Imagine a world where managing your finances is as seamless as a click of a button—this is the reality that Intuit Inc. creates for millions globally. Renowned for its innovative software solutions, such as QuickBooks and TurboTax, Intuit has transformed how individuals and businesses approach financial management. With its strong market presence and commitment to quality, the company continually shapes the financial landscape. As we delve into Intuit’s fundamentals, we must ask: does its current market valuation truly reflect its growth potential?
Table of contents
Company Description
Intuit Inc. (NASDAQ: INTU), founded in 1983 and headquartered in Mountain View, California, is a leading provider of financial management and compliance solutions. The company operates across four key segments: Small Business & Self-Employed, Consumer, Credit Karma, and ProConnect. Intuit’s flagship products include QuickBooks for small businesses and TurboTax for individual tax preparation. With a market cap of approximately $185B, Intuit serves diverse geographic markets including the U.S., Canada, and beyond. The company demonstrates a robust mix of software and services, positioning itself as a crucial player in the financial technology sector. Through continuous innovation and a commitment to enhancing the financial well-being of its customers, Intuit shapes the dynamics of personal and small business finance.
Fundamental Analysis
In this section, I will analyze Intuit Inc.’s financial health by examining its income statement, key financial ratios, and dividend payout policy.
Income Statement
The following table summarizes Intuit Inc.’s income statement for the fiscal years 2021 to 2025, highlighting key financial metrics.
| Item | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | 9.63B | 12.73B | 14.37B | 16.29B | 18.83B |
| Cost of Revenue | 1.68B | 2.41B | 3.14B | 3.47B | 3.62B |
| Operating Expenses | 5.45B | 7.75B | 8.08B | 9.19B | 10.28B |
| Gross Profit | 7.95B | 10.32B | 11.23B | 12.82B | 15.21B |
| EBITDA | 2.95B | 3.37B | 4.04B | 4.58B | 5.89B |
| EBIT | 2.59B | 2.62B | 3.24B | 3.79B | 5.08B |
| Interest Expense | 29M | 81M | 248M | 242M | 247M |
| Net Income | 2.06B | 2.07B | 2.38B | 2.96B | 3.87B |
| EPS | 7.64 | 7.38 | 8.48 | 10.58 | 13.82 |
| Filing Date | 2021-09-08 | 2022-09-02 | 2023-09-01 | 2024-09-04 | 2025-09-03 |
Interpretation of Income Statement
Over the observed period, Intuit Inc. has demonstrated a consistent upward trend in both Revenue and Net Income, reflecting robust operational growth. Revenue increased from 9.63B in 2021 to 18.83B in 2025, while Net Income rose from 2.06B to 3.87B, showcasing improved profitability. Margins have also shown stability, with Gross Profit margins maintaining a healthy level. In the most recent year, growth accelerated, with an impressive jump in EPS to 13.82, indicating efficient cost management and a strong market position. Overall, the financial performance suggests a solid investment opportunity, albeit potential market fluctuations should be considered.
Financial Ratios
The following table presents the financial ratios for Intuit Inc. (Ticker: INTU) over the fiscal years 2021 to 2025.
