting anomalies and generating insights and sending customers a ready to approve draft of their payroll via Tax.

We also launched a sales tax agent, which automatically helps businesses stay compliant. The combination of AI and HI is resonating with QuickBooks Live customer growth of 61% in Q1. We Zooming out, it's not clear. We are delivering done for new experiences with AI and HI that will eventually do everything for our customers, powering their growth, saving them time and money and consolidating their tech stack. We're making strong progress across our all-in-one platform, which includes accelerating money benefit by putting more money at the center of everything we do. We saw total online payment volume for our payments and bill pay customers grew 29%. And reflecting continued momentum helping our customers get paid faster and better manage their cash flow.

Turning to mid-market. We continue to make strong progress serving larger and more complex customers with approximately 40% growth for our online ecosystem revenue for QBO Advanced and Intuit Enterprise Suite in Q1. with their data trapped in a number of applications that take too much time and money to manage. Our offerings help businesses achieve their growth goals by automating complex tasks workflows and functions and delivering insights and recommendations all in one place. Our AI native ERP platform is disrupting the legacy way of managing their business and the ROI is clear with the Forrester study estimating that customers can see nearly 300% return on investment over 3 years when using Intuit Enterprise set. This value proposition is resonating. For example, A large customer with over 200 entities that we signed in Q4 quickly realized the value of our platform and expanded their contract to include an additional 46 entities in Q1.

In aggregate, the total number of IES contracts at the end of the quarter was nearly 50% higher than it was at the end of Q4. We're also seeing early momentum with our accountant partnership strategy to bring new customers to into the Enterprise suite. As a result of our partnership with Aprio, a top 25 business advisory and accounting firm, we've already signed several new customers in multiple verticals. Earlier this month, we also signed accounting partnerships with Cherry Bekaert, a top 25 advisory tax and assurance firm with clients across 14 industries Raymond, a top 40 professional advisory firm that provides accounting, insurance and other business services clients across 11 industries, and [ Coke & Taylor ], the top 100 advisory tax accounting insurance and technology firm with clients across 7 industries.

We have many other opportunities of similar scale in the pipeline. Turning to our consumer platform. Our AI-driven expert platform is delivering done for you experiences for consumers from credit building to wealth building to make smarter financial decisions year round with confidence. We're seeing strong momentum in the areas that matter most, with TurboTax Live revenue growth of 51% in Q1, reflecting continued strength as we concluded the 2024 tax season. Credit Karma had a strong quarter. In fiscal year 2025, we saw several point increase in share of member originations for personal loans and credit cards, and we believe share gains continued in Q1 as members and partners find value in our platform. These strong results and the introduction of significant innovation with done for you experiences, AI-powered the local expertise and faster access to money show the power of one consumer platform. Our done for you innovations include Credit Spark, where everyday payments build your credit score as well as several agentic AI assistance.

For example, our debt assistant will craft and deliver personalized debt paydown plan. Our refund assistant will give a personalized recommendation when the customer receives their tax refund to pay down debt, build an emergency fund, build credit or invest for the future. And with our tax assistant, consumers who answer easy quick questions and Credit Karma year-round can have up to 80% of their taxes ready to go at tax back. We're also expanding our AI-powered local presence, making local expertise more accessible than ever with a larger service footprint as customers are 5x more likely to book up with a Pro within 50 miles. This local presence will also help us further scale Business Act, which grew 3x last year. With our virtual or in-person filing and consultation options, we're offering the best experience, price and speed the money.

This is data, AI and HI powering prosperity for consumers and businesses. One of our superpowers is experimenting and learning from our customers and then scaling what works. The results from more than 300 tests we man in Q1 bolster our confidence in our strategy to win. We're excited about the growth potential for our all-in-one consumer platform with an untapped opportunity to penetrate the $142 billion consumer TAM. We have significant momentum across the company and are excessively focused on execution with high velocity and fueling the success of our customers. Into its brightest days are ahead of us. Let me now hand it over to Sandeep.

Thanks, Sasan. We delivered a strong first quarter of fiscal 2026 across the company. Our first quarter results include revenue of $3.9 billion, up 18%; GAAP operating income of $534 million versus $271 million last year. Non-GAAP operating income of $1.3 billion versus $953 million last year; GAAP diluted earnings per share of $1.59 and versus $0.70 a year ago and non-GAAP diluted earnings per share of $3.34 versus $2.50 last year reflecting our overall disciplined approach to managing the business, including continued AI efficiencies. Turning to the business segments. Starting with the Global Business Solutions Group. 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 20% excluding Mailchimp while online ecosystem revenue grew 21% in Q1 or 25% excluding Mailchimp, this includes approximately 40% growth for all an ecosystem revenue for QBO Advanced and Intuit enterprise suite that serve mid-market.

All in ecosystem revenue for small businesses and the rest of the base grew a strong 18%. We saw robust growth in both online accounting and online services in Q1. QuickBooks all-in accounting revenue grew 25% and from higher effective prices, customer growth and mix shift. Online services revenue grew 17% in Q1 or 26% 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 payment volume per customer and higher effective pricing as well as QuickBooks Capital revenue growth. Total online payments volume, including BillPay, grew 29% in Q1, reflecting our continued momentum in payments and adoption of our BillPay offering.

All in payment volume growth, excluding bill pay, was 18%, relatively consistent with the range you've seen over the last several quarters. Within payroll, the revenue growth in the quarter reflects mix shift customer growth and higher effective prices. Within Mill champ, revenue was down slightly versus a year ago, in line with our expectations for the quarter. We continue to target double-digit growth for Mailchimp exiting fiscal 2026. We are seeing strong results from our mid-market sales team within Mailchimp with several recent larger customer wins as well as increasing retention rates in the mid-market segment. We are continuing to invest more in go-to-market for these higher-value customers and beginning to increase broader go-to-market spend to drive acquisition of smaller customers. Turning to desktop. Desktop ecosystem revenue grew 6% in Q1, and QuickBooks Desktop Enterprise revenue grew in the low double digits in Q1. We expect desktop ecosystem revenue to grow low single digits in fiscal 2026.

Turning to our consumer platform. We are pleased with our strong momentum. Q1 revenue grew 21%, driven by Credit Karma revenue, which grew 27% and TurboTax revenue grew 6% and Protex revenue grew 15%. Within Credit Karma, the revenue growth reflects continued momentum with our members and partners on a product basis, personal loans accounted for 13 points of growth. Credit cards accounted for 10 points in auto insurance for 3 points. Looking ahead, the results from more than 300 go-to-market and product experience tests run during Q1 bolster our confidence in our strategy to win this upcoming tax season. We are excited about the opportunity ahead for our all-in-one consumer platform powered by AI, human intelligence and data to empower customers to take year-end control of their finances from credit building to wealth building while driving monetization for Intuit. Shifting to our balance sheet and capital allocation.

Our fast principles guide our decisions to remain our long-term commitment and are unchanged. We finished the quarter with $3.7 billion in cash and investments and $6.1 billion in debt on our balance sheet. We repurchased $851 million of stock during the first quarter, and depending on market conditions and other factors, our aim is to be in the market each quarter. The Board approved a quarterly dividend of $1.20 per share, payable on January 16, 2026. This represents a 15% increase versus last year. Moving on to guidance. We are reaffirming our fiscal 2026 guidance. This includes total company revenue of $2.997 billion to $21.186 billion, growth of 12% to 13%. Our guidance includes Global Business Solutions group revenue growth of 14% to 15% and of 15.5% to 16.5% revenue growth, excluding merchant.

Our guidance also includes overall Consumer Group revenue growth of 8% to 9%, including TurboTax growth of 8% and credit comment growth of 10% to 13% and Protex growth of 2% to 3%. GAAP diluted earnings per share of $15.49 to $15.69 and 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 second quarter of fiscal 2026 includes total company revenue growth of 14% to 15%, and GAAP earnings per share of $1.76 to $1.81, and non-GAAP earnings per share of $3.63 to $3.68. You can find our full fiscal 2026 and Q2 guidance details in our press release and on our fact sheet.

Before I turn it over to Sasan, I want to share that Kim Watkins has made the decision to leave into it to pursue a new opportunity outside the company. And this will be her last earnings call. I want to take a moment to thank her for her tremendous contributions and partnership over the years. She has built a strong, highly respected investor relations team and has strengthened our relationships with the investment community in meaningful ways. Jeff Kogler, who has been a key part of the team will step in as acting Head of IR. We're deeply grateful for all that Kim has done in which share the very best in the next chapter. With that, I'll turn it back over to Sasan.

Great. Thank you, Sandeep. We are well on our way to becoming the system of intelligence, enabling financial success for consumers, businesses and accountants. Given our early bet on AI, our low penetration of our large $300 billion TAM, the 6 decades and our momentum, we are well positioned to power the prosperity of our customers and win in the era of AI. Let's [indiscernible] to your questions.

[Operator Instructions]. We'll take our first question from Kirk Materne of Evercore ISI.

Congrats on a nice start to the year, and Kim, congrats on your next venture. So Sasan, the question for you, a lot of questions from clients this week on the OpenAI arrangement and deal you announced. Can you just give us a little bit more color on if there's any sort of revenue share as part of this deal, I think there's also some questions about sort of how data, obviously, you guys have always been very protective of customer data. How does that stay with Intuit as people are now using Intuit solutions within Open AI. Can you just give us maybe a little bit more color on those aspects of the new partners

Yes. Thank you for your question. First of all, I'll just start by saying it's an absolutely game-changing partnership and everything starts with people and the relationships to make any long-term partnership work and the relationship with OpenAI is really magnificent. With that said, the way to think about this before I get to the specifics of your question is, this is a huge opportunity for us to accelerate new customer growth. This you have 800 million weekly active users that are engaging within the platform, and we have an opportunity to power their prosperity.

Now to answer your question, I'll just break it very quickly into three buckets experience. data and models and economics. On the experience front, what happens today is when customers are asking questions about getting access to financial products like cards, loans, building their credit score, how do I grow my business, they get good yet generic answers. So that will change tomorrow. And the way it's going to change is that our Intuit apps will be deeply integrated within Chat GPT, which means tomorrow, you get the power of all of the Intuit platform and apps within Chat GPT and the experience, which I can get into a lot more detail if you all wish, will be game changing because we'll know who you are and we will be able to leverage the power of our data and all of our models to be able to deliver experiences that are very personalized to you, just like the experience you get when you're within an Intuit app today.

So the experience will be absolutely game-changing for consumers and businesses and truly power their actions, their insights within Chat GPT. The second, on data and models, nothing changes from what we do today. They will be customers will be engaging within the Intuit app, well, they'll be within the Intuit 4 walls. We will continue to train our Intuit large language models with the customers' data, our data privacy, security and privacy principles are unchanged. And that's very important because one of the game-changing elements that OpenAI is excited about is the fact that customers will be able to get accurate, secure answers that are personalized all within Chat GPT. So that's on the data and models. Nothing is unchanged from the way we operate today. On the economics, the economics are today. There is no revenue share. And so the economics that we enjoy today when we directly work with customers, we will enjoy tomorrow.

And I'll just end with, we're really excited about the partnership by having access and working side by side with OpenAI team have access to their frontier models because, as you know, our intuit large language models are what gets trained by the customers' data does not leave our 4 walls. But it also has the agency and authority to deliver the experiences and use other models, and we're excited about the acceleration of the use of some of their models that the RLMM will put in place. So I think those would be the headlines, Kirk, that I would share.

We'll move next to Siti Panigrahi of Mizuho.

Congrats again and a great start to this year. I wanted to dig into the mid-market, Sasan, which is one of your drivers for the aspirational goal to accelerate growth. First on IA side, it's been a year and you had 250 cell set. How is the productivity has been going on? And any plan to add more head counts to this mid-market and also the partnership we announced. When should we start seeing that translate to revenue?

Yes. Thanks for the question, Siti. I'll break it down into three things: awareness, our platform innovation and accountants. First and foremost, we're just starting to press on the gas with awareness in terms of showing up the conference as we were just at the fate conference in New York. We were everywhere to raise awareness because as much success as we've had very few people still know about Intuit Enterprise suite and what a disruptive AI-driven and AI native ERP platform that it is. So we're doing a lot around awareness. One element is conferences, webinars to really get the word out there.

The second is the platform innovation is just accelerating and it's having a dramatic impact with customers now across many verticals starting to refer us to customers like them, whether it's wealth management, whether it's dentists, whether it's construction, the impact from our innovation and now beginning to customize and launch vertical-specific KPIs and dashboards is incredibly important and incredibly powerful. And more than ever, we win on experience, price and total cost of ownership. And the third is around accountants. We're just getting that flywheel going. And in fact, we redirected a number of our internal sales folks above and beyond the $250 million that you refer to as I'll get to in a moment. that really are providing coverage across our large accounting firms. And what you should look at is these are really best to come. We expect acceleration from these large partnerships that we've announced and many that are in the works to contribute to the back half of the year and into next year.

We're actually not counting on that, but it's an important point to put out there, which is this is where the network effect comes in because we had the largest firms at Intuit Connect, and we -- and I personally have been meeting with these large firms. And they're blown away by our innovation and how they can use our platform to be able to drive accelerated growth. And our productivity is significantly improving when we look at the last several quarters, and we would expect to start adding more headcount in the coming quarters. So those would be the way I would break down the answer to your question. We're really excited and bullish about what's possible.

We'll move next to Brad Zelnick of Deutsche Bank.

Congrats on a fantastic run. It's been great and look forward to your next chapter. [indiscernible] for you, can you talk us through any of the learnings that came out of this extension season on tax and those might apply to season ahead? And maybe for Sandeep, we saw the announcements around the TurboTax office footprint expanding which seems to clearly reflect leaning in on local search, how are you thinking about the investments necessary to sustain 15% to 20% assisted growth this year? And maybe how do they compare to last year?

I'll get a start and then I'll let Sandeep take over on your question. First of all, Brad, I've been with the company 20-plus years. I've never been more bullish than the season we're about to step into. And the reason is all of the innovation across the platform, we ran as we talked about earlier, 300 significant experiments from platform innovations to go-to-market test inclusive of a lot of what we're doing to show up locally, which is the question you asked a moment ago for Sandeep. And just across what's possible for consumer tax and business back we are incredibly bullish and the bullishness comes from really 3 fronts.

One, a lot of the work that we've done around data and AI that makes us far simpler and easier for folks to get their taxes done and get early access to their money two, the innovation end to end to deliver a great experience at a great price for those that use the prior year assisted method from how we're leveraging data and AI concierge to greet customers, to get them immediately connected to a live expert where most of the work is done already by the time they get to the experts to doing a lot of the work for the expert where the expert really becomes sort of a concierge that you would walk up to a four season.

That's really about the service that they provide, how they make you feel while we ultimately deliver excellent service. And the power of going from 400 locations that we showed up to 600 and then the 20 stores that we talked about with one flagship store that's going to be in New York is about showing up locally. And if that's also about shaping the market around the fact that we truly have AI plus HI. And these are -- once the one opens up in New York, I'd encourage you all to go into it because I think you want to sit there and have some coffee. It's tech forward, it's friendly, it's warm, and by the way, money in your pocket quickly. So I'll end with where I started before Sandeep takes over, which is I've not been this bullish going into the fact season given the amazing work of the team.

Brad, it's Sandeep. On local [indiscernible] is key to winning in assisted as we have shared that our -- we see that customers convert 5x better when there's a local expert within a 50-mile radius of their location. And we are planning 600 expert locations, so that's up from 400 last year, and as Sasan mentioned, a unique flagship store in New York City. This is all part of our strategy of ensuring that we are showing up in key high-density areas and covering a majority of the tax filing population in the United States. And this -- showing up local, we know really extends the trust people have in the brand. It drives adoption. And our tests also show that 39% of full-service customers prefer zero-touch approach to engagement.

So it's really more about driving that trust. In terms of our investments, our approach to showing up local is truly asset-light and is scalable with our long-term commitments, rent, the OpEx costs here are relatively small and they're all included in part in our guidance that we gave earlier today.

We'll move next to Keith Weiss of Morgan Stanley.

Congratulations on a really strong start to the fiscal year. And I'll ask my congratulations to Kim Watkins. Truly has been a great partner to the financial community at Intuit in relations and best luck on the new endeavors. You guys had a really solid quarter. We saw it in the Global Business Solutions. There's a lot of concern out there about the health of the overall U.S. consumer. And I know you guys get a lot of signal. So can you help us walk through if any of your signal turned or if this was more so into it just doing very well in what could be a shaky environment. Help us get a little bit more confidence about the durability of these see results throughout the year.

Yes, Keith, thank you for the question. I'll actually take team this with Sandeep. I would say two things. One, what we see on our -- in our data across 100 million consumers and 10 million-plus businesses that we serve is stability. To provide more specifics profits and cash flows are stable and up. One of the things Sandeep and I and the team looks a lot at is payroll hours work and payroll hours work are actually up. And as you can imagine, we're not concentrated in any particular industry. So we see a lot of industries. So if you double click, you see things like IT services, construction, manufacturing that are actually up quite nicely compared to the year prior and then you see places like real estate and lending that are down compared to the prior year, not significantly but down.

And so it's industry-specific, but when you look at the aggregate of what we serve, they're quite successful. That's from what we see in the data. I think the second thing that I'll just end with is a lot of it is also our platform and really what the platform is doing to fuel the success of businesses of all types. If you remember, one of the things that we shared at Investor Day was that businesses that are on our platform are nearly 20 points more successful in terms of how they thrive their profits versus those that are not on our platform. So our platform is having a real impact on the livelihood of businesses.

Keith, let me build a little bit on Sasan's point. One thing, as you know, of course, we keep a keen eye on the macro environment, but what also gives us confidence, in addition to the stability that we're seeing in the broader environment, is the resilience of the intra business. Our offerings are not just nice to have, they are a must have. And in the 4 years that we've been around, we've historically seen that when the economies are -- economies tougher, our products become more critical. And just to also add on and highlight the stats from within our platform is you saw that our charge volume was up 29% with BillPay, up 18% next including bill pay. On our credit commerce side, we continue to see strong engagement with our partners. So both the macro data within the platform and also just how the business performing continues to give us confidence in the stability and the opportunity that lays ahead.

We'll move next to Mark Murphy of JPMorgan.

Congrats on the great results and also to him in your future endeavors. Sasan, the Credit Karma market share gains of several points in loan originations and credit card issuance are pretty staggering because the size of those markets is just -- is utterly vast. Could you speak to whether you see ongoing runway to continue that type of motion where you're chipping away a couple of few points of share every year maybe by leveraging the TurboTax customer base and that data maybe by leveraging QuickBooks and the -- the cash flow data has to be of interest to lenders. At the end of the day, do you think you can create a more holistic financial health score than the traditional providers have?

Yes, Mark, thank you for your question. Actually I love the nature of your question. I would lead with the following. I think now you're seeing the TurboTax Credit Karma platform coming together at work. And the thing that I would just also add to everything that you just shared around the market share increases is that Credit Karma contributed to an entire point of growth in TurboTax last season, and that's just over time, only going to get larger.

And it's because of what we are doing customer back to help them with problems like getting access to financial products that are right for them, helping them with how to manage their debt and with our debt assistant actually helping them what they should pay down for second and third what they should do with their refund and just being in their life on an ongoing basis, that's how you take market share. So that's the first point I would make. The second point, which is a more specific point is this is data AI and all of our credit models at work. As you all know, one element of our AI capabilities is Lightbox, where financial institutions have put their credit models, their proprietary credit models as part of Lightbox and we are able to leverage their credit models to be able to deliver personalized experiences. That's a game changer.

And now we have more and more financial institutions that are now putting their credit models as part of Lightbox, they don't do that with anybody else. They trusted do it. It helps drive growth for them, and it delivers personalized experiences for us. And so I'll end with sort of the essence of the question that you asked, we're just getting started. We have runway, and we're just getting started in terms of what's possible to do as a platform. And even access to money and how we can monetize money offerings is yet to come. So we're excited about what's possible.

We'll move next to Daniel Jester of BMO Capital Markets.

And also my congrats to Kim. Best of luck. On Mailchimp, I appreciate the additional color on the progress that has been made there, specifically in the middle market. As we think about the reacceleration to double digits by year-end, is that something that could be accomplished solely through middle market improvement? Or does this have to broaden out and also include the smaller customers coming back to the full wall?

Daniel, on Mailchimp, we've taken a number of strategic steps that I feel really confident about -- as you mentioned, we have scaled the mid-market sales team to build upon the momentum we have in that segment. We've improved the product experience and the onboarding flow across all customer segments. And now we are scaling up the go-to-market efforts and those efforts, in addition to adding to the mid-market sales team is dialing up the marketing on the platform, which we had dialed down while we were working on the product mix. In terms of getting to double digit, it takes a mix of both customers across smaller customers as well as the mid-market customers. We have good momentum, and it's really going to be around early calendar year and spring time that we'll have a solid read on the Mailchimp progress.

We'll move next to Alex Zukin of Wolfe Research.

I apologize for the background noise. I guess maybe can we speak to some of the margin leverage and efficiencies that you're seeing from deploying some increasing leverage and just any other efficiencies that you're seeing that are durable given continued outperformance on margins that we're seeing now for, I think, like the third or fourth straight quarter. Anything you can add there would be super helpful.

Alex, We continue to feel really super confident about the ability as an organization to continue to scale margin. That comes not just from efficiency, but the way we run the business leaning on economies of scale, being disciplined, but when and how and where we are allocating our capital to maximize the ROI on it. And of course, complementing our workforce with AI technology to truly unleash their productivity areas that we continue to see strong improvement across our technology organization using AI to improve the productivity of the sales force, our time to market with how we are rolling out code across our customer success organization.

As you know, a lot of that work is rules-based super applicable for the AI to help complement those areas. And then across our entire organization, whether it's in finance, whether it's legal, HR, you name it, using AI to unleash the productivity of our employee base. What you should continue to hold as accountable to is the discipline that we have demonstrated over the past multiple years. That same discipline continues, and it's not just about AI efficiencies, but it's all about the learning the culture of seeing what worked and where we lean in marketing. We did marketing last year. There's many tests that worked, and we scale them. There are other things that didn't work, and we shut them off. That's a discipline issue or continue to hold us accountable to.

