INTUIT INC.

Previous wording

Effective August 1, 2025, we combined our Consumer, Credit Karma, and ProTax businesses into a single Consumer segment in order to better serve the diverse financial needs of our customers as one consumer platform. Our chief operating decision maker allocates resources and assesses segment performance using regularly provided segment revenue and segment operating income information under this updated segment structure. To align results under this segment change, certain selling and marketing, product development, and general and administrative expenses for Credit Karma that were managed at the segment level are now managed at the platform level and are included in other corporate expenses rather than in segment expenses. Also on August 1, 2025, we reorganized certain marketing, communications, and customer success functions in our Global Business Solutions segment that support and benefit our overall platform and are managed at that level rather than at the segment level. Additionally, certain data science and analytics teams that were managed at the platform level are now managed at the segment level. We have recast certain previously reported amounts to conform to these segment changes. As a result of these changes, for the three and six months ended January 31, 2025, we reclassified expenses totaling $3 million and $6 million from Global Business Solutions and $149 million and $301 million from Consumer to other corporate expenses, respectively, to conform to the current presentation. See Note 12,"Segment Information," for more information.

Current wording

Effective August 1, 2025, we combined our Consumer, Credit Karma, and ProTax businesses into a single Consumer segment in order to better serve the diverse financial needs of our customers as one consumer platform. Our chief operating decision maker allocates resources and assesses segment performance using regularly provided segment revenue and segment operating income information under this updated segment structure. To align results under this segment change, certain selling and marketing, product development, and general and administrative expenses for Credit Karma that were managed at the segment level are now managed at the platform level and are included in other corporate expenses rather than in segment expenses. Also on August 1, 2025, we reorganized certain marketing, communications, and customer success functions in our Global Business Solutions segment that support and benefit our overall platform and are managed at that level rather than at the segment level. Additionally, certain data science and analytics teams that were managed at the platform level are now managed at the segment level. We have recast certain previously reported amounts to conform to these segment changes. As a result of these changes, for the three and nine months ended April 30, 2025, we reclassified expenses totaling $1 million and $7 million from Global Business Solutions and $155 million and $456 million from Consumer to other corporate expenses, respectively, to conform to the current presentation. See Note 12,"Segment Information," for more information.

Previous wording

We leverage AI and human intelligence to provide our customers with done-for-you experiences that automate tasks, identify actionable insights to drive important decisions, and manage end-to-end workflows or entire processes to eliminate work, while ensuring the customer remains in control. When customers need additional help or want help to complete the work on their behalf, we connect them with the best human expert from our network of thousands of AI-enabled financial, tax, and bookkeeping experts who can complete a specific task, address specialized questions, or manage the entire workload. Our strategy, combined with our Big Bets that focus on the largest customer problems and growth opportunities, positions us for durable growth.

Current wording

We leverage AI and human intelligence to provide our customers with done-for-you experiences that automate tasks, identify actionable insights to drive important decisions, and manage end-to-end workflows or entire processes to eliminate work, while ensuring the customer remains in control. When customers need additional help or want help to complete the work on their behalf, we connect them with a trusted AI-enabled human expert from our network of thousands of financial, tax, and bookkeeping experts who can complete a specific task, address specialized questions, or complete work on their behalf. Our strategy, combined with our Big Bets that focus on the largest customer problems and growth opportunities, positions us for durable growth.

Previous wording

We launched a transformative set of AI agents that provide customers with a virtual team to complete jobs on their behalf, dramatically improving how businesses run and grow. Combined with our AI-enabled human experts, these agents are automating workflows and delivering real-time insights to drive growth and improve cash flow. Our redesigned user interface and new business feed highlights these real-time insights and recommendations and the tasks completed by agents on behalf of the customer. We also launched AI agents in Intuit Enterprise Suite, including accounting, payments, finance, and project management agents, transforming how our small and mid-market business customers manage their finances by automating a variety of day-to-day tasks, and increasing productivity.

Current wording

We launched a transformative set of AI agents that provide customers with a virtual team to complete jobs on their behalf, dramatically improving how businesses run and grow. Combined with our AI-enabled human experts, these agents are automating workflows and delivering real-time insights to drive growth and improve cash flow. Our redesigned user interface and new business feed highlights these real-time insights and recommendations and the tasks completed by agents on behalf of the customer. We also launched AI agents in Intuit Enterprise Suite, including accounting, payments, finance, and project

Previous wording

Our growth strategy depends upon our ability to innovate, develop, and introduce emerging technologies, including AI and GenAI, to drive broad adoption of our products and services and enter new markets. Our future growth also increasingly depends on the strength of our third-party business relationships and our ability to continue to develop, maintain, and strengthen new and existing relationships. To remain competitive and continue to grow, we are investing significant resources in our product development, marketing, and sales capabilities, and we expect to continue to do so in the future. Much of our future success also depends on our ability to continue to attract, retain, and develop highly skilled employees, including those

Current wording

Our growth strategy depends upon our ability to innovate, develop, and introduce emerging technologies, including AI and GenAI, to drive broad adoption of our products and services and enter new markets. Our future growth also increasingly depends on the strength of our third-party business relationships and our ability to continue to develop, maintain, and strengthen new and existing relationships. To remain competitive and continue to grow, we are investing significant resources in our product development, marketing, and sales capabilities, and we expect to continue to do so in the future. Much of our future success also depends on our ability to continue to attract, retain, and develop highly skilled employees, including those in technical and leadership roles who are critical to our strategic growth, in a highly competitive talent environment.