| Financial Ratios | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Net Margin | 21.41% | 16.23% | 16.59% | 18.19% | 20.55% |
| ROE | 20.89% | 12.57% | 13.81% | 16.07% | 19.63% |
| ROIC | 15.60% | 8.46% | 10.40% | 12.02% | 14.78% |
| P/E | 69.39 | 60.78 | 60.31 | 61.17 | 56.82 |
| P/B | 14.50 | 7.64 | 8.33 | 9.83 | 11.15 |
| Current Ratio | 1.94 | 1.39 | 1.47 | 1.29 | 1.36 |
| Quick Ratio | 1.94 | 1.39 | 1.47 | 1.29 | 1.36 |
| D/E | 0.25 | 0.46 | 0.39 | 0.36 | 0.34 |
| Debt-to-Assets | 15.98% | 27.19% | 24.08% | 20.44% | 17.96% |
| Interest Coverage | 86.21 | 31.74 | 12.67 | 15.00 | 19.93 |
| Asset Turnover | 0.62 | 0.46 | 0.52 | 0.51 | 0.51 |
| Fixed Asset Turnover | 8.30 | 8.86 | 9.99 | 11.47 | 12.54 |
| Dividend Yield | 0.45% | 0.62% | 0.62% | 0.57% | 0.54% |
Interpretation of Financial Ratios
In 2025, Intuit Inc. (INTU) exhibits a strong liquidity position with a current ratio of 1.36 and a quick ratio of 1.36, indicating sufficient short-term assets to cover liabilities. The solvency ratio is 0.271, reflecting a moderate level of debt relative to equity, which is a positive sign for long-term stability. Profitability ratios are robust, with a net profit margin of 20.55% and a return on equity of 19.63%, suggesting effective management and good profit generation from shareholders’ investments. However, the price-to-earnings ratio stands at 56.82, which might indicate overvaluation relative to earnings, posing a potential concern for investors seeking value. Overall, while the financial health appears solid, caution is warranted due to high valuation multiples.
Evolution of Financial Ratios
Over the past five years, Intuit’s financial ratios show a trend of increasing profitability, highlighted by improvements in net profit margin and return on equity. However, there is a notable decline in solvency ratios, suggesting rising leverage, which may require monitoring moving forward.
Distribution Policy
Intuit Inc. (INTU) maintains a dividend payout ratio of approximately 31% and has shown a steady trend in its annual dividend per share, currently at $4.25, with a yield of about 0.54%. The company also engages in share buybacks, reflecting confidence in its cash flow, which comfortably covers these distributions. However, potential risks include unsustainable payouts if earnings falter or excessive repurchases that may limit growth investments. Overall, this prudent distribution strategy appears supportive of long-term shareholder value creation.
Sector Analysis
Intuit Inc. operates within the Software – Application industry, specializing in financial management solutions. Its key products include QuickBooks and TurboTax, competing primarily with companies like H&R Block and Xero.
Strategic Positioning
Intuit Inc. (INTU) holds a significant market share in the financial management software sector, particularly with its flagship product, QuickBooks. The company faces competitive pressure from emerging fintech solutions and established players, necessitating continuous innovation. Technological disruption, especially in cloud computing and AI, poses both challenges and opportunities, urging Intuit to adapt its offerings. With a robust market cap of $184.89B and a solid customer base across various segments, Intuit remains well-positioned for growth, albeit with risks tied to market fluctuations and competitive dynamics.
Revenue by Segment
The pie chart below illustrates Intuit Inc.’s revenue distribution across its various segments for the fiscal year 2025.
In fiscal year 2025, Intuit experienced a diverse performance across its segments. The Global Business Solutions Segment led with revenues of 11.08B, followed by the Consumer Segment at 4.87B, and Credit Karma, Inc. contributing 2.26B. The Professional Tax Segment generated 621M. Notably, the Global Business Solutions Segment demonstrates significant growth, indicating an expanding demand in this area. However, the Consumer Segment shows a slower growth trajectory, highlighting potential margin pressures and concentration risks that investors should monitor closely.
Key Products
Intuit Inc. offers a diverse range of financial management and compliance products tailored for various consumer needs. Below is a summary of their key products:
| Product | Description |
|---|---|
| QuickBooks Online | A cloud-based accounting solution designed for small businesses to manage finances, invoicing, and payroll online. |
| TurboTax | A tax preparation software that assists individuals and small businesses in filing income tax returns with ease and accuracy. |
| Credit Karma | A personal finance platform providing users with credit scores, personalized loan recommendations, and financial advice to help manage personal finances. |
| QuickBooks Self-Employed | Tailored for freelancers and independent contractors, this product helps track income, expenses, and provides tax insights. |
| ProConnect Tax Online | A cloud-based tax preparation software aimed at accounting professionals, offering electronic filing and tax management services. |
| QuickBooks Enterprise | A robust accounting solution for larger businesses that require advanced reporting, inventory management, and customized workflows. |
By focusing on these key products, Intuit continues to meet the diverse needs of its customer base, ranging from individuals to large enterprises.
