Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Return on Sales
Return on Investment
Intuit Inc., profitability ratios
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).
Profitability metrics across the analyzed period demonstrate a pattern of initial compression followed by a sustained recovery. A period of margin erosion peaked between 2022 and 2023, after which a consistent upward trajectory in efficiency and bottom-line performance was established.
- Margin Analysis
- The gross profit margin decreased from 82.53% in 2021 to a low of 78.13% in 2023, before trending upward to 80.17% by 2026. Operating profit margin and net profit margin both experienced their sharpest declines in 2022, falling to 20.20% and 16.23%, respectively. Both metrics recovered significantly in the following years, with the operating margin reaching 27.43% and the net margin reaching 21.29% by 2026, suggesting improved operational leverage and cost management.
- Return on Equity (ROE)
- ROE exhibited notable volatility, dropping from 20.89% in 2021 to a minimum of 12.57% in 2022. From 2023 onward, a robust recovery is observed, with the ratio expanding annually to reach 24.04% by 2026. This trend indicates an increasing capacity to generate profits relative to shareholders' equity, surpassing initial 2021 levels.
- Return on Assets (ROA)
- ROA mirrored the general trend of the profitability margins, declining from 13.29% in 2021 to 7.45% in 2022. A steady recovery ensued, with the ratio increasing each subsequent year to arrive at 12.41% in 2026, reflecting a progressive improvement in asset utilization efficiency.
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Gross Profit Margin
Intuit Inc., gross profit margin calculation, comparison to benchmarks
| Jul 31, 2026 | Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Gross profit | 17,195) | 14,983) | 12,820) | 11,225) | 10,320) | 7,950) | |
| Net revenue | 21,448) | 18,831) | 16,285) | 14,368) | 12,726) | 9,633) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 80.17% | 79.57% | 78.72% | 78.13% | 81.09% | 82.53% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Accenture PLC | 32.05% | 31.91% | 32.61% | 32.34% | 31.99% | 32.38% | |
| Adobe Inc. | — | 89.27% | 89.04% | 87.87% | 87.70% | 88.18% | |
| AppLovin Corp. | — | 87.86% | 75.22% | 67.74% | 55.41% | 64.62% | |
| Cadence Design Systems Inc. | — | 86.36% | 86.05% | 89.36% | 89.57% | 89.73% | |
| Datadog Inc. | — | 79.96% | 80.79% | 80.74% | 79.30% | 77.23% | |
| International Business Machines Corp. | — | 58.19% | 56.65% | 55.45% | 54.00% | 54.90% | |
| Microsoft Corp. | 67.94% | 68.82% | 69.76% | 68.92% | 68.40% | 68.93% | |
| Oracle Corp. | 65.82% | 70.51% | 71.41% | 72.85% | 79.08% | 80.59% | |
| Palantir Technologies Inc. | — | 82.37% | 80.25% | 80.62% | 78.56% | 77.99% | |
| Palo Alto Networks Inc. | 70.36% | 73.41% | 74.35% | 72.29% | 68.76% | 70.05% | |
| Salesforce Inc. | 77.68% | 77.19% | 75.50% | 73.34% | 73.48% | 74.41% | |
| ServiceNow Inc. | — | 77.53% | 79.18% | 78.59% | 78.29% | 77.05% | |
| Synopsys Inc. | — | 76.98% | 79.68% | 79.08% | 79.07% | 79.50% | |
| Workday Inc. | 75.70% | 75.50% | 75.60% | 72.41% | 72.21% | 72.25% | |
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).
1 2026 Calculation
Gross profit margin = 100 × Gross profit ÷ Net revenue
= 100 × 17,195 ÷ 21,448 = 80.17%
2 Click competitor name to see calculations.
An analysis of the financial performance from 2021 to 2026 reveals a sustained expansion in both net revenue and absolute gross profit. Net revenue grew from US$ 9,633 million in 2021 to US$ 21,448 million by 2026, while gross profit increased from US$ 7,950 million to US$ 17,195 million over the same period.
