Intuit's AI Transformation: Will It Drive Future Growth?

Intuit Inc. INTU, the financial software leader behind TurboTax, QuickBooks, Credit Karma and Mailchimp, is accelerating investments in the era of Artificial Intelligence (“AI”). The company is focused on delivering “done-for-you” experiences and enhancing financial outcomes for mid-market businesses.

A key step in this direction is its partnership with Anthropic, bringing Claude’s advanced AI capabilities to Intuit’s platform. This collaboration will enable custom AI agents tailored to industry-specific needs for mid-market clients, while Intuit contributes its deep expertise in tax, accounting, finance and marketing to Claude and Cowork users.

In February 2026, Intuit launched an AI-native ERP solution for the $2 trillion construction industry within its Enterprise Suite. The solution is designed to streamline operations, improve cost efficiency and boost profitability.

AI is also driving strong performance across core segments. In the second quarter of fiscal 2026, TurboTax revenues rose 12% year over year, supported by a 12% reduction in average filing time. More than half of users completed filings in under an hour, while 1.7 million customer hours were saved through automated data entry. QuickBooks is seeing similar momentum, with nearly 80% repeat engagement across AI agents. QuickBooks Online revenues grew 24%, driven by pricing, product mix and customer expansion.

By embedding AI across its ecosystem, Intuit is driving stronger customer adoption, enabling premium pricing and increasing engagement through personalized, automated experiences. As AI adoption deepens, Intuit is well-positioned to sustain durable, double-digit growth while reinforcing its leadership in the SMB and mid-market financial software space.

AI Integration at Oracle and Paychex

Oracle ORCL has launched agentic AI innovations for Oracle AI Database in March 2026 to help customers build, deploy and scale secure agentic AI applications suitable for full-scale production workloads. The company unveiled 22 Fusion Agentic Applications at Oracle AI World in London in March 2026, embedding AI agents natively across finance, HR, procurement and supply-chain workflows within its existing cloud suite.

Paychex PAYX is advancing its AI integration in its recently acquired Paycor platform. The company is rapidly integrating AI across its HR and payroll platforms, using generative and agentic AI to automate workflows and enhance decision-making. It has introduced AI assistants for conversational support, along with AI-powered analytics for real-time insights and forecasting. The company is also leveraging AI in recruiting and payroll to improve efficiency, accuracy and compliance.

INTU’s Price Performance, Valuation and Estimates

While shares of Intuit have declined 0.6% over the past month, they have outperformed both the broader industry and the S&P 500 Index.

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In terms of forward 12-month Price/Sales (P/S), Intuit is currently trading at 5.03X, which is at a discount to the industry average of 6.15X.

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Intuit’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for fiscal 2026 EPS has been revised upward by a cent to $23.15 over the past week. The consensus estimate for 2026 calls for 14.9% growth year over year.

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Currently, Intuit carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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