Intuit has signed a multi-year contract worth more than $100 million with OpenAI, enabling its tax and financial apps to operate within ChatGPT and expanding the company’s use of OpenAI’s models across its products. Intuit said its tools, such as TurboTax, Credit Karma, QuickBooks, and Mailchimp, will be accessible through ChatGPT, allowing users to ask questions and complete tasks such as estimating tax refunds, reviewing credit options, or managing business finances. With users’ permission, Intuit’s a ...

Core Insights - Intuit's shares fell by 4.1% despite strong earnings, as conservative forward guidance disappointed investors [1][2] - The company reported fiscal fourth-quarter earnings of $2.75 per share on $3.83 billion in sales, exceeding Wall Street expectations [2] - AI tools like Intuit Assist were credited for driving customer adoption and spending [2] Financial Performance - Intuit's fiscal fourth-quarter earnings were $2.75 per share, with sales reaching $3.83 billion for the period ending July 31 [2] - The company provided guidance for fiscal 2026 earnings of approximately $23 per share and revenue of around $21 billion [3] Guidance and Market Reaction - The conservative guidance style is intended to maintain credibility with investors [3] - Weak guidance was attributed to slowing sales from the Mailchimp product, although the CFO indicated this was a temporary issue [5] - Despite the CFO's reassurances, the weak guidance led to a decline in Intuit's stock price [6] Long-term Outlook - Intuit is positioned for long-term growth, with a strong product moat and significant switching costs for customers [6]

Industry Overview - The mobile payments market is experiencing rapid growth due to the shift from cash to digital transactions, driven by convenience and security [1][9] - Increased internet penetration and smartphone usage are contributing to the adoption of digital payments, transforming everyday transactions [3] - The industry is diversifying with contactless payment options such as mobile wallets, biometrics, and QR codes, enhancing the global digital payments market [4] Company Insights - **PayPal Holdings Inc. (PYPL)**: - Benefiting from robust growth in total payment volume and strengthening customer engagement [10][11] - Expected revenue and earnings growth rates of 4% and 12% respectively for the current year [12] - **JPMorgan Chase & Co. (JPM)**: - Projected net interest income (NII) growth at a CAGR of 2.9% by 2027, supported by business expansion and loan demand [13] - Expected revenue and earnings growth rates of -0.2% and -1.3% respectively for the current year [15] - **Intuit Inc. (INTU)**: - Strong momentum in Online Services revenues driven by Mailchimp, payroll, and Money [16] - Expected revenue and earnings growth rates of 11.7% and 13.7% respectively for the current year [19] - **ACI Worldwide Inc. (ACIW)**: - Powers electronic payments for over 5,000 organizations globally, executing $14 trillion in payments daily [21][22] - Expected revenue and earnings growth rates of 8% and 7.6% respectively for the current year [22] - **Remitly Global Inc. (RELY)**: - Engaged in providing digital financial services, with an expected revenue growth rate of 27.9% and earnings growth of over 100% for the current year [23][24]

Core Insights - Intuit is evolving into a significant player in consumer and small business finance through its integrated platforms like TurboTax, QuickBooks, Credit Karma, and Mailchimp [1][4] - The integration of AI across its ecosystem is expected to drive a new phase of growth for the company [2][8] Business Model and Ecosystem - Intuit's products address critical customer pain points, making them essential tools for users [4] - The interconnectedness of its platforms allows for cross-selling opportunities, enhancing customer retention and satisfaction [5] - Financial performance for the full year 2024 showed revenue growth of 13% and operating income growth of 16%, indicating resilience in a challenging macro environment [6] AI Integration - AI is embedded in Intuit's products, enhancing user experience and operational efficiency [9][11] - AI features, such as invoice reminders, have improved customer cash flow by enabling faster payments [10] - The company has seen significant internal improvements, including an eightfold increase in developer velocity and a 50% reduction in marketing content creation time due to AI [11] Long-term Vision - Under CEO Sasan Goodarzi, Intuit aims to be the go-to platform for small and mid-market businesses, addressing a wide range of financial management issues [12][13] - The company's strategy is supported by strong brand recognition, a comprehensive product suite, and deep AI capabilities [14] Investment Implications - Intuit's consistent execution and growth in capabilities position it as a critical partner for business owners, making it an attractive investment opportunity [15]