- Revenue and Gross Profit Trajectory
- A consistent upward trend is observed in top-line growth. The increase in net revenue is closely mirrored by the growth in gross profit, indicating that the core business operations have scaled significantly over the six-year period.
- Gross Profit Margin Contraction
- The gross profit margin experienced a period of decline between 2021 and 2023, moving from a high of 82.53% down to 78.13%. This contraction suggests that the cost of revenue increased at a rate that slightly outpaced revenue growth during this specific interval.
- Margin Recovery and Stabilization
- Beginning in 2024, a steady recovery in the gross profit margin is evident. The margin improved sequentially from 78.13% in 2023 to 80.17% by 2026. This reversal of the downward trend indicates an improvement in operational efficiency or a favorable shift in the pricing strategy and product mix.
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Operating Profit Margin
Intuit Inc., operating profit margin calculation, comparison to benchmarks
| Jul 31, 2026 | Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Operating income | 5,884) | 4,923) | 3,630) | 3,141) | 2,571) | 2,500) | |
| Net revenue | 21,448) | 18,831) | 16,285) | 14,368) | 12,726) | 9,633) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 27.43% | 26.14% | 22.29% | 21.86% | 20.20% | 25.95% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Accenture PLC | 15.38% | 14.68% | 14.79% | 13.74% | 15.21% | 15.08% | |
| Adobe Inc. | — | 36.63% | 31.35% | 34.26% | 34.64% | 36.76% | |
| AppLovin Corp. | — | 75.75% | 39.78% | 19.74% | -1.70% | 5.37% | |
| Cadence Design Systems Inc. | — | 28.17% | 29.10% | 30.59% | 30.15% | 26.07% | |
| Datadog Inc. | — | -1.29% | 2.02% | -1.57% | -3.50% | -1.86% | |
| International Business Machines Corp. | — | 17.50% | 14.95% | 15.17% | 13.50% | 11.97% | |
| Microsoft Corp. | 46.78% | 45.62% | 44.64% | 41.77% | 42.06% | 41.59% | |
| Oracle Corp. | 30.59% | 30.80% | 28.99% | 26.21% | 25.74% | 37.58% | |
| Palantir Technologies Inc. | — | 31.59% | 10.83% | 5.39% | -8.46% | -26.66% | |
| Palo Alto Networks Inc. | 6.05% | 13.48% | 8.52% | 5.62% | -3.43% | -7.15% | |
| Salesforce Inc. | 20.06% | 19.01% | 14.38% | 3.29% | 2.07% | 2.14% | |
| ServiceNow Inc. | — | 13.74% | 12.42% | 8.49% | 4.90% | 4.36% | |
| Synopsys Inc. | — | 12.97% | 22.13% | 21.72% | 22.87% | 17.48% | |
| Workday Inc. | 7.55% | 4.91% | 2.52% | -3.57% | -2.27% | -5.76% | |
| Operating Profit Margin, Sector | |||||||
| Software & Services | — | 32.68% | 30.48% | 27.37% | 27.20% | 28.02% | |
| Operating Profit Margin, Industry | |||||||
| Information Technology | — | 30.76% | 26.46% | 24.34% | 26.23% | 26.58% | |
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).
1 2026 Calculation
Operating profit margin = 100 × Operating income ÷ Net revenue
= 100 × 5,884 ÷ 21,448 = 27.43%
2 Click competitor name to see calculations.
Analysis of the financial performance from 2021 to 2026 reveals a consistent upward trajectory in both top-line revenue and operating profitability. The scale of operations expanded significantly, with net revenue increasing from 9,633 million US dollars to 21,448 million US dollars over the observed period.
- Revenue and Operating Income Growth
- A steady annual increase in net revenue is evident, reflecting strong growth in scale. In parallel, operating income grew from 2,500 million US dollars in 2021 to 5,884 million US dollars by 2026. This indicates that the expansion in revenue was successfully translated into higher absolute operating profits.
- Operating Profit Margin Fluctuations
- The operating profit margin experienced an initial contraction, declining from 25.95% in 2021 to a period low of 20.20% in 2022. This was followed by a phase of gradual recovery between 2023 and 2024, where the margin reached 22.29%.
