We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Mid-Market Growth: Will Intuit Unlock Its Biggest Lever?
Read MoreHide Full Article
Key Takeaways
INTU's mid-market revenues jumped 40% in fiscal 2025, with customers up 23% to nearly 350,000.
IES delivers AI-native consolidation, reporting, and automation to cut costs and boost ROI.
With 800,000 QuickBooks Online users, IES offers a natural upsell into the $89B mid-market TAM.
Intuit Inc. (INTU - Free Report) 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 - Free Report) 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 - Free Report) , 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.
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for fiscal 2026 and 2027 EPS has been revised upward over the past month.
Image: Bigstock
Mid-Market Growth: Will Intuit Unlock Its Biggest Lever?
Key Takeaways
Intuit Inc. (INTU - Free Report) 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 - Free Report) 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 - Free Report) , 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.
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for fiscal 2026 and 2027 EPS has been revised upward over the past month.
Image Source: Zacks Investment Research
Currently, Intuit carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.