Market Overview - The U.S. stock market experienced a rally in 2023 and 2024, continuing into the first half of 2025, primarily driven by the technology sector and the adoption of generative AI technology [2][4] - The AI-driven rally faced setbacks in early 2025 due to the introduction of the low-cost Chinese DeepSeek AI platform, U.S. export restrictions on high-end AI processors to China, and geopolitical tensions [3][4] AI Infrastructure Investment - The AI infrastructure sector is gaining momentum, with fears related to DeepSeek being overblown [4] - Four major companies are projected to invest $325 billion in AI infrastructure in 2025, marking a 46% year-over-year increase in capital expenditure [7][9] - The total addressable global sovereign AI market is estimated to reach $1.5 trillion [8] Recommended AI Stocks - Five AI stocks are recommended for investment in the second half of the year, all showing strong performance and a Zacks Rank 1 (Strong Buy): Jabil Inc. (JBL), Twilio Inc. (TWLO), UiPath Inc. (PATH), Intuit Inc. (INTU), and Dell Technologies Inc. (DELL) [5][9] Company Insights Jabil Inc. (JBL) - Jabil is benefiting from growth in capital equipment and AI-powered data center infrastructure, with a focus on product diversification [10] - The company has an expected revenue growth rate of 5.9% and earnings growth rate of 18.5% for the next year [12] Twilio Inc. (TWLO) - Twilio is enhancing its cloud communications platform with generative AI, launching Customer AI technology to improve customer engagement [13][15] - The expected revenue growth rate for Twilio is 7.9% and earnings growth rate is 22.3% for the current year [18] UiPath Inc. (PATH) - UiPath offers a comprehensive automation platform with embedded AI capabilities, introducing new generative AI features to enhance automation [19][20] - The expected revenue growth rate for UiPath is 8.5% and earnings growth rate is 5.7% for the current year [21] Intuit Inc. (INTU) - Intuit is experiencing steady revenue growth from its Online Ecosystem and is integrating generative AI into its products to enhance customer insights [22][23] - The expected revenue growth rate for Intuit is 11.7% and earnings growth rate is 13.7% for the next year [25] Dell Technologies Inc. (DELL) - Dell is seeing strong demand for AI servers, securing $12.1 billion in AI server orders, and expanding its cloud services [26][28] - The expected revenue growth rate for Dell is 8.7% and earnings growth rate is 16% for the current year [29]

Market Overview - The AI-driven bull run of 2023 and 2024 faced significant challenges in 2025 due to the Fed's uncertainty regarding rate cuts, recession fears, and competition from a low-cost Chinese AI platform [1] - The technology sector has recently regained momentum, supported by expectations of a U.S.-China trade deal and delays in tariff impositions by the Trump administration [2] Company Highlights Amphenol Corp. (APH) - Amphenol is ranked 1 by Zacks and specializes in AI and machine learning connectivity solutions, including high-density connectors and cables [6][10] - The company benefits from a diversified business model, with strong demand in defense, commercial air, and industrial sectors, contributing to a projected revenue growth rate of 32.3% and earnings growth of 40.7% for the current year [7][10] - The acquisition of Andrew is expected to add approximately $0.09 to earnings in 2025, enhancing its cash flow generation capabilities [8] Intuit Inc. (INTU) - Intuit holds a Zacks Rank of 1, driven by steady revenues from its Online Ecosystem and Desktop segments, particularly through its cloud-based services [11][12] - The company's generative AI tool, "Intuit Assist," aims to provide personalized financial insights, enhancing its product offerings [13] - Expected revenue and earnings growth rates for the next year are 12.1% and 18.4%, respectively, with a recent 4.2% improvement in earnings estimates [14] Okta Inc. (OKTA) - Okta is ranked 2 by Zacks and provides identity management solutions, including Single Sign-On and Adaptive Multi-Factor Authentication [15][16] - The company anticipates revenue and earnings growth rates of 9.4% and 16.7% for the current year, with a 2.8% increase in earnings estimates over the last 30 days [17] Lam Research Corp. (LRCX) - Lam Research, ranked 2, is focused on advanced packaging and memory technologies, benefiting from increased spending in the semiconductor sector [18][19] - The company expects a revenue growth rate of 1.6% and a slight decline in earnings of -0.5% for the next year, with a 0.5% improvement in earnings estimates recently [20] KLA Corp. (KLAC) - KLA is ranked 1 and is experiencing strong demand in the semiconductor industry, particularly in advanced packaging, which is projected to exceed $850 million in 2025 [21][22] - The company has expected revenue and earnings growth rates of 2.5% and 2%, respectively, for the next year, with a recent 0.5% improvement in earnings estimates [23]

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]

