Intuit: This Valuation Doesn't Make Sense; I'm Buying

Intuit is rated a Strong Buy, with valuation reflecting excessive pessimism despite continued double-digit growth and robust financials. INTU's Q3 FY26 saw 10% revenue and EPS growth, guidance raised, and aggressive cost-cutting, including a 17% workforce reduction to pivot toward AI. Major buybacks ($3.34B YTD), a new $8B authorization, and even a dividend on top underscore management's conviction in undervaluation and financial strength. AI and macro headwinds are real but can also come with opportunities; INTU's expert-assisted services, data moats, and strategic adaptation can offset long-term disruption risks and spin them into strengths.

Intuit fell more than 60% over the past year, dragged down significantly by the “SaaSpocalypse” and AI fears, which are seen as a threat for the company’s legacy platforms such as TurboTax, QuickBooks, Credit Karma, or Mailchimp.