Intuit Inc.: Selloff presents a buying opportunity for investors

Intuit Inc. provides financial management and compliance products for small businesses, self-employed individuals, and accounting professionals. QuickBooks and TurboTax are its flagship products. The company's recent selloff presents a purchase opportunity, according to Argus analyst James Kelleher.

Intuit Inc. (NASDAQ: INTU), a leading provider of financial management and compliance products, has seen its stock price decline recently. This selloff presents an opportunity for investors, according to Argus analyst James Kelleher. The company's flagship products, QuickBooks and TurboTax, have traditionally driven its revenue and growth. However, recent challenges have led to a reassessment of the stock's value.

In the most recent quarter, Intuit reported earnings per share (EPS) of $11.65, exceeding analysts' expectations by $0.76. Revenue grew by 15.1% to $7.75 billion, driven by strong performance in its Consumer and Small Business & Self-Employed segments. Despite this positive performance, Intuit's stock has faced downward pressure due to several factors.

One significant challenge is the seasonal nature of TurboTax, which generates a substantial portion of the company's revenue. While the product's revenue surged by 47% in Q4 2025, its seasonal reliance creates recurring revenue bottlenecks. To mitigate this volatility, Intuit has been investing in AI-driven solutions, such as TurboTax Live's automation. However, converting seasonal users into loyal subscribers remains a challenge.

Another factor contributing to the recent selloff is the underperformance of Intuit's Mailchimp integration. The acquisition was intended to drive cross-platform recurring revenue, but it has faced complications. The integration has caused a 6% stock dip and has complicated cross-platform user retention. This underperformance has raised questions about the long-term viability of Intuit's AI-driven SaaS strategy.

Despite these challenges, Intuit's financial position remains strong. The company has $6.2 billion in cash reserves and a debt-to-equity ratio of 0.29, indicating a healthy balance sheet. Additionally, institutional investors and hedge funds own 83.66% of the company's stock, suggesting strong support for the business.

Looking ahead, investors should closely monitor Intuit's ability to maintain its fintech leadership and navigate the shifting consumer and regulatory dynamics. The company's pivot to AI-driven solutions and its focus on recurring revenue models will be critical factors in determining its long-term success.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-t-rowe-price-investment-management-inc-has-85982-million-position-in-intuit-inc-intu-2025-08-20/
[2] https://www.ainvest.com/news/intuit-struggling-post-turbotax-growth-mailchimp-integration-assessing-long-term-viability-recurring-revenue-saas-fintech-2508/