Market Overview - Wall Street experienced a significant rally in May, driven by expectations of a U.S.-China trade deal and delays in tariff imposition by the Trump administration on the European Union, which boosted confidence in equities [1] - The market rally is expected to continue in June, supported by declining inflation rates, with the personal consumption expenditures price index rising only 0.1% month-over-month and 2.1% year-over-year, marking its lowest level since 2025 [4] Recommended Growth Stocks - Five growth stocks are recommended for June, all of which have shown double-digit returns in the last month and possess a favorable Zacks Rank [2][3] - The recommended stocks are AppLovin Corp. (APP), Amphenol Corp. (APH), Intuit Inc. (INTU), Carvana Co. (CVNA), and Stantec Inc. (STN), each with a Zacks Rank 1 (Strong Buy) and a Growth Score of A or B [3] AppLovin Corp. (APP) - AppLovin is focused on enhancing marketing and monetization for mobile app developers through its software-based platform [7] - The company reported strong fundamentals, with an expected revenue growth rate of 24.3% and earnings growth of 85.2% for the current year, driven by its AI-powered AXON 2.0 technology [10][9] Amphenol Corp. (APH) - Amphenol provides connectivity solutions utilizing AI and machine learning technologies, with a diversified business model that supports growth across various sectors [11][12] - The company anticipates a revenue growth rate of 32.3% and earnings growth of 40.7% for the current year, bolstered by increased defense spending and the Andrew acquisition [13] Intuit Inc. (INTU) - Intuit benefits from steady revenues across its Online Ecosystem and Desktop business segments, with strong performance in its Credit Karma and cloud-based services [14][15] - The expected revenue growth rate for Intuit is 14.8%, with earnings growth projected at 18% for the current year [17] Carvana Co. (CVNA) - Carvana's acquisition of ADESA's U.S. operations has enhanced its logistics and auction capabilities, positioning it for significant growth in the used car market [18] - The company expects a revenue growth rate of 31.4% and more than 100% earnings growth for the current year, with a focus on improving operational efficiency [20] Stantec Inc. (STN) - Stantec provides a range of professional consulting services in planning, engineering, and environmental sciences, focusing on infrastructure and facilities projects [22][23] - The expected revenue growth rate for Stantec is 11.1%, with earnings growth projected at 18.6% for the current year [24]

Market Overview - April 2023 ended on a mixed note for investors, contrasting with its historical reputation as a favorable month [1] - May 2023 saw significant gains in U.S. stock markets, with the Dow, S&P 500, and Nasdaq Composite increasing by 3.9%, 6.2%, and 9.6% respectively, marking the best month for Nasdaq since November 2023 [2] Technology Sector Performance - The technology sector was a primary driver of May's market turnaround, with the Technology Select Sector SPDR (XLK) surging over 10% [2][9] - Five technology companies with favorable Zacks Ranks and double-digit returns in the past month are recommended for investment: Intuit Inc. (INTU), Amphenol Corp. (APH), Broadcom Inc. (AVGO), Twilio Inc. (TWLO), and Ubiquiti Inc. (UI) [3] Company Insights Intuit Inc. (INTU) - Intuit has seen steady revenue growth from its Online Ecosystem and Desktop segments, with strong performance in Mailchimp, payroll, and Money services [6] - The company is transitioning to a cloud-based subscription model, which is expected to provide stable long-term revenues [7] - Intuit's generative AI-powered "Intuit Assist" offers personalized financial insights, integrated into various products [8] - Expected revenue and earnings growth rates for the current year are 14.8% and 18% respectively, with a 3.7% improvement in earnings estimates over the last 30 days [10] Amphenol Corp. (APH) - Amphenol provides AI and machine learning-based connectivity solutions, benefiting from a diversified business model [11] - The company anticipates earnings growth from its acquisition of Andrew, expected to add approximately $0.09 to earnings in 2025 [13] - Expected revenue and earnings growth rates for the current year are 32.3% and 40.7% respectively, with a 3.1% improvement in earnings estimates over the last 30 days [13] Broadcom Inc. (AVGO) - Broadcom is experiencing strong demand for its networking products and AI accelerators, with AI revenues expected to rise 44% year-over-year to $4.4 billion in Q2 fiscal 2025 [14][18] - The company’s acquisition of VMware has enhanced its infrastructure software solutions, with 70% of its largest customers adopting VMware Cloud Foundation [15] - Expected revenue and earnings growth rates for the current year are 21.2% and 36.1% respectively, with a 0.2% improvement in earnings estimates over the last seven days [18] Twilio Inc. (TWLO) - Twilio focuses on generative AI offerings, launching Customer AI technology to enhance customer engagement [19] - The company has partnered with Alphabet Inc. for Google Cloud integration, which is expected to boost revenue growth [21] - Expected revenue and earnings growth rates for the current year are 7.8% and 22.6% respectively, with a 7.1% improvement in earnings estimates over the last 30 days [23] Ubiquiti Inc. (UI) - Ubiquiti's adaptable global business model supports growth and operational efficiency [24] - The company leverages its community of service providers and IT professionals to enhance product support and information dissemination [25] - Expected revenue and earnings growth rates for the current year are 1.7% and 10.8% respectively, with a 0.1% improvement in earnings estimates over the last 60 days [26]

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].