Excellent. I just want to get a big shout out to Kim. It's been a true pleasure working with you and can't wait to see where your next adventure takes you.

We'll move next to Kash Rangan of Goldman Sachs.

Hard to follow Alex Zukin, but I'm going to try my best. So I look on my congrats to Kim but also to Jeff, incoming he's been waiting for a while. So a well-deserved promotion. The question for you, Sasan is the delta and growth rates between accounting, which certainly is very, very strong. And online services, it's a little bit of a wider delta than whatever but maybe some of it has to do with Mailchimp in their I remember the bit old days into it, online services would typically grow faster than accounting because of the payroll payment attached that sort of thing.

Is there a break in the pattern that explains this performance and that since you're getting going with IES, maybe there is a roughly heavy accounting finance emphasis and maybe these services will follow suit in the future. If you can just help me understand the cycle of what you're going through, that will be great. And since this is my last into call, I wish you many successes in your journeys ahead. Thank you.

Kash, this is Sandeep. Let me take this one. We continue to see tremendous opportunity across many apparel offerings on our platform is a key part of our addressable market and it's a key part of that $90 billion market that we have on mid-market as well. The deceleration that you are referring to is really due to pricing. That was a contribution in the last 4 quarters, and now we are lapping that across both payments and payroll. We continue to see strong momentum in our core business, and I would point you to the charge volumes, 18% overall, 29% BillPay. And we're seeing improved adoption of services across both small and midsized businesses.

As you pointed out, with some of these things, it takes a while for those volumes to ramp up as they're shifting their service providers. Furthermore, the innovation that we're rolling out, whether it's our agents, whether it's the new ibooks user interface, they provide us more opportunities to build upon the strength we have in platform adoption and services over time. So I would not read too much into that deceleration. We are quite excited about the opportunity that lays ahead.

And Kash, we wish you an amazing retirement.

Much appreciated.

We'll move next to Raimo Lenschow of Barclays.

Thanks and following Kash is always an honor. Kim, all the best for you as well. A quick question for me was on Credit Karma. You talked about credit card loan is driving it, auto insurance a little bit. How do you think about it in terms of the health of the consumer, Sasan, you talked a little bit about it earlier, but like Credit Karma has been kind of performing a lot better than you guided for several quarters now. like how confident are you about what you're seeing there.

Yes. Let me start with one element, and I'll tag team this with Sandeep. And actually, it's really important to leverage this opportunity for everyone to make really a broader point Credit Karma is working because of all the innovation that we've done customer back and the integration with TurboTax. So if you really think about the 45 million monthly active users, the fact that they engage more than 5 times a month and the fact that we now can help them with so many things more compared to when we first bought Credit Karma, when the member has the opportunity to understand what to do with their debt to get access to financial products like credit cards, personal loans, insurance, and when they can get their taxes done, get help with what they can do with their money, get early access to that money that customer then engages more and engages more because of the trusted benefits and the insights that they're getting, but also the fact that things are personalized and we're doing it for them.

And so that is what helps us then be able to accelerate taking market share that we -- that Sandeep and I talked about earlier. So that's a really important element to think about. It's not just about the health of the consumer. It's actually about what we are now doing for the consumer that is so far more advantageous for the consumer versus where we were just even a year ago or 2 years ago. And from a just a health perspective, credit scores and balances are generally stable. Credit scores over the last several years have for the near prime customers and subprime customers have gone down 10-plus points, but they sort of stabilized. And credit balances and credit card balances, although higher for Gen Z by 20% to 30% now versus a couple of years ago, they've generally stabilized. So that's what we see from a consumer health perspective, but I think the most important is the innovation that I talked about earlier. Let me just also invite Sandeep to add a few thoughts.

The only thing additional would double down on is the innovation that we're driving across the platform, is that innovation that's helping our partners see better ROI of their spend on our platform, which is why we continue to take share base tailwind into the business driven by innovation. Also, from a consumer point of view, if the economy does get to a place where the consumer is under pressure, they'll be looking to a trusted platform to you understand where they can consolidate debt on personal loans. Keep in mind, some of these near-prime customers, if they apply for a credit card, where they get dinged, they could become subprime and this is where our innovations such as Lightbox the customer the utmost confidence of their arts are getting approved. These are all innovations that are key to driving confidence and allowing us to continue to take share regardless of the macro environment.

We'll move next to Michael Turrin of Wells Fargo Securities.

Just a quick part on the numbers, if I may. In terms of the QBO strength, you mentioned price is a leading factor there. So just any commentary you can add on how we should think about the shape of pricing contribution on that line throughout the rest of the fiscal year. And then on margin, fiscal Q1 was very strong. 2Q was a touch lower than we were maybe modeling. So can you just also speak to expense timing and whether there are marketing specific impacts to consider between those quarters as we're updating our forecast?

Mike, it's Sandeep. On the QBO side, we continue to see our innovation resonate with the customer. And even after we did the price changes and the line of innovation this last July, we saw that our customer attrition, again, came in below our expectations. So just highlighting how the pricing power we have as well as how well the innovation truly is resonating with our customers. And when we see some of this innovation such as 45% of our customers telling us that they're saving up to 12 hours a month that's a meaningful increase in the productivity or getting paid 5 days faster. That's a meaningful increase to the net working capital. So these are -- I would highlight these as areas where we are driving innovation, and it's resonating. Pricing contribution is relatively consistent throughout the 4 quarters.

And the other thing I'd point out on QBO is the momentum we have as a point with a 40% revenue growth in IS as well as in QBO Advanced that is a contributor to the accounting line on the online ecosystem. The second part of your question was around margin. So a couple of things I would point out here. If you look across the first half, we are actually ahead of what our -- what the Street expectations were on our margin. And what we saw for is for the full year, and I continue to feel really confident in our ability to deliver on our commitments for the full year. There's always things any one quarter, for example. We learned from our consumer marketing this past year. that allowed us to really hone in the timing of the spend between Q1 and Q2 to really maximize that ROI.

So it's really our continued discipline and spend management, making sure we're maximizing the money that we're driving with our spend that drove some of that shift. But look across the first half, and you'll see that we are nicely ahead of consensus on both revenue as well as [indiscernible].

We'll move next to Steve Enders of Citi.

Okay. Great. congrats to Kim as well. I guess I want to ask on the in-person, I guess, TurboTax experience that you're rolling out here. I guess what's the, I guess, hope or what's the kind of view of maybe how that changes I guess, the types of customers or could change the dynamics going through tax season here?

Yes. Thanks for your question. A couple of things I would say. This is really the strategy, which is very consistent with what we've been talking about for several years is to show up where the eyeballs are. and the notion of being in 600 locations addresses and 20 stores, one of them being in a flagship in New York is actually to be seen. When you do search, whether it's through an AI app or Google or any other platform that we show up locally. So that's a huge part of the strategy. In terms of the type of customers, the same customers that we serve today. This is about reach, and it's about access because what we have found is when we engage a customer and a customer finds us and we find the customer and we are where the customer is we win hands down based on experience, price and then access to money. So this is just based on our incredible progress last year, the incredible results last year what you're seeing is we're just doubling down on winning in the assisted segment, and this is one key how to do just that.

We'll move next to Brent Thill of Jefferies.

This is an John Byun on behalf of Brent Thill. Just had one question. So the -- one of the advantages of interest platform is the ability to consolidate the dozens of apps for small businesses. I just wanted to see if you could talk about in the progress there and then maybe compare between the small businesses versus the mid-market, how are you reaching the potential?

Yes. Thank you for your question. It is really the essence of what -- why we are winning. When you look at smaller businesses, they could have between 3 to 10 apps. When you look at larger businesses, they can have between 25 to 30 apps. And there's a real issue with that now more than ever, where customers are spending more time trying to figure out what's going on in their business across all of these apps, they're actually spending more money than they did before. and they're getting less value because they may have fallen love with 3, 4 apps, but then when they zoom out, they don't know what's going on in their business. And that's really been our strategy of a platform that helps customers from lead to cash but also a platform that does everything for customers.

This is the power of data, AI and HI and ultimately, being able to do everything for our customers. And so the acceleration that we are seeing across the board and particularly in mid-market, and when you look at the results that we just talked about, which is online growing 20%, you've got mid-market growing at 40%. This is actually more and more customers and particularly the larger ones that see the value of having everything in one place. One, because we can do the work for them, they get a better experience, but two, they may pay off more and more than likely they actually do, but they're actually spending a lot less. And that's a game changer for customers.

And I think we're just -- based on all of our capabilities at the beginning of that cycle, it's another reason why you are seeing an accelerated set of partnership announcements with accountants because they actually see not only us being able to partner with them to help digitize their firm through the Intuit accountant suite, which is a revolutionary platform we've launched, but also what we can do together to really digitize the clients that they serve because when clients use a lot of apps, it drive accountants crazy. And so this really is where the network effect comes in.

We'll move next to Brad Sills of Bank of America.

I'll echo the congratulations to Kim on your next move. So many great agents in QuickBooks accounting agent payments, customer finance. The list just keeps going. Have you seen any -- any one in particular already use cases that you're seeing traction? And what would customers say as to kind of the ROI, some of the savings here? Any that have surprised you that, Josh, these are actually more effective than we thought and driving more value. And then what would that say about your kind of confidence in your ability to monetize these? Obviously, now it's through premium mix, but eventually through separate SKUs.

Yes. Thank you for the question. I actually love the nature of the question. Let me start with just zoom out first, and then I'll answer your specific question. The biggest thing that we continue to learn from customers is I need help for you to do it for me and with me. Because if you think about businesses of any size, unless they're an enterprise, they do not have all the resources that comes with an enterprise to do data analytics to help. They don't have a large marketing team sitting around a large finance team sitting around a large data analytics team sitting around. They need help in terms of how to run their business.

And really, that's where the power of our platform comes in, which is an assistance that is right by their side that can help them with making decisions, can do the work for them, we can do the work with them. And by the way, when technology runs out of capacity, which it always will, that's where our human intelligence comes into play. So fundamentally, customer back, this is really, really important for customers, which is help me get things done. It's, by the way, why they are always seeking for advice in these AI apps. To get more specific, I'll just remind us with all of the AI agents, we've been in market for about 4 months, which means there's a lot more improvement enhancements and adoption. But what we've seen in 4 months is, one, the discovery and repeat engagement since we've launched is over 80%.

And the two areas that are having the largest traction is the payments AI agent and it's the accounting AIH. That's why we've cited the stats where with the use of accounting agent, folks are saving 12 hours a month, which is significant. And not just the time savings, it's actually the accuracy and the insights that they get. The second is that the customers that are getting paid 5 days earlier. And 4 months in market, that's actually quite remarkable because we're learning literally every day in terms of how to make these more effective. Customers don't care about AIA, they care about get the work done for me. And that's really where I think the best is yet to come.

We'll move next to Taylor McGinnis of UBS.

I appreciate all the help these last couple of years and wishing you all the best. So I'd like to unpack the strength of the 2Q revenue guide with the later start to the tax season this year and also a tougher credit comp, I think it would be helpful if you could just offer some additional color on the drivers of growth. are there any segments where you're expecting growth to be more durable with the levels that we saw in 1Q or higher than implied in the full year guide?

Taylor, in terms of the Q2 guide, it is a continuation of us continuing to execute on our strategy. The momentum that we saw in fiscal '25 compared into fiscal '26. You saw the Q1 results, and you're seeing this in our Q2 guidance. We expect the momentum to continue strength in GBSG Online. We continue to expect strength in mid-market, continue to expect a CK offering to resonate with both partners and consumers. And on the -- on the TurboTax side, we're expecting similar to last several years that the IRS opens up to end of January. So that's our expectation going in. There are a couple of things that I would point out that we do expect desktop to start decelerating in the second half as we go from the 6% we saw in Q1, likely will be near the mid-single digits for Q2, but then decelerate in the second half.

And on the CK in the second half of the fiscal year, the comps do get harder as we lapped the prior year strong performance. But in the areas that are the key growth vectors for the company, you should expect us to continue to continue to build upon the momentum.

We'll move next to Arjun Bhatia of William Blair & Company.

Perfect. Thank you so much. Sasan, if I can just go back to the OpenAI partnership for a second. I know this is just about to come live, but I'm curious if you would just venture to take a guess on when do you think customers would use Intuit apps inside Chat GPT versus when they would use kind of core or used into it within your own applications and use your Intuit intelligence capabilities, which also have sort of natural language answers and I'm wondering if in your perspective, if that makes a difference at all or if your goal is kind of just to drive increase engagement and maybe that drives more attach of services and agenetic adoption and all the other good things that come with increased usage.

Yes. Thank you for your question. I'll start by saying companies that win will be companies that are -- that have platforms and that they are where the eyeballs are. And that's really what we're doing with this partnership with Chat GPT. It's really -- for us, it doesn't matter whether a customer comes directly to using our platform or we are where they are within an app, in this case, Chat GPT. Because as I mentioned earlier. One, they get personalized experiences right within Chat GPT. Two, they're in using our apps. And so the accuracy, safety, privacy is all protected. There's unchanged. We get to enjoy the economics that we enjoy today. So what we care about is actually being where the customer is and making it easy for the customer to have the experiences that they need to have.

And in terms of -- only time will tell, we're going to we being open AI and Intuit are going to absolutely nail this experience. It's going to be an amazing experience and only kind of now relative to how much customers are -- at the end of the day, they're using an Intuit app, whether they're using it within Chat GPT or they're directly coming to us, it really doesn't matter. And I think only time will tell what the customer behaviors are. The good news is we're positioned for wherever the customers are. And that's what's exciting about this partnership.

All right. I think that's all of the questions. Hey, before we end, I also want to thank Kim. She has been an amazing partner for all of us internally, and she's made us better. And we are so fortunate to have had the opportunity to work with you and the best of luck in your next chapter. And you're going to miss all of our amazing earnings calls going forward, but we'll see you on the other side. And for everybody that joined, thank you for your time. We'll talk to you next quarter. Bye, everybody.

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

Hello, everyone. Welcome to Intuit's Investor Day. My name is Kim Watkins. Really wonderful to see all of you here in Mountain View with us and also wanted to welcome those of you joining us online. We really appreciate you taking the time to be with us today.

We have a great day planned for you. Sasan is going to kick us off and take us through our AI-driven expert platform strategy. After Sasan, Alex will come up and take us through the technology, fueling our innovation and powering our platform. Then we'll head to a deep dive on the business platform growth strategy. First, Marianna will take us through small business and she'll be followed by Ashley, who will take us through mid-market. Then David will come up and take us through an immersion of our business platform offerings, really to bring the strategy to life. After a short break, Mark will come up and take us through our consumer group, our consumer platform growth strategy, followed by Arundati who also take us through another immersion. And then Sandeep will finish this off with some financial perspectives. And then don't worry, we'll have plenty of time for Q&A.

For those of you here with us in Mountain View, we also invite you to join us for lunch where you'll have plenty of time to interact with all the presenters.

We have one change today, which is that we're going to actually be immersing you in our offerings and our strategy right here on this stage, so you actually will not need to leave your seats.

Couple of quick housekeeping items. First, WiFi is available on the Intuit guest network. Hopefully, you found that already. There's no access code required. Second, the restrooms are to your back left just across from the elevators. And the presentations we'll be sharing today are available on the Investor Relations page of our website.

And so now we're ready for the part that everyone loves, the forward-looking statements.

[Presentation]

Forward-looking statements, these presentations contain forward-looking statements. There are a number of factors that could cause our results to differ materially from our expectations. Please see the section entitled cautions about forward-looking statements in the appendix accompanying this presentation for information regarding forward-looking statements and related risks and uncertainties. You can also learn more about the risks in our Form 10-K for fiscal 2025 and our other SEC filings which are available on Investor Relations page of Intuit's website at www.intuit.com. We assume no obligation to update any forward-looking statements, except as required by law.

Non-GAAP financial measures. These presentations include certain non-GAAP financial measures. Please see the section entitled about non-GAAP financial measures in the enclosed appendix for an explanation of management's use of these measures and reconciliations to the most directly comparable GAAP financial measures. In this presentation, we may also announce plans or intentions regarding functionality that is not yet delivered. This information is intended to outline our general product direction, but represents no obligation and should not be relied on in making a purchasing or investing decision. Additional terms, conditions and fees may apply with certain features and functionality, eligibility criteria may apply. Product offers, features, functionality are subject to change without notice. Certain product screen images are simulated and video shortened. Some numbers may not agree with the sum of the components nor with SEC filings due to immaterial rounding adjustments.

Okay. I think we're ready to get started. Please join me in welcoming, Sasan.

All right. Good morning, good afternoon to everyone on the webcast and a very, very warm welcome to everyone in the room. So we believe that every SaaS company, anybody that makes software is either going to get disrupted or they're going to be the disruptors. And that's because of what's possible with AI. We believe that SaaS players must become the system of intelligence, which means you have to be great at data, data models, data ingestion and AI capabilities to ultimately architect learning systems that learn from customers and deliver the experiences that they are looking for, which means business logic, workflows and the app layer will completely get disrupted, which brings us to what we're going to talk about today.

Today, we're going to talk about three things, and what you're going to experience is: one, what the growth drivers of the company have been looking backwards. What got us to 16% growth this past fiscal year; two, what you can expect from us in the coming months and this fiscal year to accelerate growth; and then three, why we are the disruptors.

Now it was in this room 6 years ago, where we shared with you that we're betting the entire company on data and AI. And 6 years later, AI has become a force multiplier for Intuit. And we now have all of the pieces and parts to ultimately become the system of intelligence, a learning system that delivers done for you experiences. And in fact, in the last several months, we've kicked it into an entirely new gear. We've narrowed from 5 bets to 3 bets. We've significantly reallocated more capital to 3 bets and put our best talent on those 3 bets. And we believe that will significantly accelerate impactful innovation for our customers and accelerate the growth of the company.

In fact, based on our declaration of becoming an AI company, we have profoundly changed the growth profile of Intuit. About 10 years ago, we were less than $5 billion in size, growing 8%. Today, we are 4x that size, nearly $20 billion, growing at double the rate at 16%, with 40% operating margins, and the best is yet to come. And this past year, we exceeded on every metric that we committed to you. And we are constructively dissatisfied with two areas of the company, one is Mailchimp, one is international, both of which we have the best talent on and the proper focus, so it can be accretive to the company's growth.

Now one of the things that I love about Intuit is we try to practice a day 1 mindset every single day. And a day 1 mindset for us means if today is your day 1 on the job, the curiosity that you bring, the questions that you ask, the objectivity that you bring, you're never in love with what you've declared, but you're in love with making things better. We apply that once a year very intentionally to the reflections of the company. We step back and thinking about it through the lens of today, we were a new management team that took over the company. What would we be proud of and what would we be constructively dissatisfied with.

We share this with our Board, then with our leadership team and then the entire company and you are our last stop. So let me walk through today with Sasan's first day as CEO, this is what I would share with you. First and foremost, we are an absolute talent magnet. We are bringing in talent from the outside, some of the best builders, some of the best makers, some of the best senior talent from the outside. And we have all of the pieces and parts to truly become a one-stop shop. Half of the company's TAM is mid-market and the assisted tax segment.

The assisted tax segment is a $2 billion business growing at 47%, mid market is growing at 40% and we are constructively dissatisfied with both. We believe we can do better because of what's possible, because of our capabilities and because of the size of the opportunity.

In my 20-plus years of the company, I would tell you this past year was our biggest year of really durable, impactful innovation. There's innovation and then there is impactful innovation. This was our biggest year ever. The innovation, which was the combination of AI and HI that drove a $2 billion business growing 47% in TurboTax Live was the most incredible adoption of we've ever had.

In Credit Karma, you're going to hear later that we took 4 to 5 points of share, respectively, in credit cards and personal loans, all because of the innovation across the platform. It was this time last year where we launched Intuit Enterprise Suite. It may seem like a long time ago, it's only been a year. And this last quarterly deliverables, it was our largest July road map delivered ever, it's only been a year with Intuit Enterprise Suite, and it is fueling growth.

And last but not least, in July, just a few months ago, we had our largest launch of a virtual team of AI agents and AI-enabled human experts that are doing the work for businesses. So it's the largest impactful innovation that we've ever had that we believe will accelerate growth in the future.

We also are always looking to architect the company for velocity. Our view internally is that we need to move faster than entrepreneurs and start-ups but with the scale of a massive company behind it. So we're always looking to see what we can do to move faster. One of the #1 levers to move faster is mission-based teams that are self-contained that can make all the decisions that have access to all the platform services that can move without dependencies, blockers, et cetera. Just 3 months ago, we shifted over 1,200 data analysts, data scientists, data engineers closer to the business within payments, within TurboTax Live, within all of our segments, so our teams can move much faster. But that's on the side of constructively dissatisfied because we will never be satisfied with our velocity, although the pace of code deployment is better than it's ever been.

And then last but not least, we feel like we had a very, very strong year, growing top line 16% and operating margin at 40%, but we have so much more room for growth. Even though TurboTax Live customers grew 24%, even though mid-market customers grew 23%, even though money, overall, the revenue grew 37%, we are constructively dissatisfied. We believe we can do more because of all of the capabilities that we have.

So if today was day 1 as CEO, I would say, wow, what a foundation, but we can do so much more. We're hungry. We're bullish. We have all the pieces and parts to do amazing things. So let's talk about what those amazing things are. But it starts with what we're trying to do for our customers. They ultimately pay the bills.

What we're trying to do for customers is for consumers, it's to help them from credit building to wealth building. And for businesses, it's from lead to cash. And it's a significant total addressable market. It's $300 billion plus in size. In this past year, our penetration went from 5% to 6%. So 6% down, 94% to go, huge opportunity.

Now these secular shifts play into our favor. And I would tell you that if you go back to last year's Investor Day, they've completely changed from what we shared with you a year ago. Every consumer, every business, large or small, every accountant that I talk to, that we talk to is completely over digitized. They have an app for everything. And in fact, AI is in the middle of everything that they do and the generation, the new generation coming in, is amplifying it by 10x. What does that mean? Let's talk about that a bit more.

