Category: 3. Business

By Isabel Wang

The Fed chair’s annual speech could trigger a significant repricing in bond yields and risk assets in the U.S. financial market

All eyes will be on Federal Reserve Chair Jerome Powell when he speaks in Jackson Hole, Wyo., on Friday.

Friday brings what’s become an annual rite of summer for U.S. financial markets, in the form of Federal Reserve Chair Jerome Powell’s address to monetary-policy mavens in Jackson Hole, Wyo.

Investors have their eyes fixed on the annual economic symposium hosted by the Kansas City Fed, as the central bank charts the future direction of its monetary policy in what could be a defining moment for the market’s summer story.

Powell speaks at 10 a.m. Eastern time Friday. This year, investors are hoping for confirmation that the Federal Reserve will resume cutting interest rates in September – a move largely priced into markets. Yet analysts warn that Powell could fail to do so, leaving the stock rally hanging by a thread or even sending markets into turmoil. The potential hang-up is that a number of policymakers appear worried that inflation from President Donald Trump’s tariffs is just around the corner.

“If Powell uses his Jackson Hole speech to draw a line in the sand – refusing to precommit to cuts or hinting that the market’s pricing has run ahead of reality – it could trigger a significant repricing in bond yields BX:TMUBMUSD02Y BX:TMUBMUSD10Y and risk assets,” said Daniela Sabin Hathorn, senior market analyst at Capital.com.

“Investors should tread carefully because what’s expected to be a calm, consensus-driven event could instead become the Fed’s rebuttal to market exuberance in months,” she told MarketWatch in emailed commentary.

See: Will Powell use Jackson Hole speech to push back on hopes for September rate cut?

Stocks have wobbled in the run-up to the speech, with a violent rotation out of high-flying megacap tech names sending the Nasdaq Composite COMP down 2.4% so far this week. The S&P 500 SPX has pulled back 1.2%, with both indexes remaining not far below record closes set last week. The less tech-centric Dow Jones Industrial Average DJIA is off just 0.4% this week.

Fed-funds futures traders on Thursday were pricing in a 73.5% probability of a quarter-point interest-rate cut at the central bank’s Sept. 16-17 meeting, with at least another 25-basis-point reduction expected by year-end, according to the CME FedWatch Tool.

Those expectations have helped fuel the stock-market rally over the past month, propelling the three major indexes to or near record territory after economic data showed consumer prices have only risen slightly due to tariffs and the labor market may be losing steam at a quicker pace than previously thought – factors that appear to support the case for a Fed rate cut.

But the probability of a September cut priced into the market has faded from around 90% a week ago, reflecting that the economic picture is far from one-sided. The cost of wholesale goods and services – where rising inflation tends to show up first – posted the biggest increase in July in three years, possibly pointing to a sizable acceleration in price hikes tied to U.S. tariffs. The unemployment rate was still hovering at a historically low level – offering little justification for a Fed easing anytime soon.

Policymakers last month “generally expected inflation to increase in the near term,” minutes of the Fed’s July meeting showed on Wednesday. While they disagreed on whether that would be a short-term increase in price pressure, they thought higher costs will eventually hit U.S. businesses and companies would have to pass through the costs to consumers.

See: Fed officials see inflation just around the corner – and think consumers will bear the burden, minutes show

That’s why Callie Cox, chief market strategist at Ritholtz Wealth Management, said Powell could throw cold water on investors’ near-certainty of a September rate cut.

“I would expect him to weigh in on today’s market environment – I can’t imagine with inflation and jobs data at where they were [in July] that he will be able to confirm how sure markets are about getting a rate cut in September,” Cox told MarketWatch in a phone interview.

But stock-market investors are not only expecting a September cut, they’re also yearning for reassurance that more Fed easing lies ahead, said Shannon Saccocia, chief investment officer of wealth at Neuberger Berman.

“Last year at this time, this was the speech that Powell really set the stage for Fed action, so there’s a lot riding on his comments on Friday, particularly given what was deemed to be a disappointingly hawkish tone out of the last Fed meeting from him in the press conference,” Saccocia told MarketWatch via phone on Wednesday.

That’s why Powell’s words could provide crucial clarity on whether these market expectations are well founded. But for a stock market that has enjoyed a seemingly relentless rally marked by unusually low volatility for most of the summer, choppy waters may finally lie ahead – and there’s little room for disappointment if Powell hints at policymakers requiring more data before resuming the easing cycle that has been put on hold ever since December, according to market analysts.

See: Stocks often rise the week of the Fed’s big Jackson Hole gathering. Don’t count on it this year.

To be sure, investors have reason to be cautious. Back in 2022, Powell’s keynote speech at Jackson Hole stopped a torrid bear-market rally when he insisted that the central bank remained committed to bringing down inflation by raising interest rates forcefully, even if this approach resulted in some pain for American consumers and businesses.

“Jackson Hole has become increasingly important over the last couple of year – but this year, the potential for rate cuts coming in about a month, along with the political pressure that the Fed and the chair in particular are under, make Powell’s comments more market-moving than we expected,” Saccocia said.

Powell’s speech comes amid intensifying pressure on the Fed from President Trump and his allies.

Trump has repeatedly slammed and insulted the Fed chair for not quickly resuming rate cuts, and called for his resignation while stopping short of attempting to fire Powell. On Wednesday, the president called on Lisa Cook, a Fed governor, to resign after Bill Pulte, the head of the Federal Housing Finance Agency, alleged on social media that she had submitted what he described as fraudulent information on a pair of mortgage applications. Cook said she had no intention to resign and was gathering information to respond to questions.

U.S. stocks DJIA SPX COMP finished lower on Thursday after economic data showed first-time jobless claims rose more than expected last week, adding to concerns the labor market is losing steam.

-Isabel Wang

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

  (END) Dow Jones Newswires

  08-21-25 1618ET
Copyright (c) 2025 Dow Jones & Company, Inc.

An attack on a Colombian National Police helicopter Thursday killed at least eight people and injured several others, according to President Gustavo Petro.

It’s still unclear who is behind the attack in the Antioquia department.

In his most recent comments Thursday, Petro attributed it to the 36th Front of the Estado Mayor Central (EMC), dissidents of the former Revolutionary Armed Forces of Colombia (FARC), a leftist guerrilla group.

However, earlier, he suggested the powerful criminal syndicate Gulf Clan might be involved, noting the attack came after the seizure of 1.5 tons of cocaine in the Urabá region of Antioquia.

“We have the unfortunate news of eight police officers dead and eight injured in the helicopter whose mission was to transport personnel to eradicate coca leaf crops in Amalfi,” Petro wrote on his X account.

National Police Director Carlos Fernando Triana Beltrán described the incident as a “terrorist act” and said police units are in the area treating the wounded.

The helicopter was supporting the manual eradication of illicit crops when it was allegedly attacked by a drone, Antioquia Gov. Andrés Julián Rendón said, adding two uniformed officers were injured.

The governor posted a video that appears to show the helicopter crashing into a hill.

Rendón warned that both the Gulf Clan and dissidents of FARC operate in the area, and noted the national government has been unable to agree on who is responsible for the attack.

“(We) have always known that these are FARC dissidents in charge of Calarcá: that’s their modus operandi, allied with the ELN,” he said, referring to the leftist guerrilla group National Liberation Army. “Coordination within the national government is urgent. This is a matter of life and death.”

This is a developing story and will be updated.

At the last climate summit in 2023, hosted by Dubai, international consensus could not be secured to phase out harmful fossil fuels completely. Instead, over 130 countries signed a pact to boost renewable energy production by 2030. While there has been impressive growth in renewables in the past few years, the world is still off-track to meet the goal of tripling renewable generation capacity in the next five years.

Producing more renewable energy is vital to enable a desperately needed shift away from fossil fuels, which are a leading cause of global warming. Renewable production is also vital for meeting the demand for electricity. Besides the imperative of providing electricity to more people, the demand for electricity-intensive appliances such as air conditioning is growing across our warming planet. Manufacturing processes have also become more electricity-intensive, and artificial intelligence needs a lot of electric power too.

Continued reliance on fossil fuels for energy will make the goal of limiting global heating to below 1.5C unattainable. Yet, governments are not keeping up with the UN-endorsed goal of quickly switching over to renewables. A recent report by Ember, an energy-focused thinktank, found only 22 countries to have sufficiently increased their renewable energy capabilities. Countries which have failed to meet their pledged targets include the US, China and Russia, which are amongst the world’s largest energy users, and together emit almost half of the world’s carbon emissions.

Middle Eastern countries seem caught between the contradictory imperatives of continued production and export of oil and gas and the need to invest in and adopt renewable energy sources. Fossil fuels still accounted for over two-thirds of the increase in power generation in India this past year, but it has set very ambitious energy transition targets for the next few years. While Pakistan is not a significant contributor to global carbon emissions, yet fossil fuels are a significant cause for its local air pollution menace. Pakistan also committed to sourcing 60% of its electricity from renewables by 2030, and it has achieved nearly half that target due to the growth of solar energy production.

