Intuit predicts annual revenue above estimates with the help of artificial intelligence-based financial tools

(Reuters) – Intuit ( INTU ) on Thursday forecast revenue above Wall Street estimates for fiscal 2025, banking on growing demand for its artificial intelligence-based financial management tools amid recent price increases.

Shares of the Mountain View, Calif.-based company rose about 2 percent in extended trading as it also announced a new $3 billion buyback authorization.

Intuit, known for products such as TurboTax, Credit Karma and QuickBooks, has benefited from growing demand for its AI-based offerings that provide personalized financial recommendations and automate specific tasks such as accounting.

Earlier this month, Intuit implemented price increases for QuickBooks, introducing new features to attract customers.

“Our momentum both in the first quarter and next year comes from our customer growth with both QuickBooks Online and QuickBooks Advanced,” Chief Executive Sasan Goodarzi told Reuters in an interview on Thursday.

“We’re adding almost 1,000 people who will focus on several areas that are specifically around artificial intelligence,” Goodarzi said.

This AI-focused hire comes on the heels of a significant workforce restructuring. In July, Intuit announced plans to lay off 10 percent of its workforce, or about 1,800 employees.

Intuit expects fiscal 2025 revenue to be between $18.16 billion and $18.35 billion, the midpoint of which is slightly above the average analyst estimate of $18.18 billion, according to LSEG data.

The company expects annual adjusted earnings per share to be between $19.16 and $19.36, compared to the average estimate of $19.15.

The company also estimated first-quarter revenue growth to be between 5% and 6%, below the average estimate of 13.1%, as QuickBooks desktop products moved to a recurring subscription model.

Intuit expects those changes to reduce first-quarter revenue by about $160 million.

Fourth-quarter revenue was $3.18 billion, beating estimates of $3.08 billion. Excluding items, it earned $1.99 per share, compared with about $1.84 per share.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Tasim Zahid)