Financial Data and Key Metrics Changes - The company scaled its revenue from $9.5 billion in 2021 to nearly $19 billion in the past year, doubling its net income from $2 billion to over $4 billion, and also doubling free cash flow from $3 billion to over $6 billion in the last fiscal year [49][50] Business Line Data and Key Metrics Changes - TurboTax Live, which assists customers with their taxes, grew by 47%, becoming a $2 billion business [39] - QuickBooks Live, which provides human intelligence services, doubled in growth over the last year, while payment services grew by 37% and payroll services by 25% [40] Market Data and Key Metrics Changes - International revenue currently accounts for 8% of the company's total revenue, with strategies in place to enhance growth in international markets [53] Company Strategy and Development Direction - The company aims to create a system of intelligence that does all the work for customers, focusing on doubling household savings rates for consumers and revenue growth for businesses [14][28] - The strategy includes three big bets: delivering done-for-you experiences, accelerating money benefits for customers, and targeting the mid-market segment [29][32] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the company's growth trajectory, citing a nearly fourfold increase in company size from $5 billion to almost $20 billion and a doubling of growth rate from 8% to 16% [16] - The management highlighted the importance of addressing complex customer problems and leveraging data, AI, and human intelligence to enhance customer experiences [18][20] Other Important Information - The company has a total addressable market of over $300 billion, with significant opportunities for growth in the mid-market segment [19][32] - The management emphasized the importance of culture and systems in driving the company's strategy and customer focus [42][43] Q&A Session Questions and Answers Question: What is the company's current relationship to Human Rights Campaign's corporate index? - The company is rated by various outside organizations, including those focused on sustainability and the Human Rights Campaign [47] Question: What is Intuit doing to improve the message and increase value for shareholders? - The management highlighted strong execution, with revenue growth and significant returns to shareholders, noting that the stock performance has outpaced the S&P Software and Services ETF [49][50] Question: What percentage of Intuit's revenue is coming from international markets today, and what is the strategy to increase that? - International revenue is currently 8%, with a focus on executing geographically unique strategies to deliver for customers [53] Question: Will AI agents be coming to TurboTax? - Yes, the company has already implemented AI agents that assist customers as part of the TurboTax platform [53][54] Question: Would a sale or spinoff of QuickBooks' desktop business line be considered in future plans? - No, the desktop business is an integrated part of the company's platform, and the goal is to serve these customers while transitioning them to the cloud [60]

Financial Data and Key Metrics Changes - The company scaled its revenue from $9.5 billion in 2021 to nearly $19 billion in the past year, doubling its net income from $2 billion to over $4 billion, and also doubling free cash flow from $3 billion to over $6 billion in the last fiscal year [47][48] - The company has been returning two-thirds of its free cash flow to shareholders over the past five years, indicating strong performance and focus on shareholder returns [47] Business Line Data and Key Metrics Changes - TurboTax Live grew 47%, becoming a $2 billion business, while QuickBooks Live, which utilizes human intelligence, doubled in growth over the last year [39][40] - The services for small businesses, such as payments and payroll, grew by 37% and 25% respectively, showcasing the impact of the system of intelligence [40] Market Data and Key Metrics Changes - International revenue accounts for 8% of the company's total revenue, with a strategy focused on executing geographically tailored strategies to enhance local customer delivery [49] - The total addressable market is over $300 billion, with significant opportunities in the mid-market segment, which grew by 40% [18][40] Company Strategy and Development Direction - The company aims to create a system of intelligence that handles all customer tasks from lead to cash, credit to wealth, emphasizing the integration of AI and human intelligence [14][27] - The strategic focus includes delivering done-for-you experiences, enhancing cash flow for customers, and targeting the mid-market segment for growth [32][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to solve complex customer problems and highlighted the importance of being customer-obsessed to drive future growth [17][22] - The company is excited about the secular shifts in the market, including the over-digitization of businesses and the rise of new generations of customers who expect seamless, expert-driven solutions [19][20] Other Important Information - The company has a strong focus on culture and systems to ensure it remains customer-centric and willing to innovate [42] - The integration of AI and human intelligence is seen as a key differentiator in delivering value to customers [35][36] Q&A Session Summary Question: What is the company's current relationship to Human Rights Campaign's corporate index? - The company is rated by various organizations, including those focused on sustainability and the Human Rights Campaign [46] Question: What is Intuit doing to improve the message and increase value for retail investors? - The management team focuses on executing a strategy that has scaled revenue significantly and returned substantial cash flow to shareholders, outperforming peers [47][48] Question: What percentage of Intuit's revenue is coming from international markets today, and what is the strategy to increase that? - International revenue is 8%, with a strategy tailored to local markets to enhance customer delivery [49] Question: Will AI agents be coming to TurboTax? - Yes, AI agents are already part of the consumer platform, including TurboTax, aimed at delivering customer benefits [49][50] Question: Would a sale or spinoff of QuickBooks' desktop business line be considered in future plans? - No, the company intends to continue serving its desktop customers as part of its integrated platform strategy [53]