Previous wording

As we offer more online services, the ongoing operation and availability of our platforms and systems and those of our external service providers is becoming increasingly important. Because we help customers manage their financial lives, we face risks associated with the hosting, collection, use, and retention of personal customer information and data. We are investing significant management attention and resources in our information technology infrastructure and in our privacy and security capabilities, and we expect to continue to do so in the future.

Current wording

As we offer more online services, the ongoing operation and availability of our platforms and systems and those of our external service providers is becoming increasingly important. Because we help customers manage their financial lives, we face risks associated with the hosting, collection, use, and retention of personal customer information and data. We are investing

Previous wording

Key highlights for the first six months of fiscal 2026 include the following:

Current wording

Key highlights for the first nine months of fiscal 2026 include the following:

Previous wording

In preparing our condensed consolidated financial statements, we make estimates, assumptions, and judgments that can have a significant impact on our net revenue, operating income or loss, and net income or loss, as well as on the value of certain assets and liabilities on our condensed consolidated balance sheets. We believe that the estimates, assumptions, and judgments described in Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2025 have the greatest potential impact on our financial statements, so we consider them to be our critical accounting estimates. There were no significant changes in those critical accounting estimates during the first six months of fiscal 2026. Senior management has reviewed the development and selection of our critical accounting estimates and their disclosure in this Quarterly Report on Form 10-Q with the Audit and Risk Committee of our Board of Directors.

Current wording

In preparing our condensed consolidated financial statements, we make estimates, assumptions, and judgments that can have a significant impact on our net revenue, operating income or loss, and net income or loss, as well as on the value of certain assets and liabilities on our condensed consolidated balance sheets. We believe that the estimates, assumptions, and judgments described in Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2025 have the greatest potential impact on our financial statements, so we consider them to be our critical accounting estimates. There were no significant changes in those critical accounting estimates during the first nine months of fiscal 2026. Senior management has reviewed the development and selection of our critical accounting estimates and their disclosure in this Quarterly Report on Form 10-Q with the Audit and Risk Committee of our Board of Directors.

Previous wording

Total net revenue for the second quarter of fiscal 2026 increased $688 million, or 17%, compared with the same quarter of fiscal 2025. Our Global Business Solutions segment revenue increased 18% during the quarter due to growth in our Online Ecosystem revenue. Consumer segment revenue increased 15% due to strength in our Credit Karma personal loan, credit card, and insurance verticals, as well as from strength in TurboTax due to growth in assisted tax and our consumer money offerings. See“Segment Results” later in this Item 2 for more information about the results for all of our reportable segments.

Current wording

Total net revenue for the third quarter of fiscal 2026 increased $804 million, or 10%, compared with the same quarter of fiscal 2025. Consumer segment revenue increased 8% due to growth in assisted tax and our consumer money offerings, and strength in our Credit Karma personal loan and insurance verticals, partially offset by a decrease in revenue due to fewer TurboTax federal units. Our Global Business Solutions segment revenue increased 15% during the quarter due to growth in our Online Ecosystem revenue. See“Segment Results” later in this Item 2 for more information about the results for all of our reportable segments.

Previous wording

Operating income for the second quarter of fiscal 2026 increased $262 million, or 44%, compared with the same quarter of fiscal 2025. The increase in operating income was due to the increase in revenue described above, partially offset by an increase in expenses. Expenses increased due to increases in expenses for outside services, which includes hosting, staffing, marketing, SaaS subscriptions and licenses, and share-based compensation. See“Cost of Revenue” and“Operating Expenses” later in this Item 2 for more information.

Current wording

Operating income for the third quarter of fiscal 2026 increased $300 million, or 8%, compared with the same quarter of fiscal 2025. The increase in operating income was due to the increase in revenue described above, partially offset by an increase in expenses. Expenses increased due to increases in expenses for outside services, which include hosting, staffing, marketing, SaaS subscriptions and licenses, and share-based compensation. See“Cost of Revenue” and“Operating Expenses” later in this Item 2 for more information.

