Intuit's AI-Powered Surge: A Long-Term Value Play in Financial Software Leadership

The financial software giant Intuit (NASDAQ: INTU) has emerged as a clear leader in the race to integrate artificial intelligence into consumer and small-business tools, driving a 15% year-over-year revenue surge to $7.8 billion in Q3 fiscal 2025. This growth, coupled with upgraded guidance and analyst optimism, positions Intuit as a compelling long-term investment in a sector primed for AI-driven disruption.

A Financial Performance That Demands Attention

Intuit's third-quarter results showcased a balanced engine of growth across its core segments:
- Consumer Group: 11% revenue growth to $4.0 billion, fueled by TurboTax Live's 47% revenue spike to $2.0 billion. TurboTax Live now accounts for 40% of Consumer Group revenue, with unit sales up 24% as consumers increasingly opt for expert-led tax filing.
- Global Business Solutions (GBS): 19% revenue growth to $2.8 billion, driven by QuickBooks Online's 21% rise in revenue, reflecting higher pricing, customer acquisition, and a shift toward premium products.
- Credit Karma: A standout performer with 31% quarterly growth to $579 million, far exceeding its previous 5-8% growth guidance.

The company raised its full-year revenue forecast to $18.72–$18.76 billion, maintaining a 15% growth trajectory. Analysts now see this as a floor, with Goldman Sachs noting the potential for upside as Intuit's AI strategy matures.

The AI Roadmap: A "One-Stop Shop" for the Future

CEO Sasan Goodarzi's vision is clear: turn Intuit into the “one-stop shop of AI-agents and AI-enabled human experts.” This pivot is already bearing fruit:
- TurboTax Live: AI-driven tools now assist in document organization, tax credit identification, and compliance checks, reducing customer effort while boosting service quality.
- QuickBooks: AI-powered features like automatic expense categorization and cash-flow forecasting are driving premium subscriptions, with 20% growth expected in the GBS segment this year.
- Credit Karma: AI algorithms analyze credit data in real time, offering personalized financial advice to 120 million users, a moat against competitors like Experian or Credit Sesame.

Goldman Sachs analysts estimate that AI could add 5–10% to Intuit's revenue growth over the next three years, a catalyst that hasn't yet been fully priced into the stock.

Why Analysts Are Raising Price Targets—and Why You Should Listen

The upgraded guidance and AI momentum have drawn strong analyst reactions:
- Goldman Sachs raised its price target to $860 from $750, citing “long-term upside from AI integration and ecosystem expansion.”
- Deutsche Bank boosted its target to $815, calling Intuit's Q3 results a “reaffirmation of its dominant position in tax preparation and small-business software.”

These upgrades reflect a broader consensus: Intuit's blend of sticky customer relationships, recurring revenue streams, and AI-driven innovation creates a high barrier to entry. Competitors like Xero or Sage struggle to replicate Intuit's scale or its ability to seamlessly combine software with human expertise.

Risks on the Radar—but Manageable

Intuit isn't immune to macroeconomic headwinds or regulatory scrutiny. The company flagged potential impacts from inflation, geopolitical tensions, and cybersecurity threats. However, its diversified revenue streams—58% recurring revenue—and 22% operating margin provide a cushion. The $2.8 billion remaining in its buyback program and a 16% dividend hike underscore management's confidence in navigating these risks.

The Investment Case: A Rare Blend of Growth and Value

At current prices, Intuit trades at 34x trailing 12-month non-GAAP EPS, below its five-year average of 38x. Factoring in its AI-driven growth profile and analyst targets, the stock appears undervalued. With a five-year EPS growth rate of 15%, Intuit offers a rare combination of stable cash flows and disruptive innovation—a hallmark of long-term winners in tech.

Final Call: Act Now Before the Market Catches Up

Intuit's Q3 results and AI roadmap confirm its status as the leader in financial software. With analyst targets pointing to double-digit upside and a robust balance sheet fueling buybacks and dividends, investors would be wise to act before the broader market recognizes this opportunity. This isn't just a stock to watch—it's a core holding for portfolios seeking exposure to AI's next frontier.

In a world where financial complexity grows daily, Intuit's AI-powered tools are becoming essential. The time to invest in this future is now.