Pakistan has become a huge market for solar panels being imported from China, making it the world’s third-biggest importer of this revolutionary technology. According to experts, the solar boom in Pakistan is not spurred by the installation of big solar farms by the government or the private sector. Instead, it is ordinary people who are spearheading the demand for solar energy. Exorbitant electricity prices due to expensive power generation agreements signed decades ago with private power producers have compelled people to turn to the increasingly economical solar option.

Besides providing a much-needed energy alternative for middle-class consumers, solar panels offer the prospect of bringing electricity to marginalised communities which still lack access to the national grid. Solar panels are also being used to replace diesel-powered pumps to extract groundwater for agricultural purposes, which is a concerning issue that requires further deliberation given the growing water scarcity in the country.

Even if Pakistan manages to continue lessening its dependence on fossil fuels, its goal of reducing harmful emissions will need more proactive action. Pakistan had also set itself the target of ensuing that 30% of all new car sales would be comprised of electric vehicles, but little progress has been achieved in this regard. Tangible progress concerning this specific target would have significant domestic benefit, given that vehicular emissions are the most serious cause of recurrent winter smog, especially in the Punjab. Besides promoting the use of electric vehicles, including in the public transport sector, Pakistan needs to hasten efforts to exit its onerous fossil fuel-based power purchase agreements, which will remove existing impediments to further harnessing the power of renewables.

Coming in “thick and fast”

A key pillar of the euro area growth recovery over the next few years is
Germany’s renewed fiscal drive. According to RBC Capital Markets, recent
announcements point to not only very sizeable, but also front-loaded,
spending, in its words, “thick and fast.”

In a radical shift from many years of fiscal prudence, the German
government announced in March that it would:

• Create a 10-year €500 billion infrastructure fund which would not count
  towards the government’s borrowing limit and
• Stop counting any defense spending above one percent of GDP towards that
  limit.

The Federal Ministry of Finance announced concrete figures behind these
pledges in late June.

The German government is front-loading its special infrastructure fund,
with around €58 billion by 2026, alongside some €25 billion in annual
defense spending. Peak stimulus and the deepest fiscal deficit are
penciled in for 2026.

Moreover, the details released by the Finance Ministry show that a high
share of the spending is going to areas which should boost economic
growth. In 2025 alone, €22 billion, or about 0.5 percent of German GDP, is
going to rail sector improvements. Furthermore, there is €4 billion per
year for housing projections, €4 billion for digitalization, and
€6.5 billion for education and childcare.

RBC Capital Markets expects this spending to be a substantial stimulus for
German and, therefore, euro area growth in 2025 and 2026, though the
stimulus should fade beyond that point. This increases RBC Capital
Markets’ confidence in its slightly above-consensus growth estimates of
1.3 percent and 1.5 percent, respectively, for this year and next for the
bloc as a whole.

Front-loaded spending will deepen Germany’s deficit

German Finance Ministry’s deficit expectations (% GDP)

The trade deal beyond the headlines

The U.S. and the European Union (EU) reached a deal in late July that
introduces 15 percent tariffs on most EU exports, including automobiles,
pharmaceuticals, and semiconductors. Tariffs on steel and aluminum remain
subject to global tariffs of 50 percent, though discussions are ongoing
regarding possible reductions.

Furthermore, the European Commission, which negotiated the terms of the
deal on behalf of member states, committed to the EU investing
$600 billion in the U.S. economy and purchasing $750 billion in U.S.
energy exports over the next three years.

Initially, the deal was poorly received in Europe. The 15 percent tariffs
were higher than the 10 percent tariffs which had been in place since
April 2025, so it seemed the EU had capitulated. This disappointed many
observers given the EU market of 450 million people with high per-capita
spending power is a geo-economic force.

We note, however, that the agreed-upon tariff is lower than the 30 percent
U.S. President Donald Trump threatened in June. And while the 15 percent
rate doesn’t compare as favourably with the UK’s 10 percent tariff, the
torrent of trade deals with other trading partners announced since then
feature tariffs that are at or above 15 percent, suggesting to us that the
EU is not in a weaker competitive position after all.

The concessions made – the promise of higher European investment and energy
purchases – cannot be fulfilled by the European Commission. While it has the
authority to negotiate trade deals, it has no power over private
investment, nor does it have the authority to tell companies where to buy
energy. The RBC Capital Markets Commodity Strategy team is skeptical that
$750 billion in U.S. energy can be delivered to the EU in the next three
years.

Finally, the EU has not given up regulating U.S. multinationals on
European soil, nor its power to impose a digital services tax (it still
holds those valuable cards).

Meanwhile, it appears that Trump has abandoned the idea of treating the
value-added tax – a sales tax typically over 20 percent – levied by EU member
states as an unfair tax barrier to U.S. exports.

Overall, we believe this deal is not as disadvantageous to Europe as early
reactions have suggested.

Buoyed sentiment?

After a strong start to the year, and a swift recovery from the April 2
reciprocal tariff announcement correction, European equities have stalled
this summer, their performance overshadowed by that of the U.S. tech
sector and currency moves. But overall, the STOXX Europe ex UK Index has
still returned over 13 percent year to date in local currency terms
(including dividends), ahead of the S&P 500’s 9.5 percent return in dollar terms. Thanks to the significant U.S. dollar weakening versus the
euro this year, returns of the STOXX Europe ex UK are around 28 percent in
U.S. dollar terms.

Performance has been driven by value stocks including banks (up almost
60 percent in local currency), with construction and materials, insurance,
and utilities all gaining more than 20 percent. Most quality stocks have
underperformed, partly reflecting the market rotation into value but also
a range of idiosyncratic factors resulting in earnings downgrades.

Looking forward, we believe a diplomatic resolution to the Ukraine
conflict could act as a positive catalyst for European equities. Hope of
reconstruction efforts could arise though this would require hostilities
to come to a sustainable end. If that were to be the case, banks,
particularly those with Central and Eastern Europe exposure, would likely
benefit, in our opinion, as would construction and aggregate firms. Lower
energy prices, thanks to reduced transport and insurance costs, could also
benefit the region but the price improvement is likely to be marginal as
EU sanctions on Russia will likely persist, even with an eventual
ceasefire.

Overall, while sentiment could improve in the short term for European risk
assets on the back of seemingly successful diplomatic efforts, we caution
against being overly optimistic about an immediate, lasting end to the
hostilities as the issues associated with this are complex.

Regardless, in our view, the investment case for Europe remains, based on
an economic recovery thanks to lower interest rates, the German fiscal
program, and the EU’s commitment to investing in its defense industry.
The STOXX Europe ex UK Index trades at 16.2x the next-12-months consensus
earnings forecast, slightly above its long-term average, a premium we
believe is warranted given the region’s improved medium-term growth
outlook.

We continue to prefer sectors we think are likely to benefit from the
fiscal stimulus, such as select industrials, including defense, and
materials. In our view, banks should benefit from the region’s improved
medium-term growth outlook, while continuing to offer attractive dividends
and share buybacks opportunities.

With contributions from Thomas McGarrity, CFA

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Fourth-quarter revenue grew 20 percent, full year fiscal 2025 revenue grew 16 percent

MOUNTAIN VIEW, Calif.–(BUSINESS WIRE)–
Intuit Inc. (Nasdaq: INTU), the global financial technology platform that makes Intuit TurboTax, Credit Karma, QuickBooks, and Mailchimp, announced financial results for the fourth quarter and full fiscal year 2025, which ended July 31, 2025.

“We had an exceptional fiscal 2025 with 20 percent growth in the fourth quarter and 16 percent growth for the full year,” said Sasan Goodarzi, Intuit’s chief executive officer. “Our virtual team of AI agents and AI-enabled human experts are powering success for consumers and businesses. We could not be more excited about the opportunity ahead.”

Financial Highlights

For the full year, Intuit:

• Grew total revenue to $18.8 billion, up 16 percent year-over-year.

• Increased combined platform revenue, which includes the Global Business Solutions Group Online Ecosystem, TurboTax Online, and Credit Karma, 19 percent to $14.9 billion.

• Grew Global Business Solutions Group revenue 16 percent to $11.1 billion and Online Ecosystem revenue 20 percent to $8.3 billion. Excluding Mailchimp, Global Business Solutions Group revenue grew 18 percent, and Online Ecosystem revenue grew 25 percent.

• Increased Consumer Group revenue 10 percent to $4.9 billion and TurboTax Live revenue 47 percent to $2.0 billion.

• Grew Credit Karma revenue 32 percent to $2.3 billion.

