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Intuit (INTU)
NASDAQ:INTU

Intuit (INTU) AI Stock Analysis

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Intuit

(NASDAQ:INTU)

Rating:80Outperform
Price Target:
$828.00
▲(7.98%Upside)
Intuit's overall stock score of 80 reflects a strong financial performance bolstered by robust revenue growth and efficient cash flow management. The company's positive outlook from the earnings call and strategic focus on AI-driven innovations further support this score. However, high valuation metrics and technical indicators suggesting overbought conditions temper the optimism.
Positive Factors
Guidance Update
Management raised FY25F guidance for revenue, operating income, and EPS, reflecting confidence in its AI-driven platform strategy and continued margin expansion.
Revenue Performance
Revenue grew 15% y/y to USD7.8 bn, 2.5% above consensus, driven by outstanding performance across its platform, particularly in Global Business Solutions and Credit Karma.
Negative Factors
Competitive Pressure
Intensified competition could create downward pressure on product pricing and margins.
Regulatory Risk
There is downside risk to $590, which could be achieved under government regulatory intervention, macro deterioration, or key management transition.

Intuit (INTU) vs. SPDR S&P 500 ETF (SPY)

Intuit Business Overview & Revenue Model

Company DescriptionIntuit Inc. provides financial management and compliance products and services for consumers, small businesses, self-employed, and accounting professionals in the United States, Canada, and internationally. The company operates in four segments: Small Business & Self-Employed, Consumer, Credit Karma, and ProConnect. The Small Business & Self-Employed segment provides QuickBooks online services and desktop software solutions comprising QuickBooks Online Advanced, a cloud-based solution; QuickBooks Enterprise, a hosted solution; QuickBooks Self-Employed solution; QuickBooks Commerce, a solution for product-based businesses; QuickBooks Online Accountant and QuickBooks Accountant Desktop Plus solutions; and payroll solutions, such as online payroll processing, direct deposit of employee paychecks, payroll reports, electronic payment of federal and state payroll taxes, and electronic filing of federal and state payroll tax forms. This segment also offers payment-processing solutions, including credit and debit cards, Apple Pay, and ACH payment services; QuickBooks Cash business bank account; and financial supplies and financing for small businesses. The Consumer segment provides TurboTax income tax preparation products and services; and personal finance. The Credit Karma segment offers consumers with a personal finance platform that provides personalized recommendations of home, auto, and personal loans, as well as credit cards and insurance products. The ProConnect segment provides Lacerte, ProSeries, and ProFile desktop tax-preparation software products; and ProConnect Tax Online tax products, electronic tax filing service, and bank products and related services. It sells products and services through various sales and distribution channels, including multi-channel shop-and-buy experiences, websites and call centers, mobile application stores, and retail and other channels. The company was founded in 1983 and is headquartered in Mountain View, California.
How the Company Makes MoneyIntuit generates revenue primarily through the sale of its software products and services, which are offered via subscription and transaction-based models. The company's key revenue streams include its Small Business & Self-Employed segment, driven by QuickBooks accounting software and related services; the Consumer segment, powered by TurboTax, which offers tax preparation solutions; and the Credit Karma segment, which earns through credit services and financial product recommendations. Intuit also monetizes through its strategic partnerships with financial institutions, leveraging data-driven insights to enhance customer engagement and deliver personalized financial solutions.

Intuit Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Chart InsightsIntuit's Small Business and Self-Employed segment continues its robust growth trajectory, supported by QuickBooks Online's strong performance. The Consumer segment shows seasonal peaks, with TurboTax Live driving significant revenue increases, reflecting a strategic focus on AI-driven innovations. Credit Karma's revenue growth has accelerated, contributing to Intuit's raised fiscal 2025 guidance. However, challenges remain with TurboTax user experience and stagnant Mailchimp revenue, which the company aims to address. Overall, Intuit's strategic initiatives in AI and mid-market penetration are expected to sustain its growth momentum.
Data provided by:Main Street Data

