Intuit Inc. (INTU): A Bull Case Theory

We came across a bullish thesis on Intuit Inc. on Compounding Your Wealth’s Substack by Sergey. In this article, we will summarize the bulls’ thesis on INTU. Intuit Inc.'s share was trading at $434.09 as of February 3rd. INTU’s trailing and forward P/E were 29.81 and 18.76 respectively according to Yahoo Finance.

Intuit Inc. provides financial management, payments and capital, compliance, and marketing products and services in the United States. INTU delivered a strong quarterly performance, surpassing expectations on both revenue and earnings. Revenue reached $3.9 billion, while operating income nearly doubled, driven by robust margin expansion. Gross margin increased to 78%, operating margin rose more than five points, and net margin improved similarly, reflecting disciplined cost management.

Free cash flow generation also accelerated, with FCF margins climbing to 15%, underscoring the business’s cash conversion strength. Growth remained broad-based, with Online Ecosystem revenue up 21%, Global Business Solutions advancing 18% despite modest Mailchimp softness, and Consumer revenue rising 21%, fueled by a 51% jump in TurboTax Live and strong Credit Karma performance. Mid-market adoption continued to gain traction, as QBO Advanced and Intuit Enterprise Suite grew roughly 40%, highlighting deepening penetration and validating Intuit’s “system of intelligence” strategy.

AI-driven automation is emerging as a key growth engine, with over 2.8 million customers now leveraging Intuit’s AI agents to reduce accounting workflow hours and accelerate payment processes. Early payroll and sales tax AI agents further enhance operational efficiency, complementing Intuit’s “done-for-you” approach that combines AI with human expertise. The partnership with OpenAI presents a potential strategic lever, enabling direct integration of Intuit apps within ChatGPT, though adoption patterns at scale remain untested.

Full-year guidance aligns with expectations, projecting 12–13% revenue growth and mid-teens non-GAAP EPS expansion, with Global Business Solutions and Consumer segments maintaining solid growth trajectories. Capital returns remain robust, with $851 million in buybacks, a 15% dividend increase, and $4.4 billion in remaining repurchase authorization. While Mailchimp’s softness and ChatGPT adoption pose near-term considerations, Intuit’s margin momentum, AI adoption, and mid-market strength provide a strong foundation, offering investors a compelling risk/reward profile.

Previously, we covered a bullish thesis on Intuit Inc. (INTU) by Quality Equities in May 2025, which highlighted its durable competitive advantages, high-margin recurring revenue, and strategic ecosystem across TurboTax, QuickBooks, Credit Karma, and Mailchimp. INTU’s stock has depreciated by approximately 34.45% since our coverage. Sergey shares a similar perspective but emphasizes operational execution, margin expansion, and AI adoption.

Intuit Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 96 hedge fund portfolios held INTU at the end of the third quarter which was 105 in the previous quarter. While we acknowledge the risk and potential of INTU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than INTU and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.