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Intuit or PayPal: Which Fintech Is Built for Future Growth?
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Key Takeaways
Intuit is using AI and a broad financial ecosystem to create multiple avenues for sustained growth.
PayPal is expanding beyond checkout into Venmo, BNPL and financial services to deepen monetization.
Both companies are investing in AI and broader services to strengthen customer engagement and growth.
Intuit (INTU - Free Report) and PayPal Holdings (PYPL - Free Report) are major fintech players, but their growth strategies differ meaningfully. Intuit operates a diversified financial ecosystem spanning accounting, tax preparation, payments, personal finance and marketing through QuickBooks, TurboTax, Credit Karma, Mailchimp and Intuit Enterprise Suite. PayPal, meanwhile, remains more closely tied to digital payments, with its ecosystem centered on branded checkout, Venmo, Braintree and an expanding portfolio of financial services.
Both companies are investing heavily in artificial intelligence and deeper customer monetization. Intuit aims to become an AI-driven expert platform capable of automating increasingly complex financial tasks for consumers, businesses and accountants. PayPal is transforming its network by expanding beyond checkout into Venmo, credit, Buy Now, Pay Later (“BNPL”), merchant services and, over time, agentic payments and digital identity.
The Case for Intuit
Intuit enters fiscal 2027 with solid momentum across several key businesses. Fiscal 2026 revenues increased 14% year over year to $21.4 billion. Global Business Solutions revenues rose 16%, while Online Ecosystem revenues jumped 19%, reflecting continued strength in QuickBooks and related services. GAAP and non-GAAP earnings per share both increased 20%, highlighting the company’s ability to translate revenue growth into stronger profitability.
In fiscal 2026, revenues from Intuit’s online money portfolio advanced 31%, while mid-market revenues grew 39%. At the higher end of the market, Intuit Enterprise Suite is gaining traction. Its annualized revenues surpassed $145 million in the fourth quarter, four times the year-ago level, demonstrating growing demand among more complex businesses. Payments provide another important growth lever. Total online payment volume, including Bill Pay, increased 30% to more than $225 billion in fiscal 2026.
Artificial intelligence is central to Intuit’s long-term strategy. The company is moving from software that mainly records transactions toward a platform that increasingly performs financial work on behalf of customers. More than 75% of Intuit Enterprise Suite customers already use AI agents every month, suggesting meaningful adoption of these capabilities.
However, risks remain. Growth in total online paying customers slowed to 3%, while TurboTax DIY is also facing pricing pressure from lower-cost alternatives. Still, Intuit’s diversified ecosystem, strong financial performance and growing adoption of AI-powered services provide several paths to sustained growth.
The Case for PayPal
PayPal is undergoing a multiyear transformation aimed at reducing its dependence on branded checkout and creating a more diversified growth model. Second-quarter 2026 revenues increased 5% year over year to $8.7 billion, while total payment volume advanced 10% to $486.4 billion. Payment activity remains healthy, but active accounts were almost flat at 439 million, underscoring the need to improve engagement and monetization across the platform.
Venmo is emerging as one of PayPal’s most important growth opportunities. Venmo Debit Card monthly active accounts increased more than 50% year over year, indicating greater use beyond peer-to-peer payments.
PayPal is also expanding BNPL, credit and other financial services. Management expects financial services across PayPal and Venmo to become the largest driver of future transaction-margin growth. By encouraging customers to use more financial products, PayPal aims to increase engagement, wallet share and customer lifetime value.
Braintree represents another important growth engine. PayPal is working to combine Braintree, PayPal Complete Payments and Hyperwallet on a more unified technology platform. This should make it easier for merchants to adopt additional services such as payouts, payment optimization and embedded finance.
In the long term, PayPal plans to scale AI commerce, agentic payments and digital identity. However, branded checkout growth remains modest, while second-quarter non-GAAP operating income declined 8%. PayPal’s long-term opportunity remains meaningful, but its turnaround still requires stronger execution and a clearer acceleration in company-wide growth.
How Do Estimates Compare for INTU & PYPL?
The Zacks Consensus Estimate for Intuit’s fiscal 2027 sales and EPS implies a year-over-year increase of 9.1% and 8.1%, respectively. EPS estimates have been trending southward over the past week.
Image Source: Zacks Investment Research
Meanwhile, the consensus estimate for PayPal’s 2026 sales and EPS indicates a year-over-year rise of 4.5% and 1.3%, respectively. EPS estimates have been trending upward over the past month.
Image Source: Zacks Investment Research
Valuation: INTU vs. PYPL
From a valuation perspective, we note that PayPal shares are trading at a discount to Intuit.
In terms of forward 12-month Price/Sales (P/S), PYPL is trading at 1.29X below INTU stock, which is currently trading at 4.14X. However, both PYPL and INTU stocks are currently trading below their one-year median of 1.42X and 5.30X, respectively.
Image Source: Zacks Investment Research
Stock Price Performance: INTU vs. PYPL
Over the past three months, both PYPL and INTU shares have outperformed the S&P 500 composite.
Image Source: Zacks Investment Research
INTU vs. PYPL: Which Stock Has the Edge?
Both Intuit and PayPal are strengthening their platforms with AI and financial services, but Intuit appears better positioned for long-term growth. Intuit is benefiting from solid momentum across QuickBooks, payments, mid-market solutions and AI-driven automation, while PayPal is still in the middle of a multiyear transformation centered on Venmo, Braintree, BNPL and branded checkout. With stronger revenue growth, broader cross-selling opportunities and more established growth engines, INTU offers a more compelling growth profile than PYPL at present.
