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

Intuit (INTU) shares have surged 22.4% in the past month, driven by strong fiscal third-quarter 2025 results featuring double-digit revenue and earnings growth, and an upward revision to full-year guidance. The company's growth is attributed to steady performance across core segments, particularly due to strategic AI integrations like Intuit Assist, which have boosted user engagement and efficiency; TurboTax revenue rose 11% to $4 billion, while Global Business Solutions and Credit Karma saw increases of 19% and 31%, respectively. Reflecting this momentum, Intuit raised its fiscal 2025 non-GAAP earnings guidance to $20.07-$20.12 per share, indicating 18-19% growth.

Analysis

Intuit (INTU) has demonstrated significant market outperformance, with its shares appreciating 22.4% over the past month, substantially exceeding the Zacks Computer and Technology sector's 9.3% return and the Zacks Computer - Software industry's 6.7% growth. This rally is underpinned by robust fiscal third-quarter 2025 results, which showcased double-digit year-over-year growth in both revenues and earnings, prompting an upward revision to the company's full-year guidance. Key drivers include consistent revenue expansion across its primary business segments, effective strategic execution, and strong demand for its products, notably enhanced by artificial intelligence. Intuit's AI initiatives, exemplified by the Intuit Assist tool, are improving user experience and operational efficiency, evidenced by a 12% reduction in tax return filing times. Segment-wise, the TurboTax-led Consumer Group revenue increased 11% to $4 billion, the Global Business Solutions Group, incorporating QuickBooks and Mailchimp, saw revenues rise 19% to $2.8 billion, and Credit Karma posted a 31% revenue jump to $579 million. Strategic collaborations with Alphabet's Google Cloud and Gemini Group are further augmenting Intuit's AI capabilities. Consequently, Intuit has raised its fiscal 2025 non-GAAP earnings per share guidance to between $20.07 and $20.12, representing an 18% to 19% growth, a notable increase from the prior guidance of 13% to 14%. The Zacks Consensus Estimate for fiscal fourth-quarter earnings stands at $2.65 per share, implying a 33.17% year-over-year increase, and for fiscal 2025 earnings at $20.06 per share, indicating 18.42% year-over-year growth.

Key Decisions for Investors

• Given Intuit's strong recent stock performance, robust Q3 FY25 results, and upwardly revised FY25 guidance driven by successful AI integration, investors might consider the stock for its growth potential.
• Investors should monitor the continued execution of Intuit's AI strategy and its impact on segment growth, particularly in QuickBooks, Mailchimp, and Credit Karma, as these are key to sustaining the guided 18-19% earnings growth.
• With a Zacks Rank #1 (Strong Buy) and positive analyst sentiment reflected in increased consensus estimates, maintaining or increasing exposure to INTU could be warranted, while closely observing for any changes in competitive dynamics or execution risks.