Intuit, well-known for its tax software like TurboTax and accounting tools such as QuickBooks, recently grabbed Wall Street’s attention by posting a quarterly performance that exceeded expectations, and it’s also a stock that pays dividends. In its fiscal second quarter, Intuit reported adjusted earnings of $3.32 per share on a revenue of $3.96 billion, comfortably outstripping analyst predictions of $2.58 per share and $3.83 billion in revenue, according to LSEG data. As a result, the stock surged nearly 12% on Wednesday, boosting the market value of this Silicon Valley heavyweight to a whopping $161 billion, despite its shares dipping over 6% in the past year. The company enjoys a strong reputation among market analysts, with 23 out of 32 recommending it as a buy or strong buy, suggesting a 15% potential upside from current levels, as noted by LSEG.
Analysts responded positively to the robust results and even to Intuit’s conservative forecast for the fiscal year ending on July 31. The company anticipates adjusted earnings between $19.16 and $19.36 per share, with revenue ranging from $18.16 billion to $18.347 billion. These figures closely align with FactSet analysts’ expectations of $19.29 per share and $18.28 billion in revenue. Keith Weiss from Morgan Stanley remarked on the restrained outlook for the second half of 2025, maintaining the financial targets for fiscal year 2025 despite the strong second quarter. He noted, “With about 25% upside to our unchanged $730 price target and growing confidence in potential positive EPS revisions, we are moving to an overweight position on the shares.”
Weiss also highlighted Intuit’s impressive achievements within its small business segment, where revenue surged 19% year-over-year in the second quarter, surpassing their annual growth targets of 16% to 17% for fiscal year 2025. He pointed out significant strides made in capturing the mid-market with QuickBooks Online Advanced and Intuit Enterprise Suite, both witnessing a remarkable 40% year-over-year growth. Notably, Intuit is considered attractively priced compared to peers, trading at 24 times expected earnings for calendar year 2026, although concerns about growth in their Consumer Tax business have impacted their valuation.
Meanwhile, Intuit’s personal finance arm, Credit Karma, raised eyebrows on Wall Street, with a revenue leap to $511 million, up 36% from the previous year. This builds upon the 29% increase noted in the first quarter ending last October. Bank of America analyst Brad Sills highlighted this continuity in growth, attributing it to persistent demand in personal loans and credit card services, along with new ventures like auto insurance, in a note on Tuesday. Despite adjusting his price target from $780 to $740 due to market fluctuations and slightly lower free cash flow, he remains positive about Intuit, particularly optimistic about TurboTax’s initiatives aimed at enhancing customer satisfaction.
Sills observed efforts to optimize TurboTax Live and Full Service could drive more customer engagement. The strategic shift in advertising to fall rather than January is aimed at attracting a wider audience, including those filers who delay their returns until October when more complex filing needs are met.
Adding to the bullish sentiment, Goldman Sachs analyst Kash Rangan maintained a buy rating but elevated his price target from $800 to $860 after reviewing the quarterly results. He sees Intuit at the start of a promising pivot toward boosting revenue per customer, focusing on expanding the total addressable market, cross-selling, upselling premium online services, and pushing into international markets. He notes, “While macroeconomic factors might temper near-term growth expectations, the essential nature of Intuit’s offerings and its shift towards a subscription-based model promise more predictable long-term growth, even amid challenging economic conditions.”
