Intuit Separates Mailchimp and Guides It to Zero Growth
Intuit’s Financial Performance
Intuit announced a significant move by separating Mailchimp into a distinct segment, guiding it towards zero growth. The company reported $21.4 billion in revenue for the year ending July 31, 2026, marking a 14% increase. GAAP operating income grew by 20% to $5.9 billion.
Mailchimp’s Standalone Forecast
In its fourth-quarter results, Intuit revealed that Mailchimp is now a separate operating segment, with a standalone forecast for fiscal 2027 indicating zero growth, ranging from minus 1% to 0%. This marked a stark contrast to the rest of the company’s performance.
Segmental Revenue Growth
When broken down by segment, the growth figures paint an interesting picture:
- Global Business Solutions revenue grew by 16%, reaching $12.9 billion, with an 18% increase excluding Mailchimp.
- Online Ecosystem revenue increased by 19%, totaling $9.9 billion, or 23% without Mailchimp’s contribution.
- The most notable difference was in Online Services, which reported a 16% growth rate overall, but a 24% increase when Mailchimp is excluded.
Restructuring Charges
Intuit recorded substantial restructuring charges of $293 million in the fourth quarter, a significant departure from the $15 million charged in the previous year. This unexpected charge raised questions, as no detailed explanation was provided.
The Future of Growth and AI
The release highlights Intuit’s "Big Bets" as a key driver of growth, but these bets remain vague and unsupported. The company’s silence on specific cuts, savings targets, and the role of AI in recent layoffs across the sector adds to the enigma.