Intuit's AI Push Boosts Growth: Can TurboTax and QuickBooks Lead?

Intuit Inc. INTU is accelerating its transformation into an AI-first financial technology company, embedding artificial intelligence across TurboTax, QuickBooks, Credit Karma, and Mailchimp to drive engagement, efficiency and growth. 

Fiscal 2025 results underscore this momentum, with revenues up 16% year over year to $18.8 billion and non-GAAP operating income increasing 18% to $7.6 billion. CEO Sasan Goodarzi highlighted the company’s “virtual team of AI agents,” designed to automate workflows and deliver real-time insights, as a central pillar of Intuit’s platform strategy.

In TurboTax, AI is redefining the assisted tax category. TurboTax Live revenues surged 47% in fiscal 2025, well above long-term expectations, as data, AI and human intelligence together provide better experiences for customers and seamless integration with Credit Karma. This approach is improving customer satisfaction while extending monetization beyond the tax season through year-round financial engagement.

The AI integration is also accelerating growth across QuickBooks and Mailchimp. In the fourth quarter, QuickBooks Online Accounting revenues grew 23%, driven by higher effective prices, customer growth, mix shift and AI-powered innovations. For mid-market clients, the Enterprise Suite integrates AI agents that cut manual setup work by up to 60%, strengthening Intuit’s ability to penetrate an $89 billion addressable market.

Credit Karma, which posted 32% revenue growth in fiscal 2025, leverages AI to provide tailored financial product recommendations and credit coaching. These tools not only deepen user engagement but also create ecosystem synergies, as demonstrated by Credit Karma driving incremental revenue growth for TurboTax through cross-platform integration.

What Are Other Fintechs Doing With AI?

In today’s fintech landscape, PayPal PYPL and Upstart Holdings, Inc. UPST are showcasing how AI can reshape digital finance. PayPal is advancing “agentic commerce” with Anthropic and Salesforce while broadening crypto integration through PYUSD and “Pay with Crypto.” These moves highlight PayPal’s push beyond payments into digital commerce infrastructure. 

Meanwhile, Upstart leverages AI-driven underwriting to automate 92% of loan approvals, boosting efficiency. In the second quarter of 2025, Upstart originations climbed 154% year over year to $2.8 billion, with conversion rates rising to 23.9%. Both PayPal and Upstart illustrate AI’s transformative role in scaling financial innovation.

INTU Stock’s Price Performance, Valuation and Estimates

Shares of Intuit have rallied 15.9% in the past six months but underperformed both the broader industry and the S&P 500 Index.

From a valuation standpoint, Intuit shares are expensive, as suggested by the Value Score of D. In terms of forward 12-month Price/Sales (P/S), Intuit is currently trading at 8.77X, which is at a premium to the industry average of 8.24X.

The Zacks Consensus Estimate for fiscal 2026 and 2027 EPS has been revised upward over the past month.

Currently, Intuit carries a Zacks Rank #3 (Hold). 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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