Intuit vs Xero: Revenue, Profit and Business Model
Intuit reported $21.4B of revenue in FY2026 and $4.6B of net income. Xero reported ~$1.6B of revenue in FY2026 and ~$97.1M of net income.
Latest financial snapshot
Financial summary
Intuit
Revenue rose from $7.7 billion in fiscal 2020 to $21.4 billion in fiscal 2026, helped by the Credit Karma (2020) and Mailchimp (2021) acquisitions and by organic growth in QuickBooks Online and TurboTax Live. Fiscal 2026 GAAP operating income grew 20% to $5.9 billion and non-GAAP operating income grew 18% to $8.9 billion; GAAP diluted EPS was $16.46. The company's 'Big Bets' (assisted tax, money/payments, and mid-market) grew 34% and made up 30% of revenue.
Xero
For the year ended 31 March 2026 Xero reported operating revenue of ~$1.59 billion (NZ$2.75 billion), up 31%, net profit of ~$96.9 million (NZ$167 million), down 27% because of Melio acquisition costs, and free cash flow of ~$321 million (NZ$554 million). Subscribers rose 11% to 4.92 million and average revenue per customer rose 23% to NZ$55.44.
Revenue and profit by year
Intuit
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | $21.4B | $4.6B | 21.3% | +13.9% | Source |
| FY2025 | $18.8B | $3.9B | 20.5% | +15.6% | Source |
| FY2024 | $16.3B | $3B | 18.2% | +13.3% | Source |
| FY2023 | $14.4B | $2.4B | 16.6% | +12.9% | Source |
| FY2022 | $12.7B | $2.1B | 16.2% | +32.1% | Source |
| FY2021 | $9.6B | $2.1B | 21.4% | +25.4% | Source |
| FY2020 | $7.7B | $1.8B | 23.8% | +13.2% | Source |
| FY2019 | $6.8B | $1.6B | 23.0% | +12.6% | Source |
| FY2018 | $6B | $1.3B | 22.1% | +16.0% | Source |
| FY2017 | $5.2B | $985M | 19.0% | — | Source |
Xero
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | ~$1.6B | ~$97.1M | 6.1% | +30.9% | Source |
| FY2025 | ~$1.2B | ~$132.1M | 10.8% | +22.7% | Source |
| FY2024 | ~$994M | ~$101.3M | 10.2% | +22.4% | Source |
| FY2023 | ~$811.9M | ~-$65.8M | -8.1% | +27.6% | Source |
| FY2022 | ~$636.2M | ~-$5.3M | -0.8% | — | Source |
Where the revenue comes from
Intuit
- Global Business Solutions (QuickBooks & Mailchimp)60
QuickBooks Online and Desktop subscriptions, payroll, payments, bill pay, lending, Intuit Enterprise Suite, and Mailchimp; $12.9 billion in fiscal 2026.
- TurboTax25
DIY and TurboTax Live assisted tax preparation; $5.3 billion in fiscal 2026, with TurboTax Live at 53%.
- Credit Karma12
Referral fees from lenders, card issuers, and insurers plus Credit Karma Money; $2.6 billion in fiscal 2026.
- ProTax3
Lacerte, ProSeries, and ProConnect software for tax professionals; $647 million in fiscal 2026.
Xero
- Subscriptions and platform88
Recurring subscription revenue from accounting plans, add-ons and other platform services.
- Melio payments12
Transaction revenue from Melio's US bill pay and receivables platform, which contributed ~$193 million (NZ$332 million) in FY26.
Business model and strategy
Intuit
How it makes money
Intuit earns money from four product lines. QuickBooks charges small and mid-sized businesses monthly subscriptions and adds fees for payroll, payments processing, bill pay, and lending; together with Mailchimp's email and SMS marketing plans this formed the Global Business Solutions segment, which produced $12.9 billion (about 60%) of fiscal 2026 revenue.
Growth strategy
Intuit's growth plan centers on three Big Bets: shifting TurboTax customers to assisted TurboTax Live, expanding money movement (payments, bill pay, lending, Credit Karma Money), and winning mid-market businesses with Intuit Enterprise Suite and QuickBooks Advanced.
Competitive advantage
Intuit's advantage is the depth of its installed base. QuickBooks is the default ledger for millions of U.S. small businesses and is reinforced by the ProAdvisor network of accountants trained on the product, so switching means moving years of books, payroll, and payments history. TurboTax holds the largest share of U.S.
Xero
How it makes money
Xero sells monthly software subscriptions to small businesses, sole traders, and accounting and bookkeeping firms. The core product covers bank reconciliation, invoicing, bills, payroll in several markets and financial reporting, and plans are priced in tiers by market. Most customers reach Xero through accountants and bookkeepers, who adopt it for their practice and move clients onto it.
Growth strategy
Xero's strategy centres on three jobs for small businesses (accounting, payments and payroll) in three main markets (Australia and New Zealand, the UK and the US). In the US it is combining Xero and Melio under one leadership team, adding online bill payments inside Xero and embedded payroll. It is also building AI features, including its JAX assistant, into the core product.
Competitive advantage
Xero's main advantage is its accountant and bookkeeper channel in Australia, New Zealand and the UK, which brings small business clients onto the platform. Melio adds a US payments product that it owns.
Questions about Intuit vs Xero
Which company has higher revenue — Intuit Inc. or Xero?
Intuit Inc. reported $21.4B (FY2026), while Xero reported ~$1.6B (FY2026). By last reported revenue, Intuit Inc. is the larger business, with Xero reporting a smaller revenue base.
What is the market cap of Intuit Inc. vs Xero?
Intuit Inc.'s market capitalisation stands at $72.0B, while Xero's is $6.5B. Intuit Inc. carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Xero.
Which is more financially efficient — Intuit Inc. or Xero?
Intuit Inc. generates $1.18M / employee in revenue per employee, while Xero generates $363k / employee. Intuit Inc. shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Intuit Inc. and Xero make money?
Intuit Inc. and Xero generate revenue in fundamentally different ways. Intuit Inc.: Intuit earns money from four product lines. Xero: Xero sells monthly software subscriptions to small businesses, sole traders, and accounting and bookkeeping firms.
Which company is valued higher relative to revenue — Intuit Inc. or Xero?
On a price-to-sales (P/S) basis, Intuit Inc. trades at 3.4x P/S and Xero at 4.1x P/S. Xero commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Intuit Inc.. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Intuit Inc. bigger than Xero?
By last reported revenue, Intuit Inc. ($21.4B (FY2026)) is the larger company compared to Xero (~$1.6B (FY2026)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Intuit vs Xero overview