Intuit Lowers TurboTax Revenue per User in Attempt to Regain Growth
Intuit reported strong fiscal year 2026 results with a 14% revenue increase, but expects slower growth ahead. The company is shifting strategy by lowering the initial price of its DIY TurboTax offering to attract more users and improve retention. This comes after U.S. TurboTax units declined slightly in FY2026 due to competition from lower-cost providers. Intuit's broader 'Big Bets' segment, including QuickBooks Online, TurboTax Live, and Credit Karma, grew 34% year-over-year and now represent a significant portion of revenue. The company is betting that attracting more users through lower pricing will lead to higher cross-selling opportunities with other services like Credit Karma. However, the strategy carries risks: near-term revenue per customer may decline, TurboTax Live growth could slow as upgrades moderate, and there's uncertainty about whether new customers acquired at a discount will remain on the platform or adopt more profitable products.
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