Latest news with #INTU
Business Insider
a day ago
- Business
- Business Insider
Why Intuit Stock (INTU) is Torn Between AI Victim and AI Victor Status
Intuit (INTU) is engaged in a battle on two fronts. Macroeconomic headwinds continue to challenge its small business customer base. At the same time, generative AI—an area where Intuit is investing heavily—has also been framed by some as a potential existential threat to its services. Despite these pressures, the company's financial position remains exceptionally strong. Recent business trends suggest that Intuit is more likely to emerge as a beneficiary of the AI revolution than as a casualty, supporting a Bullish outlook even as competitive forces intensify. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. INTU Fires on All Cylinders Amid Uncertainty Intuit is delivering strong performance across its operations. In the third quarter of fiscal 2025, revenue grew 15.1% year-over-year to $7.75 billion. This momentum prompted management to raise full-year fiscal 2025 guidance, now expecting approximately 15% revenue growth —up from the prior 12–13% range. For a company of Intuit's scale, sustaining this level of growth is a notable achievement. The performance is all the more impressive when set against the backdrop of macroeconomic uncertainty, including higher interest rates and inflation. Considering that the majority of Intuit's customers are small and medium-sized businesses (SMBs), this signals that Intuit's offerings are 'mission-critical.' In other words, when the going gets tough for SMBs, they aren't cutting back on Intuit products. Avoiding Death by a Thousand Cuts Despite robust financial results, Intuit's stock has underperformed the broader tech software sector ETF (IGV) over the past year. This may reflect investor caution regarding the durability of its performance amid potential AI-driven disruption. Rather than competing with Intuit's platform in its entirety—a near-impossible task—several AI-native startups are focusing on replicating specific workflows within its ecosystem. While no single player poses an existential threat, the cumulative effect of highly specialized competitors could still be significant. In this vein, several specialized AI-native startups are aiming to carve out a niche by mimicking specific workflows within Intuit's vast ecosystem. While this may not seem as dangerous as a single, monolithic competitor, 'death by a thousand cuts' is still a nasty way to go. These emerging tools excel at solving targeted problems. For example, Digits offers real-time, automated bookkeeping with interactive dashboards and an 'Autonomous General Ledger.' Filed streamlines the entire tax return lifecycle. Rillet focuses on automating accounting for complex revenue models, directly addressing Intuit's upmarket expansion through QuickBooks Advanced and the Intuit Enterprise Suite. Other niche solutions are targeting additional segments of Intuit's offerings. The Ongoing Threat of Government Intervention The U.S. government-sponsored free tax filing application, Direct File—made permanent during the 2024 tax season—remains a significant competitive threat to Intuit. Early results from the IRS pilot indicate strong adoption and user satisfaction, with over 140,000 accepted returns filed across 12 pilot states and 90% of respondents rating their experience as 'Excellent' or 'Above Average.' Following lobbying efforts by Intuit and others, who argued the program represented 'government overreach' and fiscal imprudence, the initiative was discontinued under the Trump administration. However, a future administration could choose to reinstate it. The broader implication is clear: Intuit's entry-level TurboTax product is vulnerable to commoditization if a widely accessible, government-backed alternative gains traction. Intuit's Counter-Offensive: The Data and AI Advantage There are also reasons for optimism. Intuit is actively executing a counter-strategy built around its transformation into an 'AI-driven expert platform.' With a vast trove of proprietary customer and financial data—on a scale AI-focused startups cannot match—Intuit holds a significant competitive advantage. Its products benefit from high user stickiness, in part because customers can access years of records seamlessly within Intuit's cloud ecosystem, eliminating the need to manually retrieve historical documents. A key focus is 'agentic AI,' in which a network of interconnected AI agents can autonomously manage entire workflows from start to finish. This approach has the potential to significantly enhance productivity, deepen customer engagement, and further entrench Intuit's competitive position. INTU's Premium Valuation Goes on Trial Intuit's valuation already reflects high expectations. I ts price-to-earnings (P/E) ratio, near 