- Margin Expansion and Efficiency
- A significant acceleration in margin expansion occurred between 2024 and 2026, with the ratio climbing to 27.43%. The fact that the final margin exceeds the 2021 starting point suggests that operating income grew at a faster rate than net revenue in the latter years of the period, signaling improved operational efficiency and cost management.
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Net Profit Margin
Intuit Inc., net profit margin calculation, comparison to benchmarks
| Jul 31, 2026 | Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 4,566) | 3,869) | 2,963) | 2,384) | 2,066) | 2,062) | |
| Net revenue | 21,448) | 18,831) | 16,285) | 14,368) | 12,726) | 9,633) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 21.29% | 20.55% | 18.19% | 16.59% | 16.23% | 21.41% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Accenture PLC | 11.28% | 11.02% | 11.19% | 10.72% | 11.17% | 11.69% | |
| Adobe Inc. | — | 30.00% | 25.85% | 27.97% | 27.01% | 30.55% | |
| AppLovin Corp. | — | 60.83% | 33.55% | 10.87% | -6.84% | 1.27% | |
| Cadence Design Systems Inc. | — | 20.94% | 22.74% | 25.46% | 23.84% | 23.29% | |
| Datadog Inc. | — | 3.14% | 6.85% | 2.28% | -2.99% | -2.02% | |
| International Business Machines Corp. | — | 15.69% | 9.60% | 12.13% | 2.71% | 10.01% | |
| Microsoft Corp. | 40.31% | 36.15% | 35.96% | 34.15% | 36.69% | 36.45% | |
| Oracle Corp. | 25.37% | 21.68% | 19.76% | 17.02% | 15.83% | 33.96% | |
| Palantir Technologies Inc. | — | 36.31% | 16.13% | 9.43% | -19.61% | -33.75% | |
| Palo Alto Networks Inc. | 2.67% | 12.30% | 32.11% | 6.38% | -4.85% | -11.72% | |
| Salesforce Inc. | 17.96% | 16.35% | 11.87% | 0.66% | 5.45% | 19.16% | |
| ServiceNow Inc. | — | 13.16% | 12.97% | 19.30% | 4.49% | 3.90% | |
| Synopsys Inc. | — | 18.89% | 36.94% | 21.05% | 19.38% | 18.02% | |
| Workday Inc. | 7.26% | 6.23% | 19.02% | -5.90% | 0.57% | -6.54% | |
| Net Profit Margin, Sector | |||||||
| Software & Services | — | 26.19% | 24.83% | 21.91% | 21.55% | 25.12% | |
| Net Profit Margin, Industry | |||||||
| Information Technology | — | 25.66% | 20.48% | 20.24% | 22.27% | 23.48% | |
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).
1 2026 Calculation
Net profit margin = 100 × Net income ÷ Net revenue
= 100 × 4,566 ÷ 21,448 = 21.29%
2 Click competitor name to see calculations.
The financial performance from 2021 to 2026 is characterized by consistent growth in total revenue and net income, accompanied by a recovery in profitability margins following a notable decline in 2022. The overall trajectory indicates an ability to scale operations while restoring profit efficiency to levels observed at the beginning of the period.
- Revenue and Net Income Growth
- Net revenue demonstrated a steady upward trend, increasing from 9,633 million US dollars in 2021 to 21,448 million US dollars by 2026. Concurrently, net income grew from 2,062 million US dollars to 4,566 million US dollars over the same period. The growth in net income accelerated particularly between 2024 and 2026, suggesting that the company achieved significant gains in its ability to convert revenue into profit in the latter half of the analyzed timeframe.
- Net Profit Margin Dynamics
- The net profit margin experienced a sharp contraction between 2021 and 2022, dropping from 21.41% to 16.23%. This decline indicates a temporary period of increased expenses or lower pricing power relative to revenue growth. However, from 2023 onward, a consistent recovery pattern is observed, with margins expanding annually to reach 18.19% in 2024, 20.55% in 2025, and ending at 21.29% in 2026.