• Increased GAAP operating income 36 percent to $4.9 billion, and non-GAAP operating income 18 percent to $7.6 billion.

• Grew GAAP earnings per share 31 percent to $13.67, and non-GAAP earnings per share 19 percent to $20.15.

For the fourth quarter, Intuit:

• Grew total revenue 20 percent to $3.8 billion.

• Increased Global Business Solutions Group revenue 18 percent to $3.0 billion and Online Ecosystem revenue 21 percent to $2.2 billion. Excluding Mailchimp, Global Business Solutions Group revenue grew 21 percent, and Online Ecosystem revenue grew 26 percent.

• Grew Credit Karma revenue 34 percent to $649 million.

• Increased Consumer Group revenue 21 percent to $137 million.

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.

Snapshot of Fiscal Year 2025 Full-year Results

GAAP				Non-GAAP
	FY25	FY24	Change	FY25	FY24	Change
Revenue	$18,831	$16,285	16%	$18,831	$16,285	16%
Operating Income	$4,923	$3,630	36%	$7,572	$6,402	18%
Earnings Per Share	$13.67	$10.43	31%	$20.15	$16.94	19%
Dollars are in millions, except earnings per share. See “About Non-GAAP Financial Measures” below for more information regarding financial measures not prepared in accordance with Generally Accepted Accounting Principles (GAAP).

Snapshot of Fourth-quarter Fiscal Year 2025 Results

GAAP				Non-GAAP
	Q4 FY25	Q4 FY24	Change	Q4 FY25	Q4 FY24	Change
Revenue	$3,831	$3,184	20%	$3,831	$3,184	20%
Operating Income (Loss)	$339	$(151)	NM	$1,016	$730	39%
Earnings (Loss) Per Share	$1.35	$(0.07)	NM	$2.75	$1.99	38%
NM = Not Meaningful   Dollars are in millions, except earnings per share. See “About Non-GAAP Financial Measures” below for more information regarding financial measures not prepared in accordance with Generally Accepted Accounting Principles (GAAP).

“We delivered strong business outcomes for fiscal 2025, and we are proud of our progress across the big bets that delivered accelerated growth,” said Sandeep Aujla, Intuit’s chief financial officer. “We saw outstanding execution across our platform, driving breakthrough adoption in assisted tax, introducing transformative AI agents across our business platform, and building our mid-market go-to-market capabilities, all while driving strong margin expansion.”

Business Segment Results

Global Business Solutions Group

Global Business Solutions Group revenue grew 18 percent for the quarter and 16 percent for the year to $11.1 billion. Online Ecosystem revenue grew 21 percent for the quarter and 20 percent for the year to $8.3 billion.

• QuickBooks Online Accounting revenue grew 23 percent for the quarter and 22 percent for the year. Growth in the quarter was driven by higher effective prices, customer growth, and mix shift.

• Online Services revenue grew 19 percent for both the quarter and the year. Growth in the quarter was driven by growth in money and payroll. Excluding Mailchimp, Online Services revenue grew 29 percent for both the quarter and the year.

• Total international online revenue grew 9 percent for both the quarter and the year on a constant currency basis.

Consumer and ProTax Groups

Consumer Group revenue grew 10 percent for the year to $4.9 billion.

	Units in millions	Season through July 31, 2025	Season through July 31, 2024	Change Year-Over-Year
	Desktop Units	4.3	4.6	(4)%
	Online Units	34.9	35.4	(1)%
	Total U.S. TurboTax Units	39.2	39.9	(2)%

ProTax Group revenue grew 4 percent for the year to $621 million.

Credit Karma

Credit Karma revenue grew 32 percent to $2.3 billion for the year. Credit Karma revenue grew 34 percent for the quarter to $649 million, driven by strength in personal loans, credit cards, and auto insurance.

Capital Allocation Summary

The company:

• Reported a total cash and investments balance of approximately $4.6 billion and total debt of $6.0 billion as of July 31.

• Repurchased $2.8 billion of stock during fiscal year 2025. The Board approved a new $3.2 billion repurchase authorization, giving the company a total authorization of $5.3 billion to repurchase shares.

• Received Board approval for a quarterly dividend of $1.20 per share, payable on October 17, 2025. This represents a 15 percent increase versus last year.

One Consumer Platform

Consistent with the company’s vision to deliver one consumer platform, effective August 1, 2025, Intuit combined the Consumer, Credit Karma and ProTax businesses into a single Consumer business. The company will reflect this new organization in its fiscal 2026 segment reporting. Additional information can be found on the company’s fact sheet at https://investors.intuit.com/financial-information.

Forward-looking Guidance

Intuit announced guidance for the full fiscal year 2026. The company expects:

• Revenue of $20.997 billion to $21.186 billion, growth of approximately 12 to 13 percent.

• GAAP operating income of $5.782 billion to $5.859 billion, growth of approximately 17 to 19 percent.

• Non-GAAP operating income of $8.611 billion to $8.688 billion, growth of approximately 14 to 15 percent.

• GAAP diluted earnings per share of $15.49 to $15.69, growth of approximately 13 to 15 percent.

• Non-GAAP diluted earnings per share of $22.98 to $23.18, growth of approximately 14 to 15 percent.

The company expects the following segment revenue results for fiscal year 2026:

• Global Business Solutions: growth of 14 to 15 percent. Excluding Mailchimp, the company expects Global Business Solutions Group revenue growth of 15.5 percent to 16.5 percent.

• Consumer: growth of 8 to 9 percent. This includes TurboTax growth of 8 percent, Credit Karma growth of 10 to 13 percent, and ProTax growth of 2 to 3 percent.

Intuit also announced guidance for the first quarter of fiscal year 2026, which ends Oct. 31. The company expects:

• Revenue growth of approximately 14 to 15 percent.

• GAAP earnings per share of $1.19 to $1.26.

• Non-GAAP diluted earnings per share of $3.05 to $3.12.

Conference Call Details

Intuit executives will discuss the financial results on a conference call at 1:30 p.m. Pacific time on Aug. 21. The conference call can be heard live at https://investors.intuit.com/news-events/ir-calendar. Prepared remarks for the call will be available on Intuit’s website after the call ends.

Replay Information

A replay of the conference call will be available for one week by calling 800-839-2383, or 402-220-7202 from international locations. There is no passcode required. The audio webcast will remain available on Intuit’s website for one week after the conference call.

Investor Day 2025

Intuit will host its annual Investor Day on Sept. 18 at 8:00 a.m. Pacific time, at its headquarters in Mountain View, CA, and it can be viewed live at https://investors.intuit.com/news-events/ir-calendar. The half-day event will include presentations from Sasan Goodarzi, chief executive officer, Sandeep Aujla, chief financial officer, and other leaders.

About Intuit

Intuit is the global financial technology platform that powers prosperity for the people and communities we serve. With approximately 100 million customers worldwide using products such as TurboTax, Credit Karma, QuickBooks, and Mailchimp, we believe that everyone should have the opportunity to prosper. We never stop working to find new, innovative ways to make that possible. Please visit us at Intuit.com and find us on social for the latest information about Intuit and our products and services.

About Non-GAAP Financial Measures

This press release and the accompanying tables include non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles, please see the section of the accompanying tables titled “About Non-GAAP Financial Measures” as well as the related Table B1, Table B2, and Table E. A copy of the press release issued by Intuit today can be found on the investor relations page of Intuit’s website.

Cautions About Forward-looking Statements

This press release contains forward-looking statements, including expectations regarding: forecasts and timing of growth and future financial results of Intuit and its reporting segments; the impact of macroeconomic conditions on our business, segments, and products; Intuit’s prospects for the business in fiscal 2026 and beyond; Intuit’s growth outside the US; timing and growth of revenue from current or future products, features, and services; innovation across our ecosystem; demand for our products; customer growth and retention; Intuit’s corporate tax rate; changes to our products, including the impact of AI; the amount and timing of any future dividends or share repurchases; our capital structure; availability of our offerings; and the impact of acquisitions and strategic decisions on our business; as well as all of the statements under the heading “Forward-looking Guidance.”

Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause our actual results to differ materially from the expectations expressed in the forward-looking statements. These risks and uncertainties may be amplified by the effects of global developments and conditions or events, including macroeconomic uncertainty or geopolitical conditions, which have caused significant global economic instability and uncertainty. Given these risks and uncertainties, persons reading this communication are cautioned not to place any undue reliance on such forward-looking statements. These factors include, without limitation, the following: our ability to compete successfully; potential governmental encroachment in our tax business; our ability to develop, deploy, and use artificial intelligence in our platform and products; our ability to adapt to technological change and to successfully extend our platform; our ability to predict consumer behavior; our reliance on intellectual property; our ability to protect our intellectual property rights; any harm to our reputation; risks associated with our environmental, social, and governance efforts; risks associated with acquisition and divestiture activity; the issuance of equity or incurrence of debt to fund acquisitions or for general business purposes; cybersecurity incidents (including those affecting the third parties we rely on); customer or regulator concerns about privacy and cybersecurity incidents; fraudulent activities by third parties using our offerings; our failure to process transactions effectively; interruption or failure of our information technology; our ability to maintain critical third-party business relationships; our ability to attract and retain talent and the success of our hybrid work model; any deficiency in the quality or accuracy of our offerings (including the advice given by experts on our platform); any delays in product launches; difficulties in processing or filing customer tax submissions; risks associated with international operations; risks associated with climate change; changes to public policy, laws, or regulations affecting our businesses; legal proceedings in which we are involved; fluctuations in the results of our tax business due to seasonality and other factors beyond our control; changes in tax rates and tax reform legislation; global economic conditions (including, without limitation, inflation); exposure to credit, counterparty and other risks in providing capital to businesses; amortization of acquired intangible assets and impairment charges; our ability to repay or otherwise comply with the terms of our outstanding debt; our ability to repurchase shares or distribute dividends; volatility of our stock price; and our ability to successfully market our offerings.

More details about these and other risks that may impact our business are included in our Form 10-K for fiscal 2024 and in our other SEC filings. You can locate these reports through our website at https://investors.intuit.com. First-quarter and full-year fiscal 2026 guidance speaks only as of the date it was publicly issued by Intuit. Other forward-looking statements represent the judgment of the management of Intuit as of the date of this presentation. Except as required by law, we do not undertake any duty to update any forward-looking statement or other information in this presentation.

TABLE A
INTUIT INC.
GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share amounts)
(Unaudited)
	Three Months Ended								Twelve Months Ended
	July 31, 2025				July 31, 2024				July 31, 2025				July 31, 2024
Net revenue:
Service	$	3,291			$	2,670			$	16,400			$	13,861
Product and other		540				514				2,431				2,424
Total net revenue		3,831				3,184				18,831				16,285
Costs and expenses:
Cost of revenue:
Cost of service revenue		834				733				3,624				3,250
Cost of product and other revenue		16				14				68				69
Amortization of acquired technology		44				36				156				146
Selling and marketing		1,251				1,104				5,035				4,312
Research and development		801				725				2,928				2,754
General and administrative		424				377				1,601				1,418
Amortization of other acquired intangible assets		121				123				481				483
Restructuring		1				223				15				223
Total costs and expenses [A]		3,492				3,335				13,908				12,655
Operating income (loss)		339				(151	)			4,923				3,630
Interest expense		(59	)			(60	)			(247	)			(242	)
Interest and other income, net		86				71				158				162
Income (loss) before income taxes		366				(140	)			4,834				3,550
Income tax (benefit) provision [B]		(15	)			(120	)			965				587
Net income (loss)	$	381			$	(20	)		$	3,869			$	2,963
Basic net income (loss) per share	$	1.36			$	(0.07	)		$	13.82			$	10.58
Shares used in basic per share calculations		279				280				280				280
Diluted net income (loss) per share	$	1.35			$	(0.07	)		$	13.67			$	10.43
Shares used in diluted per share calculations		282				280				283				284

See accompanying Notes.
INTUIT INC.
NOTES TO TABLE A
[A]		The following table summarizes the total share-based compensation expense that we recorded in operating income (loss) for the periods shown.

	Three Months Ended						Twelve Months Ended
(In millions)	July 31, 2025			July 31, 2024			July 31, 2025			July 31, 2024
Cost of revenue	$	101		$	102		$	423		$	402
Selling and marketing		137			137			541			506
Research and development		159			161			629			639
General and administrative		93			94			375			368
Restructuring		—			25			—			25
Total share-based compensation expense	$	490		$	519		$	1,968		$	1,940

[B]		We recognized excess tax benefits on share-based compensation of $143 million in our provision for income taxes for the twelve months ended July 31, 2025 and $183 million for the twelve months ended July 31, 2024.
		Our effective tax rate for the twelve months ended July 31, 2025 was approximately 20%. Excluding certain tax benefits primarily related to share-based compensation, our effective tax rate was approximately 24%. This rate differed from the federal statutory rate of 21% primarily due to state income taxes and non-deductible share-based compensation, which were partially offset by the benefit we received from the federal research and experimentation credit.
		Our effective tax rate for the twelve months ended July 31, 2024 was approximately 17%. Excluding certain tax benefits primarily related to share-based compensation, our effective tax rate was approximately 24%. This rate differed from the federal statutory rate of 21% primarily due to state income taxes and non-deductible share-based compensation, which were partially offset by the benefit we received from the federal research and experimentation credit.
		On July 4, 2025, the U.S. federal government enacted the One Big Beautiful Bill Act (OBBBA), which includes significant tax law changes. The OBBBA has multiple effective dates from fiscal 2025 through fiscal 2027. The provisions effective during fiscal 2025 did not have a significant impact on our consolidated financial statements.
		In the current global tax policy environment, the U.S. and other domestic and foreign governments continue to consider, and in some cases enact, changes in corporate tax laws. As changes occur, we account for finalized legislation in the period of enactment.

TABLE B1
INTUIT INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES
(In millions, except per share amounts)
(Unaudited)
	Fiscal 2025
	Q1				Q2				Q3				Q4				Full Year
GAAP operating income (loss)	$	271			$	593			$	3,720			$	339			$	4,923
Amortization of acquired technology		37				37				38				44				156
Amortization of other acquired intangible assets		120				120				120				121				481
Restructuring		9				4				1				1				15
Professional fees for business combinations		—				—				2				—				2
Net (gain) loss on executive deferred compensation plan liabilities [A]		5				8				(7	)			21				27
Share-based compensation expense		511				498				469				490				1,968
Non-GAAP operating income (loss)	$	953			$	1,260			$	4,343			$	1,016			$	7,572
GAAP net income (loss)	$	197			$	471			$	2,820			$	381			$	3,869
Amortization of acquired technology		37				37				38				44				156
Amortization of other acquired intangible assets		120				120				120				121				481
Restructuring		9				4				1				1				15
Professional fees for business combinations		—				—				2				—				2
Net (gain) loss on executive deferred compensation plan liabilities [A]		5				8				(7	)			21				27
Share-based compensation expense		511				498				469				490				1,968
Net (gain) loss on debt securities and other investments [B]		42				3				2				(2	)			45
Net (gain) loss on executive deferred compensation plan assets [A]		(4	)			(7	)			7				(20	)			(24	)
Income tax effects and adjustments [C]		(208	)			(196	)			(172	)			(260	)			(836	)
Non-GAAP net income (loss)	$	709			$	938			$	3,280			$	776			$	5,703
GAAP diluted net income (loss) per share	$	0.70			$	1.67			$	10.02			$	1.35			$	13.67
Amortization of acquired technology		0.13				0.13				0.13				0.16				0.55
Amortization of other acquired intangible assets		0.42				0.42				0.43				0.43				1.70
Restructuring		0.03				0.01				—				—				0.05
Professional fees for business combinations		—				—				0.01				—				0.01
Net (gain) loss on executive deferred compensation plan liabilities [A]		0.02				0.03				(0.02	)			0.07				0.10
Share-based compensation expense		1.80				1.76				1.66				1.74				6.95
Net (gain) loss on debt securities and other investments [B]		0.15				0.01				0.01				(0.01	)			0.16
Net (gain) loss on executive deferred compensation plan assets [A]		(0.02	)			(0.02	)			0.02				(0.07	)			(0.09	)
Income tax effects and adjustments [B]		(0.73	)			(0.69	)			(0.61	)			(0.92	)			(2.95	)
Non-GAAP diluted net income (loss) per share	$	2.50			$	3.32			$	11.65			$	2.75			$	20.15
Shares used in GAAP diluted per share calculations		283				283				282				282				283
Shares used in non-GAAP diluted per share calculations		283				283				282				282				283

[A]		During the first quarter of fiscal 2025, we began to exclude from non-GAAP measures both the gains and losses on executive deferred compensation plan liabilities, and the related gains and losses on executive deferred compensation plan assets. Prior periods have not been reclassified as the amounts are not material.
[B]		During the three months ended October 31, 2024, we recognized a $42 million net loss on other long-term investments.
[C]		As discussed in “About Non-GAAP Financial Measures – Income Tax Effects and Adjustments” following Table E, our long-term non-GAAP tax rate eliminates the effects of non-recurring and period-specific items. Income tax adjustments consist primarily of the tax impact of the non-GAAP pre-tax adjustments and tax benefits related to share-based compensation.
See “About Non-GAAP Financial Measures” immediately following Table E for information on these measures, the items excluded from the most directly comparable GAAP measures in arriving at non-GAAP financial measures, and the reasons management uses each measure and excludes the specified amounts in arriving at each non-GAAP financial measure.

