BMO Believes Intuit (INTU) Had Strong Start to FY2026 Driven by Credit Karma, QBO Ecosystem Strength

Intuit Inc. (NASDAQ:INTU) is one of the most profitable tech stocks to buy. Earlier on November 21, BMO Capital analyst Daniel Jester lowered the firm’s price target on Intuit to $810 from $870 but kept an Outperform rating on the shares. The company began FY2026 with better-than-expected results, particularly within its Credit Karma segment and the QuickBooks Online/QBO ecosystem. The QBO ecosystem’s strength is attributed to two factors: an improved mix in accounting services, driven by the push into the middle-market, and robust growth in its payments offerings.

Intuit reported generating a total revenue of $3.9 billion in FQ1 2026, which is an 18% year-over-year growth. Non-GAAP Operating Income rose to $1.3 billion (compared to $953 million last year), and Non-GAAP Diluted EPS grew to $3.34 (compared to $2.50 last year), which marked a 34% increase. Intuit’s strategy is currently focused on an AI-driven expert platform to help businesses manage from lead to cash and consumers manage from credit building to wealth building.

Intuit’s Online Ecosystem revenue grew by 21% in FQ1, or 25% when excluding the performance of Mailchimp. The Global Business Solutions Group achieved an 18% revenue growth during the quarter, driven by a 29% growth in Total Online Payments Volume. The consumer platforms also showed strength: Credit Karma revenue grew 27% in the said quarter, and TurboTax revenue grew 6%. The company’s focus on AI is yielding results, with 2.8 million customers now using its virtual team of AI agents for greater efficiency. Intuit also highlighted that its new AI native ERP platform, Intuit Enterprise Suite, is already disrupting the mid-market.

Intuit Inc. (NASDAQ:INTU) provides financial management, payments & capital, compliance, and marketing products and services in the US. The company operates in four segments: Global Business Solutions, Consumer, Credit Karma, and ProTax.

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