Intuit Inc. (NASDAQ:INTU)

Gross Profit Margin

The gross profit margin exhibited a gradual decline from approximately 83% in late 2020 down to around 79% by early 2025. This trend indicates a slight erosion in the company's ability to maintain its direct production profitability over the observed period. After a general downward movement through 2022 and 2023, the margin stabilizes somewhat in 2024 and 2025, showing modest improvement but not reaching earlier levels.

Operating Profit Margin

The operating profit margin shows a more pronounced decline initially, falling from about 30% in late 2020 to a low near 18% in late 2022. Following this trough, there is a clear recovery phase, with margins gradually increasing into 2024 and 2025, reaching close to 27%. This pattern suggests an initial increase in operating costs or reduced operational efficiency, followed by effective cost management or higher operational leverage in later periods.

Net Profit Margin

Mirroring the trends in operating margin, the net profit margin decreases from roughly 25% in late 2020 to about 14% in late 2022, indicating reduced profitability after all expenses and taxes. Beginning in 2023, the net margin progressively improves, achieving approximately 21% by early 2025. The rebound in net margin reflects improved overall profitability, potentially due to enhanced operations and better expense controls.

Return on Equity (ROE)

ROE experienced a substantial drop from 37.5% at the end of 2020 to near 12% in late 2022, indicating a marked reduction in the company's efficiency in generating returns on shareholders’ equity. After this decline, ROE recovers steadily, reaching over 21% by early 2025. The recovery may reflect improved profitability and effective capital management despite the earlier downturn.

Return on Assets (ROA)

Similarly, ROA declined sharply from about 20% at the start of the period to a low near 7% by late 2022, suggesting diminished returns from the company's asset base. Following this, ROA shows a steady upward trend, climbing to over 12% by early 2025. The improvement signals enhanced asset utilization and profitability moving forward.

Net Revenue

The net revenue presents a generally increasing trend across the periods analyzed, starting from 1,323 million USD at the end of October 2020 and rising steadily to 3,885 million USD by October 2025. There are notable peaks corresponding to April and October quarters each year, suggesting a seasonal effect on revenue generation. The growth is substantial over the five-year span, indicating strong market demand or expansion efforts.

Gross Profit

Gross profit follows a similar upward trend in line with net revenue, increasing from 1,067 million USD in October 2020 to 3,002 million USD by October 2025. The fluctuations within each year and between quarters show some volatility, but the overall trajectory is positive. Peaks in gross profit generally coincide with periods of higher net revenue.

Gross Profit Margin

The gross profit margin shows a gradual decline over time, moving from approximately 83% in late 2020 down to about 80% in mid-2023, with a slight recovery toward the end of the period at nearly 80%. This decreasing margin trend indicates increasing costs relative to revenue or changes in the product mix that affect profitability. Despite the decrease, the margin remains relatively high and stable, fluctuating within a narrow range between 78% and 83%.

Overall Analysis

Overall, the data reveals consistent and strong growth in net revenue and gross profit over the examined quarters, with growth accelerating in certain quarters possibly due to seasonality or product cycles. The gross profit margin exhibits a slight downward trend, suggesting rising cost pressures or strategic pricing adjustments. The company maintains a robust gross profit margin close to 80%, reflecting efficient cost management in the context of increasing revenues.

The financial data reveals distinct trends in operating income, net revenue, and operating profit margin over multiple quarters. These indicators provide insights into operational performance and profitability dynamics.

Operating Income (Loss)

Operating income displays significant volatility across the analyzed quarters. There are notable fluctuations with several periods showing sharp rises exceeding 2 billion US dollars, especially around Apr 2021, Apr 2022, Apr 2023, Apr 2024, and Jul 2025. Conversely, intermittent quarters exhibit losses or marginal positive values, such as Jan 2021, Jul 2021, Jul 2022, and Jan 2024.
This pattern suggests seasonal or cyclical factors impacting earnings, with peak quarters potentially linked to product launches, fiscal year-end effects, or market demand surges. The amplitude of variation indicates exposure to significant operational risks or investment phases.

Net Revenue

Net revenue trend shows a general upward movement over time, albeit with notable quarter-to-quarter variability. Initial quarters start with values around 1.3 to 4.1 billion US dollars and progressively increase, surpassing 7 billion dollars in peak quarters such as Apr 2024 and Jul 2025.
Despite fluctuations, the data indicates sustained growth with increasing revenue streams, possibly reflecting successful market expansion or product diversification. Periodic dips suggest either temporary demand softness or timing differences in revenue recognition.

Operating Profit Margin

The operating profit margin exhibits a moderate decline from approximately 30% in late 2020 to a trough near 18% around Oct 2022, followed by a gradual recovery reaching near 27% by Oct 2025.
This contraction and subsequent rebound could indicate evolving cost structures, pricing strategies, or competitive pressures impacting profitability. The rebound phase reflects improved operational efficiency or favorable revenue mix enhancements.

In summary, the financial metrics portray a company experiencing cyclical operating income swings alongside gradually increasing net revenue. Profit margins have faced compression but show signs of recovery in the most recent periods. The overall performance suggests a dynamic operational environment with intermittent pressures and opportunities driving financial outcomes.