So if you're a small business, and then depending on your size, you could be using up to 25-plus different applications to run your business, and I'm going to use a business as an example. You could be using one app to create an estimate and send an invoice. You could be using a different app to pay bills. You could be using a different app for workforce solutions. You could be using a different app for financial management, for reporting. A different app to get advice. And by the way, now in the midst of all that, they're using Gemini, Claude, ChatGPT to get advice. And the biggest thing that we hear from customers now, which is very different than just a year ago, is my data is trapped in all of these different apps. I'm actually spending a lot more time trying to figure out what is going on in my business, and I'm spending a lot more money today than I did a year ago. This is what we have been focused on and built for, for the last 6 years to have a platform where at a minimum, we can reduce 80% of all of the apps that you use. So in one place, you can get to insights because we're doing the work for you. You can drive growth and we consolidate your tech stack so that you can do it at lower cost, but a higher spend with us, and you're going to experience that today.

So with that context, let me just walk you through what are we doing about it? What's our strategy? First of all, for those of you that are new Intuit, we are very intentional about how we run the company. For us, culture is everything because culture drives growth. And we run the company from the mission and why we wake up every morning to do amazing things for our customers to how we measure that. So let me talk about a few things that I think are very relevant to how we're going to accelerate delivering for our customers.

First and foremost, our mission is our guide to fall in love with what customers need and what customers want and never to fall in love with our own solutions, and always look to find ways to power their prosperity. This is a big cultural point for us in terms of why we show up to work every day.

The second is our values, which have changed three times in our history and the last time it changed was a few years ago and very intentionally, what changes what you see in the middle. It's courage, it's customer obsession and it's stronger together because we believe that culture is not static. We have to -- for us to live and thrive and disrupt in the world of AI. Our values, which is our leadership principles must evolve. And the three in the middle is what evolved several years ago, and I'll just point to one, which is courage.

Courage is not the most important value, but it is one of the important values that you see here, which is it's about taking on things that nobody else will. It's about going down roads that are unpaved. It's about taking risks and being willing to disrupt yourselves. It's been incredibly bold with the goals that we set and aspire to greatness for our customers, which is one of the aspects of what drives our 2030 goals. And let me just pause and spend a few minutes here because this is very important.

There is guidance that we provide you, then there is what we aspire to internally. For our customers, our aspiration is that anybody that's on our platform, a consumer that we double the household savings rate. It goes right after their pocketbook. For businesses that are on our platform, we want them to be more successful on our platform versus off of our platform. Specifically, what that means is businesses, in general, 50% of them go out of business after 5 years. And our stated goal is that any business on our platform should be far more successful than if they're not on our platform. We want to be one of the most trusted companies in the world, and we aspire to 20% top line growth.

So let me hit on a few things to make this real. Today, consumers that are on our platform, their savings rate is 1.9x those that are not on our platform. So we are actually quite close to doubling household savings rate of any consumer on our platform. And any business that's on our platform, their success rate is 21 points already. So we've exceeded the goal, but we need to sustain it. They're 21 points more successful on our platform versus if they are off our platform.

The second and last thing I would touch on this page is Intuit grew 16% this past year. And internally, we believe 20% is possible. It's our aspiration. Our business group grew 16%, the overall consumer platform grew 15% this year. How could we get to 20%? We have to be great at many things. But the 3 things that matter is: All of our AI investments is fueling massive adoption of services. The second is we sustain 40% plus growth with TurboTax Live, low penetration, it's possible; and third, we sustained 40% growth in mid-market. We're just getting started, and our penetration is low.

So that's our aspirations of what's possible by delivering incredible benefits for our customers.

How will we do it? Our AI-driven expert platform, there are two -- three things that's important for you to take away. It is data plus AI plus HI, human intelligence, that is our differentiation. And ultimately, it is to deliver experiences that are done for customers with no dead ends because of human intelligence that sits on our AI platform. The second most important thing is that we are building a system of intelligence. What does that mean? We are building our systems in a way where we're disrupting business logic. So that ultimately, the customer can engage with us and ask for, how do I grow my business, how do I sell wine that's over $50 versus other competitors? Which customers are most profitable? Let me give you my POS data. Can you tell me which areas I should focus on? Whatever you want to engage with the platform on, we, ultimately, our data, AI and HI capabilities deliver that experience. That is a system of intelligence. That is our strategy. That's what you're going to experience today.

We made a significant shift this year in the last few months, and we narrowed the company's 5 bets to 3 bets. It was a significant shift in capital allocation, a significant shift in our talent because of the progress that we've made because we now see where we're getting traction to accelerate growth.

The 3 bets are: shifting and accelerating, delivering done-for-you experiences. Marketing is done-for-you. Customer management is done-for-you. Cash flow management is done-for-you. Payroll is done-for-you. Your books are done-for-you. Your accounting is done-for-you. Your taxes are done-for-you, all of which never has a dead end because it's AI plus HI, with the massive data we have and the capabilities to ingest data. That's the done-for-you experiences across the entire platform.

The second, money is everything. People don't do taxes because they love taxes. They want the money. Businesses follow their passion, but cash flow matters. And so we're accelerating all of our investments around money, helping you get immediate access to your refund, helping you with how to grow your refund, helping you with how to grow your savings. You're going to see all of these launches of innovation today -- how we're doing that, which all leads to taxes are done with Intuit. And the same thing, making money the center of what we do on our business platform.

And last but not least, mid-market. We believe very strongly that mid-market will be bigger than Intuit is today sooner than -- rather than later. It's a massive opportunity, and we are going to disrupt it with AI native platform with AI + HI, with a peripheral of data that we have.

If I were to zoom out and just talk a moment about our advantage and what gives us confidence. First, it's important for all of you to know, we operate as a company with paranoia, with passion and hunger. So when you hear the words advantage and where we have confidence, please know that we operate in a mode where every day and every week matters. With that said, to win in the era of AI, data, data, data, data matters. And I'm talking about long tail of data. When you see here that we have 625,000 data points per business or over 70,000 data points for consumer, that's not generic. That's -- I have data and understand you as a plumber and what you do as a plumber. I have data and understand what you do all your money in and money out as a landscaper, as a hair stylist, wealth management. So these data points are not generic data points. It's data points that drives the success of specific businesses in specific industries and consumers depending on where they are in their life.

Data is our advantage. We have incredible data, but more importantly, we have built data services that can ingest the data from anywhere. Gmail, Excel, take a picture, so customers can contribute their data. The second is we move over $1 trillion, nearly $1 trillion of money, which means we know a lot about our customers, and we are incredibly advanced when it comes to AI. We have 15-plus LLM that we use. All of it is driven by our internal Intuit financial large language models. And we work with the best of the best and are in the forefront of what's possible with LLMs.

So if I were to zoom out, there are 3 big advantages that we have. It's data and data services and everything is about data. It's AI + HI. That is our advantage, which is human intelligence that sits on our AI platform, and it's been the system of record. But as I said earlier, our focus is to become the system of intelligence, Building learning systems that learn from customers and deliver all the experiences that they need versus business logic, workflows, assuming you know exactly what the customer wants because that's possible in the era of data and AI.

All right. Let's shift to some proof points. Let me orient you before I get into a few proof points. And I share proof points around done-for-you experiences, what progress have we made, consumer platform, small business and mid-market. In terms of done-for-you experiences, in July, we launched one of our biggest launches, a virtual team of AI agents that do the work for our businesses. We have well over 2 million customers on our business platform that are engaging with the AI agents, over 80% repeat engagement. Those that use our AI accounting agents are saving 12 hours a month. Customers that are using our AI agents for money are getting paid 5 days faster. And any interaction on routine tasks with AI agents, they're 2x faster to get to complete. And this is since our July launch.

The second is with all of our data AI and HI investment in tax, customers that choose the 2 taxes themselves at the scale that we have are getting their taxes done nearly 12% faster and experts that do taxes for our customers a 20% reduction year-over-year. I want you to think about that. Data, AI and HI at scale, driving those kinds of savings. And internally, you're going to hear a lot from Alex, engineers that use our AI assistance are coding 40 times -- 40% faster. Each developer on average is delivering 39% more code today than a year ago. We are becoming a rocket ship based on the leveraging data and AI.

On the consumer platform. I know I touched on this a few times but everybody asks what proof points do you have around AI? Well, how about a $2 billion business that's growing 47%. That's all data, AI and HI. It's a rocket ship, and we're just getting started. The second is the proof point of all the integration between Credit Karma and TurboTax. Credit Karma contributed to 1 point of tax growth this year, and we're just getting started. And as I said, money is the center of everything you can see on this slide, we invested in our money offering, and we gave early access to refunds in tune of $14 billion this year. The TurboTax, Credit Karma platform becoming one is working.

The second, I think, our business platform is the best example of all-in one that's working incredibly well. You can see here that our customers in the U.S. grew 8%, our ARPC is up 14%. QB Live, which is HI, up 2x from a year ago. And by the way, any customer that uses one of our experts, the attach rate of payments and payroll is 22 points higher. And you can see money and payroll grew 37% and 25%, respectively, because we are a platform where data, AI and HI is doing all of the work.

And in mid-market, as I said earlier, we're just getting started, 23% customer growth, 40% revenue growth. What I think we're the most excited about is that revenue per contract is $27,000. And you can see the penetration of payments and payroll is much higher with Intuit Enterprise suite. Why? Because it's a platform. And I think the most important thing I would call out on this page is the Forrester study that we had done that demonstrates that customers that are on Intuit Enterprise Suite see a 300% return on their investment over a 3-year period.

Why? One, because we consolidate their tech stack on all their data is in one place, and then we're doing the work for them, delivering insights where they can grow their top line. That's one driver. It's almost 1/3 of the driver of the 300%. The second, because we're combining everything on one platform, we're driving automation across the platform, eliminating manual work across money in, money out payroll and they're saving a ton of money through automation. They don't need as many people. And third, we're consolidating their tech stack. Remember the slide I showed you earlier with 25 different apps, people pay for those. And so we're eliminating 80% of the apps on that slide and their tech consolidates, their cost consolidates. We get paid a lot more, but they're saving a ton of money. That's where the 300% comes into play.

So we're super excited about our proof points to truly become the system of intelligence, and we have all the pieces and parts to really fuel the next chapter of success for our customers.

Now let me talk about one of our secret sauces. I often get asked, particularly by new analysts and/or investors that are covering Intuit. Well, how do you all do all of this stuff? What's your secret sauce? And it's our Intuit operating system, which we revisit once, sometimes twice a year. As I said earlier, we take a day 1 mindset to everything that we do. We're not in love with what we declare, we're in love with what we need to do and get done. And our Intuit operating system is really if I were to frame it at the highest level and not get into too many of the details, it's one to help us balance short and long. It's to help us with prioritization and roadblocks. It's to actually understand how we change our build process. Our build process today is very different than a year ago. It's not about requirements and get in the room and let's debate and let's talk about PowerPoint, it's go build, because a learning system learns from customers, faster than any requirements document that can be put together. And so our operating system allows us to move faster than entrepreneurs and at the scale of the company.

I don't want you to hear we're perfect. I want you to hear that we architect the company continuously for velocity to win both short term and long term. And this is our secret sauce. And in fact, at my staff meeting this Monday, we evolved a few things because we learned that certain things aren't working, you need to change them.

Let me bring all of this to a close before I turn it over to Alex. And I want to bring it to a close, and I would -- if you've not paid attention to anything I've said so far, please pay attention to what you're about to see. What you're about to see is all of our launches that are in market today with a few that are coming in the next few months. What you're about to see is not a vision clip. It is what's in market today. It's what's coming in the next few months, and it's an important umbrella for what you're going to hear and see in the next couple of hours.

Can you roll the video, please?

[Presentation]

So if I could summarize 3 quick things that are not just about the summary of what you saw in the video, but what you should expect to see and hear in the next couple of hours. One, we are a data, AI and HI company. Our strategy and the things that we're going to do is that in the future. It's here, and we are rapidly becoming the system of intelligence by architecting everything that we do that can learn from customers and deliver the experiences on the spot because of all of the capabilities that we've built. That's one element of what you saw.

The second, which we're not going to get into today, but I wanted to call it out is we have a huge launch coming up in the next month at Intuit Connect, which is a platform for accountants to be able to run their entire firm on our platform. That's an essence of a glimpse that you saw in here, and our teams have been working on this for a very long time, and that's a very big change and driver of growth for the future. And the third is monetization.

There are 3 ways in which we are monetizing today. New customer growth, adoption of services, which is consumption, payments, payroll, live. And third is lineup, mix and upgrades based on what's available where. Those are 3 ways in which we are monetizing today. And we also remain open to new monetization models based on what's possible, based on consumption and what we learn from customers.

Awesome. So with that, let me turn it over to Alex.

Thank you, Sasan. Hello. I'm Alex Balazs, Intuit's Chief Technology Officer. Today, I'm going to walk you through how our platform continues to fuel agility, innovation and velocity at Intuit. So let's start with a couple of takeaways, which will describe the power of the Intuit technology platform. Data, data services and AI are durable advantage. And as we evolve from a system of record to a system of intelligence, our all-in-one platform and agentic capabilities fuel customer growth. Our powerful combination of artificial intelligence, human intelligence and platform leverage both velocity, efficiency and innovation for our customers.

We're guided by our platform strategy to be a global AI-driven expert platform. It's a declaration we made 7 years ago. And we are evolving from the system of record into the system of intelligence because we draw from the combination of the power of our investments in artificial intelligence, human intelligence and our platform that uses data both from inside of Intuit and outside of Intuit. This is a platform that does all the work for you, and it's not reliant on the concept of business applications. This is the place where customers can achieve insights into their financials and run their daily lives, whether it's a consumer or a business.

We've really architected the company for velocity through our technology platform. It fuels done-for-you experiences based on the principles of agility, innovation and velocity. Our teams are empowered to move quickly with very few dependencies. They innovate to deliver customer solutions quickly using our capabilities, our data, our data services, our AI and our builder culture. They drive both the velocity and efficiency that are truly our durable advantage as a company.

We've also supercharged the Intuit platform to give our customers access to what they need at the time that they need it. We continue to enhance our generative AI operating system, GenOS, to accelerate this agility, innovation and velocity that I talked about before. And by rapidly advancing GenOS, we've dramatically stepped up the pace of our innovation to further unleash the power of this data, of the AI and the human intelligence on our platform to truly become this system of intelligence for our customers. The latest release of GenOS empowers our developers to rapidly put robust agentic experiences into the hands of our consumers and businesses.

As a reminder, this is the slide that I showed you last year. And actually, this serves as our system of record. It's basically the location where all of our customers' capabilities and data are that solves their problem. It's the all-in-one platform, and it solves any customer job. You'll see examples of this all-in-one platform in the following business and consumer platform presentations, and they're all powered by this, the City Map. This is our platform. We've been building the Intuit Platform for nearly a decade. And now we can combine these capabilities in accounting, payments, taxes, marketing, together with clean data and world-class AI to create these AI native experiences better and faster than before. All of the jobs to be done or the solutions to these customers' problems can be addressed by the City Map, in order to solve our customers' problems faster through leveraging and reuse of these capabilities. It's actually a big competitive advantage for us.

And now with the combination of artificial intelligence, human intelligence and our data, we truly have become the system of intelligence. So we can build customized solutions and personalized products that solve any job. We sit as the intelligent middleware in between the jobs to be done, the things that customers want solved and the underlying capabilities of our platform. So customers have the ability to accomplish what they need, whether it's financial services, customer relationship management or any other action. And here's the best part, they don't have to leave our platform. They stay on platform. This is truly being the system of intelligence.

The entire City Map is supported by our development ecosystem. It's a world-class environment that enables our developers to deliver code fast with security and compliance built in. We've achieved 69% reduction in incidence -- or I'm sorry, incident resolution time in the last 3 years and achieved 5 9s of service availability, really world-class. And by achieving 5 9s of service availability, we've had 100% uptime the past 2 TurboTax seasons.

Our data infrastructure provides self-service capabilities, reusable systems to organize, process, interpret, stream and store data so we can build smarter products and experiences. It is this infrastructure that allows us to store the data that we're actually using to train our models. We're delivering 188 million interactions through natural language, which really illustrates the scale of our infrastructure.

In the last fiscal year, GenOS actually enabled 9,800 model deployment events, 9,800. And that reflects our ability to build, test and iterate with AI, with high velocity. And it also is illustrating that we really have a balanced approach in applying both generative AI and traditional and classic AI techniques as we're building these experiences. Our data infrastructure is really the foundation that all of our products are built on, including the Intuit Enterprise Suite, which is a key product for one of our big bets, fueling the success of the mid-market.

Our AI infrastructure is the key for our data, data services and AI durable advantage. With the capabilities that enable machine learning, knowledge engineering and large language model development. Our AI infrastructure capabilities allowed our developers to choose the model that's best suited to the problem that they're solving. And today, we have over 1,300 of our engineers who are actively working on building agents with GenOS due to these foundational building blocks. These AI infrastructure capabilities are accelerating the building of these agentic capabilities, including the accounting agent. It's one of the things you saw in the demo, the accounting agent for businesses; and Credit Karma's refund assistance, so across all business and consumer workflows. We're continuing to work on the model context protocol as well, which is mechanism, an API so that agents can talk to data, can talk to services and facilitate agents that talk with each other.

Embedded fintech, it provides an environment that allows our developers to build financing and payment solutions. Our fintech capabilities support one of our big bets, accelerate money benefits. Over $890 billion of money movement and facilitating 18 million employees to get paid. This results in our customers being able to make payments and effectively manage their money and their cash flow. In the following presentations, you'll see some examples of these features used by a construction company on the business platform presentation.

Our domain capabilities that's really our secret sauce as a platform because it enables our developers to build these customer-facing products in the areas that are truly Intuit's areas of expertise. For our reimagined QuickBooks platform experience, we were able to build it 6x faster with City Map capabilities than we would have if we built it from scratch. And in fact, 3 million of our business intelligence customers come to our platform to see all their data in one place on our all-on-one platform.

We've invested in these AI capabilities for several years, and we're operating at an enormous scale. You can see some of the numbers here. And we'll continue to invest in data and AI to serve our customers through the scale of the clean data that we have, our data and AI infrastructure to maintain customer attributes; and very importantly, dynamic usage of large language models. This allows us to do things that we haven't been able to do before and to deliver better customer benefit.

Our durable advantage of data and AI accelerates us and it drives business impact. And it's this technology that fuels the done-for-you experiences, money and mid-market.

As I said before and as Sasan mentioned, we are definitely architecting the company for velocity. It's always something that's very top of mind for me. We've made great progress with key drivers of platform velocity. It's allowed teams to move faster when building these customer experiences. So in the past year, we've increased the number of AI tools that are available to our developers and different members of the workforce. We've accelerated on cutting-edge technology and really doubled down on builder culture. But to get really specific about it, our GenAI powered workforce has really -- we've really amped up their velocity. And here are a couple of key metrics that really illustrate how they can move faster. And because of that, they can deliver more for our customers.

So developer velocity, we're continuing to use that as a lever. So it's increased 12x over the past 5 years. The GenAI tools have accelerated our workforce productivity to the point where there's 40% average coding -- faster coding with AI assistance, which has led to 39% more code per developer. We've seen improvement in also the contact rate of talking to customer support, a 15% reduction in contact rate in the past year.

All right. So those are the capabilities, I'd like to take a pause. It's my pleasure to actually show you some of the massive changes that we're creating for our customers and our employees with this technology. So we're achieving powerful efficiencies across all Intuit roles through AI. And you're going to see some of these done-for-you experiences that are both for our employees and for our customers.

So first, Intuit's marketing employees, they usually spend 1 to 2 weeks stitching together in product campaigns with across multiple tools. It's a really complex process because it involves multiple teams and then it involves lots of handoffs. And each of those comes within service at SLA and so it can be really, really slow. With Intuit's marketing studio, they simply share a brief, answer a few prompts and then AI generates a complete campaign from start to finish. So instead of 1 or 2 weeks, all of this is done in 20 minutes. This eliminates manual work and enables real-time experimentation, keeping us on the leading edge and really allows us to respond to customer feedback much more quickly.

Intuit sellers are actually used to spending 16-or-so hours a week preparing. So qualifying leads, preparing for calls, follow-ups. With our AI seller product support suite, we expect to save 256 hours per seller per year. So how are we doing that? So AI now recommends high-quality leads, automatically books the meetings and prepares the insights. It dramatically reduces the time of busy work. So our sellers spend more time selling, building relationships and converting opportunities into revenue. Something that's obviously very close to me, our developers. Our developers used to waste weeks on writing down product requirements, creating mockups, setting up environments before they can even start coding. So weeks before they could even start coding.

With Intuit dev assist, customer feedback instantly becomes requirements. Auto generates mockups and creates the boilerplate code. It helps our developers deliver features 40% faster. So instead of spending weeks getting prepared, they're actually out in front of customers in days, and we can get these curated products to our company -- to our customers faster, and we can learn faster.

Now I want to show you what we're working on, including AI scaffolding and Avatars that may one day provide guidance and insights to our customers. So as we look at the next generation of technology for mid-market businesses, we know every single business is unique. There's pain and actually getting custom solutions, and it led to the -- it leads to the over digitization that Sasan mentioned before. So we see that for about every $100 million of revenue for one of these customers, they spend an average of $5 million on consultants to build custom tools for them. So what we're doing is we're exploring how to solve this for mid-market for their internal operations and for their customer-facing engagements. So powering the back office is something we refer to as project scaffolding AI. It's a self-learning agent that assesses policies, documents, it observes patterns and adapts to each customer's business as it evolves. So it learns what's important.

No consultants, no long set up. And mid-market businesses don't need to know how to build or to refine this agent. Scaffolding AI does all the work for them so they never have to leave our platform.

All right. So that's the back office. Actually, sorry, let me actually show you exactly how this looks. So let's take one of our customer, Sarah. She runs a large real estate firm. So scaffolding AI will give her a competitive edge through this tailored functionality. So her custom-created agent understands her business. It learns how her team manages offer to close, working across all her software systems, not just ours, but any software system she has. And it generates custom business processes using reinforcement learning, business aware orchestration and tool integration, so automatically integrating all these tools. These intelligence systems learn and do the work for Sarah, so that she doesn't have to do it and she doesn't have to hire anyone to do it.

Sarah will be able to approve the new process and the agent will update it in real time. And with scaffolding AI, it's all done for her and all done in one place.

