Intuit (INTU, Financial) has reversed its downward trend since mid-December, posting a significant gain after releasing its Q2 earnings report. The company, known for products like QuickBooks, TurboTax, Credit Karma, and Mailchimp, recently discontinued its Mint service, recommending users transition to Credit Karma.

• Intuit reported its largest EPS beat in five years, with revenue increasing 17% year-over-year to $3.96 billion, surpassing expectations. Q3 guidance showed mixed results with lower EPS but higher revenue.
• The Global Business Solutions Group, mainly QuickBooks, is Intuit's largest segment. Revenue for this group increased 19% year-over-year to $2.7 billion, with Online Ecosystem revenue up 21% to $2.0 billion. QuickBooks Online Accounting revenue rose 22%, driven by higher prices, customer growth, and a shift in product mix. Intuit is focused on disrupting the mid-market.
• The Credit Karma segment, which struggled in FY23, showed significant recovery in FY24 and FY25, with revenue growth improving each quarter: +8% in Q3, +14% in Q4, +29% in Q1, and +36% in Q2 to $511 million. This growth was fueled by strength in credit cards, personal loans, and auto insurance. A challenge in Q3 will be the comparison to strong auto insurance growth from the previous year.
• The Consumer Group segment, including TurboTax, saw a 3% year-over-year revenue increase to $509 million, exceeding expectations for a decline. Intuit expressed confidence in a strong start to the tax season and maintained guidance for 7-8% revenue growth in FY25. ProTax Group revenue decreased by 1% to $272 million.
• Intuit addressed concerns about a potential free tax filing app from DOGE, emphasizing that DOGE's focus is on reducing waste, fraud, and bureaucracy, not directly competing with Intuit's services. The company does not perceive a risk from IRS services to consumers and businesses.

Overall, Intuit delivered a strong quarter, positioning itself well for the upcoming tax season. Despite the mixed Q3 guidance, investor concerns were alleviated, particularly regarding competition from a free tax filing app by DOGE.