TABLE B2
INTUIT INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES
(In millions, except per share amounts)
(Unaudited)
	Fiscal 2024
	Q1				Q2				Q3				Q4				Full Year
GAAP operating income (loss)	$	307			$	369			$	3,105			$	(151	)		$	3,630
Amortization of acquired technology		38				36				36				36				146
Amortization of other acquired intangible assets		120				120				120				123				483
Restructuring [A]		—				—				—				223				223
Professional fees for business combinations		—				—				—				5				5
Share-based compensation expense		495				475				451				494				1,915
Non-GAAP operating income (loss)	$	960			$	1,000			$	3,712			$	730			$	6,402
GAAP net income (loss)	$	241			$	353			$	2,389			$	(20	)		$	2,963
Amortization of acquired technology		38				36				36				36				146
Amortization of other acquired intangible assets		120				120				120				123				483
Restructuring [A]		—				—				—				223				223
Professional fees for business combinations		—				—				—				5				5
Share-based compensation expense		495				475				451				494				1,915
Net (gain) loss on debt securities and other investments		1				(3	)			1				1				—
Loss on disposal of a business		1				—				9				(1	)			9
Income tax effects and adjustments [B]		(198	)			(235	)			(202	)			(298	)			(933	)
Non-GAAP net income (loss)	$	698			$	746			$	2,804			$	563			$	4,811
GAAP diluted net income (loss) per share	$	0.85			$	1.25			$	8.42			$	(0.07	)		$	10.43
Amortization of acquired technology		0.13				0.13				0.13				0.13				0.51
Amortization of other acquired intangible assets		0.42				0.42				0.42				0.43				1.70
Restructuring [A]		—				—				—				0.79				0.79
Professional fees for business combinations		—				—				—				0.02				0.02
Share-based compensation expense		1.75				1.67				1.59				1.74				6.75
Net (gain) loss on debt securities and other investments		0.01				(0.01	)			—				—				—
Loss on disposal of a business		0.01				—				0.03				—				0.03
Income tax effects and adjustments [B]		(0.70	)			(0.83	)			(0.71	)			(1.05	)			(3.29	)
Non-GAAP diluted net income (loss) per share	$	2.47			$	2.63			$	9.88			$	1.99			$	16.94
Shares used in GAAP diluted per share calculations		283				284				284				280				284
Shares used in non-GAAP diluted per share calculations		283				284				284				283				284

[A]		Restructuring charges for the three and twelve months ended July 31, 2024 includes $25 million in share-based compensation expense. See “About Non-GAAP Financial Measures” for further information on restructuring charges.
[B]		As discussed in “About Non-GAAP Financial Measures – Income Tax Effects and Adjustments” following Table E, our long-term non-GAAP tax rate eliminates the effects of non-recurring and period-specific items. Income tax adjustments consist primarily of the tax impact of the non-GAAP pre-tax adjustments and tax benefits related to share-based compensation.
See “About Non-GAAP Financial Measures” immediately following Table E for information on these measures, the items excluded from the most directly comparable GAAP measures in arriving at non-GAAP financial measures, and the reasons management uses each measure and excludes the specified amounts in arriving at each non-GAAP financial measure.

TABLE C
INTUIT INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
	July 31, 2025			July 31, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	2,884		$	3,609
Investments		1,668			465
Accounts receivable, net		530			457
Notes receivable held for investment, net		1,403			779
Notes receivable held for sale		—			3
Income taxes receivable		50			78
Prepaid expenses and other current assets		496			366
Current assets before funds receivable and amounts held for customers		7,031			5,757
Funds receivable and amounts held for customers		7,076			3,921
Total current assets		14,107			9,678
Long-term investments		94			131
Property and equipment, net		961			1,009
Operating lease right-of-use assets		541			411
Goodwill		13,980			13,844
Acquired intangible assets, net		5,302			5,820
Long-term deferred income tax assets		1,222			698
Other assets		751			541
Total assets	$	36,958		$	32,132
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt	$	—		$	499
Accounts payable		792			721
Accrued compensation and related liabilities		858			921
Deferred revenue		1,019			872
Other current liabilities		625			557
Current liabilities before funds payable and amounts due to customers		3,294			3,570
Funds payable and amounts due to customers		7,076			3,921
Total current liabilities		10,370			7,491
Long-term debt		5,973			5,539
Operating lease liabilities		597			458
Other long-term obligations		308			208
Total liabilities		17,248			13,696
Stockholders’ equity		19,710			18,436
Total liabilities and stockholders’ equity	$	36,958		$	32,132

TABLE D
INTUIT INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
	Twelve Months Ended
	July 31, 2025				July 31, 2024
Cash flows from operating activities:
Net income	$	3,869			$	2,963
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		172				159
Amortization of acquired intangible assets		637				630
Non-cash operating lease cost		75				81
Share-based compensation expense		1,968				1,940
Deferred income taxes		(435	)			(554	)
Other		127				92
Total adjustments		2,544				2,348
Originations and purchases of notes receivable held for sale		—				(96	)
Sales and principal repayments of notes receivable held for sale		—				98
Changes in operating assets and liabilities:
Accounts receivable		(71	)			(52	)
Income taxes receivable		27				(48	)
Prepaid expenses and other assets		(283	)			(30	)
Accounts payable		73				133
Accrued compensation and related liabilities		(64	)			257
Deferred revenue		142				(49	)
Operating lease liabilities		(77	)			(71	)
Other liabilities		47				(569	)
Total changes in operating assets and liabilities		(206	)			(429	)
Net cash provided by operating activities		6,207				4,884
Cash flows from investing activities:
Purchases of corporate and customer fund investments		(2,363	)			(780	)
Sales of corporate and customer fund investments		320				526
Maturities of corporate and customer fund investments		864				676
Purchases of property and equipment		(124	)			(250	)
Acquisitions of businesses, net of cash acquired		(184	)			(83	)
Originations and purchases of notes receivable held for investment		(3,992	)			(2,538	)
Sales of notes receivable originally classified as held for investment		562				234
Principal repayments of notes receivable held for investment		2,706				2,068
Other		(107	)			(80	)
Net cash used in investing activities		(2,318	)			(227	)
Cash flows from financing activities:
Proceeds from issuance of long-term debt, net of discount and issuance costs		—				3,956
Repayments of debt		(500	)			(4,200	)
Proceeds from borrowings under unsecured revolving credit facility		—				100
Repayments on borrowings under unsecured revolving credit facility		—				(100	)
Proceeds from borrowings under secured revolving credit facilities		429				180
Repayments on borrowings under secured revolving credit facilities		—				(25	)
Proceeds from issuance of stock under employee stock plans		398				282
Payments for employee taxes withheld upon vesting of restricted stock units		(982	)			(1,002	)
Cash paid for purchases of treasury stock		(2,772	)			(1,988	)
Dividends and dividend rights paid		(1,189	)			(1,034	)
Net change in funds receivable and funds payable and amounts due to customers		3,107				3,436
Other		(1	)			(2	)
Net cash used in financing activities		(1,510	)			(397	)
Effect of exchange rates on cash, cash equivalents, restricted cash, and restricted cash equivalents		3				(13	)
Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents		2,382				4,247
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period		7,099				2,852
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period	$	9,481			$	7,099

Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents reported within the consolidated balance sheets to the total amounts reported on the consolidated statements of cash flows
Cash and cash equivalents	$	2,884		$	3,609
Restricted cash and restricted cash equivalents included in funds receivable and amounts held for customers		6,597			3,490
Total cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period	$	9,481		$	7,099
Supplemental disclosure of cash flow information:
Interest paid	$	284		$	200
Income taxes paid, net	$	1,408		$	1,881
Supplemental schedule of non-cash investing activities:
Transfers of notes receivable originated or purchased as held for investment to held for sale, net	$	546		$	231

TABLE E
INTUIT INC.
RECONCILIATION OF FORWARD-LOOKING GUIDANCE FOR NON-GAAP FINANCIAL MEASURES TO PROJECTED GAAP REVENUE, OPERATING INCOME, AND EPS
(In millions, except per share amounts)
(Unaudited)
	Forward-Looking Guidance
	GAAP Range of Estimate											Non-GAAP Range of Estimate
	From			To			Adjmts					From			To
Three Months Ending October 31, 2025
Revenue	$	3,744		$	3,776		$	—				$	3,744		$	3,776
Operating income	$	440		$	460		$	719		[a]		$	1,159		$	1,179
Diluted earnings per share	$	1.19		$	1.26		$	1.86		[b]		$	3.05		$	3.12
Twelve Months Ending July 31, 2026
Revenue	$	20,997		$	21,186		$	—				$	20,997		$	21,186
Operating income	$	5,782		$	5,859		$	2,829		[c]		$	8,611		$	8,688
Diluted earnings per share	$	15.49		$	15.69		$	7.49		[d]		$	22.98		$	23.18

[a]		Reflects estimated adjustments for share-based compensation expense of approximately $554 million; amortization of other acquired intangible assets of approximately $121 million; and amortization of acquired technology of approximately $44 million.
[b]		Reflects estimated adjustments in item [a], income taxes related to these adjustments, and other income tax effects related to the use of the non-GAAP tax rate.
[c]		Reflects estimated adjustments for share-based compensation expense of approximately $2.2 billion; amortization of other acquired intangible assets of approximately $483 million; and amortization of acquired technology of approximately $176 million.
[d]		Reflects estimated adjustments in item [c], income taxes related to these adjustments, and other income tax effects related to the use of the non-GAAP tax rate.
See “About Non-GAAP Financial Measures” immediately following Table E for information on these measures, the items excluded from the most directly comparable GAAP measures in arriving at non-GAAP financial measures, and the reasons management uses each measure and excludes the specified amounts in arriving at each non-GAAP financial measure.