Signage for financial software company Intuit at the company's headquarters in the Silicon Valley town of Mountain View, California, August 24, 2016. (Photo by Smith Collection/Gado/Getty Images).Getty ImagesIntuit (INTU) stock could be a solid investment opportunity at this moment. Why? Because it offers high margins – indicative of pricing power and capacity for cash generation – at a discounted price. Such companies typically produce consistent, predictable profits and cash flows, which lowers risk and f ...

January 22, 2026 Forward-looking statements This presentation contains forward-looking statements. There are a number of factors that could cause our results to differ materially from our expectations. Please see the section entitled "Cautions about forward-looking statements" in the Appendix accompanying this presentation for information regarding forward-looking statements and related risks and uncertainties. You can also learn more about these risks in our Form 10-K for fiscal 2025 and our other SEC fili ...

Company Performance - Adobe (ADBE) stock has decreased by 33.5% over the past 12 months, while Intuit (INTU) has declined by 13.2% [1] - Over the past five years, Adobe's stock has lost 38.5% of its value, with significant losses occurring between July 2025 and January 2026 [4] - The SPDR S&P 500 ETF (SPY) has had an annualized total return of 13.6% during the same period, highlighting Adobe's underperformance [4] Analyst Sentiment - Among 37 analysts covering Adobe, 20 currently rate it a Buy, a decrease from 25 three months ago, indicating a shift in sentiment [5] - The average 12-month target price for Adobe is $436.21, which is 50% above its current price, suggesting potential upside despite recent declines [5] Industry Outlook - Earnings for SaaS stocks in the S&P 500 are projected to grow by 14% this year, a decrease of 500 basis points from 2025, reflecting concerns about future growth [3] - Investor apprehension regarding the impact of artificial intelligence (AI) on SaaS companies is contributing to the negative sentiment surrounding stocks like Adobe and Intuit [2][6]

Core Insights - Intuit Inc. is a leading financial software and technology company with a market cap of $147.3 billion, known for products like QuickBooks, TurboTax, Credit Karma, and Mailchimp [1] Financial Performance Expectations - Analysts anticipate Intuit will report a profit of $2.21 per share for fiscal Q2 2026, reflecting a 6.8% increase from $2.07 per share in the same quarter last year [2] - For fiscal 2026, the expected profit is $17.23 per share, a 12.1% increase from $15.37 per share in fiscal 2025, with further growth projected to $19.68 per share in fiscal 2027, representing a 14.2% year-over-year increase [3] Stock Performance and Market Sentiment - Intuit's shares have declined by 12.4% over the past 52 weeks, underperforming the S&P 500 Index's 13.3% return and the Technology Select Sector SPDR Fund's 21.2% increase [4] - Recent stock performance has been negatively impacted by concerns over slowing growth, tougher year-over-year comparisons, analyst downgrades, and fears regarding AI-related disruptions in the software sector [6] Analyst Ratings - Wall Street analysts maintain a "Moderate Buy" rating for Intuit, with 19 out of 30 analysts recommending "Strong Buy," three suggesting "Moderate Buy," seven indicating "Hold," and one advising "Strong Sell" [7] - The mean price target for Intuit is $814.31, indicating a potential upside of 53.9% from current levels [7]