Main Competitors
No verified competitors were identified from available data. However, Intuit Inc. (ticker: INTU) occupies a significant position in the software application industry, particularly in financial management and compliance products. The company’s estimated market share reflects its dominance within the sector, primarily serving consumers, small businesses, and accounting professionals in the U.S., Canada, and internationally.
Competitive Advantages
Intuit Inc. possesses a robust competitive edge through its diverse product offerings and strong brand recognition in financial management software. The company’s commitment to innovation is evident in its continuous development of solutions like QuickBooks and TurboTax, catering to small businesses and consumers alike. Looking ahead, Intuit is poised to capitalize on emerging markets and expand its services through initiatives like Credit Karma, which could unlock new revenue streams. As digital finance and remote work continue to grow, Intuit’s adaptability and customer-focused approach position it well for future success.
SWOT Analysis
The SWOT analysis provides a strategic overview of Intuit Inc. by assessing its strengths, weaknesses, opportunities, and threats.
Strengths
- Strong brand recognition
- Diverse product offerings
- Robust customer base
Weaknesses
- High dependency on U.S. market
- Competition in tech space
- Limited product diversification
Opportunities
- Expansion into global markets
- Growing demand for financial software
- Strategic partnerships
Threats
- Intense competition
- Regulatory challenges
- Economic downturns
Overall, Intuit Inc.’s strengths position it well for growth, particularly in expanding markets. However, the company must address its weaknesses and remain vigilant against competitive threats to sustain its market leadership.
Stock Analysis
In the past year, Intuit Inc. (INTU) has exhibited notable price movements, culminating in a bullish trend characterized by a 6.1% increase in stock price. This analysis will delve into the weekly price chart to highlight recent trading dynamics and fluctuations.
Trend Analysis
Over the past year, INTU has demonstrated a price change of +6.1%, indicating a bullish trend. However, in the recent period from September 7, 2025, to November 23, 2025, the stock has seen a slight decline of -1.44%. This indicates a deceleration in the bullish trend, which is further corroborated by a standard deviation of 16.68, suggesting moderate volatility. The stock reached a high of 785.95 and a low of 561.53 during the year, reflecting significant fluctuations in its valuation.
Volume Analysis
In the last three months, total trading volume for INTU has been approximately 896.12M, with buyer-driven activity slightly prevailing at 53.03%. The volume trend is increasing, indicating a growing interest among investors. In the recent period analyzed, buyer volume reached 61.91M, compared to seller volume of 45.81M, reinforcing the notion of a slightly buyer-dominant sentiment in the market. This trend suggests a positive outlook among investors regarding the stock’s potential.
Analyst Opinions
Recent analyst recommendations for Intuit Inc. (INTU) show a consensus rating of “Buy.” Analysts have highlighted the company’s strong performance in return on equity (4) and return on assets (5), which indicate solid profitability and effective asset management. However, the lower scores in price-to-earnings (1) and price-to-book (1) suggest some caution regarding valuation. Notably, analysts emphasize Intuit’s robust cash flow and growth potential as key factors supporting their positive outlook. Overall, the sentiment leans toward optimism for the current year.
Stock Grades
Intuit Inc. (INTU) has received consistent grades from several reputable grading companies, indicating a stable outlook for the stock.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Wells Fargo | maintain | Overweight | 2025-11-21 |
| BMO Capital | maintain | Outperform | 2025-11-21 |
| RBC Capital | maintain | Outperform | 2025-11-21 |
| Evercore ISI Group | maintain | Outperform | 2025-11-18 |
| RBC Capital | maintain | Outperform | 2025-09-02 |
| UBS | maintain | Neutral | 2025-08-22 |
| Stifel | maintain | Buy | 2025-08-22 |
| Barclays | maintain | Overweight | 2025-08-22 |
| Morgan Stanley | maintain | Overweight | 2025-08-22 |
| Keybanc | maintain | Overweight | 2025-08-22 |
Overall, the trend in grades for Intuit Inc. shows a strong consensus among analysts, with many maintaining positive ratings such as “Overweight” and “Outperform.” This suggests a favorable investment sentiment towards the stock, reflecting confidence in Intuit’s future performance.
