Investors with an interest in Computer - Software stocks have likely encountered both Intuit (INTU) and Microsoft (MSFT). But which of these two stocks is more attractive to value investors?
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Intuit beat Wall Street's sales and earnings targets for fiscal Q3. The company also raised its full-year performance guidance.
Intuit is Overweight with a $560 price target, offering a compelling entry after a misinterpreted 17% workforce reduction and post-earnings selloff. INTU trades at 11x FY27E EPS, a deep discount to its historical average and peers, despite superior revenue growth and free cash flow margins. The elimination of IRS Direct File removes a major secular risk, while mid-market expansion and AI-driven margin gains underpin sustainable double-digit growth.
Intuit Inc. is rated Buy, driven by Dividend Yield Theory signaling deep undervaluation and strong long-term prospects despite recent volatility. INTU's current yield is 1.4%, double its 10-year mean, implying a potential price recovery to $700/share and 26% annualized total returns over four years. Q3 2026 results showed robust growth: raised guidance across all segments, a 17% workforce reduction to sharpen AI focus, and expanded share repurchase authorization.
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INTU raises its FY2026 outlook after a strong Q3, with double-digit revenue and EPS growth fueled by momentum in tax, money and mid-market solutions.
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This article was written and reviewed by Doug Nathman and his team at Trefis. For questions, email [email protected]
A peculiar thing happened after financial software giant Intuit Inc. NASDAQ: INTU reported its third-quarter earnings. Intuit beat analyst expectations, delivering a 10% year-over-year revenue increase to $8.6 billion.
INTU tops Q3 estimates as TurboTax, Credit Karma and QuickBooks Online fuel growth, prompting higher fiscal 2026 guidance.