Core Viewpoint - The software sector is experiencing its worst start to the year since 2022, with a 15% decline following an 11% drop last year, raising concerns about future growth prospects due to emerging AI competition [1][3]. Group 1: Market Performance - A group of Software as a Service (SaaS) stocks tracked by Morgan Stanley has seen a significant downturn, marking the worst annual opening since 2022 [1]. - Intuit Inc., the parent company of TurboTax, experienced a 16% drop, while Adobe and Salesforce saw declines exceeding 11% [3]. - The Nasdaq 100 index is nearing historical highs, yet companies like ServiceNow Inc. are at multi-year lows, highlighting a widening gap in performance within the tech sector [9]. Group 2: AI Competition - The launch of Anthropic's AI collaboration tool "Claude Cowork" has intensified fears of disruptive competition in the software market, reminiscent of concerns from 2025 [3][8]. - Claude Cowork allows users to automate tasks such as creating spreadsheets and generating reports, significantly enhancing productivity for both programmers and non-programmers [4][6]. - The tool's rapid adoption has led to a notable increase in its user base, with a 12% rise in global daily active users since last month [7]. Group 3: Investor Sentiment - Many investors are losing confidence in holding software stocks, believing there are no catalysts for valuation recovery despite lower price multiples [8]. - Concerns about the attractiveness of AI products from established software companies are growing, as many have not demonstrated significant revenue impact from their AI offerings [9]. - The expected profit growth for software and services companies in the S&P 500 is projected to slow to 14% in 2026, down from an estimated 19% in 2025 [9]. Group 4: Valuation Trends - Software companies are seeing their valuations decline, with a forward price-to-earnings ratio of 18 times, the lowest in history compared to an average of over 55 times in the past decade [10]. - The traditional high valuation of software companies, based on subscription models and recurring revenue, is being challenged by the emergence of AI agents capable of performing tasks more efficiently [13].

Core Viewpoint - Intuit's stock price has significantly declined, indicating a persistent downward trend that began in July of the previous year [1] Group 1: Stock Performance - Intuit's stock price peaked at $810 and has fallen to a low of $545, representing a 32% decrease from its all-time high [1] - The company's market capitalization has decreased from $226 billion to $150 billion, resulting in the loss of billions of dollars in value [1]

Core Viewpoint - Intuit Inc. is considered a strong long-term investment, but recent downgrades and challenging comparisons for future growth have raised concerns about its near-term performance [1][3]. Group 1: Analyst Ratings and Price Targets - Wells Fargo downgraded Intuit to Equal Weight from Overweight with a reduced price target of $700, down from $840, citing tough comparisons for growth heading into 2026 [1]. - TD Cowen initiated coverage with a Buy rating and a price target of $802, expecting Intuit to exceed consensus expectations and arguing that AI-related risks are overstated [2]. - Truist also initiated coverage with a Buy rating and a price target of $739, emphasizing Intuit's strong market position and diverse fintech offerings [3]. Group 2: Company Overview and Market Position - Intuit provides a range of financial management, payments, compliance, and marketing products and services in the US, including well-known brands like TurboTax, Credit Karma, QuickBooks, and Mailchimp [3]. - Despite the potential of Intuit as an investment, some analysts believe that other AI stocks may offer greater upside potential with less downside risk [4].

Core Viewpoint - The release of Claude Code has reignited concerns about the disruption of the software industry by AI, leading to the worst annual start for U.S. software stocks in years, with a 15% decline in a basket of SaaS stocks tracked by Morgan Stanley since the beginning of the year [1][4]. Group 1: Market Performance - Software stocks have experienced a significant downturn, with a 15% drop since the start of the year, following an 11% decline in 2025, marking the worst opening performance since 2022 [1]. - Current valuations for software stocks are at a record low, trading at 18 times expected earnings for the next 12 months, significantly below the average of over 55 times in the past decade [1]. Group 2: Impact of AI Developments - The panic in the market was triggered by Anthropic's release of "Claude Cowork," which showcased capabilities that alarmed investors about the future of software companies [5][6]. - Users reported completing complex projects in a week that would typically take a year, highlighting the disruptive potential of AI tools [2]. Group 3: Analyst Perspectives - Many buy-side institutions believe there is currently "no reason to hold" software stocks due to the uncertainty brought by AI, with no catalysts for valuation recovery in the short term [4][6]. - Analysts note that existing software companies have not demonstrated significant appeal in their AI products, with Salesforce and Adobe showing limited revenue impact from their AI initiatives [8]. Group 4: Comparative Sector Performance - The earnings growth forecast for software and services companies in the S&P 500 is expected to slow from approximately 19% in 2025 to 14% in 2026, contrasting with the semiconductor sector, which is projected to see profit growth of nearly 45% in 2025 and accelerate to 59% in 2026 [8][9]. - Major tech companies like Microsoft, Amazon, Alphabet, and Meta Platforms are expected to invest heavily in AI infrastructure, providing clearer visibility for revenue growth compared to software firms [8]. Group 5: Valuation Discrepancies - Despite low valuations, there is a divide in market sentiment regarding the future of software stocks, with some analysts optimistic about a rebound by 2026 due to stable customer spending and attractive valuations [10][11]. - Concerns remain about how software companies will compete against AI agents capable of completing tasks rapidly, complicating the assessment of appropriate valuation multiples [11].