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Intuit, Inc. (INTU - Free Report) shares are trading at a discount. In terms of the forward 12-month Price/Sales (P/S), Intuit is trading at 4.35X, lower than the Zacks Computer - Software industry average of 6.31X.
INTU is also trading at a discount compared to its fintech rivals, Cadence Design Systems (CDNS - Free Report) and Synopsys (SNPS - Free Report) . At present, CDNS and ADSK have P/S multiples of 12.49X and 7.58X, respectively.
Image Source: Zacks Investment Research
Intuit’s shares have underperformed, declining 45.1% over the past three months compared to the industry’s 24.7% fall, while the S&P 500 composite decreased 2.6%. Its peers, Cadence Design and Synopsys, decreased 17% and 22.5% during this period.
Despite macroeconomic issues weighing on the stock, the company boasts solid fundamentals, mid-market expansion and AI integration. Nevertheless, the decline has raised questions about whether this is another temporary stumble or a sign of deeper trouble in the computer-software landscape.
Image Source: Zacks Investment Research
Let’s delve deeper into this to find out whether the stock should be a Buy, Hold or Sell.
What’s in Favor of INTU Stock?
At the center of Intuit’s growth story is its transformation into an AI-powered financial operating platform. Intuit is no longer just a provider of tax software or accounting tools, but has become an integrated ecosystem weaving together TurboTax, QuickBooks, Credit Karma, Mailchimp and Intuit Enterprise Suite, serving customers and small businesses, plus mid-market enterprises. This shift is now being reflected in the company’s fundamentals. Its second-quarter fiscal 2026 results demonstrated this momentum, with revenues growing nearly 17% year over year. For the third quarter of fiscal 2026, the company expects total revenue growth of 10%. It reiterated its fiscal 2026 revenue guidance to 12-13% growth.
Intuit's Global Business Solutions segment serves small and mid-market businesses and accounting professionals with an all-in-one platform, including QuickBooks Online (QBO), payroll, payments, Mailchimp, and Intuit Enterprise Suite, delivering AI-driven automation and human expertise for end-to-end financial workflows. Recently, Intuit completed FedNow service certification to accelerate instant payments for small and mid-market businesses. In the second quarter of fiscal 2026, Global Business Solutions revenues grew 18% year over year (21% excluding Mailchimp), fueled by 21% Online Ecosystem growth (25% excluding Mailchimp). This growth is underpinned by sustained momentum in mid-market, with Online Ecosystem revenues for QBO Advanced and Intuit Enterprise Suite increasing 40%. For fiscal 2026, Intuit expects the segment revenues to grow 14-15%.
The Consumer Group delivered a solid performance, with revenues rising 15% in the second quarter of fiscal 2026. Credit Karma also performed strongly, with revenues up 23%, fueled by personal loans, credit cards and auto insurance. ProTax and TurboTax revenues grew 7% and 12%, respectively. Together, these platforms are deepening Intuit’s year-round engagement with consumers and expanding monetization opportunities beyond the tax season. Within the Consumer segment, the company forecasts 8-9% revenue growth, with TurboTax growth expected to be 8%, Credit Karma projected to rise 10-13%, and ProTax anticipated to increase between 2% and 3%.
Intuit’s growth is powered by AI combined with human intelligence (HI), delivering customers with done-for-you experiences that emphasize accuracy, compliance, security, reliability and data privacy. This creates a strong competitive edge. Its AI and HI capabilities automate tasks and workflows, drive consumption and adoption of services like payroll and fuel QuickBooks Live customer growth. Over the past year, real-world testing has shown that when AI and HI come together in a single, integrated experience, customers can achieve better outcomes. This positions Intuit for sustained double-digit revenue growth as it expands into the total addressable market (TAM).
Intuit is aggressively expanding into the mid-market through its AI-native Intuit Enterprise Suite, an all-in-one ERP platform that integrates financial management, payroll, HR, payments, and analytics. This addresses fragmented tech stacks and high costs for complex mid-market businesses. This platform is fueling the success of growing businesses, and the company is further scaling its investment in product innovation and go-to-market motions to accelerate customer adoption. In February 2026, it launched a new AI-powered construction edition for Intuit Enterprise Suite, built specifically for the complex realities of the $2 trillion construction industry.
What Concerns Us About INTU?
Intuit has its share of challenges as its performance is partly tied to the health of small businesses, lending conditions and consumer tax filing dynamics. A slowdown in consumer spending or credit demand could impact its growth. The company’s business seasonality remain a concern. The competitive landscape in tax preparation and enterprise accounting exerts pricing pressure, particularly during large contract renewals.
INTU’s Estimate Revision
Reflecting similar sentiments, the Zacks Consensus Estimate for fiscal 2026 earnings per share (EPS) has moved up by a cent to $23.15 over the past 30 days. 2026 EPS suggests 14.9% growth from the prior-year quarter.
Image Source: Zacks Investment Research
How to Play the INTU Stock?
Intuit remains one of the most compelling fintech platforms, with durable moats in tax, accounting and consumer finance. Its aggressive AI integration, expanding mid-market presence and Global Business Solutions platform position it well for sustained growth.
Although macro risks and business seasonality temper the near-term upside, strong fundamentals, discounted valuation and rising earnings estimates create a clear buying opportunity.
View the Zacks #1 Rank List
Image: Bigstock
Intuit Stock Trades at a Discount: Should You Buy, Hold or Sell?