Previous wording

Net income for the first six months of fiscal 2026 increased $471 million, or 71%, compared with the same period of fiscal 2025. The increase in net income was due to the increase in operating income described above and an increase in interest and other income, partially offset by an increase in income tax expense. The increase in interest and other income is the result of

Current wording

Net income for the third quarter of fiscal 2026 increased $244 million, or 9%, compared with the same quarter of fiscal 2025. The increase in net income was due to the increase in operating income described above and an increase in interest and other income, partially offset by an increase in income tax expense. The increase in interest and other income is the result of $46 million in net gains on long-term investments recorded during the period. The increase in income tax expense is due to the increase in operating income described above and tax shortfalls related to share-based compensation. Diluted net income per share increased to $11.09 for the third quarter of fiscal 2026 compared to $10.02 for the same quarter of fiscal 2025, due to the increase in net income and decrease in our weighted shares outstanding as a result of our increased share repurchase activity.

Previous wording

Total net revenue for the first six months of fiscal 2026 increased $1.3 billion, or 18%, compared with the same period of fiscal 2025. Our Global Business Solutions segment revenue increased 18% during the period due to growth in our Online Ecosystem revenue. Consumer segment revenue increased 17% due to strength in our Credit Karma personal loan, credit card, and insurance verticals, as well as from strength in TurboTax due to growth in assisted tax and our consumer money offerings. See“Segment Results”later in this Item 2 for more information about the results for all of our reportable segments.

Current wording

Total net revenue for the first nine months of fiscal 2026 increased $2.1 billion, or 14%, compared with the same period of fiscal 2025. Our Global Business Solutions segment revenue increased 17% during the period due to growth in our Online Ecosystem revenue. Consumer segment revenue increased 10% due to growth in assisted tax and our consumer money offerings, and strength in our Credit Karma personal loan, credit card, and insurance verticals, partially offset by a decrease in revenue due to fewer TurboTax federal units. See“Segment Results”later in this Item 2 for more information about the results for all of our reportable segments.

Previous wording

Operating income for the first six months of fiscal 2026 increased $525 million, or 61%, compared with the same period of fiscal 2025. The increase in operating income was due to the increase in revenue described above, partially offset by an increase in expenses. Expenses increased due to increases in expenses for outside services, which includes hosting, staffing, marketing, share-based compensation, and SaaS subscriptions and licenses. See “Cost of Revenue” and“Operating Expenses” later in this Item 2 for more information.

Current wording

Operating income for the first nine months of fiscal 2026 increased $825 million, or 18%, compared with the same period of fiscal 2025. The increase in operating income was due to the increase in revenue described above, partially offset by an increase in expenses. Expenses increased due to increases in expenses for outside services, which include hosting, staffing, marketing, share-based compensation, and SaaS subscriptions and licenses. See “Cost of Revenue” and“Operating Expenses” later in this Item 2 for more information.

Previous wording

Net income for the second quarter of fiscal 2026 increased $222 million, or 47%, compared with the same quarter of fiscal 2025. The increase in net income was due to the increase in operating income described above and an increase in interest and other income, partially offset by an increase in income tax expense. The increase in interest and other income is the result of $31 million in net gains on long-term investments recorded in the second quarter of fiscal 2026 and $1 million in net losses on long-term investments recorded during the same quarter of fiscal 2025. The increase in income tax expense is due to the increase in operating income described above. Diluted net income per share increased to $2.48 for the second quarter of fiscal 2026 compared to $1.67 for the same quarter of fiscal 2025, relatively consistent with the increase in net income.

Current wording

Net income for the first nine months of fiscal 2026 increased $715 million, or 20%, compared with the same period of fiscal 2025. The increase in net income was due to the increase in operating income described above and an increase in interest and other income, partially offset by an increase in income tax expense. The increase in interest and other income is the result of $104 million in net gains on long-term investments recorded in the first nine months of fiscal 2026 and $43 million in net losses on long-term investments recorded during the same period of fiscal 2025. The increase in income tax expense is due to the increase in operating income described above and lower tax benefits related to share-based compensation. Diluted net income per share increased to $15.05 for the first nine months of fiscal 2026 compared to $12.33 for the same period of fiscal 2025, due to the increase in net income and decrease in our weighted shares outstanding as a result of our increased share repurchase activity.

Previous wording

The information below is organized in accordance with our two reportable segments. See“Executive Overview – About Intuit” earlier in this Item 2 and Note 12 to the condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report for more information. All of our segments operate and sell to customers primarily in the U.S. Total international net revenue was approximately 8% and 9% of consolidated net revenue for the three and six months ended January 31, 2026, respectively. Total international net revenue was approximately 9% of consolidated net revenue for each of the three and six months ended January 31, 2025.

Current wording

The information below is organized in accordance with our two reportable segments. See“Executive Overview – About Intuit” earlier in this Item 2 and Note 12 to the condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report for more information. All of our segments operate and sell to customers primarily in the U.S. Total international net revenue was approximately 6% and 7% of consolidated net revenue for the three and nine months ended April 30, 2026, respectively. Total international net revenue was approximately 5% and 7% of consolidated net revenue for the three and nine months ended April 30, 2025, respectively.

