Intuit, the financial software giant behind popular applications like TurboTax and QuickBooks, saw its stock price jump by approximately 9% on Friday. This surge followed the company’s release of impressive third-quarter fiscal results, exceeding analyst expectations and projecting strong full-year guidance.
The company reported a 15% increase in revenue, reaching $7.8 billion for the quarter. Net income also showed significant growth, rising 18% to $2.82 billion, or $10.02 per share. Intuit CEO Sasan Goodarzi highlighted this as the company’s fastest organic growth in over a decade, emphasizing the robust performance across its entire platform. This impressive growth is attributed to a combination of factors, including the continued popularity of its core products and a strategic focus on integrating artificial intelligence (AI) into its services.
Intuit’s optimistic outlook extends to the full fiscal year. The company anticipates revenue between $18.72 billion and $18.76 billion, surpassing analyst predictions of $18.35 billion. Goodarzi emphasized the company’s ambitious AI roadmap, describing Intuit’s vision as a ‘one-stop shop’ offering AI agents and AI-enabled human experts to support both consumers and small to medium-sized businesses.
The market reacted positively to this news, with analysts from major firms like Goldman Sachs and Deutsche Bank upgrading their ratings and price targets for Intuit stock. Goldman Sachs reiterated its buy rating, increasing its price target to $860 from $750, citing Intuit’s strong execution and the long-term growth potential fueled by its AI initiatives. Deutsche Bank echoed this sentiment, raising its price target to $815 from $750, emphasizing the reassuring results after a period of market uncertainty and expressing confidence in the company’s consumer business growth.
The positive analyst commentary reinforces the market’s confidence in Intuit’s future. The company’s successful integration of AI, its strong financial performance, and its ambitious growth strategy all contribute to a positive outlook for the company and its investors. This stock surge serves as a testament to Intuit’s ability to adapt to the evolving technological landscape and maintain its position as a leader in the financial software industry.