Net Income

The net income figures exhibit a high degree of volatility over the periods analyzed. Initial values range from moderate positive to negative and then sharply spike in certain quarters, such as April 2021, April 2022, and April 2024. These spikes indicate occasional significant gains. However, interspersed between these are quarters with negative or substantially lower profits, such as July 2021, July 2022, and July 2024, pointing to inconsistent earnings performance. Generally, while there are periods of robust profit generation, the variability suggests sensitivity to operational or market factors that affect profitability.

Net Revenue

Net revenue demonstrates an overall upward trend throughout the timeframe, moving from lower levels in 2020 to notably higher revenues by 2025. The data shows periodic fluctuations with some quarters reaching significant revenue peaks, particularly in April and October quarters of various years. Despite occasional short-term declines, the long-term pattern is positive, reflecting sustained growth in top-line performance. This growth trend in revenue may underpin the spikes observed in net income during high-revenue quarters.

Net Profit Margin

The net profit margin shows a declining trend from 2020 into mid-2022, dropping from above 25% to lows around 14%. Following this decline, the margin stabilizes and gradually improves, rising towards approximately 21% by 2025. This pattern suggests initial challenges in cost management or pricing before a recovery phase that improved operational efficiency or revenue quality. The improvement in margin in later periods parallels the overall revenue growth, indicating enhanced profitability resilience over time.

Summary Insights

The financial data reflects a company experiencing significant revenue growth coupled with fluctuating profitability. Although net income is volatile, the upward trajectory in net revenue and the gradual recovery and improvement in net profit margin indicate positive developments in business scale and cost control effectiveness. This combination signifies that while the company dealt with profit variability, it is moving towards greater financial stability and efficiency. Continuous monitoring of earnings volatility alongside revenue expansion remains important for forecasting future financial performance.

The financial data reveals several notable trends across the observed periods. Net income exhibits significant volatility, with sharp fluctuations between positive and negative values. Initially, net income shows a gradual increase, reaching multiple peaks followed by abrupt declines, including negative net income in certain quarters. Despite this instability, the most recent quarters present a general upward trajectory with increasing net income values, suggesting potential recovery or growth phases.

Stockholders' equity demonstrates a more stable pattern in comparison, with a consistent upward trend over the majority of the periods. Although minor fluctuations and decreases occur intermittently, the overall direction is an increase in equity, indicative of strengthening financial resilience and retained earnings accumulation over time.

The return on equity (ROE) percentage starts relatively high, then experiences a downward trend through several quarters, reflecting declining profitability relative to equity. However, from the mid-point onwards, there is a gradual and steady improvement in ROE, culminating in a return to elevated levels towards the end. This improvement in ROE aligns with the later periods' recovery in net income, suggesting enhanced efficiency in generating returns for shareholders as equity levels remain substantial.

Net Income

Shows high volatility with alternating sharp increases and decreases, including quarters of negative earnings. Recent trends indicate increasing net income, highlighting a potential turnaround.

Stockholders' Equity

Displays a generally upward trend with minor fluctuations, reflecting growth in retained earnings and overall company value over time.

Return on Equity (ROE)

Declines from initially high levels to a lower range mid-period, then gradually rises again towards the end, suggesting improved profitability relative to equity in recent quarters.

Net Income

The net income experienced significant fluctuations over the analyzed periods. Initially, there was a strong peak in April 2021 at 1,464 million US dollars, followed by variable periods with some negative values such as July 2022 (-56 million US dollars) and July 2024 (-20 million US dollars). Periods with notably high net income recur, including April 2023, April 2024, July 2025, and October 2025, reaching values above 2,000 million US dollars in some quarters (e.g., 2,087 million in April 2023, 2,389 million in April 2024, 2,820 million in July 2025). The trend suggests a pattern of substantial volatility with intervals of strong profitability interrupted by sharp declines, including occasional losses.

Total Assets

Total assets show a general upward trend over the timeframe. Starting at 9,707 million US dollars in October 2020, the asset base expanded markedly to peak around mid-2024 to 2025 with values reaching over 36,000 million US dollars. This growth is mostly steady, although some minor declines are observable, such as slight decreases around July 2022 and a drop towards October 2025. Overall, the asset growth suggests ongoing investment or acquisition activities and expansion of the company’s resource base.

Return on Assets (ROA)

The return on assets metric displays a declining trend from October 2020 (20.26%) through early 2022, dipping to a low in mid-2022 around 7.45%. Starting in the latter half of 2022, ROA gradually improves, increasing consistently into the period ending in October 2025, reaching values above 12%. The initial high ROA followed by a decline corresponds with the volatility in net income and rapid asset growth, indicating a dilution of returns on a rapidly expanding asset base. The subsequent rebound in ROA suggests improved profitability and efficiency in asset utilization in more recent quarters.

Summary

The analysis reveals a business environment characterized by volatility in net income with phases of very high profitability followed by downturns, including some negative income quarters. Meanwhile, total assets have been steadily increasing, more than tripling over the examined period, indicating significant expansion. The decline and subsequent recovery in ROA signal initial challenges in maintaining profitability during rapid growth phases, but a recent trend toward better efficiency and sustained profitability relative to assets. Managing income volatility while continuing to leverage asset growth efficiently appears to be a key dynamic over these quarters.