INTUIT INC.

ABOUT NON-GAAP FINANCIAL MEASURES

The accompanying press release dated August 21, 2025 contains non-GAAP financial measures. Table B1, Table B2, and Table E reconcile the non-GAAP financial measures in that press release to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP). These non-GAAP financial measures include non-GAAP operating income (loss), non-GAAP net income (loss), and non-GAAP diluted net income (loss) per share.

Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same names, and may differ from non-GAAP financial measures with the same or similar names that are used by other companies.

We compute non-GAAP financial measures using the same consistent method from quarter to quarter and year to year. We may consider whether other significant items that arise in the future should be excluded from our non-GAAP financial measures. Beginning in the first quarter of fiscal 2025, we exclude from our non-GAAP measures gains and losses from the revaluation of our executive deferred compensation plan liabilities, and the related gains and losses on our executive deferred compensation plan assets. Prior periods have not been reclassified as amounts are immaterial.

We exclude the following items from all of our non-GAAP financial measures:

• Amortization of acquired technology

• Amortization of other acquired intangible assets

• Restructuring charges

• Share-based compensation expense

• Gains and losses on executive deferred compensation plan liabilities

• Goodwill and intangible asset impairment charges

• Gains and losses on disposals of businesses and long-lived assets

• Professional fees and transaction costs for business combinations

We also exclude the following items from non-GAAP net income (loss) and diluted net income (loss) per share:

• Gains and losses on debt securities and other investments

• Gains and losses on executive deferred compensation plan assets

• Income tax effects and adjustments

• Discontinued operations

We believe these non-GAAP financial measures provide meaningful supplemental information regarding Intuit’s operating results primarily because they exclude amounts that we do not consider part of ongoing operating results when planning and forecasting and when assessing the performance of the organization, our individual operating segments, or our senior management. Segment managers are not held accountable for share-based compensation expense, amortization, restructuring, or the other excluded items and, accordingly, we exclude these amounts from our measures of segment performance. We believe our non-GAAP financial measures also facilitate the comparison by management and investors of results for current periods and guidance for future periods with results for past periods.

The following are descriptions of the items we exclude from our non-GAAP financial measures.

Amortization of acquired technology and amortization of other acquired intangible assets. When we acquire a business in a business combination, we are required by GAAP to record the fair values of the intangible assets of the business and amortize them over their useful lives. Amortization of acquired technology in cost of revenue includes amortization of software and other technology assets of acquired businesses. Amortization of other acquired intangible assets in operating expenses includes amortization of assets such as customer lists and trade names.

Restructuring charges. This consists of costs incurred as a direct result of discrete strategic restructuring actions, including, but not limited to severance and other one-time termination benefits, and other costs, which are different in terms of size, strategic nature, and frequency than ongoing productivity and business improvements.

Share-based compensation expense. This consists of non-cash expenses for stock options, restricted stock units, and our Employee Stock Purchase Plan. When considering the impact of equity awards, we place greater emphasis on overall shareholder dilution rather than the accounting charges associated with those awards.

Gains and losses on executive deferred compensation plan liabilities. We exclude from our non-GAAP financial measures gains and losses on the revaluation of our executive deferred compensation plan liabilities.

Goodwill and intangible asset impairment charges. We exclude from our non-GAAP financial measures non-cash charges to adjust the carrying values of goodwill and other acquired intangible assets to their estimated fair values.

Gains and losses on disposals of businesses and long-lived assets. We exclude from our non-GAAP financial measures gains and losses on disposals of businesses and long-lived assets because they are unrelated to our ongoing business operating results.

Professional fees and transaction costs for business combinations. We exclude from our non-GAAP financial measures the professional fees we incur to complete business combinations. These include investment banking, legal, and accounting fees.

Gains and losses on debt securities and other investments. We exclude from our non-GAAP financial measures credit losses on available-for-sale debt securities and gains and losses on other investments.

Gains and losses on executive deferred compensation plan assets. We exclude from our non-GAAP financial measures gains and losses on the revaluation of our executive deferred compensation plan assets.

Income tax effects and adjustments. We use a long-term non-GAAP tax rate for evaluating operating results and for planning, forecasting, and analyzing future periods. This long-term non-GAAP tax rate excludes the income tax effects of the non-GAAP pre-tax adjustments described above, and eliminates the effects of non-recurring and period specific items which can vary in size and frequency. Based on our long-term projections, we are using a long-term non-GAAP tax rate of 24% for fiscal 2025 and fiscal 2026. This long-term non-GAAP tax rate could be subject to change for various reasons including significant acquisitions, changes in our geographic earnings mix, or fundamental tax law changes in major jurisdictions in which we operate. We will evaluate this long-term non-GAAP tax rate on an annual basis and whenever any significant events occur which may materially affect this rate.

Operating results and gains and losses on the sale of discontinued operations. From time to time, we sell or otherwise dispose of selected operations as we adjust our portfolio of businesses to meet our strategic goals. In accordance with GAAP, we segregate the operating results of discontinued operations as well as gains and losses on the sale of these discontinued operations from continuing operations on our GAAP statements of operations but continue to include them in GAAP net income or loss and net income or loss per share. We exclude these amounts from our non-GAAP financial measures.

The reconciliations of the forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures in Table E include all information reasonably available to Intuit at the date of this press release. These tables include adjustments that we can reasonably predict. Events that could cause the reconciliation to change include acquisitions and divestitures of businesses, goodwill and other asset impairments, sales of available-for-sale debt securities and other investments, and disposals of businesses and long-lived assets.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250821275975/en/

Investors

Kim Watkins

Intuit Inc.

650-944-3324

kim_watkins@intuit.com

Media

Kali Fry

Intuit Inc.

650-944-3036

kali_fry@intuit.com

Source: Intuit Inc.

Released August 21, 2025

Paradox’s Candidate Experience Agent Delivers Superior Candidate Care, Accelerated Candidate Conversion and Time-to-Hire

The Addition of Paradox Will Give Workday an AI-Powered Talent Acquisition Suite for Every Worker and Every Type of Work

PLEASANTON, Calif., Aug. 21, 2025 /PRNewswire/ — Workday, Inc. (NASDAQ: WDAY), the AI platform for managing people, money, and agents, has entered into a definitive agreement to acquire Paradox, a candidate experience agent that uses conversational AI to simplify every step of the job application journey – particularly for high-volume frontline industries, which employ nearly 3 billion workers globally. The addition of Paradox will give Workday an AI-powered talent acquisition suite to help customers more efficiently find, hire, and onboard every type of worker – from the frontline to the back office – for every type of work, from full-time, to contingent. 

“Hiring is one of the most critical moments in the employee experience, yet too often it’s slowed down by outdated processes and disconnected tools,” said Gerrit Kazmaier, president, Product & Technology, Workday. “By bringing Paradox’s candidate experience AI agent into Workday, we’re giving organizations a smarter, faster, and more engaging way to connect with candidates. Together, we’ll help our customers move from transactional recruiting to transformative hiring that helps deliver talent, in less time, and with a better experience for everyone.”

“From day one, our mission has been to help our customers’ recruiting and hiring teams spend more time with people and less time with software,” said Adam Godson, CEO, Paradox. “Workday’s global reach and comprehensive platform provide the perfect runway for us to accelerate our mission, bringing our proven conversational AI to a much bigger audience and helping more companies around the world transform their hiring processes.”

Redefining The Candidate Experience with AI

Paradox delivers exceptional candidate experiences at scale, giving every applicant a personalized, high-touch interaction powered by AI. Paradox’s candidate experience agent gives candidates instant responses, self-scheduling capabilities, and 24/7 support in a natural conversational experience. Additionally, by turning slow, burdensome recruiting processes into quick, seamless conversations, Paradox helps companies fill high-volume roles with candidates faster, to drive measurable business results.