60, represents roughly a 100% premium to the Information Technology sector average. If the company successfully launches and monetizes its AI agent ecosystem while continuing to expand in the mid-market through the Intuit Enterprise Suite, this premium could be warranted. Conversely, if competitive pressures from AI-native startups or government-backed solutions intensify, the stock's elevated valuation could face significant compression. Is INTU a Good Stock to Buy? On Wall Street, INTU sports a 'Strong Buy' consensus rating based on 22 Buy, one Hold, and zero Sell ratings in the past three months. Its average price target of $845.45 implies an upside potential of 18.79% over the next twelve months. Last month, Morgan Stanley analyst Keith Weiss increased his price target on INTU from $785 to $900, citing Intuit's progress 'into the $6 billion mid-market Enterprise Resource Planning and accounting software market.' He believes that Intuit is 'best-positioned,' despite competition from companies like Sage and Xero. While market attention has primarily centered on risks to Intuit's consumer tax segment (TurboTax) and macroeconomic pressures on small businesses, the company's mid-market expansion may prove to be a more reliable driver of long-term growth. These complex, higher-value products command premium pricing and exhibit strong customer retention, making them less vulnerable to churn. Intuit Turns AI Threat Into Opportunity Amid Lingering Risk While Intuit faces competitive pressures from AI, the evidence indicates it is an active and aggressive participant in the AI arms race. Its ability to absorb AI-driven disruption and integrate the technology into its platform is a notable strength. That said, risks remain—particularly from well-funded startups and the potential reemergence of government-backed tax solutions. However, absent clear indications that these factors are materially impacting performance, the outlook remains aligned with Wall Street's bullish stance on INTU.
Globe and Mail
2 days ago
- Business
- Globe and Mail
Buy Big Tech Stock INTU On the Dip Now Before Earnings
TurboTax owner and financial technology titan Intuit Inc. INTU stock has dropped 12% after hitting fresh highs at the end of July. The downturn provides investors with a great opportunity to buy Intuit stock on the dip heading into its fourth-quarter fiscal 2025 earnings release on August 21. The tax software stock has more than tripled the Tech sector over the past 20 years. Intuit's expanding portfolio and AI enhancements will help it keep churning out double-digit sales and earnings growth. Plus, it looks like it's finding support at a critical technical range. Buy INTU Stock and Hold for AI Growth and Tax Stability Intuit averaged 16% revenue growth over the last decade, alongside roughly 15% average GAAP earnings expansion, driven by the consistent and evergreen nature of its TurboTax software. INTU's steady growth is impressive even among its mega-cap tech peers like Microsoft MSFT . INTU expanded its reach significantly over the last five years. It is now a one-stop shop for business and consumer finance, email marketing, and more via TurboTax, Credit Karma, QuickBooks, and Mailchimp, which boast roughly 100 million customers total. Intuit is crucially expanding its artificial intelligence efforts to make sure it doesn't lose ground to potential upstart AI rivals in tax prep software and more. The company's AI-powered TurboTax Live is an assisted tax preparation service that combines human experts with AI automation. Its sales surged 47% last quarter to $2 billion. AI-powered innovations and personalized offerings spurred growth across Intuit's entire portfolio. 'We're redefining what's possible with AI by becoming a one-stop shop of AI-agents and AI-enabled human experts to fuel the success of consumers and small and mid-market businesses,' CEO Sasan Goodarzi said in prepared remarks. INTU is projected to grow its sales by 15% in FY25 and 12% in fiscal 2026 to reach $20.94 billion vs. $16.29 billion last year, extending its streak of double-digit revenue growth. The technology powerhouse is projected to boost its adjusted earnings by 18% in its soon-to-be-reported fiscal 2025 and 14% next year. Plus, its upward earnings estimate revisions earn it a Zacks Rank #2 (Buy), and it has topped our bottom-line estimates in 19 out of the past 20 quarters. Buy the Financial Tech Stock On the Dip Now Intuit climbed roughly 3,000% in the past 20 years to more than triple Tech's 834% and crush Microsoft's 1,800%. Its outperformance remains significant over the past 10 years, up 700% vs. Tech's 410%. INTU was tracking Tech over the last few years until its recent tumble from its late July records. The stock fell not too long after INTU finally broke out meaningfully above its 2021 