All right. Now let's get to the front office. This is the one I'm really excited about. So I almost jumped the gun. So with -- in the front office, through AI Avatar, it's powered by Intuit's multimodal AI, in minutes, Sarah can create a digital twin. It's her face, it's her voice, it's her style of talking. Sarah connects on a personal level with more clients more quickly through this AI-powered Avatar messaging. In just minutes, Sarah can create custom multimodal messaging personalized to thousands of customers. Our research suggests that Sarah will have 4x higher conversion and 3.5x more retention using this capability.

So through the combination of scaffolding AI and AI avatars, it's really just the beginning of how Intuit is revolutionizing the future for mid-market businesses. We can't wait to empower these solutions for our customers using the next generation of AI done-for-you experiences so they never leave the Intuit platform.

All right, to close. Our AI-driven expert platform, our data, our scale, our world-class platform capabilities and our talent are our durable advantages. It allows us to deliver both growth and innovation. We have supercharged the Intuit platform to be the system of intelligence, giving our customers access to personalized, easy to use, done-for-you experiences using the combination of artificial intelligence and human intelligence. We're creating differentiated value for our customers with agility, innovation and velocity to better deliver what the customers want, what they need and at the time that they need it. And this is only the beginning of the platform innovations that we're looking to deliver, all-in service to powering the prosperity of our customers.

And with that, I'll turn it over to my colleague, Marianna Tessel.

Hi, everyone. I'm super excited to be here today. I'm the General Manager of our Small Business Group, and I'll be joined here today by Ashley, who leads our Mid-Market team; and by David, who leads our Services team. Together, we will tell you the story of our incredible vision and progress of the Global Business Solutions Group.

We'll cover 3 key points today that I want you to take away that makes us very confident in our trajectory. The first one is that we have a massive opportunity across a large TAM, and we increased our penetration from 5% to 6%. The second is that our all-in-one platform serves as the system of intelligence for our customers to run and grow their business. And last, our platform scales to serve all kinds of businesses from small to large.

Fiscal year 2025 was a milestone year for GBSG. We drove 16% total revenue growth, surpassing the $10 billion mark for our franchise, and we scaled an impressive $11.1 billion in revenue. I'm particularly proud of the meaningful progress we've made on our stated strategy to increase platform adoption and disrupt the mid-market. Look at some of the stats. We grew our online ecosystem revenue by 20%; our money revenue, 37%; payroll, 25%; and mid-market revenue by 40%. And as we look ahead, we're excited to continue to build on this momentum in fiscal year '26 and beyond.

Let's anchor back in our mission, which is to power prosperity around the world. For our team, that means solving small and mid-market businesses most pressing challenges. We know that every business has similar critical needs from getting customers to getting paid and staying compliant and organized.

Our audiences are broad, and we're serving more customers than ever before across many dimensions of complexity. Small businesses and solopreneurs that are just getting started, all the way to multi-entity mid-market corporations, generating millions of dollars each year and actually growing rapidly. We also serve many business types across industries and geographies. This breadth of customer needs and audiences give us a massive total addressable market.

When you look at the largest opportunities by customer needs, nearly half of it is in money as all customers need to pay vendors, get paid and get capital. And then when you look at it by audience, nearly half of it is in mid-market despite being relatively small subset in terms of number of customers. This is exactly why accelerating money benefits and fueling success for mid-market are 2 of our 3 big bets. And it's also why the ARPC expansion is a key focus of our growth formula.

But what does it look for customers today? Small businesses spend a lot of time and we're spending a lot of time speaking to them and to our small and mid-market customers. And what we hear from them is consistently that they feel overwhelmed, they feel over-digitized and they have a lot of complexity that they need to manage. Businesses today are making do with fragmented tech stacks using patchwork of different apps that don't talk to each other. All of this resulting in more time that they spend with their data silos, limited visibility into their financial health, and they actually end up paying more in total cost of ownership to use and integrate all these tools. What businesses really want is a single connected platform to reduce this complexity and to help them thrive. They want consolidated data, consolidated tech stacks and consolidated spend. This is exactly our vision and exactly where we come in.

Our vision is to be the connected end-to-end platform that small and mid-market businesses rely on every single day to run and grow their business. Our platform powers prosperity by delivering undisputed benefits of more money, no work and complete confidence.

To bring this vision to our customers, we're building a mission-critical, all-in-one platform that serves as the system of intelligence. Our platform solves the complexity for our customers and enables them to run and grow their business. It leverages, like Alex said, a combination of data, AI and human intelligence, all of it to deliver powerful done-for-you experiences.

The breadth of the offerings in our platform meets the needs of any business, small or large. For small businesses just getting started, we can help them discover the right solutions at the right time. And as businesses grow into the mid-market, our platform is robust enough to grow with them, handling their increased complexity and actually helping them scale.

As we mentioned before, this past July, we totally reimagined how customers experience our platform. At the heart of this new experience, it serves all jobs to be done all in one place with more seamless integrated experiences. It's also improving discoverability of our different offerings. It is global and it is mobile, meeting our customers wherever they are. And it is built with done-for-you experiences at the core, powered by both AI and human intelligence. And it introduces new jobs. For example, we brought a powerful CRM capability directly into our platform with customer hub.

We're seeing solid traction at scale since we launched with strong engagement across nearly 9 million customers.

Now let's go deeper into some of the different elements of our all-in-one platform and the momentum we're seeing. Let me start by how we're delivering revolutionary done-for-you experience. In a massive launch this past July, we introduced first of its kind virtual team of agents including accounting agent, payment agent, payroll, customer agent and more. These AI agents seamlessly embedded across our platform, transforming our customers do their work and grow their business. While this is still early, we're seeing incredible momentum. Customers are twice as fast completing routine task, and we're seeing nearly 80% repeat engagement across agents.

And what makes this capabilities particularly powerful is their seamless integration with AI-enabled human experts providing complete confidence. And like we mentioned before, we are seeing momentum here as well with QuickBooks Live customers doubling since last year.

We're also further empowering businesses to understand our financials and run their business with powerful BI and seamless workflows that simplify important tasks like reconciliation and months close, driving better, quicker business decisions and unleashing the growth for our customers.

With business intelligence, we help customers to run their business more effectively, highlighting trends, identifying root causes and even proactively surfacing insights. Our accounting agents does work for customers with impressive accuracy, saving customers 12 hours per month on average.

Within our money portfolio, we have a massive opportunity to be the end-to-end money platform of choice, including accounts receivable, account payable and capital. We launched exciting new innovations this past year. For example, our payment agent who helps customers get paid on average 5 days faster. By the way, this is one of our highest repeat usage rate. We have our AI-powered bill ingestion and multi-product lending capabilities. This is just to name a few innovations in our money portfolio.

These innovations contributed to our incredible results. Our online money portfolio revenue is now $1.4 billion, and it is up 37% year-over-year. Our total payment volume is now $174 billion, and it is up 34% year-over-year.

Within Workforce Solutions, our vision is to power prosperity for employers and their teams by imagining how they work and grow. This year, we delivered 25% growth in online payroll revenue. We served more than 18 million employees and processed over $300 billion of payroll. We launched new innovations here as well, like our payroll agent to streamline workforce management.

We also acquired a company, called GoCo, in Q3 of fiscal year '25. This acquisition enabled us to deliver a more comprehensive workforce solutions suite with robust human capital management included, especially for mid-market customers with large and growing teams.

Let's talk about Mailchimp. Mailchimp represent the marketing job in our platform. It helps SMB, to get, grow and manage customers. While we are constructively dissatisfied with our results in fiscal year '25, we made foundational progress this year. In product, for example, we released multiple innovations, including improved SMS offering. And we have seen and continue to see great adoption. Customers that are using it are spending 76% more with us on average.

On the go-to-market side, we improved our motions and we focused on high-value mid-market customers. Sales productivity doubled in July when you compare it to April.

Looking ahead, we're focused on 3 key areas to build momentum throughout the year. Our product, go-to-market and our platform experience. First, we're going to enhance our product. We're introducing improved segmentation, campaign management and omnichannel communication that includes SMS, WhatsApp and transactional e-mails.

Second, our go-to-market motions. We're refreshing our marketing. We're improving sales and onboarding of customers, and we're also investing in integration with a few strategic partners. And finally, our end-to-end platform experience. We're deepening our platform workflows and driving awareness and engagement of the marketing and CRM jobs. All of it unlocking the abilities for SMBs to get, grow and manage customers within our platform.

Overall, I'm proud of the progress we've made and feel confident in our platform -- in our plan to achieve double-digit Mailchimp revenue growth by fiscal year '26 exit.

Together, this platform innovations are successfully bringing our vision to life. With them, our all-in-one platform is delivering undisputed benefit. You can see some of it on the screen here.

And AI and human intelligence are expected to create meaningful long-term acceleration for Intuit, benefiting our shareholders as well.

Let me start by reminding you about the direct monetization actions we've already taken. Our AI agents are delivering incredible customer benefits. And when we launched them in July, we actually increased the price for our SKUs to reflect that enhanced value. As we look ahead, we expect to further monetize our AI and human intelligence capabilities in a few key ways. The first one is to increase platform adoption. Our AI agents human expert can help customers discover relevant offerings across the platform. The second one is to improve SKU mix and upgrades. We were very intentional including agents across our SKUs with customer able to unlock more agents and more capabilities with higher SKUs. The third, it actually helps this customer growth. Our AI and live experts revolutionizing speed to benefit for our customers and expecting to drive funnel and retention improvements.

And finally, we will continue to monetize directly.

When I take a step back and look at the amazing innovations and results we delivered this past year, I'm so proud of what the team has accomplished. And we are so excited that our all-in-one AI-driven expert platform is so clearly resonating with our customers. It gives us a lot of confidence in our opportunity to build on this momentum ahead.

And with that, we'd like to bring this platform experience to life for you. And for that, I'd like to invite David on stage for our first demo.

Good morning, everyone. Thank you, Marianna. That was great. As Marianna highlighted, customers want more money, less work and the complete confidence to grow. We've delivered that through an all-in-one platform that brings together the key jobs that businesses do every day, and it's all powered by connected data, AI plus human expertise. Now this July, we updated QuickBooks with design, automation and business insights to make running a business easier. And to show you just how much has changed, I'm actually going to start with the old version.

Our old design was anchored on accounting and didn't offer visibility and easy navigation to our leading services like payroll and payments. In fact, 70% of our prospective customers didn't even know we offered payroll and 65% didn't know that we offered payments. And this is despite the fact that we are the largest SMB payroll provider. And despite the fact that we do $174 billion of charge volume. The new QuickBooks experience changes all of that. It's a transformative all-in-one platform to manage the entire lead-to-cash journey, eliminating the need for separate apps. So let me take you through that experience that Marianna showed a little bit earlier.

First, the app carousel. It makes discovering our offerings easier than ever. And this includes our newest offering, the Customer Hub, which brings CRM directly into the platform. Next, with Intuit's AI front and center, customers soon can ask anything, and our platform will get it done. By harnessing the full power of our platform, we're going to deliver more than just answers. Our customers have seamless access to AI agents and human experts. And we also delivered detailed insights and recommendations on data across our platform as well as any data that's uploaded into our platform for richer insights.

The business feed is a real-time source of truth summarizing what matters most. And soon, a daily summary of what is most important to our customers will be delivered directly to their phone. The dynamic dashboard is a fully customized and fully customizable giving businesses real-time insights into what matters most. And as we step back, the results are clear. Customers are unlocking next level efficiency and growth. Millions of customers have already used our AI agents, enabling them to complete routine tasks twice as fast.

Now let's bring all this to life through Alejandra, who owns a construction business with $2 million in revenue and 6 employees. She's focused on modernizing operations, reducing manual work and gaining insights to fuel our revenue growth. And yet high-quality insights can be hard to come by for many business owners. You heard earlier, they're increasingly experimenting with AI, but the tools they're trying lack real-time access to their own data and certainly don't have the advantage of data for businesses like theirs. By harnessing our all-in-one platform, combining data and decades of experience, we cut through all the noise and deliver clear actionable guidance. Coming soon, Alejandra's experience will change with our AI-powered chat experience, and I'm going to show you that right now.

Alejandra opens up QuickBooks and starts a chat to see how she could improve her profitability. Since Alejandra is on our platform, we're able to analyze their data as well as compare it to businesses like her. We can then highlight the key drivers that impact her profitability, her revenue and her expenses. In Alejandra's case, material costs and labor costs stand out as the key drivers of higher spend, both higher than her peers pulling her profit margin below businesses like hers. Alejandra wants to lower her material costs. So she uploads her vendor pricing list. After scanning and comparing the vendor pricing list, we break down pricing across her vendors and provide actionable insights to reduce cost.

Now that Alejandra has identified ways to lower her material cost, she wants to turn her attention to labor costs and she asks what to do. We analyze her numbers showing that overtime currently makes up a significant part of our spend compared to similar businesses and give us some insights into how she can control her overtime.

Now to she has a clear sense of what steps to take next, we suggest a summary. She asked to include last year's data in the summary, and she receives a clear prioritized set of key steps powered by her data and not of similar businesses, showing that her profit margins are projected to increase. And if she wants extra confidence, we proactively surface the option to connect with an AI-enabled human expert ready to develop an actionable plan. And this is the power of AI and human intelligence all in one place. By harnessing the full power of the platform and leveraging the 625,000 customer and financial attributes that we referenced earlier for every small business, we're bringing all their data together in one place so that it's always up to date.

Now the biggest problem for small businesses is actually getting and growing customers. On our platform, small businesses already manage 3.5 billion customer records, making us one of the largest customer management systems around. But they couldn't add all the data they needed, things like lead status, notes, full metadata. With our Customer Hub, we're going to give them exactly what they want, CRM capabilities inside of QuickBooks. Soon, they'll be able to manage their entire lead-to-cash journey, all in one place. Let's see how Alejandra's experience will change with the customer agent while she's in between site visits.

The customer agent alerts her to 5 new leads across our channels. She reviews and she can see the leads are clearly organized, making it easy for her to prioritize. She clicks into Derek's profile, a promising lead from Gmail, who's looking for a kitchen remodel. A customer agent will auto draft a response for her, and they land a time to meet. Now during the site visit, she can capture photos and even audio notes directly into Derek's profile. And then with one tap, she can create an estimate. This is auto filled with all the context from her previous e-mails, from her notes as well as data we have about previous services she's offered and prices she's offered previously. Then she sends it to Derek and he approves.

After the work is complete, Alejandra can easily convert it to an invoice and send it over to Derek. Derek receives the invoice via e-mail on his phone. And because he previously saved his payments information when he worked with another QuickBooks customer, his invoice is ready to pay with one click. Now this is important. Alejandra and Derek are benefiting from the fact that we have more than 60 million saved wallets on our platform with credit card data and bank data. This lets our customers offer seamless checkout to their customers, which, of course, boosts conversion. So with one tap, you can pay. Alejandra gets notified and the money is in her account.

We're building the entire lead-to-cash workflow directly into QuickBooks. Everything from generating leads, to estimates, to e-signatures, proposals and payments, it will all be in one place. This makes every touch point an opportunity for revenue and long-term growth. And for customers who need advanced marketing, they can connect their data seamlessly with Mailchimp. So from one platform, they can launch engaging e-mails, SMS messages or even full omnichannel campaigns.

Now let's switch gears. Paying and managing employees is critical to growth, but payroll is time-consuming. We hear it over and over again from our customers, 70% report chasing missing data. And many customers talk about how they spend 80-plus hours a year on payroll and taxes. We pay out over $330 billion annually to 18 million workers through our payroll offering. And with that scale, we've built a payroll agent that can take on the heavy lifting, turning a painful error-prone process into a seamless, automated workflow.

Let's see how the payroll agent works for Alejandra with her preferred format, which is simple text messages. The payroll agent reaches out via text to Ted, Alejandra's construction manager, to collect the hours that he worked this week. It automatically translates those texts into structured payroll ready data, no manual entry required. And it can notice anomalies. In this case, Ted didn't provide hours for Wednesday, so it can automatically follow up. And once the data is in, the payroll agent texts Alejandra a summary of the total payroll and asks if she's ready to run it. Alejandra simply replies yes. And in seconds, payroll is complete. With the payroll agent, Alejandra no longer wastes hours chasing data or worrying about errors. Payroll is not only faster, it's proactive, it's automated, and it's ready to run the next cycle. That means that Alejandra can focus less time on admin work and more time growing her business.

The all-in-one platform I just showed you serves our small businesses, and it's the foundation for our mid-market customers, you're going to hear about shortly. By consolidating their tech stack and data, we unlock insights, automate workflows, reduce spend and drive higher ROI. Customers avoid paying for redundant apps like payroll and payments in CRM, and we delivered done-for-you experiences through AI and experts freeing them to focus on growth. Our vision is clear, to be the connected end-to-end platform our customers rely on every day to run and grow their business. And customers choose us, because we save them time, we lower their cost and we give them the confidence to make better decisions every day.

Thank you. And with that, I'd like to bring out Ashley Still.

Thank you, David. Good morning, everybody. How is everybody doing? Good. I am so excited to be here leading our mid-market business and the massive opportunity that we are executing on. As Marianna shared, we had an exceptional year in the mid-market group, growing revenue 40% year-over-year. We grew mid-market customers 23% year-over-year to nearly 350,000. Our IAS average revenue per contract is $27,000, and we nearly doubled the average revenue of customers that are upgrading from within our franchise. And IES launched just 1 year ago. So this early traction that we're seeing really underscores the strong demand that we have for our all-in-one platform.

When we think about our mid-market opportunity, we're focused primarily on 2 segments: Emerging mid-market businesses with revenue in the single-digit millions and larger mid-market businesses with revenue ranging from $10 million to over $100 million. These companies are under or overserved in the market today, which gives Intuit a huge white space opportunity. And 800,000 mid-market customers are already using our core QBO offerings. So we're deepening penetration of the massive $89 billion TAM by upselling our existing customers to offerings that are right for them, tailored to their size, business needs and complexity.

And while our current focus is $2.5 million to $100 million plus, we are absolutely not limiting ourselves. We're going after larger customers and ensuring our platform scales as our focus expands. I want to spend a minute on the challenges that mid-market businesses face. Sasan and Marianna both spoke about the issues with over digitization and the massive problems, whether it's data silos, limited visibility and high total cost of ownership that this creates for businesses. And as businesses grow, these issues actually become even more pronounced because they have more customers, they have more employees, they have more vendors, they have more entities. And so businesses add more and more apps to try to manage this complexity, but it actually ends up exacerbating this over digitization.

To address this, we've expanded our all-in-one platform with advanced capabilities so that businesses can grow to $100 million and beyond. Importantly, this means customers can grow with Intuit, whether it's advanced or with IES. Take a small business that starts on QBO Essentials. As the businesses grow in size and needs, that business can seamlessly upgrade to advanced. And when they hit hyper growth with multiple operating entities, industry-specific needs, more invoices, more bills, more employees to manage, IES is there for them, with an intuitive interface, simple onboarding experience and lower cost of ownership.

Gone are the days when growing your business means needing to migrate off of the Intuit platform. As I mentioned, we launched IES just 1 year ago. It is a modern AI-powered ERP without the cost and complexity that comes with legacy ERPs. First, it's an all-in-one platform, with integrated workflows from accounting to AR to AP to workforce, all the workflows that mid-market businesses need all working together.

It has robust multi-entity capabilities, advanced AI-powered automation that takes the power of AI and HI to the next level and real-time business insights that actually help businesses make decisions on how to grow and where to invest. And finally, I cannot emphasize enough the power of the IES experience. It's an intuitive interface, familiar to anyone that's used QuickBooks. I've talked to so many customers who tell me they are afraid of their ERP. They're not afraid of IES.

The Intuit platform also gives us innovation velocity. We've had 3 major releases since launch, releasing new agents in over 80 features, and we are just getting started. We win on experience, price and total cost of ownership, and we're seeing momentum build rapidly. We're achieving impressive annual revenue per contract, and we doubled new build IES customers in Q4 versus Q3 of 2025.

Now I want to highlight some of the key differentiators that are resonating with customers. In the last few months, I've spent a lot of time engaging with mid-market businesses, whether it's the business owners themselves, the finance leaders and their accounting partners. And they consistently tell me that they struggle to make informed business decisions. The reason why is they don't have a reliable, accurate and real-time consolidated view across their entire business. IES is built to solve this pain point, and it has what we call multi-everything at its core. So first, there's multi-entity consolidation. This means no more hours manually entering data across 10 different platforms, no more troubleshooting, all the errors from manually entering data across all of these interfaces and it's not just about better accounting, business owners get the real-time consolidated view that they need to run their business.

Next, IES delivers multidimensional reporting without complexity. This means it's easy to get reports and insights by the unique dimensions of your business. So let's take an example. Take P&L. A real estate company wants to view their P&L often by location, a construction company would want to view their P&L by project and a nonprofit by program or grant. And this is what the multi-dimension capabilities in IES enable. And finally, there's multiuser capabilities. As businesses grow, employees have to have access to the appropriate data and insights for their role. No more, no less. Going back to the real estate example, a CEO can now grant their regional leads access to only their regional data and maintain separation across regions and at the broader company rollout. IES's multi-everything is the aha moment for so many of our customers and our prospects. The average IES customer has 4 to 6 entities, and these capabilities are the core driver of efficiency, improved decision-making and faster performance that fuel their growth.

Next, in addition to the agents and done-for-you experiences that Marianna highlighted, IES has even more powerful and sophisticated agents. First, there's a project management agent which obviously is incredibly relevant to industries that are project-based that tracks profitability and automates workflows. It reduces manual project work by up to 60%.

Next, imagine finance teams could automatically summarize their monthly performance. I've worked with many FP&A professionals for a long time. They all want this. This is what the finance agent delivers. It also offers predictive analysis, so teams can make better strategy decisions. And we are redefining what truly seamless onboarding means with done-for-you implementation. In IES, we've seen our customers a 90% take rate on our new automated setup workflows and experiences. So our customers are getting value quickly from the agentic experiences in IES.

As you've seen, we have tremendous product value and innovation in IES, and we are accelerating our go-to-market motions to capitalize on this momentum and the opportunity that we have. Our go-to-market engine is both enterprise grade and highly efficient. It's built on 3 pillars: high-touch sales and customer success, robust accounting partnerships and disruptive industry playbooks. The efficiency and velocity we're building with our direct go-to-market is truly remarkable after being in market for just 1 year, especially in the last few months since I've onboarded to the team.

