Intuit Stock Rises 19.3% Year to Date: Still a Buy or Time to Wait?

Core Insights - Intuit Inc. (INTU) has shown strong performance in 2025, with a stock increase of 19.3%, surpassing the Zacks Computer – Software industry's growth of 17.5% [1] - The company's transformation into a comprehensive financial technology platform powered by artificial intelligence has garnered investor confidence [1][4] - Intuit's growth is driven by strong results across its Consumer, Credit Karma, and Global Business Solutions segments, positioning it as a one-stop solution for individuals and small to mid-sized businesses [2] Financial Performance - Intuit's third-quarter fiscal 2025 results indicated a revenue growth of 15.1%, prompting the company to raise its full-year guidance [4] - TurboTax Live is projected to see a 24% increase in customer numbers and a 47% rise in revenues for the fiscal year [5] - Credit Karma reported a 31% revenue increase in the third quarter, highlighting its expanding role beyond traditional offerings [5] Growth Drivers - The integration of AI-driven tools and a subscription-based model, which accounts for 77% of total revenues, is enhancing revenue growth and operational efficiency [8][12] - Intuit's Generative AI Operating System provides a competitive edge, automating complex tasks and improving user experiences [6][9] - The introduction of proactive Intuit AI agents is expected to transform small business operations by automating workflows and providing real-time insights [10] Market Opportunities - Intuit is targeting the mid-market segment, which represents an $89 billion total addressable market opportunity, through its Enterprise Suite (IES) [11] - The company's diversified revenue streams and strong presence in the mid-market are key pillars for future growth [18] Valuation and Outlook - Intuit's forward 12-month Price/Sales (P/S) ratio is currently at 10.04X, above the industry average of 8.82X, indicating a premium valuation [15][16] - Despite the premium, the reliable subscription-driven revenue model and the ability to capitalize on a rapidly expanding market justify this valuation [16] - Analysts have revised EPS estimates upward for fiscal 2025 and 2026, reflecting bullish sentiments towards the company's growth prospects [13] Conclusion - Intuit's strong performance in 2025, driven by AI transformation and diversified revenue streams, positions it well for long-term value creation [18][19] - The company's ongoing momentum across TurboTax, Credit Karma, and QuickBooks, along with increasing AI adoption, makes it an attractive option for growth-focused investors [19]