Mid-Market Growth: Will Intuit Unlock Its Biggest Lever?

Intuit Inc. INTU is accelerating its expansion into the mid-market, identifying it as one of its largest white-space opportunities. The company estimates that nearly half of its total addressable market lies in mid-market and money-related services, highlighting the potential scale. Launched just a year ago, Intuit Enterprise Suite (“IES”) is gaining traction by addressing mid-market pain points such as fragmented tech stacks, siloed data and high total cost of ownership. By consolidating critical workflows into a single AI-native platform, IES lowers costs, improves ROI and positions Intuit as a compelling alternative to legacy ERPs.

Fiscal 2025 demonstrated strong momentum, with mid-market revenues rising 40% year over year and customers increasing 23% to nearly 350,000. Average revenue per contract reached $27,000, and the company almost doubled the average revenue of customers who are upgrading from within its franchise.

Product innovation underpins this growth. IES offers multi-entity consolidation, multidimensional reporting, role-based access, and AI-powered agents for accounting, payroll and payments. These capabilities reduce costs, deliver insights and enhance platform stickiness, enabling cross-sell and upsell opportunities.

Intuit’s AI+HI advantage leverages 625,000+ customer and financial attributes and nearly $1 trillion in annual money movement data to power proprietary financial LLMs, delivering scalable personalization. GenOS accelerates feature deployment, combining startup agility with enterprise reliability.

Management envisions mid-market scaling beyond Intuit’s current size. With 800,000 QuickBooks Online mid-market users, IES adoption is a natural upsell, and its disruptive pricing, seamless upgrades and AI-driven automation position Intuit to capture the $89 billion mid-market TAM.

What Are Oracle and SAP Doing?

Oracle's ORCL cloud infrastructure business demonstrated exceptional growth in fiscal 2025, with Infrastructure-as-a-Service revenues surging 51% to $10.2 billion. Total cloud services reached $24.5 billion, representing 24% growth year over year. The company's differentiated cloud architecture, designed specifically for enterprise workloads, continues attracting customers seeking superior performance and capabilities.

For SAP SE SAP, increasing Cloud ERP growth and disciplined cost management, coupled with widespread adoption of its Rise with SAP and Grow with SAP solutions, are driving its performance. In the second quarter of 2025, SAP’s cloud revenues surged 24% year over year to €5.13 billion (up 28% at cc) on a non-IFRS basis, powered by solid 30% growth (up 34% at cc) in Cloud ERP Suite revenues, reaching €4.42 billion.

INTU Stock’s Price Performance, Valuation and Estimates

Shares of Intuit have rallied 14.5% in the past six months but have 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 9.13X, which is at a premium to the industry average of 8.76X.

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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