Previous wording

Effective August 1, 2025, we combined our Consumer, Credit Karma, and ProTax businesses into a single Consumer segment in order to better serve the diverse financial needs of our customers as one consumer platform. Our chief operating decision maker allocates resources and assesses segment performance using regularly provided segment revenue and segment operating income information under this updated segment structure. To align results under this segment change, certain selling and marketing, product development, and general and administrative expenses for Credit Karma that were managed at the segment level are now managed at the platform level and are included in other corporate expenses rather than in segment expenses. Also on August 1, 2025, we reorganized certain marketing, communications, and customer success functions in our Global Business Solutions segment that support and benefit our overall platform and are managed at that level rather than at the segment level. Additionally, certain data science and analytics teams that were managed at the platform level are now managed at the segment level. We have recast certain previously reported amounts to conform to these segment changes. As a result of these changes, for the three and six months ended January 31, 2025, we reclassified expenses totaling $3 million and $6 million from Global Business Solutions and $149 million and $301 million from Consumer to other corporate expenses, respectively, to conform to the current presentation.

Current wording

Effective August 1, 2025, we combined our Consumer, Credit Karma, and ProTax businesses into a single Consumer segment in order to better serve the diverse financial needs of our customers as one consumer platform. Our chief operating decision maker allocates resources and assesses segment performance using regularly provided segment revenue and segment operating income information under this updated segment structure. To align results under this segment change, certain selling and marketing, product development, and general and administrative expenses for Credit Karma that were managed at the segment level are now managed at the platform level and are included in other corporate expenses rather than in segment expenses. Also on August 1, 2025, we reorganized certain marketing, communications, and customer success functions in our Global Business Solutions segment that support and benefit our overall platform and are managed at that level rather than at the segment level. Additionally, certain data science and analytics teams that were managed at the platform level are now managed at the segment level. We have recast certain previously reported amounts to conform to these segment changes. As a result of these changes, for the three and nine months ended April 30, 2025, we reclassified expenses totaling $1 million and $7 million from Global Business Solutions and $155 million and $456 million from Consumer to other corporate expenses, respectively, to conform to the current presentation.

Previous wording

Segment operating income or loss is segment net revenue less segment cost of revenue and operating expenses. See“Executive Overview – Industry Trends and Seasonality” earlier in this Item 2 for a description of the seasonality of our business. We include expenses such as corporate selling and marketing, general and administrative, and non-employment related legal and litigation settlement costs, which are not allocated to specific segments, in unallocated corporate items as part of other corporate expenses. As part of our platform strategy, we also include customer success and product development for our segments in unallocated corporate items as we do not allocate these expenses to the segments because they are managed at the platform level. Customer success includes the costs of tax and bookkeeping experts that support our TurboTax Expert Assist, TurboTax Expert Full Service, and QuickBooks Live offerings. Unallocated corporate items also include share-based compensation, amortization of acquired technology, amortization of other acquired intangible assets, goodwill and intangible asset impairment charges, professional fees and transaction costs related to business combinations, and restructuring charges. These unallocated corporate costs for all segments totaled $4.8 billion and $4.4 billion for the six months ended January 31, 2026 and January 31, 2025, respectively. Unallocated corporate items increased in the fiscal 2026 period, primarily due to increases in research and development expense, cost of service revenue, and selling and marketing expense. See Note 12 to the condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report for reconciliations of total segment operating income or loss to consolidated operating income or loss for each fiscal period presented.

Current wording

Segment operating income or loss is segment net revenue less segment cost of revenue and operating expenses. See“Executive Overview – Industry Trends and Seasonality” earlier in this Item 2 for a description of the seasonality of our business. We include expenses such as corporate selling and marketing, general and administrative, and non-employment related legal and litigation settlement costs, which are not allocated to specific segments, in unallocated corporate items as part of other corporate expenses. As part of our platform strategy, we also include customer success and product development for our segments in unallocated corporate items as we do not allocate these expenses to the segments because they are managed at the platform level. Customer success includes the costs of tax and bookkeeping experts that support our TurboTax Expert Assist, TurboTax Expert Full Service, and QuickBooks Live offerings. Unallocated corporate items also include share-based compensation, amortization of acquired technology, amortization of other acquired intangible assets, goodwill and intangible asset impairment charges, professional fees and transaction costs related to business combinations, and restructuring charges. These unallocated corporate costs for all segments totaled $7.6 billion and $6.9 billion for the nine months ended April 30, 2026 and April 30, 2025, respectively. Unallocated corporate items increased in the fiscal 2026 period, primarily due to increases in research and development expense, cost of service revenue, and selling and marketing expense. See Note 12 to the condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report for reconciliations of total segment operating income or loss to consolidated operating income or loss for each fiscal period presented.

