Intuit's Strategic Momentum Fuels 8% Surge: Why Long-Term Growth Is Accelerating

On May 23, 2025, Intuit Inc. (NASDAQ: INTU) delivered a masterclass in leveraging strategic initiatives to drive investor confidence. Shares soared over 8% in midday trading, surging from an open of $629.20 to a peak of $719.70, as the company reported record third-quarter earnings and upgraded its full-year guidance. This rally wasn't just a reaction to short-term results—it was a clear endorsement of Intuit's long-term strategy to dominate AI-driven financial services.

The Numbers That Moved the Market

The third-quarter results were unequivocally strong:
- Revenue hit $7.75 billion, a 15% year-over-year jump, fueled by turbocharged growth in core segments.
- Net income rose 18% to $2.82 billion, while non-GAAP EPS surged to $11.65.
- Full-year guidance was raised to $18.723–$18.760 billion in revenue, reflecting confidence in AI adoption and market expansion.

The real story lies in the segments driving this growth:

1. TurboTax Live: The AI-Powered Tax Revolution

TurboTax Live's projected 47% fiscal-year revenue growth to $2 billion marks a seismic shift in Intuit's strategy. By reducing its “pay-nothing” customer base (trimming unprofitable accounts to 8 million from 10 million), Intuit is focusing on high-margin, assisted services. This pivot aligns with its AI initiatives, which cut tax preparation time by 12% and improved accuracy. The result? A segment now contributing 40% of the Consumer Group's revenue—a clear win for profitability.

2. Credit Karma: The Engine of Consumer Finance Growth

Credit Karma delivered a 31% revenue jump in Q3, fueled by credit cards, personal loans, and auto insurance. With 30 million monthly active users, Credit Karma's platform is becoming the go-to hub for personal finance management. Its ability to cross-sell products and leverage data analytics positions it as a key growth lever—a fact not lost on investors.

3. QuickBooks Online: Dominating the SMB Market

QuickBooks Online's 21% revenue growth underscores Intuit's dominance in small-business accounting. The Global Business Solutions segment's 19% rise reflects the company's success in scaling its cloud-based tools. With AI now automating invoicing and expense tracking, QuickBooks is becoming indispensable for entrepreneurs—a moat no competitor can easily breach.

4. The Elephant in the Room: Mailchimp's Flatline

Mailchimp's stagnant revenue is a red flag. Despite its 31 million users, the email marketing platform is struggling to innovate. Intuit admits it will take “several quarters” to improve performance. However, this is a manageable risk in the context of overall strength. Management's focus on refining Mailchimp's go-to-market strategy and user experience suggests a path forward—and investors are willing to give them time.

Why This Matters for Long-Term Investors

Intuit's rally on May 23 wasn't just about quarterly wins; it was a vote of confidence in its AI-first roadmap. The company's investments in machine learning—such as automated tax prep and personalized financial advice—are creating recurring revenue streams. With 5 million QuickBooks Online subscribers and 30 million Credit Karma users, Intuit's platform ecosystem is now a self-reinforcing machine.

The Analysts Agree: This Is Just the Beginning

Goldman Sachs and Deutsche Bank both reiterated Buy ratings, with Goldman raising its price target to $860—a 36% premium to May 23's closing price. Analysts highlight Intuit's ability to:
- Monetize its data advantage across tax, accounting, and credit services.
- Expand its AI capabilities to reduce customer churn and increase upselling.
- Return capital to shareholders: a 16% dividend hike and $2.8 billion remaining in buybacks signal confidence.

Risks? Yes—but Manageable

Macroeconomic headwinds and Mailchimp's stagnation are concerns. However, Intuit's diversified revenue streams and pricing power mitigate these risks. Even in a slowdown, small businesses will still need accounting software, and consumers will prioritize tax prep.

Final Take: Act Now—Before the Rally Resumes

Intuit's May 23 surge to $719.70 was a preview of its long-term potential. With AI-driven platforms accelerating growth and a fortress balance sheet ($2.8 billion in cash, $14.2 billion in shareholder returns over the past five years), this is a stock primed for multiyear gains.

The Bottom Line:
Intuit's strategic bets are paying off. Investors who act now can capitalize on a company that's redefining financial services—and delivering returns that outpace the market.

Data as of May 23, 2025. Past performance does not guarantee future results.