View the Zacks #1 Rank List
Image: Bigstock
Intuit or PayPal: Which Fintech Is Built for Future Growth?
Key Takeaways
Intuit (INTU - Free Report) and PayPal Holdings (PYPL - Free Report) are major fintech players, but their growth strategies differ meaningfully. Intuit operates a diversified financial ecosystem spanning accounting, tax preparation, payments, personal finance and marketing through QuickBooks, TurboTax, Credit Karma, Mailchimp and Intuit Enterprise Suite. PayPal, meanwhile, remains more closely tied to digital payments, with its ecosystem centered on branded checkout, Venmo, Braintree and an expanding portfolio of financial services.
Both companies are investing heavily in artificial intelligence and deeper customer monetization. Intuit aims to become an AI-driven expert platform capable of automating increasingly complex financial tasks for consumers, businesses and accountants. PayPal is transforming its network by expanding beyond checkout into Venmo, credit, Buy Now, Pay Later (“BNPL”), merchant services and, over time, agentic payments and digital identity.
The Case for Intuit
Intuit enters fiscal 2027 with solid momentum across several key businesses. Fiscal 2026 revenues increased 14% year over year to $21.4 billion. Global Business Solutions revenues rose 16%, while Online Ecosystem revenues jumped 19%, reflecting continued strength in QuickBooks and related services. GAAP and non-GAAP earnings per share both increased 20%, highlighting the company’s ability to translate revenue growth into stronger profitability.
In fiscal 2026, revenues from Intuit’s online money portfolio advanced 31%, while mid-market revenues grew 39%. At the higher end of the market, Intuit Enterprise Suite is gaining traction. Its annualized revenues surpassed $145 million in the fourth quarter, four times the year-ago level, demonstrating growing demand among more complex businesses. Payments provide another important growth lever. Total online payment volume, including Bill Pay, increased 30% to more than $225 billion in fiscal 2026.
Artificial intelligence is central to Intuit’s long-term strategy. The company is moving from software that mainly records transactions toward a platform that increasingly performs financial work on behalf of customers. More than 75% of Intuit Enterprise Suite customers already use AI agents every month, suggesting meaningful adoption of these capabilities.
However, risks remain. Growth in total online paying customers slowed to 3%, while TurboTax DIY is also facing pricing pressure from lower-cost alternatives. Still, Intuit’s diversified ecosystem, strong financial performance and growing adoption of AI-powered services provide several paths to sustained growth.
The Case for PayPal
PayPal is undergoing a multiyear transformation aimed at reducing its dependence on branded checkout and creating a more diversified growth model. Second-quarter 2026 revenues increased 5% year over year to $8.7 billion, while total payment volume advanced 10% to $486.4 billion. Payment activity remains healthy, but active accounts were almost flat at 439 million, underscoring the need to improve engagement and monetization across the platform.
Venmo is emerging as one of PayPal’s most important growth opportunities. Venmo Debit Card monthly active accounts increased more than 50% year over year, indicating greater use beyond peer-to-peer payments.
PayPal is also expanding BNPL, credit and other financial services. Management expects financial services across PayPal and Venmo to become the largest driver of future transaction-margin growth. By encouraging customers to use more financial products, PayPal aims to increase engagement, wallet share and customer lifetime value.
Braintree represents another important growth engine. PayPal is working to combine Braintree, PayPal Complete Payments and Hyperwallet on a more unified technology platform. This should make it easier for merchants to adopt additional services such as payouts, payment optimization and embedded finance.
In the long term, PayPal plans to scale AI commerce, agentic payments and digital identity. However, branded checkout growth remains modest, while second-quarter non-GAAP operating income declined 8%. PayPal’s long-term opportunity remains meaningful, but its turnaround still requires stronger execution and a clearer acceleration in company-wide growth.
How Do Estimates Compare for INTU & PYPL?
The Zacks Consensus Estimate for Intuit’s fiscal 2027 sales and EPS implies a year-over-year increase of 9.1% and 8.1%, respectively. EPS estimates have been trending southward over the past week.
Image Source: Zacks Investment Research
Meanwhile, the consensus estimate for PayPal’s 2026 sales and EPS indicates a year-over-year rise of 4.5% and 1.3%, respectively. EPS estimates have been trending upward over the past month.
Image Source: Zacks Investment Research
Valuation: INTU vs. PYPL
From a valuation perspective, we note that PayPal shares are trading at a discount to Intuit.
In terms of forward 12-month Price/Sales (P/S), PYPL is trading at 1.29X below INTU stock, which is currently trading at 4.14X. However, both PYPL and INTU stocks are currently trading below their one-year median of 1.42X and 5.30X, respectively.
Image Source: Zacks Investment Research
Stock Price Performance: INTU vs. PYPL
Over the past three months, both PYPL and INTU shares have outperformed the S&P 500 composite.
Image Source: Zacks Investment Research
INTU vs. PYPL: Which Stock Has the Edge?
Both Intuit and PayPal are strengthening their platforms with AI and financial services, but Intuit appears better positioned for long-term growth. Intuit is benefiting from solid momentum across QuickBooks, payments, mid-market solutions and AI-driven automation, while PayPal is still in the middle of a multiyear transformation centered on Venmo, Braintree, BNPL and branded checkout. With stronger revenue growth, broader cross-selling opportunities and more established growth engines, INTU offers a more compelling growth profile than PYPL at present.
Currently, INTU and PYPL each carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.