Previous wording

•Money offerings for businesses that use online offerings, which include merchant payment processing and bill pay services, and financing for small and mid-market businesses (QuickBooks Capital);

Current wording

•Money offerings for businesses that use online offerings, which include merchant payment processing and bill pay services, and financing for small and mid-market businesses (QuickBooks Capital); and

Previous wording

Revenue for our Global Business Solutions segment increased $493 million, or 18%, in the second quarter of fiscal 2026 and $940 million, or 18%, in the first six months of fiscal 2026 compared with the same periods of fiscal 2025. The increase in both periods was primarily due to growth in Online Ecosystem revenue.

Current wording

Revenue for our Global Business Solutions segment increased $436 million, or 15%, in the third quarter of fiscal 2026 and $1.4 billion, or 17%, in the first nine months of fiscal 2026 compared with the same periods of fiscal 2025. The increase in both periods was primarily due to growth in Online Ecosystem revenue.

Previous wording

Online Ecosystem revenue increased $429 million, or 21%, in the second quarter of fiscal 2026 compared with the same period of fiscal 2025. QuickBooks Online Accounting revenue increased $240 million, or 24%, in the second quarter of fiscal 2026 due to the interrelated factors of higher effective prices, customer growth, and mix-shift. Online Services revenue increased $189 million, or 18%, in the second quarter of fiscal 2026, due to increases in revenue from our money offerings of $115 million and our payroll offerings of $82 million. Revenue increases were due to the interrelated factors described below. Money revenue increased $115 million due to a $64 million increase in payments revenue from payments customer growth, an increase in total payment volume per customer, and higher effective payments prices, and a $51 million increase from QuickBooks Capital. Online payroll revenue increased due to mix-shift, customer growth, and higher effective prices.

Current wording

Online Ecosystem revenue increased $394 million, or 19%, in the third quarter of fiscal 2026 compared with the same period of fiscal 2025. QuickBooks Online Accounting revenue increased $234 million, or 22%, in the third quarter of fiscal 2026 due to the interrelated factors of higher effective prices, customer growth, and mix shift. Online Services revenue increased $160 million, or 15%, in the third quarter of fiscal 2026, due to increases in revenue from our money offerings of $107 million and our payroll offerings of $55 million. Revenue increases were due to the interrelated factors described below. Money revenue increased $107 million due to a $61 million increase in payments revenue from payments customer growth and an increase in total payment volume per customer, and a $46 million increase from QuickBooks Capital. Online payroll revenue increased due to mix shift, customer growth, and higher effective prices.

Previous wording

Online Ecosystem revenue increased $837 million, or 21%, in the first six months of fiscal 2026 compared with the same period of fiscal 2025. QuickBooks Online Accounting revenue increased $481 million, or 24%, in the first six months of fiscal 2026 due to the interrelated factors of higher effective prices, customer growth, and mix-shift. Online Services revenue increased $356 million, or 18%, in the first six months of fiscal 2026, due to increases in revenue from our money offerings of $220 million and our payroll offerings of $149 million. Revenue increases were due to the interrelated factors described below. Money revenue increased $220 million due to a $122 million increase in payments revenue from payments customer growth, an increase in total payment volume per customer, and higher effective payments prices, and a $98 million increase from QuickBooks Capital. Online payroll revenue increased due to mix-shift, customer growth, and higher effective prices.

Current wording

Online Ecosystem revenue increased $1.2 billion, or 20%, in the first nine months of fiscal 2026 compared with the same period of fiscal 2025. QuickBooks Online Accounting revenue increased $715 million, or 24%, in the first nine months of fiscal 2026 due to the interrelated factors of higher effective prices, customer growth, and mix shift. Online Services revenue increased $516 million, or 17%, in the first nine months of fiscal 2026, due to increases in revenue from our money offerings of $327 million and our payroll offerings of $204 million. Revenue increases were due to the interrelated factors described below. Money revenue increased $327 million due to a $183 million increase in payments revenue from payments customer growth and an increase in total payment volume per customer, and a $144 million increase from QuickBooks Capital. Online payroll revenue increased due to mix shift, customer growth, and higher effective prices.

Previous wording

Desktop Ecosystem revenue increased $64 million, or 10%, in the second quarter of fiscal 2026 and $103 million, or 8%, in the first six months of fiscal 2026 compared with the same periods of fiscal 2025 due to higher effective prices.

Current wording

Desktop Ecosystem revenue increased $42 million, or 6%, in the third quarter of fiscal 2026 and $145 million, or 7%, in the first nine months of fiscal 2026 compared with the same periods of fiscal 2025 due to higher effective prices.

Previous wording

Global Business Solutions segment operating income increased $351 million, or 17%, in the second quarter of fiscal 2026 compared with the same period of fiscal 2025, due to the increase in revenue described above, partially offset by increases in QuickBooks Capital cost of revenue of $32 million due to increased loan volume, online payments cost of revenue of $26 million due to an increase in payments volume, marketing expenses of $23 million, staffing expenses of $20 million, and outside services expenses, which includes hosting, of $13 million.

