Intuit Gains 22% in a Month: Here's Why the Stock Is Still a Must Buy

Core Insights - Intuit (INTU) shares have increased by 22.4% over the past month, outperforming the broader Zacks Computer and Technology sector's return of 9.3% and the Zacks Computer - Software industry's growth of 6.7% [1] - The company's strong performance is attributed to steady revenue growth across its core business segments, effective strategic execution, and strong demand for its flagship products [2] Revenue Growth and Financial Performance - Intuit's fiscal third-quarter 2025 results showed double-digit year-over-year growth in both revenues and earnings, leading to an upward revision of full-year guidance [2] - TurboTax-led Consumer Group revenues rose 11% to $4 billion, while QuickBooks and Mailchimp pushed Global Business Solutions Group revenues to $2.8 billion, up 19%. Credit Karma revenues increased by 31% to $579 million [5] AI Integration and Strategic Initiatives - Intuit is leveraging artificial intelligence to enhance user experiences and streamline operations, with initiatives like Intuit Assist, a generative AI-powered financial assistant [3][4] - Partnerships with technology leaders such as Alphabet's Google Cloud and Gemini Group are enhancing Intuit's capabilities in document processing and AI model development [6] Guidance and Future Outlook - For the fourth quarter of fiscal 2025, Intuit expects non-GAAP earnings to be between $2.63 and $2.68 per share, with a Zacks Consensus Estimate of $2.65 per share, indicating a year-over-year rise of 33.17% [7] - For fiscal 2025, non-GAAP earnings are projected to be between $20.07 and $20.12 per share, reflecting approximately 18% to 19% growth, an increase from previous guidance of 13% to 14% [8] Investor Sentiment - The growing adoption of AI-led tools like Intuit Assist is instilling investor confidence in INTU's prospects, contributing to the stock's positive momentum [9] - The Zacks Consensus Estimate for earnings is pegged at $20.06 per share, indicating an 18.42% year-over-year growth [10] Conclusion - With strong fiscal third-quarter performance, significant AI-led gains, and upbeat fiscal 2025 guidance, Intuit is positioned as an attractive choice for investors seeking consistent returns [11]