highs earlier this summer after meeting resistance there throughout 2024. INTU is finding support at its 21-week moving average and its previous peaks after falling from some of its most overbought RSI levels to its most oversold. One of the biggest things holding INTU stock back might be its valuation. Some could find it harder to justify paying up for Intuit given the uncertainty surrounding the long-term potential impact AI might have on its core tax segment and beyond. Still, Intuit trades at a small discount to its 10-year median and 50% below its highs at 41.7X forward earnings. Wall Street has been willing to pay a huge premium for Intuit's consistent growth. Now might be the time to consider buying Intuit stock on the dip heading into earnings, especially with the broader tech sector trading at all-time highs. Zacks Names #1 Semiconductor Stock This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Intuit Inc. (INTU): Free Stock Analysis Report
Yahoo
3 days ago
- Business
- Yahoo
Oppenheimer Raises PT on Intuit Inc. (INTU) to $868; Maintains ‘Outperform' Rating
Intuit Inc. (NASDAQ:INTU) is included in our list of the 11 Hot Software Stocks to Buy Now. A close-up of a hand tapping away at a keyboard, using the company's software to carry out a transaction. On July 28, 2025, Oppenheimer raised its price target on Intuit Inc. (NASDAQ:INTU) from $742 to $868, maintaining an 'Outperform' rating. This price revision comes ahead of the company's FY25 close. With the Consumer segment regaining momentum, the investment firm expects a strong finish to the year. Meanwhile, TurboTax, the company's software for the preparation of income tax returns, is driving mid-single-digit growth in paying units in FY25 with a successful marketing strategy. Looking ahead, the investment firm expects increasing tax code complexity, which could increase demand for and adoption of Intuit Inc. (NASDAQ:INTU)'s TurboTax Live platform. As a result, the analyst projects growth in average revenue per user for the company. Meanwhile, analyst confidence in INTU's Global Business Solutions segment remains intact, while Credit Karma's growing momentum continues. Furthermore, the analyst expects continued growth for the company with Intuit Assist, its AI-powered tool, continuing to enhance operational efficiency and execution. Known for software like QuickBooks, TurboTax, and Credit Karma, Intuit Inc. (NASDAQ:INTU) offers financial management, tax preparation, and credit services software. It is included in our list of the hot stocks to buy. While we acknowledge the potential of INTU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 13 Best Oil Refinery Stocks to Buy Right Now and 7 Best Potash Stocks to Buy According to Analysts. Disclosure: None. Sign in to access your portfolio
Business Insider
4 days ago
- Business
- Business Insider
3 'Strong Buy' Growth Stocks to Buy Now, 8/12/2025, According to Analysts
Growth stocks represent companies poised for rapid expansion, beating both the overall market and industry peers. This growth potential translates to large capital appreciation for investors. Also, investing in growth stocks can be a long-term strategy, as these companies reinvest profits to drive future expansion. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. One way to identify these stocks is through their past revenue or earnings growth. Today, we have shortlisted stocks whose revenue has grown at a five-year CAGR of more than 10%. Along with this parameter, we have zeroed in on stocks that have received Strong Buy ratings from Wall Street analysts. Here are this week's stocks: Insulet (PODD) – Insulet provides insulin delivery systems for people with diabetes. PODD stock's average price target of $359.44 implies a 16.63% upside potential from the current levels. The company's revenue has grown at a five-year CAGR of over 18%. Intuit (INTU) – This financial software company is known for products such as TurboTax, QuickBooks, and Credit Karma that help individuals and businesses manage their finances. INTU stock's average price target of $845.45 implies an upside potential of 18.5%. Its revenue increased at a CAGR of 16.23% in the past five years. ARM Holdings (ARM) – This semiconductor and software design company creates energy-efficient processor architectures used in mobile devices. ARM stock has a price forecast of $170.76, which implies a 19.85% upside potential. The company's revenues have witnessed a five-year CAGR of 14.59%. What Is TipRanks' Smart Growth Newsletter? TipRanks' Smart Growth Newsletter provides top growth investment ideas on a weekly basis, based on TipRanks' data and analysis. The newsletter includes macroeconomic, market-wide, and company-specific analysis to help investors understand the trends that may influence their growth investments.