Current wording

Global Business Solutions segment operating income increased $331 million, or 15%, in the third quarter of fiscal 2026 compared with the same period of fiscal 2025, due to the increase in revenue described above, partially offset by increases in QuickBooks Capital cost of revenue of $41 million due to increased loan volume, online payments cost of revenue of $19 million, outside services expenses, which include hosting, of $16 million, staffing expenses of $14 million, and marketing expenses of $8 million.

Previous wording

Global Business Solutions segment operating income increased $683 million, or 17%, in the first six months of fiscal 2026 compared with the same period of fiscal 2025, due to the increase in revenue described above, partially offset by increases in QuickBooks Capital cost of revenue of $55 million due to increased loan volume, staffing expenses of $44 million, marketing expenses of $44 million, online payments cost of revenue of $36 million due to an increase in payments volume, and outside services expenses, which includes hosting, of $29 million.

Current wording

Global Business Solutions segment operating income increased $1.0 billion, or 16%, in the first nine months of fiscal 2026 compared with the same period of fiscal 2025, due to the increase in revenue described above, partially offset by increases in QuickBooks Capital cost of revenue of $96 million due to increased loan volume, staffing expenses of $58 million, online payments cost of revenue of $55 million, marketing expenses of $52 million, and outside services expenses, which include hosting, of $45 million.

Previous wording

On August 1, 2025, we reorganized certain marketing, communications, and customer success functions in our Global Business Solutions segment that support and benefit our overall platform and are managed at that level rather than at the segment level. Additionally, certain data science and analytics teams that were managed at the platform level are now managed at the segment level. We have recast certain previously reported amounts to conform to these segment changes. For the three and six months ended January 31, 2025, we reclassified $3 million and $6 million from Global Business Solutions to other corporate expenses to conform to the current presentation.

Current wording

On August 1, 2025, we reorganized certain marketing, communications, and customer success functions in our Global Business Solutions segment that support and benefit our overall platform and are managed at that level rather than at the segment level. Additionally, certain data science and analytics teams that were managed at the platform level are now managed at the segment level. We have recast certain previously reported amounts to conform to these segment changes. For the three and nine months ended April 30, 2025, we reclassified $1 million and $7 million from Global Business Solutions to other corporate expenses to conform to the current presentation.

Previous wording

Revenue for our Consumer segment increased $195 million, or 15%, in the second quarter of fiscal 2026 compared with the same period of fiscal 2025 due to an increase in Credit Karma revenue of $116 million and TurboTax revenue of $61 million. The increase in Credit Karma is due to increases in revenue from our personal loan vertical of $50 million, our credit card vertical of $39 million, and our insurance vertical of $22 million. The increase in TurboTax revenue is due to growth in assisted tax and our consumer money offerings.

Current wording

Revenue for our Consumer segment increased $368 million, or 8%, in the third quarter of fiscal 2026 compared with the same period of fiscal 2025 due to an increase in TurboTax revenue of $286 million and Credit Karma revenue of $82 million. The increase in TurboTax revenue is due to growth in assisted tax and our consumer money offerings, partially offset by a decrease in revenue due to fewer TurboTax federal units. The increase in Credit Karma is due to increases in revenue from our personal loan vertical of $51 million and our insurance vertical of $29 million.

Previous wording

Revenue for our Consumer segment increased $350 million, or 17%, in the first six months of fiscal 2026 compared with the same period of fiscal 2025 due to an increase in Credit Karma revenue of $254 million and TurboTax revenue of $72 million. The increase in Credit Karma is due to increases in revenue from our personal loan vertical of $115 million, our credit card vertical of $92 million, and our insurance vertical of $38 million. The increase in TurboTax revenue is due to growth in assisted tax and our consumer money offerings.

Current wording

Revenue for our Consumer segment increased $718 million, or 10%, in the first nine months of fiscal 2026 compared with the same period of fiscal 2025 due to an increase in TurboTax revenue of $358 million and Credit Karma revenue of $336 million. The increase in TurboTax revenue is due to growth in assisted tax and our consumer money offerings, partially offset by a decrease in revenue due to fewer TurboTax federal units. The increase in Credit Karma is due to increases in revenue from our personal loan vertical of $166 million, our credit card vertical of $87 million, and our insurance vertical of $67 million.

Previous wording

Consumer segment operating income increased $103 million, or 13%, in the second quarter of fiscal 2026 compared with the same period of fiscal 2025, due to the increase in revenue described above, partially offset by an increase in marketing expenses of $78 million.

Current wording

Consumer segment operating income increased $223 million, or 6%, in the third quarter of fiscal 2026 compared with the same period of fiscal 2025, due to the increase in revenue described above, partially offset by an increase in marketing expenses of $93 million and sales-related expenses of $18 million.

