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INTU Doubles Down on AI: Can Intelligence Drive the Next Growth Wave?
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Key Takeaways
Intuit is making AI central to growth after fiscal 2026 revenue rose 14% and Big Bets topped 30% growth.
Intuit reported 40% higher coding velocity, with 70% of merged pull requests supported by AI.
Intuit expects fiscal 2027 revenue of $23.28-$23.51 billion, implying growth of 9-10%.
Intuit Inc. (INTU - Free Report) is making artificial intelligence central to its next phase of growth. The company says its AI strategy rests on proprietary financial data, industry expertise and human support. The push comes after fiscal 2026 revenues rose 14%, while its three “Big Bets” grew more than 30% and reached 30% of total revenues.
The scale behind Intuit Intelligence is notable. Intuit says its platform draws on more than 40 years of data covering 82 million consumers, 10 million businesses and 650,000 accountants. It cites about 70,000 data points per consumer and 625,000 per business, giving its AI tools financial context across taxes, payments, payroll and accounting.
Intuit is also using AI to change how products are built. The company reported a 40% increase in coding velocity, with 70% of merged pull requests AI-assisted. It aims to double product-development lifecycle velocity by the end of fiscal 2027, potentially allowing faster releases across QuickBooks, TurboTax and other platforms.
However, the growth challenge is customer acquisition. In fiscal 2026, TurboTax’s IRS e-file share fell one point, DIY tax share dropped three points, and business-platform online paid customers grew 4%, two points slower than a year earlier. Intuit plans to use AI-driven products and new entry points to reach more customers while expanding usage among existing ones.
For fiscal 2027, Intuit reaffirmed revenue guidance of $23.28 billion to $23.51 billion, implying 9-10% growth. GAAP EPS is expected to be $20.12-$20.36, up 22-24%. Investors need to watch whether AI-led product gains translate into customer growth without slowing margin progress.
Intuit’s Peers Push AI Deeper Into Financial Workflows
H&R Block (HRB - Free Report) is pairing AI with human tax expertise as competition in digital filing intensifies. H&R Block said fiscal 2026 revenues rose 4.9% to $3.95 billion, while AI Tax Assist handled 4.1 million messages, up 88%. H&R Block expects fiscal 2027 revenue of $4.11-$4.16 billion as adoption continues to expand.
Paychex (PAYX - Free Report) is pushing AI deeper into payroll and HR through its WISE Workforce Intelligence Engine, launched across its HCM platforms. Paychex reported fiscal 2026 revenues of $6.51 billion, up 17%, with adjusted EPS rising 11%. Paychex expects fiscal 2027 revenue growth of 5-6% and adjusted EPS growth of 7-9%, respectively.
INTU’s Price Performance, Valuation and Estimates
Shares of Intuit have gained 17.3% over the past three months, underperforming the broader industry but outperforming the S&P 500 composite.
Image Source: Zacks Investment Research
In terms of forward 12-month Price/Sales (P/S), Intuit is currently trading at 3.53X, which is at a discount to the industry average of 6.15X.
Image Source: Zacks Investment Research
INTU’s estimates for fiscal 2027 have been revised southward over the past month. However, the same for fiscal 2028 has been revised marginally upward over the past week.
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Image: Bigstock
INTU Doubles Down on AI: Can Intelligence Drive the Next Growth Wave?
Key Takeaways
Intuit Inc. (INTU - Free Report) is making artificial intelligence central to its next phase of growth. The company says its AI strategy rests on proprietary financial data, industry expertise and human support. The push comes after fiscal 2026 revenues rose 14%, while its three “Big Bets” grew more than 30% and reached 30% of total revenues.
The scale behind Intuit Intelligence is notable. Intuit says its platform draws on more than 40 years of data covering 82 million consumers, 10 million businesses and 650,000 accountants. It cites about 70,000 data points per consumer and 625,000 per business, giving its AI tools financial context across taxes, payments, payroll and accounting.
Intuit is also using AI to change how products are built. The company reported a 40% increase in coding velocity, with 70% of merged pull requests AI-assisted. It aims to double product-development lifecycle velocity by the end of fiscal 2027, potentially allowing faster releases across QuickBooks, TurboTax and other platforms.
However, the growth challenge is customer acquisition. In fiscal 2026, TurboTax’s IRS e-file share fell one point, DIY tax share dropped three points, and business-platform online paid customers grew 4%, two points slower than a year earlier. Intuit plans to use AI-driven products and new entry points to reach more customers while expanding usage among existing ones.
For fiscal 2027, Intuit reaffirmed revenue guidance of $23.28 billion to $23.51 billion, implying 9-10% growth. GAAP EPS is expected to be $20.12-$20.36, up 22-24%. Investors need to watch whether AI-led product gains translate into customer growth without slowing margin progress.
Intuit’s Peers Push AI Deeper Into Financial Workflows
H&R Block (HRB - Free Report) is pairing AI with human tax expertise as competition in digital filing intensifies. H&R Block said fiscal 2026 revenues rose 4.9% to $3.95 billion, while AI Tax Assist handled 4.1 million messages, up 88%. H&R Block expects fiscal 2027 revenue of $4.11-$4.16 billion as adoption continues to expand.
Paychex (PAYX - Free Report) is pushing AI deeper into payroll and HR through its WISE Workforce Intelligence Engine, launched across its HCM platforms. Paychex reported fiscal 2026 revenues of $6.51 billion, up 17%, with adjusted EPS rising 11%. Paychex expects fiscal 2027 revenue growth of 5-6% and adjusted EPS growth of 7-9%, respectively.
INTU’s Price Performance, Valuation and Estimates
Shares of Intuit have gained 17.3% over the past three months, underperforming the broader industry but outperforming the S&P 500 composite.
Image Source: Zacks Investment Research
In terms of forward 12-month Price/Sales (P/S), Intuit is currently trading at 3.53X, which is at a discount to the industry average of 6.15X.
Image Source: Zacks Investment Research
INTU’s estimates for fiscal 2027 have been revised southward over the past month. However, the same for fiscal 2028 has been revised marginally upward over the past week.
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.