We're building a world-class sales and customer success team and the first year results are impressive. Our seller productivity more than doubled in Q4 versus Q3. Our average sales cycle is less than 8 weeks, which is a fraction of typical enterprise sales cycles. And we're winning large customers. Half of IES contracts are with customers with $10 million or more in revenue. We've also signed significant deals with even larger customers. So we recently signed a deal with a customer with over 200 entities, proof that we can serve even more complex customer needs. And if a customer is not ready for IES, we're successfully moving them to advance and driving more adoption of platform services. So we are not starting from scratch. We have deep customer insights from our large installed base that helps us efficiently target and serve our mid-market customers.

So now let's talk about accountants. Accountants are critical to the success of mid-market businesses. In fact, over 80% of mid-market QBO customers work with an external accountant. So we are scaling our partnership with the accountant community, and we're seeing strong early results. In the last 6 months, we saw a 2x increase in accountant driven IES deals. And what's really important is accounting firms are transforming their own practices to deliver high-value services, and we view ourselves as their trusted partner in this transformation. IES is strategic for accounting firms because our all-in-one platform enables them to shift from doing the work to delivering insights. So we're structuring our partnerships with large accounting firms to deliver joint value to mutual clients fully using our platform. and reducing manual work, streamlining applications and enabling these accounting partners to deliver truly high-value business advice.

Finally, I want to highlight our progress in unlocking key verticals with scalable playbooks. As I mentioned, we know these customers. Intuit is already a trusted brand of choice across these focus industries. So we speak to customers in their language. We lead with their use cases. And we support all of this with powerful customer testimonials and proof points that are relevant to their industry and their business. We also meet them where they are, whether it's online or in person from podcast to trade shows. And incredibly importantly, we onboard them with industry best practices so that they realize value in 30 days.

This is the core of our industry marketing and sales approach, and it's supported by industry-specific product capabilities. And it's working. More than 40% of our deals in 2025 were in these focus verticals that really show the product market fit that we have and the impact of these industry go-to-market motions.

Sasan talked about this earlier, but it bears reinforcement. We win on 3 things: We deliver best-in-class experience, disruptive price and lower total cost of ownership. Legacy ERPs are infamous for being slow, expensive, having incredibly high implementation failure rates and being very complex and expensive to maintain. IES disrupts this paradigm. We get you up and running with done-for-you implementation. 95% of our customers are up and running in 30 days and realizing value. And they save up to $50,000 upfront just on implementation. For many, this is a year or more in licensing fees.

And ROI is clear. As Sasan mentioned, Forrester recently conducted a study and found IES yields 300% projected ROI over 3 years. And this is driven by the efficiency and critical jobs to be done like accounting, payroll and invoicing, the faster business growth that they enjoy from improved decision-making and technology cost savings from streamlining all of these back-end systems that they currently have on to IES.

To bring this to life, I want to highlight 2 customers and how IES is delivering tangible benefits for them. First, meet Marsha. She's the co-founder of Humble House Foods, and they manufacture and retail specialty sauces. She started using QuickBooks 13 years ago and recently upgraded to IES, as our business scaled to a new 10,000 square foot facility and 3 business entities. She has told us that IES is saving her 24 hours a month. That is 3 full business days because of the consolidated multi-entity capabilities and reporting that she now has. This is absolutely a valuable time that she can reinvest in growing her business faster.

Next, meet Chad. He's the CEO of Cornerstone Development Company that operates 5 business entities across construction, environmental consulting and engineering. He's used QuickBooks for the last 8 years and has already moved with us from desktop to QBO Advanced and as of last year, also moved up to IES. Before IES, he ran multiple software systems and had to type the same information 7 times into different systems for a single project, 7 times. That is a complete waste of time. Now with IES, he has been able to grow his business, and he's actually saved on hiring 2 additional employees and canceled all the unnecessary apps and add-ons. So he's simplifying his tech stack and saving money.

As I said, we're just getting started. Nothing is motivating. Nothing is more motivating than hearing firsthand how IES is improving, how our customers work and grow their business, and I couldn't be more excited to accelerate this momentum.

Before I welcome David back on stage to demo some of these disruptive mid-market experiences, I want to close with the same 3 takeaways that we started with, which gives us enormous confidence in the global business platform trajectory. We have a large TAM with significant runway. Our all-in-one platform is the system intelligence for our customers, and our platform seamlessly scales to solve the complex needs of mid-market businesses.

And with that, please help me welcome David back to the stage.

Thank you, Ashley. Hello, everyone, again. I'm back. I'm back to share the latest innovations for our mid-market customers. As you heard from Ashley, it's been just 1 year since the launch of Intuit Enterprise Suite, and that's where I'm going to focus today. Intuit Enterprise Suite is the all-in-one platform that fuels mid-market business growth. And to do the demo, I'm going to bring us back to Alejandra, but it's years later. She has strategically acquired some specialty contractors since we saw her last like renewable energy and masonry across several cities. She's brought some trades in-house. She's expanded markets, and she's grown her business to more than $25 million in revenue. With more than 50 employees, multiple entities, dozens of projects, her operations are now far more complex than they used to be. The increasing size and complexity of her business brings with it some very specific challenges, managing multiple entities with no consolidated view of overall performance, slicing data by dimensions or key attributes of the business. More employees, which requires role-based access and siloed data across many separate point solutions.

So to address these challenges, Alejandra is ready to seamlessly upgrade to Intuit Enterprise Suite, where growing with Intuit is simple with minimal disruption. She starts by scheduling a call to connect with our customer success manager who can help understand her business needs and her structure. She's excited about the IES offering, so she signs the contract and it's time to get her set up.

Now on the back end, all of our QBO accounts seamlessly migrate over to IES. And then her customer success manager can help get her set up with the rest of the platform, payroll, bill pay and payments. And now she is ready to go with the full platform. And as you heard from Ashley, this isn't unique to Alejandra, 95% of IES customers are fully set up and running within 30 days. By comparison, as you heard, a legacy ERP would take 6 months, cost $50,000 and still only have a 50% chance of success. And for customers that are new to our franchise, we're tailoring onboarding with a dedicated set of professional services designed to ensure seamless transition with minimal downtime. This is what growing with Intuit looks like, fast, simple onboarding and a clear reason why we win.

So the team now has access to Intuit Enterprise Suite. It has the familiar look and feel of QuickBooks that Alejandra's team loves. But it's a powerful modern ERP with the enhanced functionality needed for efficient and scalable operations. The CFO starts with a done-for-you implementation that creates a customized onboarding experience by vertical. One area is dimensions. The dimensions are the different ways to slice and view a business, by portfolio, region, department company, understanding performance at any level of detail. They review and approve with one click.

Next, they see the multi-entity view of the entire business. Now this is the consolidated portfolio-wide view they have been looking for, gone are the hours spent manually reconciling and consolidating data in spreadsheets. And the team can toggle seamlessly between this big picture view and the individual entities themselves.

Now they've also been looking to get a better view on how they're performing. Because their dimensions are set up during implementation, when they click on their profit and loss, they could break it down by company and region, giving them the granular categorizations to drill down and understand performance. And because this is a full platform, multi-entity and dimensions flow across everything, payroll, bill pay, payments, giving Alejandra and her team the complete view of their business all the way down to the transaction level.

Now construction businesses like Alejandra have industry-specific workflows, think things like milestone-based billing or project level job costing. Without these vertical capabilities, businesses like hers have to cobble together many discrete apps and manually combine data and spreadsheets. Fortunately, IES provides these vertical capabilities right out of the box, for project-based businesses like construction, financial and professional services.

So let's see how a project manager on our team leverages IES along with the project management agent to automate their workflow and more accurately track project profitability. The project manager logs into IES to look at the project overview page. They can easily see all of their projects at a glance, making it simple to manage progress and easily spot things that require attention. A mid-market company like Horizon Construction, they get hundreds of bills per week. But here, the project management agent has already identified the 20 transactions specific to the [ A project ]. So when they click in, the project management agent streamlines the project cost allocation and reduces errors by leveraging the data that's on our platform.

So with just a click, the product manager approves them all in under 1 minute. When they navigate back to the project overview, actual income versus cost updates instantly giving a live view of profitability per project. And because IES is multiuser with rolls-based access built in, bills are automatically routed to the CFO for approval and eventually for payment. The result is 30-plus hours a week saved, reviewing, approving, paying, reconciling transactions, one by one across entities.

Now for most mid-market businesses, forecasting is a real challenge, and that's because their data is scattered between apps and entities. Finance teams spend months stitching this together, 70% saying that planning takes too long. Others are paying thousands of dollars for separate reporting tools, and yet they still lack the real-time insights in the systems they use. With Intuit Enterprise Suite, the finance agent will automate real-time performance reporting and make scenario planning simple. So let's take a look.

It's your end and the CFO logs in IES, and asks to summarize year-end financials. The finance agent powered by our financial expertise as well as agentic technology analyzes data across entities to deliver a clear financial summary of income and expenses. The agent also highlights key insights and reinvestment opportunities. Now the CFO wants to see options for reinvesting the additional cash that's been called out here. The finance agent analyzes the impact on sales of purchasing new equipment versus spending on a new marketing campaign, based on historic information as well as industry benchmarks.

The agent also provides two scenarios for consideration. The first, reinvesting in new equipment; and the second, investing in a new marketing campaign. It's been able to calculate the potential ROI for each of these scenarios. And finally, at the CFO's request, it can update the scenario to focus only on one region, the West region. It then generates a strategic summary, includes the option chosen by the CFO and supporting rationale that the CFO can easily download and share.

Enterprise Suite lets customers run their business on one platform. IES is a modern AI-powered ERP. We win because of a best-in-class experience, a disruptive price for value and a lower total cost of ownership for our customers. This positions us to unlock the mid-market, our biggest opportunity yet. With IES, we're not just serving mid-market businesses, we're redefining it with a modern ERP designed for growth.

Now you've seen the innovation we're bringing across our business platform today, but we haven't even touched on what's next, our Intuit accountant suite. This will transform the way that accountants run their firm and recommend Intuit, driving an important network effect. Sasan briefly touched on this earlier, but please stay tuned in the months ahead.

Thank you. And with that, I'll bring Kim back up on stage.

Thank you, David. Love the demos. Thank you.

Okay. We're about to head into our first break. But before we do, I just wanted to mention we have many of our business customers here with us today, represented or actually here, including the coffee station, our snacks, we have a dessert station at lunch, and we also have our parting gifts. So I wanted to make sure you didn't miss those to make sure to say hello.

Second, I just wanted to give you a really quick road map where we're going to head when we come back from our break. So we'll have Mark come up and talk about our consumer platform growth strategy, and then we'll have Sandeep come up and talk about some financial reflections and how we're delivering on our financial commitments. So enjoy your break and be back in your seats in about 15 minutes, please. Thank you.

[Break]

Okay. We're ready to get started. So thanks, everyone, for taking your seats. Before we do, I have one quick announcement. Following our presentation today, we are going to e-mail you a short survey. We would really appreciate it if you could take just 2 minutes to fill it out, I promise it's short. We would love to hear your feedback and how we can make this day more valuable to you. And in exchange, we'll provide you a little incentive, which is a voucher where you can use to file your taxes with TurboTax. And so we're ready to get started now, and please join me in welcoming, Mark.

All right. I expect to see a big surge in our TurboTax filings this year. So thank you, Kim. It's really great to be here with everyone today. I'm extremely excited to share our performance this year. Our insights and how that's informing our strategic plans to become a much more integral part of our customers' financial lives. In this session, I will share with you how we will bring done-for-you experiences across our entire consumer platform. And Arundati will come up here and show how those experiences will come to life in our products for one of our critical customer cohorts.

So as we unpack our performance and we share our strategic plans, we have 3 critical takeaways we'd like you to leave with. One, we are making traction across a massive opportunity. While we had 15% growth this year, which we're super proud of, there's much more growth ahead of us. Two, we have momentum in solving more of our customers' critical problems across our platform, powered by data, artificial and human intelligence. We are uniquely positioned to start to serve our customers across tax, money and personal finance. And finally, our platform is a powerful ecosystem of offerings that actually our customers can rely on to drive their prosperity every single day. And we're just getting started and bringing together our reach, our capabilities and our data to drive engagement, adoption and monetization both in the near term and for the long term as well.

So let's take a look back on our last fiscal year. We're incredibly excited that the consumer platform is approaching $8 billion of revenue. And that is built off of the back of an incredible fiscal year '25, 15% growth. That was driven by returning TurboTax to double-digit growth year-over-year and an impressive 32% growth in Credit Karma. What's really exciting for us is that performance was powered by our critical growth vectors. Sasan talked about TurboTax Live, we hit breakthrough adoption this year, and that generated 47% revenue growth year-over-year. And this cements our conviction that we are -- we can grow our assisted tax business by offering a superior experience, fastest access to money, and we can do it at the best price in the market. And with Credit Karma, we saw a 43% increase in our Lightbox conversion, highlighting the importance of our data and our personalized offers that deliver both value to our customers and our partners. And our focus on this frictionless platform experience that we talked about last year, coupled with innovative money products we added new growth vectors for this past year. We saw a 30% increase in Credit Karma members filing in TurboTax and 240% growth in our money products across our platform.

So now let's dive deeper into tax. We are positioned more than ever to transform the tax market with our data, AI and HI capabilities. While we had an incredible year in TurboTax and we're super proud of that, we have much more headroom to grow in the 86 million returns that are filed through the assisted tax segment. In fact, there are over 11 million customers that switch tax filers each and every year. And because we invested in local, we now have 80% coverage of local searches, which means we can serve those customers when and where they are looking for that help. And most importantly for us, our distributed expert network that's powered by AI enables us to scale, efficiently scale our services across the country.

And now turning to Credit Karma. We are incredibly proud of the 18% compounded annual growth rate we've seen since fiscal year '21. In fact, we've doubled our revenue in just 4 short years. This is powered by the depth of our personalization and our offerings within our Lightbox platform, and our strategic focus on expanding our growth verticals like insurance, which grew 106% this past year. But to be clear, AI is the power behind our platform. It delivers durable growth as we deliver 60 billion daily predictions to arrive at a financial solution that's unique to our members on our platform. And so more than ever, our consumer platform is able to deliver prosperity. We're going to bring the experiences to our customers that they need to make easier, faster and better financial decisions every single day.

In the next few minutes, I'll walk you through how we will use these offerings and how we're uniquely positioned to deliver those offerings to our customers and deliver on our mission. As always, we always start with focusing on our customers and our consumer problems range from making ends meet when every dollar matters, getting every dollar they deserve and have earned in their tax refund, getting faster access to money when they need it to pay debt, to maybe save for a rainy day or to start investing in their future. And for the more than 75% of U.S. households with less than $100,000 in annual income, these decisions are daily and they're daunting.

Managing personal finances are not easy. The people's data is fragmented across multiple apps, making it time-consuming and difficult to make these decisions. In fact, consumer spend on average 7 hours a week managing these personal finances. And 64% don't feel confident in the decisions that they're making. And that's because until now, they have not had one platform that they can turn to that works for them, that works in their best interest and that does the work, so they don't have to. And it's a massive landscape. It's $142 billion TAM across the consumer finance ecosystem. And we have the opportunity now to actually meet those consumer needs at tax money and personal finance. And we've already seen incredible growth this year across each one of those categories. And we're poised to accelerate even further as we focus on our continued disruption of the assisted tax market as we maintain our revenue share in DIY and we expand value and adoption in personal finance and money for our year-round engagement.

So with our AI and HI enabled experiences on our platform, we will give consumers insights to confidently make the right decisions year round. Our platform provides the tools that will enable those financial decisions on a year-round basis. So for instance, in tax, we will deliver the best experience for our customers by driving maximum outcomes and value for all of our customers.

For our money offerings, we were able to deliver fast access to refund. For many Americans, this is the largest paycheck of the year. But not only will we deliver that, we will actually help them save and manage it more effectively. And in Personal Finance, we will help our customers manage debt, do more with their money and help them manage their credit cards, loans and insurance products that are best suited for them. All of this is enabled by our AI agents, such as our document assistant which will take unstructured data and translate that for customers in TurboTax and our debt assistant for debt management within Credit Karma.

And our consumer platform is built on those strategic advantages that we've talked about quite a bit today, data, artificial and human intelligence. But combining that is where we actually get tons of value for our customers. We have scale with 2 of the most trusted brands in consumer finance in TurboTax and Credit Karma. And they each have massive customer bases. But you combine that with the value we can unlock with the 70,000 data points we have per customer. Our platform allows us to serve and solve more problems from our -- for our customers, from tax and credit to money management and savings.

So looking ahead, our strategy is built on 3 core pillars: tax, money and personal finance. Our platform experiences will work seamlessly so that we can get the fastest access to money for our customers and do more with it. What this means is this means we will be doing the work for our customers. We will be connecting them to the AI-powered experts when they are needed and delivering unparalleled customer benefits across this process. So let me dive into the details on each one of these.

Last year, unlocking our local presence drove significant growth in our traffic and in our engagements with our tax experts. So this year, we will continue to prioritize local to capture the significant runway we have ahead of us in the assisted tax segment. We were going to be broadening our local presence and we will be shifting our experiences to a service-first experience this next year. For business tax, we will build on the momentum that we had this year, 3x growth that we saw for our business tax product. We will be leveraging our local presence that I just talked about. But specifically for businesses, we will be bringing industry expertise into our product and into our experts. So we can focus on acquiring and scaling that business again this year. We'll continue also to manage and maintain our revenue in DIY share by delivering agentic experiences and personalizing across key customer cohorts.

Last year, our customers told us they want, but more importantly, they need faster access to their money. They want personalized insights as well that we can generate based on their cash flow through their connected accounts in Credit Karma. So this year, we are focused on helping our customers access more money quickly. So we will expand our fast money options, and that's all backed by the power of our tax and financial data underwriting.

We will help them do more with their money by delivering solutions that help customers save, save more and access money when they're needed, driving daily engagement. And as we're driving that daily engagement, we will drive tax intent. And with those connected accounts, we will bring more personalized guidance and experiences across our entire platform.

And building on our strength in AI and data and our year-round tax insights, our personal finance strategy this year will transform our experiences to a personalized financial guidance that leverages agentic experiences to improve credit scores, consolidate debt, build wealth and maximize their tax refund. We will expand in Prime and insurance by helping our Prime customers make decisions across credit cards, wealth and insurance. And these year-round tax insights that we will drive and the engagement that comes with that will lead to a far easier and seamless experience come tax time.

What's very exciting for us is that we actually demonstrated the power of the consumer platform this past year. In tax, our local strategy drove 1 billion-plus impressions and gave us a massive opportunity to serve the assisted customers. Our money offers make it much easier for our customers to manage and save money. And our year-round engagement drives those personalized recommendations in personal finance, which grows Credit Karma and TurboTax businesses. So combined, this gives us really great confidence in our vision and strategy. And I can promise you the team that's designing these experiences is incredibly excited to deliver more value to our customers to help customers make better financial decisions.

And so I'll finish where I started. We had an incredible year last year with 15% growth across the consumer platform. But more importantly, this sets us up for a massive $142 billion opportunity that's ahead of us in tax money and personal finance. And we are poised to capture this opportunity through the power of our consumer platform, delivering the experiences that our customers need to make easier, faster and better financial decisions.

So now let me turn it over to Arundati. Arundati is going to walk you through how this strategy comes to life for our customers.

Thanks, Mark. Like Mark mentioned, our members struggle with making the right decisions for their unique financial needs. Today, we'll walk you through our end-to-end consumer platform experience, through the lens of Desiree, who represents a large and growing customer segment where we have significant momentum. Desiree owns a growing wedding photography business, while also working part time as a garden center manager. With her family CPA recently retired, she is one of the over 11 million customers who we estimate switched assisted tax prep methods in tax year '24.

Beyond taxes, Desiree is navigating financial challenges faced by many of the 60% of small business customers who are sole proprietors, like high interest debt and the need for flexible cash flow to manage expenses. 80% of our new Assisted tax customers last year were similar to Desiree in prioritizing convenience, value and a fast refund. This year, we are doubling down on 3 key value propositions that helped us fuel 47% assisted tax revenue growth in TY '24. One, local expertise; two, AI-powered automation; and three, fast access to money.

Let me show you. Desiree opens her favorite AI up to search for nearby tax preparers. In FY '26, we are laser-focused on optimizing AI search, building on our strength in SEO with our hybrid physical and digital strategy. Last year, customers made tens of millions of searches for local tax experts. Desiree taps to visit the TurboTax Phoenix storefront page, where she can call the store immediately or browse the profiles of multiple local experts. Assisted seeking customers are 5x more likely to book with a Pro within 50 miles and twice as likely to convert with a local match.

Customers can also schedule convenient online appointments, tapping into our 13,000 virtual experts nationwide. This year, all without the friction of creating an account upfront. And for those customers who are not immediately ready to connect with an expert, this year, we are launching our new AI Concierge, which will answer common questions in a personalized conversational style, like what full service is and how much she'll pay? Price transparency is one of the things our customers care about most. Intrigued, Desiree answers a few questions about her tax situation. She confirms any additional income and gets a free price estimate representing an incredible value with a guaranteed maximum price. Now Desiree feels confident getting started with a tax expert.

So the AI concierge matches Desiree with her expert Ben, whom she's happy to see is also in Phoenix has 13 years of experience and has expertise in small business income. Ben reaches out to start a one-way video call. Desiree joins the call, where Ben will answer her initial questions. And he helps her create a TurboTax account to securely share her data. Once her account is created, Desiree can share her screen so that Ben can easily guide her as they get started on her tax forms. Our AI document assistant will help Ben generate a checklist with all the documents that Desiree needs. Ben also walks her through connecting her bank account and bulk uploading other relevant tax documents like her business expenses.

