Buy the Spike in Intuit (INTU) Stock After Earnings?

Core Viewpoint - Intuit's stock surged by 8% after exceeding fiscal Q3 expectations, driven by strong sales and earnings results, and the integration of AI into its services [1][3][4]. Group 1: Financial Performance - Intuit reported Q3 sales of $7.75 billion, surpassing estimates of$7.54 billion and increasing from $6.73 billion year-over-year [3]. - The company's Q3 EPS was$11.65, an 18% increase from $9.88 in the same quarter last year, exceeding expectations of$10.89 by nearly 7% [4]. - Intuit has surpassed the Zacks EPS Consensus for 13 consecutive quarters, with an average earnings surprise of 12.15% over the last four quarters [4][5]. Group 2: Revenue Guidance - Intuit raised its full-year revenue guidance for fiscal 2025 to between $18.72 billion and$18.76 billion, up from previous estimates of $18.16 billion to$18.35 billion [6][8]. - This new guidance is above Zacks' estimates of $18.28 billion, indicating a projected growth of 12% [8]. Group 3: Market Position and Valuation - Intuit's stock is currently trading at a forward earnings multiple of 34.5X, comparable to Microsoft but higher than the industry average of 27.3X [10]. - The stock is trading significantly below its decade-long high of 87.2X forward earnings and offers a 23% discount to its median of 44.9X during this period [10]. Group 4: Future Outlook - Following the favorable Q3 report, Intuit holds a Zacks Rank 3 (Hold), with potential for a buy rating as earnings estimate revisions may trend higher due to the elevated revenue guidance [11].