Intuit (INTU) Fell Due to Softer-Than-Expected Revenue Guidance

Baron Funds released its “Baron Durable Advantage Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund appreciated 5.6% (Institutional Shares) in the quarter compared to an 8.1% increase for the S&P 500 Index (the Index). YTD, the fund is up 13.6% compared to a 14.8% gain for the index. Three-quarters into 2025, U.S. large-cap equity investors are enjoying gains. The rally from the start of 2023 still looks strong in this quarter. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Baron Durable Advantage Fund highlighted stocks such as Intuit Inc. (NASDAQ:INTU). Intuit Inc. (NASDAQ:INTU) offers financial management and compliance products and services. The one-month return of Intuit Inc. (NASDAQ:INTU) was -4.30%, and its shares gained 0.28% of their value over the last 52 weeks. On November 17, 2025, Intuit Inc. (NASDAQ:INTU) stock closed at $645.98 per share, with a market capitalization of $180.194 billion.

Baron Durable Advantage Fund stated the following regarding Intuit Inc. (NASDAQ:INTU) in its third quarter 2025 investor letter:

"Intuit Inc. (NASDAQ:INTU) is the leading provider of accounting software for small businesses and tax preparation software for individuals and tax professionals. Shares fell 13.2% in the third quarter after the company provided softer-than-expected revenue guidance for its Global Business Solutions segment, which management attributed to less aggressive QuickBooks pricing and slower growth from the Mailchimp marketing business. In addition, OpenAI announced a more advanced large language model, which the market perceived as a threat to application software broadly. Nevertheless, Intuit’s quarterly financial results exceeded Street expectations due to expansion of QuickBooks into larger and more complex mid-market customers, faster adoption of TurboTax Live, and cyclical strength from Credit Karma. Management expects 12% to 13% revenue growth and 14% to 15% EPS growth in the next fiscal year. We continue to own the stock due to Intuit’s strong competitive position and numerous growth opportunities as the company increasingly takes advantage of its unmatched data to infuse AI into its offerings."

Intuit Inc. (NASDAQ:INTU) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 105 hedge fund portfolios held Intuit Inc. (NASDAQ:INTU) at the end of the second quarter, which was 87 in the previous quarter. In the fiscal fourth quarter of 2025, Intuit Inc. (NASDAQ:INTU) reported revenue of $3.8 billion, representing an increase of 20% year-over-year. While we acknowledge the potential of Intuit Inc. (NASDAQ:INTU) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Intuit Inc. (NASDAQ:INTU) and shared the list of stocks Jim Cramer discussed. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.