Ben also walks her through connecting her bank account and bulk uploading other relevant tax documents like her business expenses. Our AI agent will then categorize and extract information from all of these docs, one of the many ways it helps our experts become even more efficient. Today, we support categorization and extraction of 90% of the most popular forms that customers use in TurboTax. In the future, our document assistant will do even more of the work of identifying, locating and importing tax-related documents automatically for Desiree. Ben now has everything he needs and advises Desiree to download the TurboTax up so she can be notified when he's done. Desiree hangs up, and she's very happy to have some time back to edit wedding photographs. So she downloads the app, which lets her follow along live on Ben's progress. And within an hour, she gets a notification that Ben has finished her taxes. They connect again and Ben guides her through her total refund amount, including his personal summary of her tax outcome.

He also highlights that she can get access to her federal refund amount instantly by opening a Credit Karma money account. Excited, Desiree continues to pay, sign and create a Credit Karma account. Ben files her return for her and within 60 seconds of [ IRX ] acceptance, her refund hits her Credit Karma money account. Previously, Desiree would typically wait over 3 weeks to finish filing and get her refund. We can now complete the entire process and get her refund into a Credit Karma money account within an hour, all at a compelling transparent price. And getting refunds into customers' hands quickly is an incredibly powerful driver for daily engagement on our consumer platform.

For nearly half of Americans, their tax refund is the largest paycheck of the year. Now Credit Karma will help Desiree use that money to start building wealth. So let me show you how that journey is superpowered with our AI agents, refund assistant, debt assistant and tax assistant. Desiree opens Credit Karma and her tax refund is ready to use in her money account. Our AI-powered refund assistant will use the data from financial connections she already linked through TurboTax to maximize the impact of her tax refund, whether that's putting money into a high-yield savings account or paying down a loan. In Desiree's case, her best course of action is to use her refund to pay off close to 40% of her high interest credit card debt from business expenses.

Credit Karma is also monitoring Desiree's entire financial picture, including her spending, bills, fees, savings and investments, all through Intuit's integrated consumer platform. Throughout the year, we'll use this data to help Desiree proactively navigate her financial journey while building daily engagement. We continue to push the envelope on helping members build their credit with tools such as Credit Builder and our latest innovation, Credit Spark. These tools are particularly valuable to our growing Gen Z member base who often have limited credit history. So let's fast forward a month. Desiree receives a notification that her credit score has increased after paying down her credit card balance, and she can continue to build her credit by using Credit Spark. She learns that it will boost her credit score by adding her rent and utility bills to her credit history. All she has to do is to continue making payments on time. So she enrolls in Credit Spark and reviews her payments, which have been pulled automatically into Credit Karma since she already linked her financial accounts to do her taxes. Now Desiree can set it and forget it and watch her credit score increase while she pays her bills.

Credit Karma leads the industry with free credit improvement tools that help members monitor and build their credit score with ease. After another few months, Desiree's credit score has increased further since her credit utilization is down and Credit Spark has been active. Meanwhile, our new AI-powered debt assistant will be leveraging all of her connected accounts and data to proactively search for ways to help her save more on her remaining debt. She receives a notification that Credit Karma has identified an opportunity to help her save on that debt. She opens Credit Karma to find out more and sees an insight from debt assistant. It suggests she gets started with a personalized plan to help her pay down her debt faster and with less interest. She taps in to learn more and shares her comfort level with her current payments. Because our platform has all the rest of her information, our debt assistant doesn't need anything else to surface the right solution for her.

Now we can present a tailored debt consolidation plan that offers Desiree a personal loan at a great rate and simplifies her paydown. With this offer, she's saving over $900 in interest and can pay off her credit card debt sooner. This Credit Karma capability is driven by our proprietary Lightbox technology, which allows Desiree to see all her loan details without her data being shared or any impact to her credit score. The conversions attributed to Lightbox have grown 43% year-over-year for FY '25. Desiree likes her recommended plan and accepts the offer. Then she applies and is approved in minutes.

Last year, we also introduced year-round tax insights for Credit Karma members. This year, we're introducing even more engaging interactive insights that not only keep members like Desiree engaged throughout the year, but we'll also capture the critical information they'll need when it's time to file taxes again. So let's take a look. Desiree sees a notification from Credit Karma about a change in her income. She taps in to confirm her new job. And this allows us to update her tax profile in real time throughout the year as we notice potential tax-related events and deductions, updating her profile as we go. So come next tax season, we can notify her that she's just one step away from her refund. Her filing is already over 80% complete. All of her information is in one place and she can file her taxes again with Ben, her tax expert from last year. Last year, Credit Karma drove a full point of TurboTax's growth with a 30% increase in filers coming directly from Credit Karma. Still only a small share of Credit Karma's nearly 150 million members filed with TurboTax today giving us significant upside.

To wrap up for consumer, we finished FY '25 strong, setting ourselves up for the massive opportunity ahead in tax, money and personal finance. We are well positioned to deliver another year of breakthrough growth by leveraging our proprietary data and strengthen AI and human expertise at scale. I just walked through how we supercharged our customers' financial goals throughout the year, starting from filing taxes conveniently with a local expert, getting their refund right away and putting it to immediate use, building their credit and using that to improve their debt situation, all while prepping next year's taxes as we go, so they can be ready to file again immediately. We are excited for our future as we build one consumer platform to truly power prosperity for our customers.

And with that, I'd now like to hand it off to Sandeep to share more about Intuit's financial commitments.

Everybody. Good to see you all. Thank you for spending a part of your day with us today, and thank you for your continued support of Intuit. We appreciate it. I trust the innovations you've been seeing this morning are bringing our strategy to life. I'm going to touch on 3 key themes that give us the confidence in the durability of the growth ahead. It starts with a large addressable market in excess of $300 billion with a current 6% penetration provides ample headroom for future growth. Our robust AI-driven expert platform strategy that is working and delivering results. And now we are honing in on the 3 big bets that are keys to unlocking the majority of the addressable market and a track record of being consistent and disciplined in how we run this company. Focused on delivering customer benefit in the process, strong revenue growth, impressive margin expansion and returning capital to shareholders.

Our financial principles continue to be the foundation of how we manage this business day in, day out. Our top objective as a management team is to deliver organic double-digit revenue growth. I see ample opportunity for us to abide by this principle for years to come. We also want to make sure that revenue continues to grow faster than expenses, thereby delivering margin expansion as we scale this company. We hold a high bar for capital, how we utilize capital, whether it's R&D, go-to-market, looking at acquisitions, we aim for ROI that is in excess of our cost of capital. And the cash that we cannot deploy at the right ROI, we return to shareholders and have had consistent dividend increases and a strong buyback program. And finally, we run this company with an Ironclad investment grade balance sheet.

When we all met last year at this time, I shared with you the objectives for the year ahead based on these principles. And I'm proud of what we accomplished in fiscal '25. 16% overall revenue growth and more than 2-point acceleration from the year before. Operating income growing much faster than revenues, delivering impressive GAAP and non-GAAP margin expansion. And we returned $4 billion to shareholders through both dividend increases and buybacks. These results are a testament to the fact that our strategy is working. And it is that durability of that strategy that drives our optimism about the growth that lays ahead. It starts with the fact that we play in large end markets, where our ecosystem offerings address multiple customer needs. The strategies you heard today, the innovations you experienced today are all keys to unlocking this opportunity.

And we made tremendous progress in the last 12 months. We were early to declare AI as key to future growth. In July, we launched Agentic experiences across the business platform. These experiences are in use by millions of businesses that are seeing strong outcomes as demonstrated by the fact that repeat usage is ahead of our own internal expectations. We leaned into our differentiation with AI and HI and are disrupting the assisted tax category as demonstrated by the 47% revenue growth in TurboTax Live. And we introduced IES, unleashing the power of a business platform to address the needs of the more complex mid-market customer. This strategy drove strong outcomes across both our business and our consumer platform. Business Platform revenue is up 16%, surpassing $11 billion with strong momentum in our online ecosystem, which grew 20% overall, 25% if you exclude Mailchimp. With our focus on being the all-in-one platform, addressing the end-to-end customer needs for small and mid-market businesses, we grew online accounting 22%. Online services, excluding Mailchimp, 29% and have driven mid-market revenue growth 40%.

We're excited by the momentum we have in mid-market and expect mid-market to grow meaningfully higher than the top end of the 15% to 20% growth expectation that we have for our Global Business Solutions Group. On customers, we grew customers 5%, but our deliberate focus on the high-value customer grew U.S. QBO 8%. Mid-market, 23% and highlighting the power of our all-in-one strategy, we grew by 12% customers adopting multiple parts of our platform. There are areas that we need to be better and are working quickly to lay the foundation to reaccelerate Mailchimp and international, such as our new product experience in Mailchimp and investing in the Mailchimp mid-market sales force. But while we reaccelerated Mailchimp International. The strategic focus on the high-value customer is driving strong ARPC growth.

ARPC was up 14%, a 3-point acceleration from the year before through durable factors such as customers adopting more parts of our platform, particularly money and Workflow Solutions by the momentum we have across IES and advance in addressing the needs of the mid-market customer. And as we continue to add capabilities to our product and earn the right to price our products for the value they deliver, highlighting the power of platform adoption, Services now account for half of online ecosystem revenue, up 12 points since fiscal '20. Now we've added Mailchimp to our portfolio since fiscal '20, but we've also quadrupled our payments business and tripled our payroll business. With the momentum we have and the progress we're making executing on an all-in-one strategy, I see ample room for us to continue to scale services at a strong rate for years to come.

Shifting to our consumer platform. Before I dive in, just a quick reminder that starting this fiscal year, we combining TurboTax, Credit Karma and ProTax into a single consumer platform consistent with our vision of addressing the entire spectrum of consumer need from building credit to building wealth. With that consumer had an exceptional fiscal '25. TurboTax returned to double-digit growth. Credit Karma delivered 32% revenue growth, yielding 15% growth across the overall consumer segment with a years of investments in data, data services, AI and AI empowered human expertise, we're disrupting the assisted tax category as demonstrated by the 24% growth in customers in TurboTax Live and 47% growth in revenue.

By building a seamless experience across Credit Karma and TurboTax, we increased by 30%. Credit Karma members falling with TurboTax, put $14 billion of fast refunds in the pockets of our customers and the customers experience both Credit Karma and TurboTax offerings, we get a 38% lift in our ARPC. And we have strong momentum driving monetization across TurboTax. Paying customers were up 6%. ARPU was up an even stronger 12% as we increase the mix of paying customers as we continue making progress disrupting the assisted tax category with TurboTax Live. As we scale new innovations such as business tax, which, by the way, has tripled in the last year alone. And as we add new innovations such as fast money offerings for our consumers.

Our results are a reflection of the innovation we're putting into the market, such as using AI to guide customers to the offering that's right for them, creating a seamless experience across our platform between Credit Karma and TurboTax and highlighting the value of having human expertise alongside the customer. With that, TurboTax Live now accounts for 41% of overall TurboTax revenue and expect TurboTax Live to be the majority of TurboTax revenue over time as we continue making progress disrupting assisted tax category, while we maintain our dollar share in do-it-yourself taxes.

The innovation we're driving across our consumer platform is driving stronger outcomes in Credit Karma. Credit Karma revenue has surpassed $2 billion. Credit Karma growth has been 18% compounded annual growth rate since fiscal 2021. The year we acquired the business. This growth is all a result of our relentless focus on what matters most to are customers and to our partners. That focus shows up not just in these numbers, but the share of wallet that we gained 5 points across credit card originations, 4 points across personal loan originations. With nearly 150 million members on Credit Karma, we're excited about the opportunity ahead to drive year-round monetization and year-round engagement as we address the entire spectrum of consumer needs, from building credit to building wealth.

When you step back and look at our business holistically, what stands out is a massive opportunity we have to drive monetization. We have scaled ARPC across each one of our business segments over the years, while continuing to make sure that the majority of interest revenue growth came from volume increase and mix improvements, including customers adopting multiple parts of our platform. With that, expect ARPC to continue to grow across each business segment for years to come. In our business segment, as we drive platform adoption as we continue scaling mid-market, and as we continue adding product capabilities, earning us the right to price for value.

In our consumer platform, as we continue making progress disrupting the assisted tax category, as we scale our new innovations such as business tax and money offering for consumers and as we drive deeper penetration adoption across the Credit Karma platform. Across each one of these business segments, we're also excited about the tremendous opportunity that lays ahead for AI to augment monetization. We have delivered transformative done-for-you experiences across AI and human intelligence. As an example, our payments agent in our business platform is helping customers get paid up to 5 days faster, highlighting the value of adopting electronic payments.

By embedding AI across the entirety of our TurboTax experience, we're helping customers get their taxes done 12% faster with even greater confidence through highlighting the value of human expertise alongside the customer, we've doubled our QuickBooks Live business. We have grown by 24% our TurboTax Live customers. TurboTax Live itself is a $2 billion business today run entirely by AI and HI working seamlessly together. We're using AI to increase efficiency of our experts driving meaningful and direct impact on our unit economics. It is proof points like these that give us the confidence of the meaningful opportunity that lays ahead for AI to drive increased platform adoption, increased platform usage and thereby increase monetization.

Now let me also touch on how we invest in our business and service to accelerating growth. With the principle of ensuring that revenues continue to grow faster than expenses, we expect each line item on this page to be flat to down as a percentage of revenue over time. I'll also touch on stock-based compensation, an area we made tremendous progress in the last 2 years and expect stock-based compensation to be down at least another point in the next 3 years, highlighting our focus and discipline in managing our business and paying attention to each and every line item.

Our discipline and how we invest in the company has not changed. As a management team, we allocate capital to areas we believe will be the greatest catalyst for future growth acceleration. With that, we are reallocating an ever-increasing part of our investments towards the 3 big bets. Investing in creating breakthrough done-for-you experiences across AI and HI, investing in many innovations that provide seamless experiences for consumers and businesses and investing in product and go-to-market capabilities to penetrate the $90 billion opportunity we have in mid-market. And while we continue to invest in ever greater part of our portfolio -- investment portfolio in the 3 big bets, we're staying disciplined in how we allocate investments towards core innovation and run the business activities.

It is this discipline that over the years has allowed us to deliver breakthrough innovation, deliver the strong outcomes I shared earlier, while also continue to drive impressive margin expansion. GAAP margins are up 6 points in the last 3 years. Non-GAAP margins are up 5 points. And the discipline that drove this margin expansion continues thereby driving our confidence in the opportunity to deliver strong revenue growth and margin expansion for years to come. A key part of where we get the confidence in driving margin expansion is how we are leveraging AI across the company. We are using AI to rethink our Intuit works, thereby unleashing the productivity of our employee base.

To give you a few examples, in our technology organization, 80% of our developers are using at least one AI tool, allowing them to code 40% faster. This allows us to bring more innovation at an ever greater pace to market. In our customer success organization, AI is at the core, everything we do to how we train our agents, how we schedule agents to how we route calls. That's leading to over $135 million of cost savings just this fiscal year, fiscal '26. In our marketing organization, 90% our marketers are using an AI-based tool, allowing them to target better and drive more optimal outcomes from the marketing campaigns. And we're just getting started. Its productively unlocks like these that allowed us to deliver the strong revenue growth you saw last year, 16% with flat headcount. It's what drives our confidence to continue to grow and deliver strong outcomes in fiscal '26 with headcount up low single digit.

As we practice discipline and continued focusing on allocating our resources and driving margin expansion. We're also being disciplined in what we do with the cash flow. This past year, we returned 65% of our free cash flow to shareholders through a 15% dividend increase in fiscal '25. The Board approved another 15% dividend increase for fiscal '26 in a strong buyback program, $3 billion this past year. We remain committed to returning capital to shareholders through both dividend increases and share buybacks. We expect our buybacks to at a minimum offset stock-based comp dilution over a 3-year period.

Our approach to running the business remains consistent with the momentum we have across the company. We are focused on building upon the strength of our platform. And with that, we're guiding the overall company to 12% to 13% revenue growth in fiscal '26 surpassing $21 billion of revenue at the top end. Our largest business segment, the Global Business Solutions Group, we're guiding to 14% to 15% revenue growth with the exciting momentum we have in our online ecosystem continuing in fiscal '26, while our desktop ecosystem slows to low single-digit growth, now that we are done with the migration from license-based to a subscription-based model. Each aspect of this guidance is consistent with that, which I shared in the August earnings call. A discipline on the bottom line continues as well. Operating income is growing much faster than revenue, delivering strong GAAP and non-GAAP margin expansion. And as I shared earlier, 15% increase in dividends. This guidance is also consistent with that, which I shared at the August earnings call.

With the momentum we have in the business, with the durability of a strategy that is delivering results. And with now honing in on the 3 big bets that are keys to unlocking the majority of our addressable market. We are reaffirming our long-term expectations for each one of our business groups. Our business platform, we expect revenue growth of 15% to 20% with customers growing 5% to 10% over time and ARPC growing 10% to 20% as we continue to drive platform adoption, continue to grow at mid-market and continue to add product capabilities, thereby earning the right to price for value. In TurboTax, we expect revenue growth of 6% to 10% overall, with the strong momentum in disrupting assisted tax category continuing with TurboTax Live growing 15% to 20% over time. And in Credit Karma, we expect revenue growth of 10% to 15% as we continue to penetrate our core verticals, add new growth verticals and make progress with the underpenetrated prime segment.

With that, the key takeaways I want you to have from our conversation this morning, are threefold. Intuit has a massive market opportunity, providing ample opportunity for years of strong revenue growth. Our strategy is working, and it's durable and we're doubling down on the 3 big bets that are keys to unlocking the majority of our addressable market. And the management team remains disciplined, focused on what matters most to its customers, thereby delivering revenue growth, margin expansion and returning capital to shareholders. I know we've -- shared a lot this morning across our strategies of product experiences and data points on the business. But at the end of the day, it comes down to delivering benefits that matter to our customers and have positive transformative impact in their lives.

With that, to sum up the entire morning, let's revisit the video we saw this morning to see how our work impacts the lives of the 100 million customers that we serve.

Will you please play the video?

[Presentation]

So we covered a lot of ground this morning. So take just a minute and reflect on what you heard, and then we're going to come up and take your questions. Right now, we'll take a 5-minute break, so a real quick break, and then you can come back and we'll get started with Q&A. Thank you.

[Break]

All right. Well, welcome back for questions. We've got plenty of time for questions. So if you could raise your hand high, oh, look at that. We have mic runners -- so we'll get the mic runners to you all. And by the way, the whole team is here. And so Sandeep and I will tag team and probably just ask our team to jump in as well. So let's get started. Keith, I'll turn it over to you first.

Excellent. Thank you for a great Analyst Day, a lot of data points, and I know a lot of work goes into it. Maybe a question for Sandeep that I know that Sasan is going to jump into. Sasan...

He always has valuable things to add. So...

[indiscernible] Sasan...

That was feedback. Please continue.

He gave us a big number out there saying -- given a view that this company at this scale could return to 20% growth. I can't believe you got Kim to sign off on that. That's probably the most impressive part of the Analyst Day. But you gave us a forward year outlook of 12% to 13% growth after we just did a year of over 15% growth, a year of acceleration. Help us kind of rectify the 2. Are there items that we should be thinking about in the coming year that are like foundational investments to faster growth on a go-forward basis? Is it just conservatism? Like how should we rectify those 2 data points?

Yes. Absolutely great question. And the overarching thing you should keep in mind is that when it comes to guidance, we want to make sure that it is something that continues to preserve the credibility we spend years building, right? So it is a very high confident guidance. What we are excited about is the momentum we have in the business. In the Global Business Solutions Group, we've talked about Mailchimp, so I'm going to put that on the side and Marianna already touched on all the momentum we're building there towards a 10% exit. But the opportunity set and the momentum on the online ecosystem continues.

On the desktop, there is a slowdown to low single-digit growth, and we've been sharing that over the last 3 years while we're driving the migration. So that's what -- you got to keep in mind, the momentum is continuing. On the TurboTax side. We're excited about the progress you made in disrupting assisted tax category. There are many things worked. But as I've shared with you, everything that worked, we have so much opportunity to be better. We did early marketing, and we learned so much. Now we're going to hone in on areas that work better and discard the areas that weren't as fruitful. We unlocked the local opportunity where we see people convert 5x faster when we show up local. And as you know, we are within 10-mile radius of 80% of the U.S. population. But we really didn't unlock local until late in season because all this stuff about Google Verified and showing up in organic search. So that happened late in the season last year. This year, we're going to have the whole seasonal benefit, right?

And lastly, Credit Karma. Last year, we built a seamless experience. To me, that's table stakes. What we want to share what Mark and Arundati talked about was a bespoke experience. They come here, we got your data, let's get your taxes done in 20 minutes, right? So that's where we continue to build upon the momentum. So -- and similarly on Credit Karma. That business is -- has exposure to the macro. But a lot of that result -- the majority of those results were our execution of focusing on what matters most to our customers. So your key takeaway should be the guidance is high confidence similar to the principles we had for the last several years.

Secondly, the momentum in the business and all the key levers for future growth remains strong and is driving our optimism. And there are a couple of areas where we want to make sure that we're giving them the room to scale up in a healthy way, Mailchimp international. And the last one, desktop, we've been transparent. It's just going to -- is done with the migrations, it's low single digits. A long answer to your question, but hopefully that unpacked the entire thinking of the management team took into the guidance that we provided to you.

An amazing spread today for breakfast. So just congrats to all your vendors.

It's all amazing businesses.

You guys came across very inspired today. I think a lot of us have watched a couple of Analyst Days in the last week, and our heads have been on a swivel. And inspiring in terms of the way that you're bringing all of this technology together to make it tangible rather than, I would say, fragmented and confusing. The guide for 20%, if you think about the pieces that get you there, it feels like the most aggressive part of that is that GBSG growth. That's going to have to be probably well north of 20% given the other parts of the business that are growing below that likely for a while. When you think about the consumption element, the AI monetization element that you're bringing into the core -- how do you stack rank? And how do you think about the linearity of that growth in that business as we get to that 2030 number?

Can I answer that? We'll tag team up here. First of all, I actually appreciate you calling out our energy. We are inspired because all the pieces and parts have come together from just all the hard work of the team that was up here presenting and the many that are at work right now. So we feel inspired because just we -- we're seeing the proof points, and we see now what's possible. I would say there are really 3 things to -- that would have to line up for us to accelerate growth from 16% to 20%. And all 3 things are -- they go hand in hand. The first one is, with all the pieces coming together with AI plus HI across the platform and really stitching our platform experience together, that's a consumption driver.