Paradox has powered more than 189 million AI-assisted candidate conversations. Their unique expertise in candidate experience and hiring processes has improved candidate response times resulting in employee conversion rates over 70%, helping organizations fill roles faster and reducing time-to-hire to as low as three and a half days.

Workday: A Talent Acquisition Suite for Every Type of Worker

The addition of Paradox will give Workday an AI-powered talent acquisition suite to help customers more efficiently find, hire, and onboard every type of worker – from the frontline to the back office – across full-time and contingent roles. From AI-driven talent discovery and matching with HiredScore, to AI-powered candidate conversations with Paradox, to streamlined hiring and onboarding in Workday Recruiting, Workday is uniquely positioned to help organizations attract, engage, and retain top talent in one unified, intelligent platform. By unifying all of these capabilities with Workday Recruiting, companies can reduce time-to-hire, improve conversion rates, and deliver an end-to-end talent journey that sets them apart in a competitive market. 

“Workday’s acquisition of Paradox is a highly strategic move,” said Josh Bersin, global industry analyst and CEO, The Josh Bersin Company. “This establishes Workday as a leader in high-volume, front-line hiring, which covers 70% of the jobs in the world, and also brings a pioneering AI product team into the company. Workday customers should be excited about the potential.”

“Our partnership with Paradox has already delivered significant improvements, reducing our time-to-hire by 75%, from 12 days to 4, and doubling applicant flow,” said Ilene Eskenazi, chief human resources officer, Chipotle. “We look forward to Paradox becoming a part of Workday and anticipate even greater support and resources as we continue to enhance the employee experience for our restaurant managers and free up their time to focus on delivering delicious culinary and exceptional hospitality to our guests.”

Details Regarding Proposed Acquisition of Paradox

The transaction is expected to close in the third quarter of Workday’s fiscal year 2026, ending October 31, 2025, subject to the satisfaction of closing conditions, including required regulatory approvals. Morgan Stanley & Co. LLC is serving as financial advisor to Workday and Orrick is serving as its legal advisor. Qatalyst Partners is serving as financial advisor to Paradox and DLA Piper is serving as its legal advisor.

About Workday

Workday is the AI platform for managing people, money, and agents. The Workday platform is built with AI at the core to help customers elevate people, supercharge work, and move their business forever forward. Workday is used by more than 11,000 organizations around the world and across industries – from medium-sized businesses to more than 65% of the Fortune 500. For more information about Workday, visit workday.com.

About Paradox

Launched in 2016, Paradox built the first conversational recruiting platform – driven by its AI assistant Olivia – to help recruiting and hiring teams spend more time with people and less time with software. Serving global clients with hiring needs across frontline high-volume hourly and high-skilled professional roles, Paradox’s AI assistant does the work talent teams don’t have time for — streamlining tasks like screening for minimum qualifications, instantly scheduling interviews, answering common candidate questions, and more through simple, frictionless mobile-, chat-, and SMS-driven experiences. The company has been ranked one of the fastest growing companies in HR Tech by the Deloitte Fast 500, and has made the Inc. 5000 list five consecutive years. To learn more about Paradox’s product, visit www.Paradox.ai. 

Forward-Looking Statements 

This press release contains forward-looking statements related to Workday, Paradox, and the acquisition of Paradox by Workday. These forward-looking statements are based only on currently available information and Workday’s current beliefs, expectations, and assumptions. Because forward-looking statements relate to the future, they are subject to risks, uncertainties, assumptions, and changes in circumstances that are difficult to predict and many of which are outside of our control. If the risks materialize, assumptions prove incorrect, or we experience unexpected changes in circumstances, actual results could differ materially from the results implied by these forward-looking statements, and therefore you should not rely on any forward-looking statements. Forward looking statements in this communication include, among other things, statements about the potential benefits and effects of the proposed transaction; Workday’s plans, objectives, expectations, and intentions with respect to Paradox’s business; and the anticipated timing of closing of the proposed transaction. Risks include, but are not limited to: (i) the risk that the transaction may not be completed in a timely manner or at all; (ii) failure to achieve the expected benefits of the transaction; (iii) Workday’s ability to implement its plans, objectives, and other expectations with respect to Paradox’s business and its ability to deliver an AI-powered talent acquisition suite to help customers more efficiently find, hire, and onboard workers and transform their hiring processes; (iv) negative effects of the announcement or the consummation of the transaction on Workday’s business operations, operating results, or share price; (v) unanticipated expenses related to the acquisition; and (vi) other risks and factors described in our filings with the Securities and Exchange Commission (“SEC”), including our most recent report on Form 10-Q or Form 10-K and other reports that we have filed and will file with the SEC from time to time, which could cause actual results to vary from expectations. Workday assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release.

© 2025 Workday, Inc. All rights reserved. Workday and the Workday logo are registered trademarks of Workday, Inc. All other brand and product names are trademarks or registered trademarks of their respective holders.

SOURCE Workday Inc.

As chatbots powered by artificial intelligence explode in popularity, experts are warning people against turning to the technology for medical or mental health advice instead of relying upon human health care providers.

There have been a number of examples in recent weeks of chatbot advice misleading people in harmful ways. A 60-year-old man accidentally poisoned himself and entered a psychotic state after ChatGPT suggested he eliminate salt, or sodium chloride, from his diet and replace it with sodium bromide, a toxin used to treat wastewater, among other things. Earlier this month, a study from the Center for Countering Digital Hate revealed ChatGPT gave teens dangerous advice about drugs, alcohol and suicide.

The technology can be tempting, especially with barriers to accessing health care, including cost, wait times to talk to a provider and lack of insurance coverage. But experts told PBS News that chatbots are unable to offer advice tailored to a patient’s specific needs and medical history and are prone to “hallucinations,” or giving outright incorrect information.

Here is what to know about the use of AI chatbots for health advice, according to mental health and medical professionals who spoke to PBS News.

How are people using AI chatbots for medical and mental health advice?

People are typically turning to commercially available chatbots, such as OpenAI’s ChatGPT or Luka’s Replika, said Vaile Wright, senior director of Health Care Innovation at the American Psychological Association.

People may ask questions as far-ranging as how to quit smoking, address interpersonal violence, confront suicidal ideation or treat a headache. More than half of teens said they used AI chatbot platforms multiple times each month, according to a survey produced by Common Sense Media. That report also mentioned that roughly a third of teens said they turned to AI companions for social interaction, including role-playing, romantic relationships, friendship and practicing conversation skills.

READ MORE: Analysis: AI in health care could save lives and money — but not yet

But the business model for these chatbots is to keep users engaged “as long as possible,” rather than give trustworthy advice in vulnerable moments, Wright said.

“Unfortunately, none of these products were built for that purpose,” she said. “The products that are on the market, in some ways, are really antithetical to therapy because they are built in a way that their coding is basically addictive.”

Often, a bot reflects the emotions of the human who is engaging them in ways that are sycophantic and could “mishandle really critical moments,” said Dr. Tiffany Munzer, a developmental behavioral pediatrician at the University of Michigan Medical School.

“If you’re in a sadder state, the chatbot might reflect more of that emotion,” Munzer said. “The emotional tone tends to match and it agrees with the user. it can make it harder to provide advice that is contrary to what the user wants to hear.”

What are the risks of using AI for health advice?

Asking AI chatbots health questions instead of asking a health care provider comes with several risks, said Dr. Margaret Lozovatsky, chief medical information officer for the American Medical Association.

Chatbots can sometimes give “a quick answer to a question that somebody has and they may not have the ability to contact their physicians,” Lozovatsky said. “That being said, the quick answer may not be accurate.”

• Chatbots do not know a person’s medical history. Chatbots are not your physician or nurse practitioner and cannot access your medical history or provide tailored insights. Chatbots are built on machine-learning algorithms. That means they generally produce the most likely response to a question based on their ever broadening diet of information harvested from the wilds of the internet.
• Hallucinations happen. Response quality is improving with AI chatbots, but hallucinations still occur and could be deadly in some cases. Lozovatsky recalled one example a few years ago, she asked a chatbot, “How do you treat a UTI (urinary tract infection)?” and the bot responded, “Drink urine.” While she and her colleagues laughed, Lozovatsky said this kind of hallucination could be potentially dangerous when a person asks a question where the accuracy of an answer may not be so obvious.
• Chatbots boost false confidence and atrophy critical thinking skills. People need to read AI chatbot responses with a critical eye, experts said. It is especially important to remember that these responses typically have muddled origins (you have to dig for source links) and that a chatbot “does not have clinical judgement,” Lozovatsky said. “You lose the relationship you have with a physician.”
• Users risk exposing their personal health data on the internet. In many ways, the AI industry amounts to a modern-day wild West, especially with regard to protecting people’s private data.