- Operational Efficiency and Scaling
- The alignment of increasing revenue with a recovering net profit margin suggests successful operational leverage. By 2026, the net profit margin nearly returned to its 2021 peak, despite the revenue base being more than double its original size. This indicates that the company successfully optimized its cost structure to sustain high profitability while aggressively expanding its market presence.
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Return on Equity (ROE)
Intuit Inc., ROE calculation, comparison to benchmarks
| Jul 31, 2026 | Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 4,566) | 3,869) | 2,963) | 2,384) | 2,066) | 2,062) | |
| Stockholders’ equity | 18,992) | 19,710) | 18,436) | 17,269) | 16,441) | 9,869) | |
| Profitability Ratio | |||||||
| ROE1 | 24.04% | 19.63% | 16.07% | 13.81% | 12.57% | 20.89% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Accenture PLC | 26.51% | 24.61% | 25.68% | 26.75% | 31.11% | 30.25% | |
| Adobe Inc. | — | 61.34% | 39.42% | 32.86% | 33.85% | 32.59% | |
| AppLovin Corp. | — | 156.17% | 144.96% | 28.39% | -10.13% | 1.66% | |
| Cadence Design Systems Inc. | — | 20.26% | 22.58% | 30.58% | 30.93% | 25.39% | |
| Datadog Inc. | — | 2.89% | 6.77% | 2.40% | -3.56% | -1.99% | |
| International Business Machines Corp. | — | 32.45% | 22.06% | 33.29% | 7.47% | 30.38% | |
| Microsoft Corp. | 30.23% | 29.65% | 32.83% | 35.09% | 43.68% | 43.15% | |
| Oracle Corp. | 40.20% | 60.84% | 120.26% | 792.45% | — | 262.43% | |
| Palantir Technologies Inc. | — | 22.00% | 9.24% | 6.04% | -14.57% | -22.71% | |
| Palo Alto Networks Inc. | 1.12% | 14.49% | 49.86% | 25.15% | -127.14% | -78.63% | |
| Salesforce Inc. | 12.61% | 10.13% | 6.93% | 0.36% | 2.48% | 9.81% | |
| ServiceNow Inc. | — | 13.48% | 14.83% | 22.69% | 6.46% | 6.22% | |
| Synopsys Inc. | — | 4.70% | 25.17% | 20.01% | 17.85% | 14.31% | |
| Workday Inc. | 8.88% | 5.82% | 17.09% | -6.57% | 0.65% | -8.62% | |
| ROE, Sector | |||||||
| Software & Services | — | 26.90% | 28.81% | 28.49% | 30.78% | 35.91% | |
| ROE, Industry | |||||||
| Information Technology | — | 34.38% | 28.82% | 31.26% | 38.03% | 41.64% | |
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).
1 2026 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 4,566 ÷ 18,992 = 24.04%
2 Click competitor name to see calculations.
Analysis of return on equity reveals a V-shaped recovery pattern over the six-year period ending July 31, 2026. After an initial contraction, the metric demonstrates consistent year-over-year expansion, culminating in a peak of 24.04% in the final period.
- Net Income Performance
- Net income exhibited a sustained upward trajectory, rising from 2,062 million USD in 2021 to 4,566 million USD by 2026. While growth remained modest between 2021 and 2022, it accelerated significantly from 2023 onward, more than doubling the initial 2021 figures by the end of the observed period.
- Stockholders' Equity Trends
- A substantial increase in stockholders' equity occurred between 2021 and 2022, rising from 9,869 million USD to 16,441 million USD. Equity continued to grow steadily through 2025, reaching a peak of 19,710 million USD, before experiencing a slight contraction to 18,992 million USD in 2026.
- Return on Equity (ROE) Dynamics
- The ROE decreased sharply from 20.89% in 2021 to 12.57% in 2022, a decline primarily driven by the rapid expansion of the equity base while net income remained nearly flat. Following this trough, a steady recovery was observed as net income growth began to outpace equity growth. The ROE climbed sequentially to 13.81% in 2023, 16.07% in 2024, and 19.63% in 2025. The most pronounced increase occurred between 2025 and 2026, where the ratio reached 24.04%, amplified by the simultaneous achievement of peak net income and a reduction in total stockholders' equity.