You heard David Hahn and talk up here about although our money is $1.4 billion, growing 37%, the majority of our customers don't have any idea that we can help them with AR and AP. Same thing applies to payroll. So the -- that's a real illustrative example of now truly being a platform for consumers and businesses with both AI and HI we believe that's a huge opportunity for consumption, consumption of money, consumption of payroll, consumption of HI, which is our human experts. And human experts is a big deal because any of our businesses that use one of our AI-powered experts the attach rate is up 22 points. And so that's one, we believe, significant growth driver that frankly is more coming versus than our numbers.

The second is assisted tax market. We finally got to break through adoption. $2 billion business, growing 47%, it's all AI and HI. And we've got a couple of percent penetration. It's a disaggregated market, lots of mom-and-pop shops, all manual, and we've got incredible scale. And so maintaining, right, 40% plus growth there is how you get to 20%. And the third is mid-market. And you heard both Ashley and Marianna talk about this, but with the focus that we have on mid-market, now one year into Intuit Enterprise Suite, just we're in the early days of even our commercial motions. So you sustain that for 40%. Those 3 things gets the company to 20% plus growth. That's our internal aspirations. It's by the way, everything we work towards is how do we deliver these undisputed benefits that can sustain that kind of growth.

And the thing I would just remind us of, it's one of why I showed one of the slides that I did. In 2014, when we grew 8% and we were a $5 billion company, we didn't guide we were going to grow 16%. But today, we are 4x the size of $20 billion, and we're growing at double the growth rate of 16%. And we have a very clear path to what's possible as we look ahead.

Siti Panigrahi from Mizuho, another great Investor Day. Thanks to Kim, and her team. I want to drill into the last point, you said mid-market. IES has now been a year. Could you drill into what have you learned? This is kind of a new outbound sales. Now you have a new General Manager. So what have you learned? And what's your plan for this year? And what's expecting to your guidance when you think about IES?

If I could start it, I'd love to hand it over to you, and Ashley would love to tag team with Ashley as well. I think a couple of things I would say. One, it's really important to once again recognize that we just launched Enterprise Suite a year ago. And with -- where we are with our innovation and with the fact that most of what we are launching is AI native and becoming a system of intelligence, we're going to be able to really go across many verticals and verticalize Intuit enterprise suite so that if you're a construction company, if you're a real estate company, if you're a wealth management, if you manage [ RV parks ] that our system of intelligence can frame the KPIs the way you want it, the reporting the way you want it, the insights the way you want it. And we're just at the sort of the beginning of what's possible with our platform to serve many verticals within our base, which is where the majority of the TAM is and then building capabilities to go outside of our base.

So that's sort of one huge element, which is around what's possible with the platform. Because when you first launch something, you're in the nascent stage, we're a year in, and we feel like we've been at it now for 5 years and a lot is possible now in the year ahead. The second is commercial. And this is where in a moment, I'd love for you to hear either from Ashley which is although we've been at this building the commercial motion for a year plus with Intuit Enterprise Suite, when someone comes in that's built an enterprise and mid-market business, they look at that and go, wow, we need to build a commercial motion. And so that's a huge growth driver as we look ahead. So let me pause on that because I want Ashley to jump in. But would you add anything before I turn it over to Ashley.

Yes. A couple of things, Siti. One is we think about mid-market as a holistic portfolio that's bigger than just IES. It's advanced in IES. And as I shared, it grew 40% last year. And as I highlighted, we expect it to be growing meaningfully faster than the top end of the 15% to 20%. So I would take that in terms of your thinking. The second thing I would point out is doubling down on what Sasan shared, it's been in the market 12 months. I'll take you to our business tax, right? The first year, you put something on the market, you learn from feedback. We've never had a sales force. We had hone in that sales promotion.

Does one person go on to sell the whole portfolio? Or does one person going to sell ERP and we bring in experts of payments and payroll, right? So these are all things we learned and evolved on. We just had a massive release in July, another one come in the next quarter. That helps unlock the accountant and then you're not fishing with hooks, you're fishing with nets, right? So these -- and the business tax is a great analogy, tripled in the second year because we took the learnings from the first year, built into the second year. It will scale even faster than the third year. So that is a good reference point for you to think about how this management team leads. We get into the market, we learn, we iterate and we accelerate. With that Ashley I turn it to you.

Great. So just to add, through my onboarding, I have spent time with probably 100 customers and accountants since I joined. And one of the things that has really struck me is not just the permission for us to be the leader in this market, but the customers are asking us to be leaders in this market. You have to remember, these are $25 million, $50 million, $100 million businesses. They are trying to scale their employees, they're trying to scale their customers, they're trying to grow their business and they want help and they don't today feel like they have a strategic partner, they want Intuit to be that strategic partner. And it was really striking to me. There are very few times in my career where I've met with so many customers that just thank us for focusing in this area and making the investments in the platform to make their lives easier. They're raising kids, they want to make sure that their employees are prospered, not just them, all of that.

Next, what have we learned? The product has incredible value. And as I emphasized earlier this morning, people -- our customers can actually realize that value quickly and easily. This is completely game-changing and different from the products that have been in the market today until now. And then importantly, as Sasan mentioned, there is a lot of progress, but a lot of opportunity left in our go-to-market. And this is everything from just the fundamentals of sales productivity, making sure that salespeople every single day, 5 days a week, are being as productive as possible as they can identifying the highest opportunities in our installed base and having great conversations with our customers. We're making phenomenal progress and there's still a lot of progress left to go.

The second is leverage in the model, right? And this is something that I could not be more excited about is leverage, whether it be from marketing and then also from the accounting partnerships that enable us to really build both this higher touch, but incredibly efficient go-to-market motion for mid-market. So lots of opportunity, really incredible solid foundation. And again, one of the things that I could not be more excited about is the permission, enthusiasm and desire from all of our customers for us to solve this problem for them.

Sasan, Brent Thill with Jefferies. On international, your near-term and long-term aspirations just like to hear how you think about this and to get to 20%. Is this -- would this be the fourth or fifth thing in that order when you give us the 3 year or where do you rank this to get to that aspiration?

Yes. Again, I'll double team this with Sandeep. First of all, international, everything we talked about today is a global strategy, that's first and foremost. And in fact, what you saw up there with our platform -- in the coming months, it's being launched outside of the U.S. And so one, first and foremost, every one of our bets are global bets. The second is we didn't talk about international because one of the lessons that we've learned is we want to deliver the proof points and then talk to you about it versus talk to you about what we're doing and the proof points lag.

And the thing that I have a lot of confidence in is we are truly thinking about our platform, our global first versus U.S. first. We have the right talent in place that has built international businesses and we have the proper focus by our product teams and by our commercial team. So I have a lot of confidence in what's coming. A lot of it also is driven by the innovation that's coming with Mailchimp because 50% of Mailchimp's revenue is also international. But I'd love to -- for us to come back and share with you how much of the growth it's driving versus talking about it, which is why it wasn't part of the 3 that gets us to potentially 20% a day.

The only thing I would add is, I think international is key to driving the 5% to 10% customer growth and unlocking the TAM. But when you look at our business, the opportunity we have to drive monetization, we have massive runway left in the United States to deliver accelerated growth. Platform adoption, you talked -- we talked about 22 points higher adoption with QB Live. That could prove out a hypothesis as a discoverability issue, right? People are spending billions with third parties on offerings that we can solve for them. And they're like, oh, I didn't even know you could do that for me, right? So I see plenty of opportunity and I think of international as a future accelerant but the durability of growth we've got plenty of runway in the U.S. So I don't need to bank on international for that.

Stefan Slowinski from BNP Paribas today. Soon, I think you may have mentioned earlier about potential for other new monetization models. If you did or you didn't, if you could mention whether you do see it as possible. You have a lot of models already. But with AI, is there any more that you can do in terms of new formats of monetizing that? And kind of associated with that, just wondering if you could update us on any discussions with the U.S. government around potential public-private partnerships and whether there's new potential revenue streams for Intuit coming out of that?

Do you want to take the monetization, I'll take the U.S. government?

Sure, absolutely. So the keys to monetizing with the customers is think about their workflows, right? They're coming in and getting their job done. And these are customers who are used to their workflows, and we need to break that inertia. So our first step in monetization was putting agents into the experiences. One of our strongest agents is accounting agent. Someone sits down to do the work. They were to spend 50 minutes during their books. Now an agent helps them get that done in 10 minutes. They're like, wow, there's massive benefit there. That breaks the inertia to go back to the line up to see what else is out there that I could look, that could drive upgrades, right? Our payment agent helping drive faster payments, let me accept electronic payment.

When we say, hey, you have 5 invoices late. Would you like to send a reminder that like, of course. And we tell them, hey, customers like you when they start electronic payments get paid 5 days faster. At that point, I'm not making a sale. I'm delivering a benefit, it drives better adoption. So upgrades, platform adoption, that's the key to monetization. Now there are opportunities we continue to experiment with, which is a customer may not want to upgrade, but like, you know what, I'm happy with my SKU, can just buy an X or a Y. Alex and team are building more Agent experiences. So it's still early. It's a wide aperture -- but just know that we are focused on delivering the benefit, unlocking our customers' productivity, which earns us multiple ways to monetize their productivity.

And your question about the U.S. government, what specifically is your question? Because you asked about monetization.

Potential for public -- any new public-private partnerships that have been discussed more on the tax side and whether there's a new potential revenue opportunities for Intuit coming out of that?

Yes. Got it. Thank you for the question. So a couple of things I would say we've been working very closely with the Treasury and the IRS and a couple of things that I would say they're focused on. One, first and foremost, their view is building tax software is a waste of money and they're not the right investment. And they're doing a study to confirm that, that is ultimately not the best use of funds. They've already actually removed any of the employees that were working on what was Direct File.

So that's sort of one takeaway that you should have, which is the U.S. government believes that there are plenty of companies commercially that build software. We don't need to be building software that's already free, provided by commercial entities. I would say the second and most important thing is we're collectively working with the government and private entities in terms of how do we continue to commercialize and amplify what's available for consumers.

Because today, it's actually quite confusing. If you look at the free file program, there's a lot of different commercial offers. They are all different principles, different standards, very confusing for consumers. And so we're working together in terms of like how do you standardize that? Because if you just look at us as an example, in the last several years, 100 million customers have done their taxes for free.

So how do you amplify that even more so? That's the discussion and partnership that is in place. And I think you should expect some sort of announcement in the October time frame. But I think the takeaway should be government is eliminating waste. They don't want to build software; and two, they want private industry to work together to amplify the free that they already have.

Sasan, Mark Murphy with JPMorgan. Several of the large enterprise SaaS companies have started to disclose an AI contribution. They usually won't do that until it crosses above $100 million. And you'll look at it and you'll say, well, it's 0.25% of your revenue or maybe 0.5% of your revenue. There's been a bit of a mixed response to that. And you've been very, I think, careful not to embed AI contributions into the forecast, Sandeep.

When you look at what the enterprise -- what these other companies are disclosing, do you look at it and say, "Hey, it's impressive that, that's something crossing that $100 million." It's something we aspire to? Or are you in the camp that it's going to monetize faster in the SMB arena because, first of all, they don't have an IT department? They don't have to do any of the data integration. So they don't have the hurdles. And then you've got all the data kind of contained in one system. So it's more of a sort of click and go.

Yes. I love your question. The reason we don't separate out AI-driven revenue is the whole company, the whole platform is built on data and AI. And so when you look at TurboTax Live, it's $2 billion in revenue, growing 47%. That is all data, AI and HI. And when you look at all the innovation that you saw that we talked about today, it's all fueled by data and AI.

So I think for us, to try to break out what's AI-driven is a meaningless exercise because the whole company is fueled by data and AI. And based on everything we talked about today, we believe it is the fuel of driving future growth, whether it's adoption and consumption, whether it's fueling our growth in mid-market and/or disrupting the entire assisted market of tax, bookkeeping and accountant.

So that's really -- it's for very practical reasons that we don't break it out because a majority of what we deliver today is all fueled by AI. Both our revenue and all of our internal productivity, which turns into margin expansion.

So for the specific agentic SKUs that have been rolled out recently, is that going to remain in that category of maybe kind of a nondisclosure?

Yes. Well, it's not a nondisclosure because let's take your example. When you look at our business platform lineup, we have agentic experiences across everything in the lineup. But we're also very intentional what agentic experiences we include in which lineup because of the cohort of the customers and their behaviors. While they have access to all the AI agents, they would have to upgrade to the next SKU.

So the reason we don't break it out is because it's actually core to our lineup. So really, the message I would leave you with is we don't contemplate internally, do we break it out or not? Will they find it impressive or not? It's actually -- for us, it's not useful because everything that we're doing is driven by data, AI and HI.

And to dimensionalize a little bit, Mark, think about the lineup we introduced in July. The primary change was the agentic experiences. And if you just take the pricing for value we did as part of embedding those agents into those -- into the lineup, the contribution was automatically higher than the numbers you mentioned that others are talking about. If you look at TurboTax Live, just the way we think about delivering customer benefit, that entire business, $2 billion is AI and HI working seamlessly together.

So to us, AI isn't a side thing we're adding our customers to think about and separately pay for us. It's just driving the entire workflow. So as Sasan mentioned, it's embedded in everything we do. So it's just hard to do a bunch of algebra to isolate it and make us all feel better with the contribution. But just know, it's automatically higher than the numbers you just quoted.

That's helpful right there.

I'm going to let you start...

Kirk Materne, Evercore ISI. A lot of amazing innovation on display today. So it's great to see. I was wondering if you could talk a little bit about Mailchimp in the context of what you're doing with QuickBooks, meaning one of the real opportunities would seem to be to go up and help businesses not only manage their finances, but grow.

So what should we expect for Mailchimp in terms of look and feel, integrating more into the look and feel of QuickBooks? And what is the opportunity to sort of cross-pollinate those from a go-to-market perspective? Because if I remember correctly, the ARPU uplift for Mailchimp is pretty significant relative to QuickBooks. So can you just give us a status and maybe what should we be watching for to hold you to account on Mailchimp maybe over the next -- or what you're holding your team to account for over the next year?

Yes. Thank you for the question. I'll give you just a couple of headlines that I think answers your question. I would think about Mailchimp very similar to our journey in the last 10 years with payroll payments and now HI, which is our live experts in terms of the role that they play. And the role that they play, just as a reminder, 10 years ago, payments was far -- or money was far smaller than it is today, and it was growing like 10%.

Today, it's $1.4 billion, growing at 37%. Why? Because of the work that we did to really integrate it into the platform. Same thing applies to payroll and same thing applies to why live, both TurboTax Live and QuickBooks Live are sort of a rocket ship. It's not because of what they do stand-alone. It's because of the power of all-in-one, integrating it being at the moment of truth for customers. That's the same playbook because it's a customer-backed playbook on Mailchimp.

And so there's a couple of things in context of the details that I thought Marianna did a very thoughtful job answering the question around what we're doing around product and/or go-to-market that you should expect. One is the key elements of the engine around driving marketing capabilities, managing your customer hub is Mailchimp and will be Mailchimp and integrated into sort of one look and feel, which you saw today. And for the customer, it's seamless. So that's first and foremost.

Two, Greg Johnson, our commercial leader, actually just put together the commercial team combining across sales and Mailchimp across payments, payroll, Mailchimp, both marketing and sales, combining them and putting them in one group so that they are actually thinking about how to go to market holistically with a set of benefits and that the sales folks can holistically be able to offer the platform.

So you can -- I think I'll end with where I started. Just like payments and payroll and our HI capabilities with Live, you can expect Mailchimp to be integrated fully. The key, which we'll continue to report out on is -- and that should accelerate the growth rate of Mailchimp just like we did in payments, just like we did in payroll, just like we did with our live, we expect the same from Mailchimp.

Let's go to Taylor the mic.

You talked earlier about how internal AI efficiencies is central to margin expansion going forward. So could you maybe just talk about as we look ahead, you've already had so much success to date, but where do you see the biggest opportunities? And as we think about quantifying like what those cost savings could potentially look like, any color there? Is it really a function of headcount growth or anything else we should be keeping in mind?

Absolutely. So the project around rethinking how Intuit works using AI is one that Alex, our CTO, Caryl, our CHRO and myself are working across. And the stats I shared, those are early innings, right? I think there's much more opportunity for our developers to continue to get more productive.

As we think about marketing organization, I see opportunity for us to continue to invest in even driving faster cycle times, faster testing, delivering better targeting, better optimization of our campaigns and customer success. If you think about AI, it's amazing rule-based stuff, right? And the way Sarah Kim and the team run that organization, AI is at the core of everything we do.

Some of the stats they share with Sasan in terms of the efficiencies they're gaining that we learned from and then amplified across the entire company are mind-boggling, right? So that is a key area that I look at that's giving me the confidence on margin expansion if you look at the 90 bps non-GAAP we delivered last year on top of that guiding for another strong 80 bps, which I think all of you were surprised by that we came out of the gate with such a strong guide. That is driving the confidence, and I look forward to working across the organization to continue to unleash the productivity of our teams.

Alex, is there anything you would add connecting what you shared up on stage to what Sandeep just shared, just to maybe amplify the how?

Yes. Just to highlight one thing and emphasize one of the things Sandeep just brought up. So one of the big things that we learned in enabling amazing scale with the experts for TT Live and QB Live is that you have to track basically their work, what are they actually working on?

And we track that in something we refer to as an engagement. And we know how long an engagement takes. We know what the pieces are. We know how long the pieces take. And what we've done is we've turned that towards our entire workforce. And we've said, well, what do marketers do? What do engineers do? What do finance people do? What does everyone do in their job? And how do we actually break them apart piece by piece and enable them to actually be much more efficient by replacing certain parts of their job with AI?

And you saw the marketing example where something that could easily take 2 or 3 weeks now can be done in 20 minutes. The last thing that I would add is that we're hyper-focused on identifying what are the friction points that exist in us delivering as an organization that we could completely change with AI. So for example, are there certain meetings that we have that could be completely automated through AI?

So instead of being, hey, I'm going to accept to attend this meeting or not attend this meeting, it could be tell me what happened in this meeting, tell me if I get any action items. And then your agent goes and attends the meeting, it comes back to you and you didn't have to attend the meeting, you're actually working. And so these are some of the things that we're working on, both that are role-specific and really across the organization, basically to completely change the way that we work with AI.

Thank you, Alex.

Let's go to the first gentleman and then go back. Just sequencing it...

And all the great content is always very useful. Sandeep, on the TAM slide, if I look at the revenue share that Intuit is presenting, I think it's really just accounting and tax where you're showing up on that slide and then the rest is still just a meaningful market opportunity. There's probably close to 15 bars there.

So maybe you can just give us a sense for how you prioritize which bar to go after? Is it the biggest TAM and you work down? Is there a sequence you expect customers to kind of start with and move towards? And does the focus on agents and assist at all shift that in any way?

Yes. Great question. Are you asking of me or Sandeep? I don't want to...

Both. We'll have both to answer.

The good news is both of our names start with an S. So it's a great question. And I think what's really important to call out are 2 things. One is what we talked about earlier, which is today, businesses are completely overdigitized. And they're using a lot of different apps depending on their size to do pieces and parts of their business, an app for estimating and invoicing, an app for paying a bill, an app for reporting, an app for financial management, right? I could go on and on.

And the biggest thing today is that their data is trapped in a bunch of different apps. They're spending a lot more time than they did even a year ago to try to understand what's going on in their business, and they are spending far more money than where they were just even a year ago. And so for us, it's customer back and it's about winning as a platform. And so it's not about just what TAM is large.

I mean when you look at the spend of a business, it's -- they spend money on managing their employees. They spend money on AP and AR. They spend money on financial management. They spend money on getting the reporting and insights that they need. And they spend money on bookkeeping and tax and accounting. And today, we have all of the pieces and parts based on all the investments we've made in the last 6 years to truly have an all-in-one platform that's fueled by data, AI and HI to do the work for them.

And so that is what gives us a lot of confidence as we look at our growth formula looking ahead. It's actually why 10 years ago, we were growing 8%. And today, we're growing 16%, and we're 4x the size. It's because of the fact that more so than ever, we have all the pieces in one place and the customers are more ready than ever before. They want all of their stuff in one place, so they can get to the insights to drive growth.

And now that we've got all the parts and pieces to truly become the system of intelligence to do the work for the customers, that's why we have so much confidence about our growth formula going forward.

And it's the question I answered earlier when Alex asked, well, we know what your guidance is, but your aspiration is 20%, how do you get to it? It's fueled by AI. It's how we then disrupt the assisted market, tax bookkeeping and accounting with our partners. And third, it's mid-market. But that's all fueled by having all the pieces and parts in one place.

Raimo Lenschow from Barclays. First of all, can I sign up for that agent with the meetings? That sounds like super...

We will need you to come here in person, then you can engage.

My question is on international. We've been talking international for quite a few years now with you guys. I remember when you bought Mailchimp, that was kind of seen as a way to open up doors because they had more international exposure already. How do you think about that kind of journey there now? Is that kind of -- are we waiting now for Mailchimp to come back and then international starts getting better again? Or like how do you think about that journey?

Yes. So we're not waiting for Mailchimp. I think the key takeaway with international is what you saw up here today, we're launching outside of the U.S. in the months to come. And that's really important from the perspective of helping customers manage their business, whether we've built the app or it's a partner truly shifting from where we've been to a system of intelligence.

Mailchimp is simply going to be an ignition for that acceleration of growth, but it's not dependent on Mailchimp. So one is just really building our platform globally versus just U.S. and then over sequencing. The second, and I don't want to overplay this too much, but it has a lot to do with it, which is just talent. The talent we've put in place, the focus that we have in place, we have a lot of confidence that in the future, it's going to be far more accretive than it is today.

But I would just tell you, it's repeating what Sandeep said earlier, we're not talking that much about international, not because it's not important. We want to talk about it when it's actually accretive to growth. And we have so much opportunity across what we've talked about earlier today that international is important to us 5 years from now. It's not important relative to accelerating the company's growth. So for us, our mindset is less talk, more do, more points on the board and then you'll be asking us how did we accelerate international, and that's the right time to talk about it.