Why are people turning to AI as a mental health and medical resource?

It is not unusual for people to seek answers on their own when they have a persistent headache, sniffles or a weird, sudden pain, Lozovatsky said. Before chatbots, people relied on search engines (cue all the jokes about Dr. Google). Before that, the self-help book industry minted money on people’s low-humming anxiety about how they were feeling today and how they could feel better tomorrow.

Today, a search engine query may produce AI-generated results that show up first, followed by a string of websites that may or may not have information reflected accurately in those responses.

“It’s a natural place patients turn,” Lozovatsky said. “It’s an easy path.”

That ease of access stands in contrast to the barriers patients often encounter when trying to get advice from licensed medical professionals. Those obstacles may include whether or not they have insurance coverage, if their provider is in-network, if they can afford the visit, if they can wait until their provider can be scheduled to see them, if they are concerned about stigma related to their question, and if they have reliable transportation to their provider’s office or clinic when telehealth services are not an option.

Any one of these hurdles may be enough to motivate a person to feel more comfortable asking a bot their sensitive question than a human, even if the answer they receive could potentially endanger them. At the same time, a well-documented loneliness epidemic nationwide is partially fueling a rise in the use of AI chatbots, Munzer said.

“Kids are growing up in a world where they just don’t have the social supports or social networks that they really deserve and need to thrive,” she said.

How can people safeguard against bad AI advice?

If people are concerned about whether their child, family member or friend is engaging with a chatbot for mental health or medical advice, it is important to reserve judgment when attempting to have a conversation about the topic, Munzer said.

“We want families and kids and teens to have as much info at their fingertips to make the best decisions possible,” she said. “A lot of it is about AI and literacy.”

Discussing the underlying technology driving chatbots and motivations for using them can provide a critical point of understanding, Munzer said. This could include asking about why they are becoming such an increasing part of daily living, the business model of AI companies, and what else could support a child or adult’s mental wellbeing.

A helpful conversation prompt Munzer suggested for caregivers is to ask, “What would you do if a friend revealed they were using AI for mental health purposes?” That language “can remove judgement,” she said.

One activity Munzer recommended is for families to test out AI chatbots together, talk about what they find and encourage loved ones, especially children, to look for hallucinations and biases in the information.

WATCH: What to know about an AI transcription tool that ‘hallucinates’ medical interactions

But the responsibility to protect individuals from chatbot-generated harm is too great to place on families alone, Munzer said. Instead, it will require regulatory rigor from policymakers to avoid further risk.

On Monday, the Brookings Institution produced an analysis of 2025 state legislation and found “Health care was a major focus of legislation, with all bills focused on the potential issues arising from AI systems making treatment and coverage decisions.” A handful of states, including Illinois, have banned the use of ChatGPT to generate mental health therapy. A bill in Indiana would require medical professionals to tell patients they are using AI to generate advice or inform a decision to provide health care.

One day, chatbots could fill gaps in services, Wright said — but not yet. Chatbots can tap into deep wells of information, she said, but that does not translate to knowledge and discernment.

“I do think you’ll see a future where you do have mental health chatbots that are rooted in the science, that are rigorously tested, they’re co-created for the purposes, so therefore, they’re regulated,” Wright said. “But that’s just not what we have currently.”

Federal Reserve Chair Jerome Powell is set to deliver what almost certainly will be his last keynote address at the central bank’s annual conclave during one of the most tumultuous times in its history.

What’s at stake is the near-term sentiment for financial markets, the longer-term path of the Fed’s policy trajectory, and a not insignificant dose of trying to preserve vestiges of independence at a time when the normally sacrosanct institution is facing enormous political pressure.

If Friday’s speech at Jackson Hole, Wyoming, goes at all like Powell’s first seven-plus years in office, it will feature a calm and collected veneer even if masking the weight that he and his colleagues have been under all year.

“He’s done a good job in terms of keeping the Fed’s independence, ignoring the noise and some of the questions he gets, and keeping it focused on the data dependency and the Fed’s dual mandate,” said Michael Arone, chief investment strategist at State Street Global Advisors. “He’s taken the high road as it relates to the Fed’s independence and some of the pressure he’s clearly getting from the Trump administration. So I think that he’ll continue to kind of walk that line.”

Indeed, President Donald Trump has kept up a near constant drumbeat against Powell and his colleagues. As he did during much of his first term, Trump has badgered Powell to lower interest rate cuts. But in recent days the president’s attacks on the Fed have gone past mere monetary policy.

Earlier this summer, the White House lashed out at the Fed for a major reconstruction project at its Washington, D.C. headquarters. That coincided with a period when Trump toyed with removing Powell, though he later backed off the idea.

Then this week the administration trained its focus on Fed Governor Lisa Cook, accusing her of mortgage fraud regarding two federally backed loans she took.

Amid the controversies, Powell could use the speech to at least take a swipe at the political distractions, even if he holds to past practice of not taking direct aim.

Politics and policy

“He’s going to take a jab and talk about fed independence, because what does he have to lose really at this point?” said Dan North, senior economist at Allianz Trade North America. “It seems pretty clear that Trump can’t legally fire him. He can certainly put all kinds of tremendous pressure on him. And I think it’s an opportunity for Powell to say the central bank’s got to stay independent, and that’s what we’re going to do.”

Beyond the politics there’s policy, and that also will be challenge.

The speech is billed as an “Economic Outlook and Framework Review,” indicating Powell will take time to provide his views on broad conditions as well as discuss the Fed’s long-term policy goals, a review that occurs every five years.

Markets are expecting Powell to tee up a September rate cut. At each of his previous Jackson Hole speeches, starting in 2018, he indicated significant policy shifts. From pushing for quarterly cuts in that first speech to a pivotal switch in how it would view inflation in 2020 to last year’s nod towards an aggressive September move, markets have taken their cues from the chair’s keynote.

Wall Street commentary reflects similar expectations this time around, if in somewhat subtler terms.

“We do not expect Powell to decisively signal a September cut, but the speech should make it clear to markets that he is likely to support one,” Goldman Sachs economist David Mericle said in a note.

Kansas City Fed President Jeffrey Schmid, whose district hosts the Jackson Hole event, told CNBC on Wednesday that he isn’t sold yet on a September cut and will need to see more data. In fact, only Governors Christopher Waller and Michelle Bowman have overtly signaled they favor a move next month.

“We suspect that most FOMC participants who have expressed mixed feelings about cutting in September will be willing to support a cut if Powell pushes for one, but that he will think it more reasonable to make that case to them closer to the meeting with more data in hand,” Mericle said.

Inflation vs. unemployment

Key points to watch will be how Powell characterizes the labor market and his view on the inflation pass-through from Trump’s tariffs.

Shortly after the July Fed meeting, the Bureau of Labor Statistics announced meager job growth for July and even weaker gains for May and June. However, multiple policymakers have used the word “solid” to describe the labor market, indicating they see less urgency for rate cuts.

Minutes from the July meeting indicated most FOMC members see a greater worry over inflation. Regional presidents Beth Hammack from Cleveland, Atlanta’s Raphael Bostic and Schmid in Kansas City have expressed skepticism about the need for a September cut, a position that could rile Trump and upset the market.

Powell “is likely to remain careful and not pre-commit in advance to a September cut, which could disappoint some investors,” wrote Krishna Guha, head of global policy and central bank strategy at Evercore ISI. “Much of his speech may try to provide a steady medium- to longer-term framing for policy strategy and inflation control.”

That framing could be critical as well, and is getting little attention from Wall Street so far.

Five years ago, against a backdrop of the Covid pandemic and protests over police brutality, the Fed adopted what it called “flexible average inflation targeting.” Essentially, the framework change would allow the Fed to let inflation run hot if unemployment was higher, particularly for underrepresented groups.

Over the next couple years, the Fed stood pat while inflation hit its highest level in more than 40 years. While most officials say the inflation targeting change did not play a role in the widely-held view that inflation was “transitory,” the policy is likely to get a retooling, with the Fed returning to its previous inflation stance that included preemptive action if inflation appeared to be rising.

“While the adoption of the new framework in 2020 was not the primary factor behind the Fed’s delay and the substantial inflation overshoot, it contributed to this outcome,” Matthew Luzzetti, Deutsche Bank chief U.S. economist, said in a note. “For this reason, we expect Powell’s speech in Jackson Hole to highlight changes to the Fed’s statement on longer-run goals that will reflect this reality. Specifically, we expect the speech to call for rolling back the 2020 modifications and restoring a primary role for preemption.”

Luzzetti added that the Friday speech “could arguably not come at a more important time” and he expects Powell to change his tone on the labor market.

Powell’s speech will be presented at 10 a.m. ET. The conference wraps up Saturday.