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Return on Assets (ROA)
Intuit Inc., ROA calculation, comparison to benchmarks
| Jul 31, 2026 | Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 4,566) | 3,869) | 2,963) | 2,384) | 2,066) | 2,062) | |
| Total assets | 36,786) | 36,958) | 32,132) | 27,780) | 27,734) | 15,516) | |
| Profitability Ratio | |||||||
| ROA1 | 12.41% | 10.47% | 9.22% | 8.58% | 7.45% | 13.29% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Accenture PLC | 11.37% | 11.74% | 12.99% | 13.41% | 14.55% | 13.68% | |
| Adobe Inc. | — | 24.17% | 18.39% | 18.23% | 17.51% | 17.70% | |
| AppLovin Corp. | — | 45.92% | 26.92% | 6.66% | -3.30% | 0.58% | |
| Cadence Design Systems Inc. | — | 10.92% | 11.76% | 18.36% | 16.53% | 15.87% | |
| Datadog Inc. | — | 1.62% | 3.18% | 1.23% | -1.67% | -0.87% | |
| International Business Machines Corp. | — | 6.97% | 4.39% | 5.55% | 1.29% | 4.35% | |
| Microsoft Corp. | 17.64% | 16.45% | 17.21% | 17.56% | 19.94% | 18.36% | |
| Oracle Corp. | 6.53% | 7.39% | 7.42% | 6.33% | 6.15% | 10.48% | |
| Palantir Technologies Inc. | — | 18.26% | 7.29% | 4.64% | -10.80% | -16.02% | |
| Palo Alto Networks Inc. | 0.63% | 4.81% | 12.89% | 3.03% | -2.18% | -4.87% | |
| Salesforce Inc. | 6.64% | 6.02% | 4.14% | 0.21% | 1.52% | 6.14% | |
| ServiceNow Inc. | — | 6.71% | 6.99% | 9.96% | 2.44% | 2.13% | |
| Synopsys Inc. | — | 2.76% | 17.31% | 11.90% | 10.45% | 8.66% | |
| Workday Inc. | 3.83% | 2.93% | 8.39% | -2.72% | 0.28% | -3.24% | |
| ROA, Sector | |||||||
| Software & Services | — | 12.15% | 12.26% | 11.19% | 11.32% | 12.19% | |
| ROA, Industry | |||||||
| Information Technology | — | 15.31% | 11.80% | 12.34% | 14.33% | 14.52% | |
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).
1 2026 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 4,566 ÷ 36,786 = 12.41%
2 Click competitor name to see calculations.
The financial trajectory from 2021 to 2026 is characterized by a consistent increase in net income and a significant expansion of the total asset base, which together influenced the volatility and subsequent recovery of the Return on Assets (ROA).
- Net Income Growth
- Net income demonstrated a steady upward trend, increasing from US$ 2,062 million in 2021 to US$ 4,566 million in 2026. This represents a substantial growth in overall profitability over the observed period, with the most rapid acceleration occurring between 2024 and 2026.
- Asset Base Expansion
- A sharp increase in total assets occurred between 2021 and 2022, where assets rose from US$ 15,516 million to US$ 27,734 million. Growth continued at a more moderate pace through 2025, peaking at US$ 36,958 million before experiencing a slight contraction to US$ 36,786 million in 2026.
- Return on Assets (ROA) Volatility and Recovery
- The ROA experienced a significant contraction in 2022, falling from 13.29% to 7.45%. This decline was primarily driven by the rapid expansion of the asset base outpacing the growth of net income during that period. Following this trough, a consistent recovery trend is observed from 2023 through 2026, with the ratio climbing annually to reach 12.41%.
- Operational Efficiency Insight
- The steady improvement in ROA from 2023 onward suggests an increase in asset utilization efficiency. The trend indicates that the company successfully leveraged its expanded resource base to generate higher proportional earnings, nearly returning to the efficiency levels seen in 2021.
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