Intuit reported its FY 2026 earnings results yesterday, and despite the negative market reaction, I was generally pleased with both its FY 2026 results and guidance for FY 2027.
When earnings results are good whilst the stock price is marked down, I tend to want to pay a closer attention behind the Balance Sheet figures ! Quality of assets, level of borrowings, interest charges, etc !
Usually there are hidden points spooking the market.
Agreed! Intuit performs very well on balance sheet-related metrics. $7.2 billion in cash, $8.3 billion in debt, and net debt of $1.1 billion, which is well covered by net income of $4.5 billion. Interest expense is only 4% of operating earnings, and the number of shares it repurchased last quarter was the biggest ever since going public. Free Cash flow is also very healthy and Intuit could potentially earn more float from payroll if it wanted to. I currently don't have any worries about its financial health.
This was very helpful - thanks
When earnings results are good whilst the stock price is marked down, I tend to want to pay a closer attention behind the Balance Sheet figures ! Quality of assets, level of borrowings, interest charges, etc !
Usually there are hidden points spooking the market.
Agreed! Intuit performs very well on balance sheet-related metrics. $7.2 billion in cash, $8.3 billion in debt, and net debt of $1.1 billion, which is well covered by net income of $4.5 billion. Interest expense is only 4% of operating earnings, and the number of shares it repurchased last quarter was the biggest ever since going public. Free Cash flow is also very healthy and Intuit could potentially earn more float from payroll if it wanted to. I currently don't have any worries about its financial health.
Have you ever looked at XRO.AX - a competitor outside the US?
Yes, we looked at it in the Intuit deep dive but concluded the price was still too high.