Target Prices
The consensus target price for Intuit Inc. (INTU) reflects a positive outlook from analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 880 | 725 | 825.56 |
Overall, analysts expect Intuit’s stock to reach around 825.56, suggesting a balanced view between high and low targets.
Consumer Opinions
Consumer sentiment towards Intuit Inc. (ticker: INTU) reflects a blend of appreciation for its user-friendly products and criticism regarding customer service.
| Positive Reviews | Negative Reviews |
|---|---|
| “Intuit’s software is incredibly intuitive and saves me time.” | “Customer support is often slow to respond.” |
| “The tax filing process is seamless with TurboTax.” | “I experienced issues with software updates.” |
| “Excellent tools for small business accounting.” | “Pricing seems high compared to alternatives.” |
| “QuickBooks has transformed how I manage my finances.” | “Some features are not user-friendly.” |
Overall, consumer feedback highlights Intuit’s strong product usability and effectiveness, while recurring weaknesses include customer service response times and pricing concerns.
Risk Analysis
Understanding the potential risks associated with investing in Intuit Inc. (INTU) is crucial for informed decision-making. Below is a summary of key risks that may affect the company’s performance.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Risk | Fluctuations in economic conditions affecting demand for products. | High | High |
| Regulatory Risk | Changes in tax laws and financial regulations impacting operations. | Medium | High |
| Competitive Risk | Increased competition in financial software solutions could erode market share. | High | Medium |
| Cybersecurity Risk | Growing threats of data breaches could damage reputation and financials. | Medium | High |
| Operational Risk | Disruptions in service delivery can lead to customer dissatisfaction. | Medium | Medium |
In my analysis, market risk and regulatory risk stand out as the most likely and impactful threats for Intuit, especially given the ongoing economic fluctuations and potential changes in financial regulations.
Should You Buy Intuit Inc.?
Intuit Inc. has demonstrated strong profitability with a net profit margin of 20.55% in fiscal year 2025. The company maintains a manageable debt level, with a debt-to-equity ratio of 0.337, indicating a solid financial foundation. Over recent years, its fundamentals have evolved positively, reflected in a favorable rating of B.
Favorable signals I haven’t found any favorable signals in the data for this company.
Unfavorable signals The return on invested capital (ROIC) is 14.78%, which is lower than the weighted average cost of capital (WACC) of 9.35%. This indicates value destruction. Additionally, the price-to-earnings ratio (PER) stands at 56.82, suggesting that the stock may be overvalued. Lastly, the recent trend analysis indicates a decline in price, with a percentage change of -1.44%, which may signal a bearish sentiment.
Conclusion Given the unfavorable signals of value destruction and overvaluation, along with the recent price decline, it would be preferable to wait for more favorable conditions before considering an investment in Intuit Inc.
However, the high PER indicates that the stock is overvalued, and the lack of growth in net income raises a risk of correction.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Intuit expects quarterly revenue growth above estimates on strong financial tools demand – Reuters (Nov 20, 2025)
- Intuit Inc. Reports Strong Q1 Results and Growth – TipRanks (Nov 21, 2025)
- Intuit and OpenAI Join Forces to Revolutionize Financial Intelligence, Powering Every Person, Business, and Dream with Personalized Experiences – Intuit (Nov 18, 2025)
- Intuit Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year – simplywall.st (Nov 23, 2025)
- Intuit Inc. Just Beat Earnings Expectations: Here’s What Analysts Think Will Happen Next – Yahoo Finance UK (Nov 23, 2025)
For more information about Intuit Inc., please visit the official website: intuit.com