Yahoo
18-07-2025
- Business
- Yahoo
Can Intuit Sustain Its Growth Momentum With Bold AI Push?
Intuit Inc. INTU, the financial software leader behind TurboTax, QuickBooks, Credit Karma and Mailchimp, is doubling down on artificial intelligence (AI) to transform how individuals and businesses manage money. At the core of this shift is GenOS, Intuit's proprietary AI operating system that powers intelligent workflows, automates tasks and delivers personalized insights. The company's latest leap includes the introduction of a virtual team of AI agents focused on helping businesses grow with less effort and greater precision. These AI agents, tailored for areas like payments, customer management and accounting, enable a 'done-for-you' model, reducing complexity and boosting efficiency. Nearly 25% of invoicing customers now use AI-generated invoice reminders, resulting in more than 10% higher payment conversion rates on overdue invoices. TurboTax, powered by AI, shortened average filing time by 12%, with more than half of users completing their returns in under an hour. Meanwhile, AI tools helped experts reduce return preparation time by 20%, fueling stronger conversion and AI integration is also accelerating growth across QuickBooks and Mailchimp. QuickBooks Online revenues rose 21% in the third quarter of fiscal 2025, driven by pricing, mix shift and AI-powered innovations. For mid-market clients, Intuit's Enterprise Suite offers multi-entity insights, automated workflows and seamless app integration, all enhanced by AI. As AI reshapes how businesses manage operations, Intuit remains a solid innovator. Its data-rich ecosystem, spanning more than 100 million users, generates 60 billion machine learning predictions daily, supporting high-velocity development and real-time insights. With AI now deeply embedded into its strategy, Intuit is extending its lead in the financial software arena. AI Integration at Oracle and Paychex Oracle ORCL is embedding generative AI into its Fusion Cloud Applications across HR, finance and supply chain. Its AI assistants accelerate workflows, deliver contextual recommendations and streamline planning, enabling enterprises to make faster, smarter decisions. Recently, Oracle announced plans to invest $3 billion over the next five years to strengthen its AI and cloud infrastructure in Germany and the Netherlands. Paychex PAYX is advancing its AI integration by embedding intelligent technologies across its HR and payroll platforms. In recent times, the company launched a new AI-powered sales technology stack and market intelligence tool for its sales teams, enhancing productivity and targeting. INTU's Price Performance, Valuation and Estimates Shares of Intuit have rallied 20.2% year to date, outperforming both the broader industry as well as the S&P 500 Index. Image Source: Zacks Investment Research From a valuation standpoint, Intuit shares are expensive, as suggested by the Value Score of F. In terms of forward 12-month Price/Sales (P/S), Intuit is currently trading at 10.10X, which is at a premium to the industry average of 8.86X. Image Source: Zacks Investment Research Intuit's estimate revisions reflect a positive trend. The Zacks Consensus Estimate for fiscal 2025 and 2026 EPS has been revised upward over the past two months. The Zacks Consensus Estimate for fiscal 2025 EPS suggests 18.42% growth year over year, while the same for fiscal 2026 calls for 13.7% growth year over year. Image Source: Zacks Investment Research Currently, Intuit sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intuit Inc. (INTU) : Free Stock Analysis Report Paychex, Inc. (PAYX) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