Previous wording

Consumer segment operating income increased $259 million, or 21%, in the first six months of fiscal 2026 compared with the same period of fiscal 2025, due to the increase in revenue described above, partially offset by an increase in marketing expenses of $62 million and sales-related expenses of $21 million.

Current wording

Consumer segment operating income increased $482 million, or 9%, in the first nine months of fiscal 2026 compared with the same period of fiscal 2025, due to the increase in revenue described above, partially offset by an increase in marketing expenses of $155 million and sales-related expenses of $39 million.

Previous wording

Effective August 1, 2025, we combined our Consumer, Credit Karma, and ProTax businesses into a single Consumer segment in order to better serve the diverse financial needs of our customers as one consumer platform. Our chief operating decision maker allocates resources and assesses segment performance using regularly provided segment revenue and segment operating income information under this updated segment structure. To align results under this segment change, certain selling and marketing, product development, and general and administrative expenses for Credit Karma that were managed at the segment level are now managed at the platform level and are included in other corporate expenses rather than in segment expenses. Additionally, certain data science and analytics teams that were managed at the platform level are now managed at the segment level. We have recast certain previously reported amounts to conform to these segment changes. For the three and six months ended January 31, 2025, we reclassified $149 million and $301 million from Consumer to other corporate expenses to conform to the current presentation.

Current wording

Effective August 1, 2025, we combined our Consumer, Credit Karma, and ProTax businesses into a single Consumer segment in order to better serve the diverse financial needs of our customers as one consumer platform. Our chief operating decision maker allocates resources and assesses segment performance using regularly provided segment revenue and segment operating income information under this updated segment structure. To align results under this segment change, certain selling and marketing, product development, and general and administrative expenses for Credit Karma that were managed at the segment level are now managed at the platform level and are included in other corporate expenses rather than in segment expenses. Additionally, certain data science and analytics teams that were managed at the platform level are now managed at the segment level. We have recast certain previously reported amounts to conform to these segment changes. For the three and nine months ended April 30, 2025, we reclassified $155 million and $456 million from Consumer to other corporate expenses to conform to the current presentation.

Previous wording

Cost of service revenue as a percentage of service revenue was relatively consistent for both the second quarter and first six months of fiscal 2026 compared with the same periods of fiscal 2025.

Current wording

Cost of service revenue as a percentage of service revenue was relatively consistent for both the third quarter and first nine months of fiscal 2026 compared with the same periods of fiscal 2025.

Previous wording

Cost of product and other revenue as a percentage of product and other revenue was consistent for both the second quarter and first six months of fiscal 2026 compared with the same periods of fiscal 2025. We expense costs of product revenue as they are incurred for delivered software and we do not defer any of these costs when product revenue is deferred.

Current wording

Cost of product and other revenue as a percentage of product and other revenue was relatively consistent for both the third quarter and first nine months of fiscal 2026 compared with the same periods of fiscal 2025. We expense costs of product revenue as they are incurred for delivered software and we do not defer any of these costs when product revenue is deferred.

Previous wording

Total operating expenses as a percentage of total net revenue decreased in the second quarter of fiscal 2026 compared with the same period of fiscal 2025. Total net revenue for the second quarter of fiscal 2026 increased $688 million, or 17%, while total operating expenses for the quarter increased $320 million, or 13%. The increase in total operating expenses was due to increases of $117 million for staffing expenses, $84 million for marketing, $44 million for outside services expenses, which includes hosting, and $39 million for share-based compensation expenses.

Current wording

Total operating expenses as a percentage of total net revenue was consistent in the third quarter of fiscal 2026 compared with the same period of fiscal 2025. Total net revenue for the third quarter of fiscal 2026 increased $804 million, or 10%, while total operating expenses for the quarter increased $324 million, or 11%. The increase in total operating expenses was due to increases of $92 million for marketing expenses, $77 million for staffing expenses, $65 million for outside services expenses, which include hosting, and $30 million for share-based compensation expenses.

Previous wording

Total operating expenses as a percentage of total net revenue decreased in the first six months of fiscal 2026 compared with the same period of fiscal 2025. Total net revenue for the first six months of fiscal 2026 increased $1.3 billion, or 18%, while total operating expenses for the quarter increased $599 million, or 13%. The increase in total operating expenses was due to increases of $238 million for staffing expenses, $95 million for outside services expenses, which includes hosting, $85 million for share-based compensation expenses, and $85 million for marketing.

Current wording

Total operating expenses as a percentage of total net revenue decreased in the first nine months of fiscal 2026 compared with the same period of fiscal 2025. Total net revenue for the first nine months of fiscal 2026 increased $2.1 billion, or 14%, while total operating expenses for the period increased $923 million, or 12%. The increase in total operating expenses was due to increases of $311 million for staffing expenses, $177 million for marketing expenses, $161 million for outside services expenses, which include hosting, and $115 million for share-based compensation expenses.

