Citi has increased its price target for Intuit (INTU, Financial) from $726 to $789 while maintaining a Buy rating on the stock. This decision follows Intuit's impressive fiscal third-quarter results, which exceeded expectations due in part to strong performances from TurboTax and Credit Karma. Analysts highlight the promising growth seen in Intuit's Live service, suggesting another significant phase in the company's growth trajectory.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 27 analysts, the average target price for Intuit Inc (INTU, Financial) is $731.60 with a high estimate of $875.00 and a low estimate of $530.00. The average target implies an upside of 9.84% from the current price of $666.07. More detailed estimate data can be found on the Intuit Inc (INTU) Forecast page.
Based on the consensus recommendation from 32 brokerage firms, Intuit Inc's (INTU, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Intuit Inc (INTU, Financial) in one year is $738.66, suggesting a upside of 10.9% from the current price of $666.07. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Intuit Inc (INTU) Summary page.
INTU Key Business Developments
Release Date: May 22, 2025
- Revenue: $7.8 billion, up 15% year-over-year.
- GAAP Operating Income: $3.7 billion, up 20%.
- Non-GAAP Operating Income: $4.3 billion, up 17%.
- GAAP Diluted Earnings Per Share (EPS): $10.02, up 19%.
- Non-GAAP Diluted EPS: $11.65, up 18%.
- Consumer Group Revenue: $4.0 billion, grew 11% in Q3.
- TurboTax Live Revenue Growth: Expected 47% growth.
- Global Business Solutions Group Revenue Growth: 19% in Q3.
- QuickBooks Online Accounting Revenue Growth: 21% in Q3.
- Credit Karma Revenue Growth: 31% in Q3.
- Cash and Investments: Approximately $6.2 billion.
- Debt: $6.4 billion.
- Stock Repurchase: $754 million during the third quarter.
- Quarterly Dividend: $1.04 per share, a 16% increase per share versus last year.
- Fiscal 2025 Revenue Growth Guidance: Increased to 15% from prior guidance of 12% to 13%.
- GAAP Operating Income Growth Guidance: 35%, up from prior guidance of 28% to 30%.
- Non-GAAP Operating Income Growth Guidance: 18%, up from prior guidance of 13% to 14%.
- GAAP Diluted EPS Growth Guidance: 26% to 27%, up from prior guidance of 18% to 20%.
- Non-GAAP Diluted EPS Growth Guidance: 18% to 19%, up from prior guidance of 13% to 14%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Intuit Inc (INTU, Financial) reported a 15% revenue growth for the third quarter, driven by strong performance across its platform.
- The company raised its guidance across all total company metrics, including revenue, operating income, operating margin, and earnings per share.
- TurboTax Live revenue grew by 47%, significantly exceeding the long-term expectation of 15% to 20% growth.
- Intuit Inc (INTU) is leveraging AI to enhance customer experiences, resulting in a 12% reduction in the average time customers spend on their tax returns.
- Credit Karma revenue grew by 31% in Q3, driven by strength in credit cards, personal loans, and auto insurance.
Negative Points
- Intuit Inc (INTU) expects online TurboTax units to decline approximately 1% this fiscal year, with a share of total returns declining by approximately 1 point.
- Mailchimp revenue was relatively flat compared to the previous year, and the company expects it to take several quarters to deliver improved outcomes at scale.
- The company faces challenges in improving the seamless experience for prior assisted customers, indicating areas of friction in their experience.
- Intuit Inc (INTU) is still in the early days of its go-to-market strategy for mid-market customers, indicating room for improvement.
- Despite strong performance, the uncertain macro environment poses potential risks to future growth and stability.
