We got here throughout a bullish thesis on Intuit Inc. on Inventory Evaluation Compilation’s Substack. On this article, we are going to summarize the bulls’ thesis on INTU. Intuit Inc.’s share was buying and selling at $776.00 as of July 23rd. INTU’s trailing and ahead P/E had been 63.35 and 34.48, respectively in response to Yahoo Finance.
Intuit, the worldwide chief in shopper and small-business monetary software program, is capitalizing on AI developments and the robust efficiency of its Shopper Group to drive vital progress in income and earnings whereas strengthening its aggressive positioning for the AI-defined software program period. The corporate’s current Q1 outcomes exceeded expectations, with income up 15% and EPS up 18% year-over-year, led by a 24% surge in TurboTax Reside adoption.
Leveraging information from 100 million prospects and years of AI funding, Intuit has improved inner working effectivity, boosting knowledgeable submitting productiveness by double digits and lowering tax submitting instances for patrons. This effectivity frees up advisors for onboarding, enhances cross-selling, and reduces churn, decreasing buyer acquisition prices and strengthening buyer economics as administration focuses on disrupting the advisor market.
AI has additionally powered sturdy progress at Credit score Karma, the place revenues climbed 31% year-over-year on stronger credit-card and mortgage matching through its AI-driven “Lightbox” engine. In the meantime, the World Enterprise Options division is accelerating share beneficial properties within the mid-market, pushed by an eightfold enhance in improvement velocity since 2020 and the success of QuickBooks On-line Superior and Intuit Enterprise Suite, with revenues up 40% year-over-year.
Wanting forward, the corporate plans to launch AI brokers throughout customer support, funds, venture administration, and finance within the coming weeks, additional cementing its management. Reflecting administration’s confidence in its AI-enabled technique and enterprise software program consolidation tailwinds, full-year steerage was raised, with anticipated income progress of 15% and adjusted EPS progress of 19%, providing a gorgeous long-term funding case.
Beforehand we lined a bullish thesis on Intuit Inc. (INTU) by High quality Equities in Might 2025, highlighting its sturdy benefits, recurring income mannequin, and strategic ecosystem driving progress. The inventory has appreciated ~17% since because the thesis performed out with robust outcomes. The thesis stands as Intuit’s ecosystem stays entrenched. Inventory Evaluation Compilation shares the same view however emphasizes AI-driven progress and effectivity.
Intuit Inc. isn’t on our record of the 30 Most In style Shares Amongst Hedge Funds. As per our database, 87 hedge fund portfolios held INTU on the finish of the primary quarter which was 89 within the earlier quarter. Whereas we acknowledge the potential of INTU as an funding, we consider sure AI shares supply higher upside potential and carry much less draw back threat. When you’re on the lookout for an especially undervalued AI inventory that additionally stands to learn considerably from Trump-era tariffs and the onshoring pattern, see our free report on the greatest short-term AI inventory.
