Intuit's AI-Powered Surge: Why Analysts See $860 and a Multi-Year Re-Rating Ahead

Investors, take note: Intuit (NASDAQ: INTU) is no longer just a tax and accounting software company. With Q3 2025 results that crushed expectations and AI integration fueling a 47% revenue surge in TurboTax Live, the firm is now a growth powerhouse. Analysts at JPMorgan and Goldman Sachs have taken notice, hiking price targets to $770 and $860, respectively—marking a clear inflection point for this undervalued tech leader.

The Catalysts: AI, Upmarket Momentum, and Analyst Approval

Intuit's Q3 2025 earnings were a masterclass in execution. Revenue hit $7.8 billion (+15% YoY), while adjusted EPS soared to $11.65, trouncing Wall Street's $10.91 estimate. The key drivers? TurboTax Live and QuickBooks' mid-market dominance, both turbocharged by AI.

TurboTax Live: AI's 47% Revenue Boost

TurboTax Live's AI-driven services—think automated tax return prep and personalized customer support—are rewriting the game. Revenue jumped 47% YoY, while AI reduced customer prep time by 12%. This isn't just a cost-cutting win; it's a revenue multiplier. Analysts at Goldman Sachs noted that TurboTax Live now accounts for 40% of the Consumer Group's revenue, with unit growth hitting 24%. The AI-powered shift to assisted services isn't just cannibalizing low-margin “pay-nothing” customers—it's raising Average Revenue Per Return (ARPR) by 13%, a clear margin expansion play.

QuickBooks: Mid-Market Dominance at 40% YoY

While TurboTax grabs headlines, QuickBooks is the quiet powerhouse. Its upmarket strategy—pushing customers toward higher-margin services like QuickBooks Online Advanced (QBOA) and Intuit Expert Solutions (IES)—is paying off. These mid-market offerings grew 40% YoY, fueled by AI-driven cross-selling. JPMorgan's Mark Murphy highlighted this as a market share grab, noting Intuit's penetration of SMBs with >$10M in revenue is accelerating.

The Global Business Solutions (GBS) segment grew 19% YoY, with Online Ecosystem revenue up 20%, a testament to QuickBooks' ecosystem flywheel.

The Valuation Case: Why $860 Isn't a Stretch

Analysts aren't just reacting to Q3 results—they're pricing in a multi-year re-rating. Here's why:
1. Sustainable Mid-Teens Growth: With AI reducing customer acquisition costs and boosting upsell rates, Intuit's 15% YoY revenue growth is now a baseline. Goldman Sachs sees mid-teens growth sustained through 2027, supported by AI's scalability.
2. Margin Expansion: Operating margins jumped to 35% GAAP, up from prior guidance, as AI automates workflows. Free cash flow margins hit 35%+, with $754M in buybacks and a 16% dividend hike in Q3 alone.
3. Analyst Consensus: 21 of 24 analysts rate INTU “Buy” or higher. The average price target is now $800, up from $650 a year ago.

Addressing the Noise: Mailchimp's Slump ≠ Death Knell

Critics will point to Mailchimp's flat revenue—yes, it's a drag. But Intuit's $31B credit karma segment (up 31% YoY) and $4B TurboTax business are the real engines. Mailchimp's underperformance is a minor headwind in a $20B revenue story. Management's focus remains on high-margin adjacencies: AI-enabled insurance, credit products, and enterprise accounting.

The Call to Action: Buy Now or Pay Later

INTU is trading at 24x forward earnings, a discount to its 30%+ long-term growth trajectory. With Goldman's $860 target implying 37% upside and JPMorgan's $770 suggesting 20% gains, this is a risk-reward no-brainer.

Investors: The train is leaving the station. With AI fueling TurboTax's 47% growth, QuickBooks' mid-market surge, and analysts' price targets soaring, Intuit isn't just a tax software giant—it's a growth stock for the next decade. Act now, before the consensus catches up.

Roaring Kitty's Bottom Line: Intuit's AI-driven renaissance is real. Analysts' $770–$860 targets aren't just numbers—they're the floor. This is a buy at $640, hold for $800+ opportunity. Don't miss it.