Previous wording

Interest expense of $116 million and $120 million for the first six months of fiscal 2026 and 2025, respectively, consisted of interest on our senior unsecured notes.

Current wording

Interest expense of $186 million and $188 million for the first nine months of fiscal 2026 and 2025, respectively, consisted of interest on our senior unsecured notes, unsecured revolving credit facilities, and commercial paper program.

Previous wording

(1)Interest income for the three months ended January 31, 2026 was relatively consistent compared with the same period of fiscal 2025. Interest income for the six months ended January 31, 2026 decreased compared with the same period of fiscal 2025 due to lower average interest rates, partially offset by higher average investable balances.

Current wording

(1)Interest income for the three months ended April 30, 2026 increased compared with the same period of fiscal 2025 due to higher average investable balances, partially offset by lower average interest rates. Interest income for the nine months ended April 30, 2026 was consistent with the same period of fiscal 2025.

Previous wording

(3)During the three and six months ended January 31, 2026, we recorded $31 million and $58 million in net gains on long-term investments, respectively. During the three and six months ended January 31, 2025, we recorded $1 million and $43 million in net losses on long-term investments, respectively.

Current wording

(3)During the nine months ended April 30, 2026, we recorded $104 million in net gains on long-term investments. During the nine months ended April 30, 2025, we recorded $43 million in net losses on long-term investments.

Previous wording

For the three and six months ended January 31, 2026, we recognized excess tax benefits on share-based compensation of $21 million and $51 million, respectively, in our provision for income taxes. For the three and six months ended January 31, 2025, we recognized excess tax benefits on share-based compensation of $29 million and $57 million, respectively, in our provision for income taxes.

Current wording

For the three months ended April 30, 2026, we recognized tax shortfalls on share-based compensation of $11 million in our provision for income taxes. For the nine months ended April 30, 2026, we recognized excess tax benefits on share-based compensation of $40 million in our provision for income taxes. For the three and nine months ended April 30, 2025, we recognized excess tax benefits on share-based compensation of $18 million and $75 million, respectively, in our provision for income taxes.

Previous wording

Our effective tax rates for the three and six months ended January 31, 2025 were approximately 17% and 15%, respectively. Excluding discrete tax items primarily related to share-based compensation tax benefits including those mentioned above, our effective tax rate for both periods was approximately 24%. The difference from the federal statutory rate of 21% was primarily due to state income taxes and non-deductible share-based compensation, which were partially offset by the tax benefit we received from the federal research and experimentation credit.

Current wording

Our effective tax rates for the three and nine months ended April 30, 2026 were approximately 24% and 23%, respectively. Excluding discrete tax items primarily related to share-based compensation, our effective tax rate for both periods was approximately 24%. The difference from the federal statutory rate of 21% was primarily due to state income taxes and non-deductible share-based compensation, which were partially offset by the tax benefit we received from the federal research and experimentation credit.

Previous wording

Our effective tax rate for the three and six months ended January 31, 2026 was approximately 20%. Excluding discrete tax items primarily related to share-based compensation tax benefits including those mentioned above, our effective tax rate for both periods was approximately 24%. The difference from the federal statutory rate of 21% was primarily due to state income taxes and non-deductible share-based compensation, which were partially offset by the tax benefit we received from the federal research and experimentation credit.

Current wording

Our effective tax rates for the three and nine months ended April 30, 2025 were approximately 23% and 22%, respectively. Excluding discrete tax items primarily related to share-based compensation, our effective tax rate for both periods was approximately 24%. The difference from the federal statutory rate of 21% was primarily due to state income taxes and non-deductible share-based compensation, which were partially offset by the tax benefit we received from the federal research and experimentation credit.

Previous wording

On July 4, 2025, the U.S. federal government enacted the One Big Beautiful Bill Act (OBBBA), which includes significant tax law changes, most notably the reinstatement of the immediate expensing of domestic research and developmental expenditures, effective in fiscal 2026. The deductibility of these expenditures is expected to significantly reduce our deferred tax assets and income taxes payable for periods starting in fiscal 2026. On February 18, 2026, the U.S. Treasury and the Internal Revenue Service issued Notice 2026-7 (Notice), which announced their intent to issue proposed tax regulations regarding the Corporate Alternative Minimum Tax. We are currently evaluating the impacts of this Notice, which may further reduce our deferred tax assets and income taxes payable in fiscal 2026. The Notice is not expected to impact results of operations in fiscal 2026 or thereafter.

Current wording

On July 4, 2025, the U.S. federal government enacted the One Big Beautiful Bill Act (OBBBA), which includes significant tax law changes, most notably the reinstatement of the immediate expensing of domestic research and developmental expenditures, effective in fiscal 2026. The deductibility of these expenditures is expected to significantly reduce our deferred tax assets and income taxes payable for periods starting in fiscal 2026.