Name: Intuit Inc. (NASDAQ:INTU) | Common-Size Income Statement
Creator: Stock Analysis on Net

Common-Size Income Statement

Intuit Inc., common-size consolidated income statement

12 months ended:	Jul 31, 2026	Jul 31, 2025	Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021
Service	88.17%	87.09%	85.12%	85.73%	85.76%	82.37%
Product and other	11.83%	12.91%	14.88%	14.27%	14.24%	17.63%
Net revenue	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%
Cost of service revenue	-18.72%	-19.24%	-19.96%	-20.24%	-17.26%	-16.24%
Cost of product and other revenue	-0.29%	-0.36%	-0.42%	-0.50%	-0.55%	-0.72%
Amortization of acquired technology	-0.81%	-0.83%	-0.90%	-1.13%	-1.10%	-0.52%
Cost of revenue	-19.83%	-20.43%	-21.28%	-21.88%	-18.91%	-17.47%
Gross profit	80.17%	79.57%	78.72%	78.13%	81.09%	82.53%
Selling and marketing	-25.80%	-26.74%	-26.48%	-26.18%	-27.71%	-27.45%
Research and development	-15.74%	-15.55%	-16.91%	-17.67%	-18.44%	-17.42%
General and administrative	-7.57%	-8.50%	-8.71%	-9.05%	-11.47%	-10.19%
Amortization of other acquired intangible assets	-2.26%	-2.55%	-2.97%	-3.36%	-3.27%	-1.52%
Restructuring	-1.37%	-0.08%	-1.37%	0.00%	0.00%	0.00%
Operating income	27.43%	26.14%	22.29%	21.86%	20.20%	25.95%
Interest expense	-1.19%	-1.31%	-1.49%	-1.73%	-0.64%	-0.30%
Interest and other income, net	1.81%	0.84%	0.99%	0.67%	0.41%	0.88%
Income before income taxes	28.05%	25.67%	21.80%	20.80%	19.97%	26.53%
Income tax provision	-6.77%	-5.12%	-3.60%	-4.21%	-3.74%	-5.13%
Net income	21.29%	20.55%	18.19%	16.59%	16.23%	21.41%

Based on: 10-K (reporting date: 2026-07-31), 10-K (reporting date: 2025-07-31), 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31).

An analysis of the common-size income statement reveals a strategic shift toward service-based revenue and a subsequent recovery in operational profitability over the observed period. After a contraction in margins between 2021 and 2022, there is a consistent upward trajectory in both operating and net income margins leading into 2026.

Revenue Composition: A progressive transition in the revenue mix is evident, with service revenue increasing from 82.37% in 2021 to a projected 88.17% by 2026. Conversely, product and other revenue streams have declined from 17.63% to 11.83% over the same period, indicating a stronger reliance on recurring service models.
Gross Profitability and Cost of Revenue: Gross profit margins experienced a decline from 82.53% in 2021 to a low of 78.13% in 2023. This compression was primarily driven by an increase in the cost of service revenue, which peaked at 20.24% in 2023. However, a recovery trend is observed from 2024 onward, with gross profit margins projected to reach 80.17% by 2026 as cost of revenue percentages gradually normalize.
Operating Expense Trends: Operating expenses show varying patterns of optimization. Selling and marketing expenses remained relatively stable, fluctuating between 25.80% and 27.71%. Research and development costs exhibited a general downward trend, decreasing from 17.42% in 2021 to 15.74% in 2026. General and administrative expenses demonstrated the most significant improvement in efficiency, falling from 10.19% in 2021 to 7.57% in 2026. Additionally, amortization of acquired intangible assets peaked in 2023 at 3.36% before trending downward to 2.26%.
Operating and Net Income Performance: Operating income margin saw a sharp decline from 25.95% in 2021 to 20.20% in 2022, followed by a steady expansion to a projected 27.43% by 2026. Net income followed a similar trajectory, dipping to 16.23% in 2022 and recovering to 21.29% by 2026. This recovery was supported by improved operating efficiencies, despite fluctuations in the income tax provision, which is projected to rise to 6.77% by 2026.

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