Intuit Earnings Call Summary

Earnings Call Date:May 22, 2025
(Q3-2025)
|
% Change Since: 15.12%|
Next Earnings Date:Aug 21, 2025
Earnings Call Sentiment Positive
The earnings call was predominantly positive with strong revenue growth, successful TurboTax Live performance, and significant progress in AI-driven innovations and mid-market penetration. However, there were some challenges in user experience for TurboTax and stagnant Mailchimp revenue that need to be addressed.
Q3-2025 Updates
Positive Updates
Strong Revenue Growth
Intuit Inc. delivered an exceptional quarter with a 15% revenue growth, raising guidance across all total company metrics, including revenue, operating income, operating margin, and earnings per share.
TurboTax Live Performance
TurboTax Live customers grew by 24%, resulting in a 47% growth in TurboTax Live revenue, significantly surpassing the long-term expectation of 15% to 20% revenue growth.
AI-Driven Innovations
Intuit Inc.'s global AI-driven expert platform strategy is accelerating innovation, with AI agents and AI-enabled human experts redefining possibilities for consumers, small and mid-market businesses, and accountants.
Mid-Market Progress
Progress in serving mid-market customers with QBO Advanced and Intuit Enterprise Suite, which includes a strong adoption by industries such as construction, IT services, and legal services.
Credit Karma Growth
Credit Karma revenue grew 31% in Q3, with strong performance in credit cards, personal loans, and auto insurance, leading to an increase in fiscal 2025 revenue growth guidance from 5%-8% to 28%.
Negative Updates
Challenges with TurboTax User Experience
Despite improvements, there were challenges in providing a seamless experience for users transitioning from assisted tax services, with friction in user authentication processes.
Mailchimp Revenue Stagnation
Mailchimp's revenue was relatively flat year-over-year, with expectations for several quarters to deliver improved outcomes at scale.
Company Guidance
During Intuit Inc.'s third-quarter fiscal 2025 conference call, the company provided optimistic guidance, raising expectations across key financial metrics. Revenue for the quarter grew by 15% to $7.8 billion, and GAAP operating income increased by 20% to $3.7 billion. Non-GAAP operating income reached $4.3 billion, marking a 17% rise, and GAAP diluted earnings per share climbed 19% to $10.02. The company anticipates a 15% revenue growth for fiscal 2025, up from prior guidance of 12% to 13%. Intuit's consumer group revenue grew by 11% in Q3, driven by a notable 47% increase in TurboTax Live revenue. The Global Business Solutions Group revenue rose 19%, with QuickBooks Online accounting revenue up 21%. Credit Karma also contributed to the growth, with a 31% revenue increase in Q3. The company highlighted its strategic focus on leveraging AI to drive innovation and efficiency, contributing to a projected 100 basis point margin expansion for the fiscal year.