Key Takeaways
Intuit, Inc. (INTU - Free Report) shares are trading at a discount. In terms of the forward 12-month Price/Sales (P/S), Intuit is trading at 4.35X, lower than the Zacks Computer - Software industry average of 6.31X.
INTU is also trading at a discount compared to its fintech rivals, Cadence Design Systems (CDNS - Free Report) and Synopsys (SNPS - Free Report) . At present, CDNS and ADSK have P/S multiples of 12.49X and 7.58X, respectively.
Image Source: Zacks Investment Research
Intuit’s shares have underperformed, declining 45.1% over the past three months compared to the industry’s 24.7% fall, while the S&P 500 composite decreased 2.6%. Its peers, Cadence Design and Synopsys, decreased 17% and 22.5% during this period.
Despite macroeconomic issues weighing on the stock, the company boasts solid fundamentals, mid-market expansion and AI integration. Nevertheless, the decline has raised questions about whether this is another temporary stumble or a sign of deeper trouble in the computer-software landscape.
Image Source: Zacks Investment Research
Let’s delve deeper into this to find out whether the stock should be a Buy, Hold or Sell.
What’s in Favor of INTU Stock?
At the center of Intuit’s growth story is its transformation into an AI-powered financial operating platform. Intuit is no longer just a provider of tax software or accounting tools, but has become an integrated ecosystem weaving together TurboTax, QuickBooks, Credit Karma, Mailchimp and Intuit Enterprise Suite, serving customers and small businesses, plus mid-market enterprises. This shift is now being reflected in the company’s fundamentals. Its second-quarter fiscal 2026 results demonstrated this momentum, with revenues growing nearly 17% year over year. For the third quarter of fiscal 2026, the company expects total revenue growth of 10%. It reiterated its fiscal 2026 revenue guidance to 12-13% growth.
Intuit's Global Business Solutions segment serves small and mid-market businesses and accounting professionals with an all-in-one platform, including QuickBooks Online (QBO), payroll, payments, Mailchimp, and Intuit Enterprise Suite, delivering AI-driven automation and human expertise for end-to-end financial workflows. Recently, Intuit completed FedNow service certification to accelerate instant payments for small and mid-market businesses. In the second quarter of fiscal 2026, Global Business Solutions revenues grew 18% year over year (21% excluding Mailchimp), fueled by 21% Online Ecosystem growth (25% excluding Mailchimp). This growth is underpinned by sustained momentum in mid-market, with Online Ecosystem revenues for QBO Advanced and Intuit Enterprise Suite increasing 40%. For fiscal 2026, Intuit expects the segment revenues to grow 14-15%.
The Consumer Group delivered a solid performance, with revenues rising 15% in the second quarter of fiscal 2026. Credit Karma also performed strongly, with revenues up 23%, fueled by personal loans, credit cards and auto insurance. ProTax and TurboTax revenues grew 7% and 12%, respectively. Together, these platforms are deepening Intuit’s year-round engagement with consumers and expanding monetization opportunities beyond the tax season. Within the Consumer segment, the company forecasts 8-9% revenue growth, with TurboTax growth expected to be 8%, Credit Karma projected to rise 10-13%, and ProTax anticipated to increase between 2% and 3%.
Intuit’s growth is powered by AI combined with human intelligence (HI), delivering customers with done-for-you experiences that emphasize accuracy, compliance, security, reliability and data privacy. This creates a strong competitive edge. Its AI and HI capabilities automate tasks and workflows, drive consumption and adoption of services like payroll and fuel QuickBooks Live customer growth. Over the past year, real-world testing has shown that when AI and HI come together in a single, integrated experience, customers can achieve better outcomes. This positions Intuit for sustained double-digit revenue growth as it expands into the total addressable market (TAM).
Intuit is aggressively expanding into the mid-market through its AI-native Intuit Enterprise Suite, an all-in-one ERP platform that integrates financial management, payroll, HR, payments, and analytics. This addresses fragmented tech stacks and high costs for complex mid-market businesses. This platform is fueling the success of growing businesses, and the company is further scaling its investment in product innovation and go-to-market motions to accelerate customer adoption. In February 2026, it launched a new AI-powered construction edition for Intuit Enterprise Suite, built specifically for the complex realities of the $2 trillion construction industry.
What Concerns Us About INTU?
Intuit has its share of challenges as its performance is partly tied to the health of small businesses, lending conditions and consumer tax filing dynamics. A slowdown in consumer spending or credit demand could impact its growth. The company’s business seasonality remain a concern. The competitive landscape in tax preparation and enterprise accounting exerts pricing pressure, particularly during large contract renewals.
INTU’s Estimate Revision
Reflecting similar sentiments, the Zacks Consensus Estimate for fiscal 2026 earnings per share (EPS) has moved up by a cent to $23.15 over the past 30 days. 2026 EPS suggests 14.9% growth from the prior-year quarter.
Image Source: Zacks Investment Research
How to Play the INTU Stock?
Intuit remains one of the most compelling fintech platforms, with durable moats in tax, accounting and consumer finance. Its aggressive AI integration, expanding mid-market presence and Global Business Solutions platform position it well for sustained growth.
Although macro risks and business seasonality temper the near-term upside, strong fundamentals, discounted valuation and rising earnings estimates create a clear buying opportunity.
Currently, Intuit carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.