Intuit Inc. (NASDAQ:INTU)

The analysis of the provided financial metrics reveals several noteworthy trends and shifts over the six-year period ending July 31, 2025.

Revenue Composition

The share of service revenue as a percentage of net revenue exhibits a consistent upward trend from 78.71% in 2020 to 87.09% in 2025, indicating a growing emphasis on service offerings. Conversely, the contribution of product and other revenues decreases from 21.29% to 12.91% over the same period.

Cost Structure

The cost of service revenue generally increases in proportion to net revenue, from -16.72% in 2020 to a peak near -20.24% in 2023, before improving slightly to -19.24% in 2025. The cost of product and other revenue consistently declines in relative terms, from -0.94% to -0.36%, reflecting the diminishing role of product sales. Amortization of acquired technology initially rises sharply from -0.29% in 2020 to around -1.13% in 2023, then moderates to -0.83% by 2025. Overall, total cost of revenue increases from -17.95% to a high of -21.88% but then improves to -20.43% in 2025.

Profitability Margins

Gross profit margin deteriorates over the period, decreasing from 82.05% in 2020 to a low of 78.13% in 2023, with a modest recovery to 79.57% by 2025. Operating income margins reflect a declining trend from 28.34% to 20.2% in 2022, followed by a rebound to 26.14% in 2025. Net income margin follows a similar pattern, decreasing from 23.78% in 2020 to 16.23% in 2022 and improving thereafter to 20.55% in 2025.

Operating Expenses

Selling and marketing expenses remain relatively stable, fluctuating slightly between -26.67% and -26.74% of net revenue. Research and development expenses show a gradual reduction from -18.13% in 2020 to -15.55% in 2025, suggesting cost efficiency or strategic reprioritization. General and administrative costs increase initially from -8.84% in 2020 to -11.47% in 2022, then decline to -8.5% by 2025. Amortization of other acquired intangible assets rises sharply through 2022 (-3.27%) before declining moderately to -2.55% by 2025. Restructuring expenses appear only in the final two years, peaking at -1.37% in 2024 and dropping to -0.08% in 2025.

Financial Income and Expenses

Interest expense increases from a minimal -0.18% in 2020 to a peak of -1.73% in 2023, after which it declines to -1.31% in 2025. Interest and other income, net, fluctuates over the years but generally trends upwards, from 0.47% to 0.84%, with some variability in the interim periods.

Income Taxes

The income tax provision remains relatively stable, hovering around -4% to -5% of net revenue throughout the period, with minor fluctuations that do not present a clear directional trend.

In summary, the financial data indicates a strategic shift towards increased service revenue with an associated rise in service-related costs, leading to compression in gross profit margins during the mid-period. Operational efficiencies and cost management efforts in research, development, and administrative expenses contribute to a recovery in operating and net income margins toward the end of the period. Financial expenses show a temporary increase but moderate subsequently, while the tax burden remains comparatively consistent. Restructuring costs in the latest years suggest recent organizational adjustments potentially aimed at improving financial performance.