Intuit Financial Statement Overview

Summary
Intuit's financial performance is robust, characterized by strong revenue growth, high profitability margins, and efficient cash flow management. The balance sheet remains strong with a balanced capital structure and high return on equity. While the company exhibits solid financial health, monitoring debt levels will be essential to maintain financial stability.
Income Statement
85
Very Positive
Intuit demonstrates strong revenue growth with a Revenue Growth Rate of 5.42% from 2024 to TTM (Trailing-Twelve-Months). The company maintains a robust Gross Profit Margin of 78.91% and a healthy Net Profit Margin of 17.69% in TTM. The EBIT Margin is solid at 22.24%, indicating effective cost management. However, the decline in EBITDA Margin from 28.13% in 2024 to 25.02% in TTM suggests a slight increase in operating expenses.
Balance Sheet
82
Very Positive
Intuit has a reasonable Debt-to-Equity Ratio of 0.39 in TTM, reflecting a balanced capital structure. The Return on Equity (ROE) is strong at 16.92% in TTM, indicating efficient use of equity. The Equity Ratio is stable at 56.66%, suggesting a healthy level of equity financing. However, the increase in Total Debt warrants monitoring.
Cash Flow
88
Very Positive
The company has shown a remarkable Free Cash Flow Growth Rate of 21.54% from 2024 to TTM. The Operating Cash Flow to Net Income Ratio is 1.91 in TTM, reflecting strong cash generation relative to earnings. Free Cash Flow to Net Income Ratio stands at 1.85, indicating efficient cash management. Continued growth in cash flow reflects solid operational performance.
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
18.18B16.29B14.37B12.73B9.63B7.68B
Gross Profit
14.50B12.82B11.22B10.32B7.95B6.30B
EBIT
4.43B3.63B3.14B2.57B2.50B2.18B
EBITDA
5.15B4.58B4.04B3.37B2.95B2.43B
Net Income Common Stockholders
3.47B2.96B2.38B2.07B2.06B1.83B
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.46B4.07B3.66B3.28B3.87B7.05B
Total Assets
31.68B32.13B27.78B27.73B15.52B10.93B
Total Debt
6.89B6.57B6.60B7.46B2.41B3.59B
Net Debt
4.46B2.96B3.75B4.66B-148.00M-2.85B
Total Liabilities
13.73B13.70B10.51B11.29B5.65B5.83B
Stockholders Equity
17.95B18.44B17.27B16.44B9.87B5.11B
Cash FlowFree Cash Flow
6.10B4.63B4.79B3.66B3.13B2.28B
Operating Cash Flow
6.24B4.88B5.05B3.89B3.25B2.41B
Investing Cash Flow
-1.34B-227.00M-922.00M-5.42B-3.96B-97.00M
Financing Cash Flow
-1.20B-397.00M-4.27B1.73B-3.18B2.03B

Intuit Technical Analysis

Technical Analysis Sentiment
Positive
Last Price766.81
Price Trends
50DMA
639.85
Positive
100DMA
617.90
Positive
200DMA
626.53
Positive
Market Momentum
MACD
38.09
Negative
RSI
80.85
Negative
STOCH
98.53
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INTU, the sentiment is Positive. The current price of 766.81 is above the 20-day moving average (MA) of 697.82, above the 50-day MA of 639.85, and above the 200-day MA of 626.53, indicating a bullish trend. The MACD of 38.09 indicates Negative momentum. The RSI at 80.85 is Negative, neither overbought nor oversold. The STOCH value of 98.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for INTU.

Intuit Risk Analysis

Intuit disclosed 34 risk factors in its most recent earnings report. Intuit reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Intuit Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$213.30B62.2217.84%0.53%14.99%12.89%
75
Outperform
$66.15B138.665.70%15.38%-67.58%
NONOW
75
Outperform
$209.66B137.2216.86%21.01%-20.93%
CRCRM
72
Outperform
$250.11B40.9210.31%0.61%7.97%14.85%
70
Outperform
$54.13B-34.33%19.12%-161.42%
66
Neutral
$42.56B75.01-47.82%14.72%21.81%
61
Neutral
$11.55B10.41-6.86%2.93%7.50%-8.30%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
INTU
Intuit
766.81
196.24
34.39%
FICO
Fair Isaac
1,755.03
403.96
29.90%
CRM
Salesforce
263.17
28.02
11.92%
WDAY
Workday
249.48
37.02
17.42%
NOW
ServiceNow
1,012.74
308.63
43.83%
TEAM
Atlassian
210.92
53.04
33.60%

Intuit Corporate Events

Dividends
Intuit Declares Cash Dividend of $1.04 Per Share
Positive
May 22, 2025

On May 22, 2025, Intuit announced that its Board of Directors approved a cash dividend of $1.04 per share, to be paid on July 18, 2025, to shareholders recorded by July 10, 2025. This decision reflects Intuit’s ongoing commitment to returning value to its shareholders and may influence investor perceptions positively regarding the company’s financial health and strategic direction.

The most recent analyst rating on (INTU) stock is a Buy with a $730.00 price target. To see the full list of analyst forecasts on Intuit stock, see the INTU Stock Forecast page.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.