
NASDAQ:INTU
This summary was created by AI, based on 9 opinions in the last 12 months.
Intuit Inc. (INTU-Q) has faced significant challenges in the past year, particularly due to broader concerns about the software sector and potential AI displacements. Despite being down substantially from last summer's highs, analysts indicate that Intuit's customer base—predominantly small to medium-sized businesses—remains loyal and unlikely to switch to AI-driven solutions for their financial needs. Recent earnings beat expectations, with revenue showing resilience even amid economic uncertainty. The company is adopting AI to enhance its offerings and is committed to maintaining its strong brand reputation. However, the decision to lay off a substantial portion of its workforce has raised red flags among some analysts who view it as a sign of weakness, while others see it as a necessary cost-cutting measure to ensure longevity in a volatile market.
It's been a brutal year for software companies. INTU is -50% from last summer's high, but their customers are sticky (consumers, small/medium) businesses, which immunizes them from AI displacement worries. Businesses can't afford to use AI to write their own software. INTU reported a top and bottom line beat and raised full-year guidance. Also, they will lay off 17% of its staff to lower costs, which the street viewed this as weakness, not strength. He totally disagrees with the sellers.
Poster child for companies beaten down on AI fears. Provides financial infrastructure for small-medium businesses. Cheap at 15-16x forward PE. Grows consistently 10-15% on top and bottom lines.
Fair concern about AI impacting TurboTax, yet even free tax filing hasn't taken a bite out of Turbo's business. Will develop its own AI tools to embed in products. Yield is 1.04%.
For Q4, INTU reported revenues of $3.8 bln vs $3.75 expected and EPS of $2.75 vs $2.66 expected. The main concern with the quarter appears to be a bit more of a conservative guidance being provided by management but this likely makes sense as they start the year, to give them some wiggle room depending on how the economic environment unfolds. They continue to repurchase shares as well. We don't see much in here that should really change ones view on the company longer-term.
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INTU has responded to the report, highlighting its strong growth and outlook. The short report attacked INTU's acquisitions and expressed concerned on competition, among other issues. But INTU has a very strong history of growth and performance and a very good growth outlook. We think Spruce is really just focusing on valuation: at 31X INTU is not cheap, but its premium is due to its size, market share, and consistency. We would not see the short report as a reason to really worry here.
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INTU is trading at 35.8x Forward P/E. The business is expected to grow its topline organically by around 12% over the next few years. INTU is a very high-quality business that generates solid, growing cash flow year after year, but the valuation is not cheap. We like the stock and we are okay to average into INTU over time, but we would not be buying too aggressively here. It reported last night: EPS of $1.99 beat estimates of $1.85; revenue of $3.18B beat estimates of $3.08B. Intuit exceeded fiscal 4Q consensus on revenue growth at Credit Karma (up 14%) and its Small Business and Self-Employed (SBSE) segment (up 20%), with Online Services also a driver -- up 19% on payroll, payments and Mailchimp. QuickBooks Online accounting sales were solid (up 17%), fueled by customer additions, higher prices and product mix shift. The company set fiscal 2025 sales-growth guidance of 12-13% vs. 12% consensus, with SBSE at 16-17%, Consumer Group (TurboTax) at 7-8% and Credit Karma at 5-8%. Management stated a long-term sales view for SBSE of 15-20%, emphasizing average revenue per customer gains on an upmarket push. Credit Karma sales growth (up 14%) was a highlight, with auto insurance accounting for 6 percentage points, personal loans for 5, credit card for 2 and CK Money for 1.
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Intuit Inc. is a American stock, trading under the symbol INTU (previously INTU-Q on Stockchase) on the NASDAQ (INTU). It is usually referred to as NASDAQ:INTU or INTU
In the last year, 7 stock analysts published opinions about INTU (previously INTU-Q on Stockchase). 7 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is WATCH. Read the latest stock experts' ratings for Intuit Inc..
Intuit Inc. was recommended as a Top Pick by Joe Terranova on 2024-08-14. Read the latest stock experts ratings for Intuit Inc..
Earnings reports or recent company news can cause the stock price to drop. Read stock experts' recommendations for help on deciding if you should buy, sell or hold the stock.
7 stock analysts on Stockchase covered Intuit Inc. in the last year. It is a trending stock that is worth watching.
On 2026-05-29, Intuit Inc. (INTU) stock closed at a price of $331.53.
Hit by the software sell-off. Are important to small/medium-sized businesses. They will use AI to improve their products, in fact. Is trading at a 20-year low in terms of PE, which doesn't make sense. It looks good here. Software as a whole is a ripe, attractive area, but doesn't know if software will recover in a few months or several or a few years.