And the small component is complementary. I'll add from my lens. International strategy for us is a mix of customer growth with this massive unlock there and healthy ARPC growth. So it has to be a platform. Platforms are entire platform capabilities, inclusive of Mailchimp. So that's how we think about it. And the team we have there, that's a mandate. Come back to us with a durable strategy that's going to grow not just customers, but also strong monetization.

Your call?

Oh, now he's putting it on me. Please back there. Sorry, the light is in my eyes, so I can't see who's back. I just...

Brad Sills from Bank of America. Thanks again for hosting another great Analyst Day. Question is on mid-market since it's such a key pillar of growth here for you. With IAS, I think the focus this past year was on selling into the existing QBO base. As you think about that TAM, I think the upmarket opportunity is probably more significant. So curious where your thinking is now? Are you -- looking back over the past year, what were some of the learnings now that you've had the product in market for a full year? Are you ready to kind of move into that upmarket segment of the business? And what changes might be required as you make that pivot?

I would call out, if I were to zoom out a few big learnings that we've had that informs what we're doing now to accelerate in FY '26. One is our sweet spot is customers with $10 million and over, particularly with Intuit Enterprise Suite.

And so what we've learned is sort of the larger the customer, the -- it's our sweet spot, which gives us a lot of confidence in terms of continuing to build out the platform so we can go well beyond the $100 million mark. Although revenue is not the only indication. It's the complexity of the business. But revenue is one way to talk about it. So that's one huge learning that we've had.

The second one, which we've had this learning before, but now that we've had the platform and are really partnering with our accountants, we now see it at work in a very big way in mid-market accountants are such important partners of ours. And not only for us to help them digitize their firm, but to partner with them to serve these larger customers.

And it's done right, it's to their benefit because of the reasons why you heard from Ashley, we win. We win on experience, we win on price. We win on total cost of ownership. And that makes the accountant look great, and it's great for the end client. So that's the second big learning is that that's why you see that we have 2x the growth that's driven from accountants, because we're really building out a model that is important to be able to serve accountants.

And again, although we said stay tuned, the accountant suite is going to help a lot with this. I would say the third big thing, which really Ashley has opened our eyes to is she was very thoughtful in the way she answered the question, which is like great platform, great sales team, but you're not doing any B2B marketing. Like there's no awareness of what you do out there.

And so that's the third thing that we've learned that we're doubling down on, which is B2B marketing, making sure that we have great leads for our sales folks so they can continue to be more productive rather than finding the leads, having the leads in their hands because of the work that marketing does. And I think last but not least, to put a fine point on the question that you asked, our base continues to be a massive opportunity for both emerging mid-market, which is QuickBooks Advanced and Intuit Enterprise Suite, both of which comprise of our mid-market growth.

But while our base continues to be the largest opportunity, and frankly, if we didn't do anything in the next 5 years and just focus on our base, we could have a huge business here. But we are starting to put the right things in place to begin to hunt for new customers because they're actually calling us. The word is getting out. And so if an RV park that just came RV Park management or wealth management or a construction company that was an existing customer that comes to Intuit Enterprise Suite, they rave about it.

And then the next construction company that may be on outdated systems or a bunch of apps picks up the phone and calls us and says, "Hey, can we talk about Intuit Enterprise Suite?" And so that's a motion that now we are building as we look ahead. Those are all the biggest insights and learnings that is informing everything that we are doing today.

Scott Schneeberger from Oppenheimer. A couple of tax questions. Sasan, the big beautiful bill, it looks like it's going to add a lot of complexity, which do it for me, do it with me, seems like a great opportunity for you. Just do you see it as a big tailwind? Is there anything we should consider negatively as well with that? And then the second one, Sandeep, when you were speaking, you stressed maintaining dollar market share dollar, share in DIY tax. It's the -- there's a lot that goes into that equation. But I guess the free, how you're thinking about free permanent versus evolution?

Why don't I take both of those and then you and Mark? Awesome. Let me start with the BBB Act, right? We think it is can be tremendously helpful to the U.S. economy, but there is levels of complexity. Is this overtime pay deductible or not or do you have to pay taxes to it or not?

So we do think there is a high level of complexity, but it's not something we're necessarily banking on as we think about our guidance. So that's one way to think about it. The other thing to keep in mind with the one big, beautiful Bill Act is that IRS typically opens on the last Monday of January. And there's a lot of complexity here.

And if this bill could actually lead to the IRS potentially opening a little later, which could push revenue from Q2 to Q3, that's an area we have no insight about early knowledge about, but just something that I want you to have on your radar once we get to Q2 and I guide towards Q2. Now coming back to how we think about DIY and assisted. To us, it's all about growing our ecosystem of filers.

And if you have a complex situation in your life, such as my elder started attending college, I'll likely be an assisted customer at this time because I have more questions. Next year, my life is going to be pretty much similar status quo year-over-year. I might go back to being a DIY. And that's totally fine for us because we are maximizing the LTV of the customer. So that's kind of how we think about it.

And when I stated our goal of continue to disrupt assisted tax, growing TurboTax Live 15% to 20%, we also want to make sure that we don't take the eye off the ball of innovating on the DIY segment and making sure we are winning on DIY across all of the income bands that we've talked about in the past on our earnings calls. So that's the guidance we're putting out there that continues to make progress assisted while we make sure that we don't lose and are maintaining our share on a do-it-yourself on a dollar basis. Anything you'll add or...

No, no. Perfect.

Kash. Let's go to Kash and then we'll come here.

Excellent. Excellent Analyst Day. I had 2 questions. I'll try to be brief as possible. One on AI, there's this view that foundation models can do everything they're magical, the VCs posting, all kinds of messages that SaaS CEOs under death watch, relevant business model, I mean, almost unbelievable.

What is wrong -- when there's so much smart money behind that seemingly smart thinking, what could they be not factoring in with companies like Intuit that you're very strong, got a strong position. What is wrong with that thinking in the valley, number one.

Number two, the delta between current growth rate, which is 16%, which is very solid at 20%, I could chalk it up to maybe online ecosystem grows a little faster. There was a target a few years ago that, that business would grow 30%. You could see a path to that or you could see taxes do significantly better. But both are very different paths. One has some friction and the other one has less friction, but the thinking is that we can still grow margins irrespective. So just wondering what your thoughts on both those questions.

Yes, yes, sure. So I'll start with the first one, Kash, and I'll just share our belief versus comment on maybe the belief of others. And my belief is SaaS companies will either be disrupted or they will be disruptors. And over time, I don't think there's going to be much in the middle. And the reason that we believe that -- I believe that is because with what's possible with data and AI, because with what's possible with data and AI and you can't do anything with LLMs unless you have data. It's all about data.

But with data, data services, which is about ingesting data that you don't have and AI capabilities, what we are doing is building a system of intelligence, which is a learning system that will do whatever the customer needs it to do and just give us a prompt of what you need, and we'll do it for you, which is what you saw us demoing today.

And so that's what we've been building for the last 6 years. It's why we bet the company on data and AI. Many at the time in which we declared us weren't even listening to us. We have 6 years of building data, data services, AI capabilities and a system to do the work for customers. And our strength is the data, data ingestion and all the AI capabilities to be a system of intelligence, which is why structurally, our growth rate is profoundly different today than just 10 years ago.

8% growth at $5 billion, $20 billion growing 16%. And we have a lot of confidence based on all the proof points that you saw that our best years are ahead of us. And frankly, we don't think about things in years. We think about them in hours, days and weeks because that's how fast we are moving. So that's what gives us confidence. I do believe that if you are fundamentally not focused on data, data models, data services and AI to build learning systems that become the system of intelligence, you can get disrupted.

LLMs by themselves are not magical. It's all the things that I just mentioned, the domain expertise that ultimately comes with it. So that's the first question that I think you asked. I mean the second one is maybe it's a repeat, but when you look at all of our innovation with what's possible now with AI and HI, you add to that a $2 billion -- I mean, how many $2 billion businesses do you know that are growing 47%. That's TurboTax Live.

We believe we're just scratching the surface. And you maintain that plus you maintain 40% in mid-market, which is all fueled by the same platform capabilities. These are not different businesses. These are all -- it's one platform, one data lake, data services that ingest data, similar data models and then AI capabilities that's fueling these 3 areas, I think we can accelerate the growth rate of the company, but we'd rather guide the way we do and deliver heights they do than otherwise. So that's the way we think about it.

Should we go up here? Talking up here, those gentlemen back there after.

Ben Solak from F/m Investments. I'm just curious on that AI agents, you guys were talking about this person had to input their data 7 times before it was across all the different apps. So I'm curious what kind of structural advantage you guys have to say. Instead of a third-party app coming in and taking all of that data, you have Intuit's app using the data that they're putting in into all the other systems.

I'm going to let Alex answer that question because it's all about how we've built our platform capability.

Yes. The structural advantage we have is that once you enter the data once inside of our platform, it's immediately available everywhere across the platform. So even in the scenarios where you have a customer who may be using another provider to pay bills or to collect payments, we can actually, for lack of a better word, simulate what that would look like on our platform. We could show it to them because we already have their data.

So we've made significant investments in our data and capabilities, these data services that Sasan was referring to. So we can basically go get data from anywhere. So it can be data where we call an API and go get the data. It could be data that is sitting inside of an e-mail app like Gmail. We can go get the data, extract the attachments, take the data off of it.

We can upload pictures of documents. Somebody can scratch a note on a piece of paper that's an estimate and take a picture of it and send it to us. So our structural advantage is that as Sasan has been saying, so we've invested so much in being good at data, the data models, going and getting new data that now what we can do is instead of the customer having to manually enter it in these different places, it just immediately shows up in our version.

Looks like we are out of time. First of all, thank you for all the questions in the room. Thank you for everybody on the webcast that has joined us. I just want to maybe wrap and end with where we started. Our posture is very different today versus even a year ago because we have put together all of the pieces and the parts to be able to truly be an all-in-one platform that's the system of intelligence for customers that does all of the work for them, disrupting the business logic layer, the workflows and apps and ultimately becoming the place where based on data, data models, HI and AI, we can do everything for our customers.

And so we are very excited about the foundation that we have. We are very hungry and bullish about what's possible. And we look forward to talking about the amazing benefits we're delivering for customers and our results going forward.

I think that will bring us to a close for the webcast. For everybody in the room, we are going to dart upstairs where there's going to be amazing food and the leadership team will be up there, and you can mingle with anyone that you would like. So see you up there in a few minutes. Thank you.

Thank you all.

So this is the day 3 of the Goldman Sachs Communacopia and Technology Conference. The fourth year that we have rebranded at this conference and reversioned it and consolidated a couple of industry groups, and it's been a tremendous success. We're more than 3,000 registrations. I know that may not sound like a big number, but in our industry, financial services industry, that's actually pretty good, it's one of the -- if not the biggest -- probably the biggest conference Goldman host every year. So that's in part because of companies like you and speakers like -- we're able to create a sense of a great platform that people would love to get value from listening to great conversations like we're about to have right now.

You're very kind and appreciate everything that Goldman does. I started my career at Goldman in the banking. So, yes. Good memory. And by the way, congratulations on the next page, a massive impact across your career, and I wish you all the best in the journey ahead.

Thank you so much. Thank you so much.

The past couple of years have been remarkable for Intuit. Big breakthroughs, you had the mid-market assisted tax, AI, et cetera. As you take stock of what the company has been able to accomplish give us an assessment mark-to-market of how things have come along? And also, more importantly, how do you, as a CFO and a business partner to Sasan, how do you look at the business ahead for the next 4 to 5 years? I'm sure everybody plans -- I mean not all these plants necessarily happen with 100% accuracy, but you got to have a plan. So what is the plan ahead?

No, I love that question, Kash. We're really proud of how the team has executed across the board and the results that we've been delivering. And it really starts with the coverage and the foresight ahead to bet the company on data and AI circa 2018, well before it became really fashionable talk about AI. And...

Have I told you the story that -- it's a very short one. When Sasan became the CEO, he and I went to see a clients. I think we were the first to go marketing with. All we talked about was AI in 2018. In case Sasan, you're listening, you know the trip. It was all about AI, before AI became a thing.

No. And I remember I would get questions like, hey, what is this AI-driven expert platform strategy, right? And that question is kind of [indiscernible] away starting Thanksgiving 2022 for some reason. But that has paid off dividends because we started investing in delivering done-for-you experiences for our customers. And with the 100 million active customers on our platform, as we look ahead the next 5 years is going to be continuing to scale their business, serving a lot more than 100 million globally and continue to double down on delivering done-for-you experiences in using AI and AI empowered human experts. We believe and we will -- and our results are showing that that's a true competitive differentiation, AI and HI, human intelligence working together.

So looking ahead on the business platform, I expect that 5 years or less from now, most of the work that small and midsize businesses are doing on the platform will be done by AI or AI-powered human experts. Today, already since introducing agents in July, we're seeing a meaningful amount of customers save 12 hours per month. I mean that's a massive productivity gain, right? They're getting paid 5 days early on -- so I expect that to continue, continue to make progress in mid-market. We've declared a mid-market segment for us as customers with $2.5 million to $100 million in revenue. I would take that as a warm-up exercise. Over the next 5 years, the ambitions are well above the $100 million in terms of the scale of size of customer we want to go after.

And on the consumer side, we have an amazing business with TurboTax, a phenomenal business with nearly 150 members and over 40 million monthly active users on Credit Karma, is to deliver on our end-to-end vision of having 1 platform where customers can manage their financial life, everything from building credit to building wealth. We delivered tremendous progress last year and expect that to continue to compound over the next 5 years.

Got it. We will definitely get into the AI thing. But before that -- at a high level, what is your pulse on the small business environment? We've heard in the past few weeks, the jobs added, that data didn't look particularly great, and the economists like to think that 80,000 jobs added, it's about stable sign. And a couple of years ago, we're adding a couple of hundred thousand. Now it's like well below the trend line. Does that -- is there a relevance to Intuit, how closely do you watch that? But more importantly, as you take a step back and look at the length of your small business ecosystem. What do you see that's out there? And how would you characterize the strength of the small business ecosystem?

We're in the business of serving consumers and entrepreneurs. As an entrepreneur, we call them small, midsized businesses, but they are impacted by everything they hear in the press. So the sentiment is always evolving. So I always cut through the noise and look at what the data is telling me. And what the data is showing us across the small business environment is revenues are relatively flat, but profitability is up as companies continue to get more efficient.

And the 2 leading indicators that I watch most closely is the cash reserves in bank and the hours worked by the employees because that's a key leading indication like how many -- how much you're having employees investing to the business. Both of those are up year-over-year. So I continue to feel good about how the small business is positioned. And it's a delicate time in the macro, given all the noise around tariffs and everything else, but we continue to see resilience on the part of small business, but something we're watching carefully.

Yes. It's been you could characterize that the macro has been the #1 thing in the last -- since 2021 unwound, and we had this wave of optimism that resulted in big growth rates and extended tech buying cycles. 2022, 2023, 2024, 2025, we're still asking macro question, right? I hope 1 day, we'll be asking no macro question, just talking micro like 2021 was. And 2020 in some sense, right, after we had the vaccine, it was just back to the fundamentals. But the 1 thing that I have always admired about Intuit, this goes back to the days of not only Sasan as CEO, but his predecessor Brad Smith, is that we don't control what we don't control, we control what we control, chart out your destiny.

And one of the things that haven't covered Intuit as a company and admiring it from the outside for the better part of 15, 16 years, I think I first met Brad, in 2008, just at the bottom of the word-wide financial crisis. There's always been resiliency, right? And that's manifesting when you look at the mid-market opportunity, right, the one that you're about to have that's been characterized as a $89 billion, $90 billion give or take mid-market opportunity. We've seen great statistics from QBO Advanced IES, which was launched last year. That's doing quite well. As you continue to scale up market, remind us again, in the interest of messaging. What is the white space that is opening up for Intuit? And I have a follow-up question about ARPU, ARPC, et cetera?

Yes. Absolutely. For us, double down...

Because I hear from clients. they don't believe it. But what is mid-market, and it's a formula that is in their view, broken because there was a formula of adding subs at a certain ARPU. And now you're going upmarket and are ARPCs going up and unit growth has slowed down, something is wrong.

Yes. I understand the their perspective, let me unpack in what's giving us the confidence. So in terms of mid-market, as you said, $89 billion market opportunity, and we are defining that mid-market as customers with $2 million to $100 million, as I stated earlier, there's about 1.7 million of businesses like that in the wild and about 800,000 of those are using QuickBooks right now. So the initial game is to be first to market with an ERP-like solution that resonates with these customers. IES is basically resonated with people who have multiple entities because QuickBooks, if you have 3 locations, you got to run 3 different Quickbooks. IES gives the end-to-end holistic perspective to how your business is doing. It's also an area in the mid-market we are targeting that there isn't that much alternatives.

And when we talk to these customers, a couple of things pop up, 1 that they are stitching together about dozen different apps to run their business. So just think about the level of burden on this business owner to try to figure out how the business is doing by going to a different workforce app, different payments app, different inventory tracking, et cetera, et cetera. we can bring it all together, give them 1 dashboard to run their business. The second is they are spending billions of dollars -- customers on the platform spending billions of dollars with others for capabilities that we have. So they can actually save money by bringing on to our platform. and we end up gaining as well because right now, the spend is happening with someone else.

So in businesses a few times, you've got such rich win-win opportunity. So our thing is the unique value proposition of better insights, lower cost of ownership and just -- the total cost of ownership also being low on mid-market, and that's what's resonating. And as you said, IES been in the market for about a year, but tremendous success, 40% revenue growth last year, 23% customer growth, and those are strong metrics, and we're just getting started on this journey.

Yes. I think -- and I've described to investors is a few concentric circles. So you got a very -- out of most circle would be the circle of small businesses and then QBO Advanced, the next concentric circle inside and then IES. The value is higher and higher as you go closer to the center.

It is. And QBO resonates with everyone from someone just starting a business, a solopreneur to someone who has multiple employees. We have companies who with hundreds of millions of dollars still using QBO. Advanced resonates largely with those with $2.5 million to $10 million of revenue, a more complex business, we need better insights, better reporting, et cetera. IES, $10 million plus. To your point, we just keep honing in on these products to the customer segment that resonates. And that's the game. And when I say to your first question, it was 5 years plus, I expect to be much higher than $100 million type customers.

By the way, the Intuit has their financial Analyst Day, I think in a couple of...

Next Thursday.

Next Thursday. It's one of my favorite analyst days because you have packed information, insights, the slides are just a work of art. And the coolest thing is that during the break, there will be snacks and such served by [indiscernible] but made by your customers. All sourced from your customers. It's such so cool that small businesses, what they contribute and how you showcase what is that they do actually.

Earlier, you talked about companies are a manifestation of the culture and the people. Sasan, Brad and what's kept me around at the company for 10 years is that it's truly everything we do is rooted in addressing the needs of our customers. You mentioned how we do our Investor Day and now the role our customers play in making the things that we serve, et cetera. But even when we think about new products, new innovation, even with AI agents, productivity of our customers, everything in the company, our leadership conference we had 2 weeks ago, everything about how is done-for-you experiences as an era of AI changing customer expectations. How do we stay ahead of that? So it's very much a core to what the company is, and that's what's showing up in the results.

Yes. Last year, when we had Sasan, you did talk about the leadership offset that you guys had, and you mentioned that Bill was at the leadership conference last year. Did you have any other public software CEO types this time.

We had Eric Schmidt. And we had a couple of the other CEOs.

He talks a big -- the thing about AI is AI is big super theme, right?

Eric?

Yes.

Oh, yes. I think -- and given Sasan's relationship, Scott Cook, our founder's relationship, and just our own history over the 4 years of driving sales disruption and making sure we come out bigger and stronger through every change, whether it's a change in mobile, it's change to the cloud. Now the era of AI, we want to be leading the change. It's always good to engage with these leading-edge thinkers. So I love it when we bring it to -- and expose their thinking to the broader leadership.

He's probably egging you on to go even faster with AI. You're moving quite fast.

Yes. We definitely don't know how to take our foot off the throttle and I love it that way. That's what we built for.

Great. Let's talk about the story transition from unit growth to ARPU growth. And that's a completely different world. How should investors think about the trade-off moving away from a unit-driven model, high attrition to more value more better retention, better lifetime value, talk more about that?

Sure. Let me -- if you allow me break down the question to 2 time series, a long term as well as the here now. Over the long term, as I look at a $327 billion market across Intuit and the current 6% penetration, that's going to come through a mix of customer growth as well as unit curve. So the focus of the long term of scaling both customers and monetization hasn't changed. In terms of as you're executing through every chapter, you have to drive focus in terms of this is what you need the leadership to go execute. The focus right now is to make sure that we are building an all-in-one platform and delivering capabilities for the more complex, higher-value customer.

So there's -- in the business platform, last year, we grew customers 5%. But the customers that had multiple offerings on our platform grew 14%. Mid-market customers grew 23%. U.S. QBO grew 8%, and that's what drove the massive increase in ARPC. ARPC grew 14%, 3 point acceleration from the year before. This is a very deliberate, strategic focus right now. And that's as we scale mid-market as we continue to scale platform adoption. But over the long term, we are also going to be focused on scaling the customer size as well.

Yes. I tell clients, small business is a big business for Intuit. And I think I've made the observation last year, and Sasan corrected me and said, your small business is as big as ServiceNow and growing about as fast and he said, growing 2 percentage points faster. So people don't realize that there is a ServiceNow inside of Intuit in terms of revenue size and growth rate and perhaps even an operating margin composition, right? I know you don't disaggregate the businesses...

Totally. And Bill and the team run a phenomenal company. But yes, in terms of the numbers, the business characteristics, that's definite.

And so when you look at the road ahead. What I wanted to ask, what does the competition look like? I mean, I remember a point in time when I was a junior analyst in the mid- to late '90s, the senior analysts are very busy covering the large cap ERP companies. They said Kash, you're the junior guy. You're going to cover mid-market ERP. And there were like 9 or 10 companies. Marcam, MAPICS, JD Edwards, SSA Technologies, and that's just right off -- and there were a dozen more or maybe half a dozen more. They don't exist anymore.

So part of me says that's an opportunity. And since the 25 years ago, that space has changed. There are younger companies here, digital natives and so on and so forth. But those -- the supply of ERP companies has gone just gone. But are you seeing any competition? And how wide open is this.