Intuit (INTU) Slipped as the Outlook and Guidance Fell Short of Expectations

Bristol Gate Capital Partners, an investment management company, published its Q3 2025 investor letter for the “US Equity Strategy”. A copy of the letter can be downloaded here. The strategy underperformed the benchmark, the S&P 500® Total Return Index, this quarter, but still surpassed the index in dividend growth. The underperformance was due to a lack of significant exposure to the AI/TMT sector or the Value sector, which provides advantages stemming from the Federal Reserve's rate cut. The portfolio returned 15% dividend growth over the trailing 12 months, driven by the strong underlying fundamentals. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Bristol Gate US Equity Strategy highlighted stocks such as Intuit Inc. (NASDAQ:INTU). Intuit Inc. (NASDAQ:INTU) offers financial management, payments and capital, compliance products and services. The one-month return for Intuit Inc. (NASDAQ:INTU) was 5.39%, and its shares gained 6.58% over the last 52 weeks. On December 30, 2025, Intuit Inc. (NASDAQ:INTU) stock closed at $669.88 per share, with a market capitalization of $186.495 billion.

Bristol Gate US Equity Strategy stated the following regarding Intuit Inc. (NASDAQ:INTU) in its third quarter 2025 investor letter:

"Carrier, Accenture and Intuit Inc. (NASDAQ:INTU) were the main detractors from an absolute perspective. Intuit declined primarily because of the company’s outlook and guidance for the upcoming fiscal year fell short of some investors’ expectations. Ongoing weakness in MailChimp (marketing platform) and a decline in total TurboTax units as the company focuses on higher-value customers also fueled concerns. For FY26, management stated EPS is expected to be $22.98-23.18 vs consensus $23.02, representing 14.5% y/y growth at the midpoint. Revenue is forecast to be $20.997-21.186B vs consensus $21.10B, and up 12% at the midpoint. Consensus may have be disappointed with the guidance, but we were not. Intuit continues to make progress in penetrating the assisted tax market and in larger enterprises with its accounting platform. We believe both segments will help sustain attractive growth over the next several years."

Intuit Inc (NASDAQ:INTU) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 96 hedge fund portfolios held Intuit Inc. (NASDAQ:INTU) at the end of the third quarter, which was 105 in the previous quarter. In the first quarter of fiscal 2026, Intuit Inc. (NASDAQ:INTU) reported revenue of $3.9 billion, representing an increase of 18% 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 Parnassus Core Equity Fund's views on the company. 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.