Intuit Stock Rises 19.3% Year to Date: Still a Buy or Time to Wait?

Intuit Inc. INTU has delivered a solid performance in 2025, with its stock rising 19.3% year to date, outperforming the Zacks Computer – Software industry’s 17.5% appreciation. In contrast to peers, such as Autodesk, Inc. ADSK and Commvault Systems, Inc. CVLT, INTU has clearly emerged as one of the standout performers. The rally reflects investor confidence in the company’s expanding role as a full-scale financial technology platform powered by artificial intelligence.With strong results across its Consumer, Credit Karma, and Global Business Solutions segments, Intuit is increasingly viewed as a one-stop solution for individuals and small to mid-sized businesses. Its AI-driven tools and subscription-based model continue to drive revenue growth and operational efficiency.However, the stock’s premium valuation has raised questions about whether the upside is fully priced in. As Intuit leans further into automation, platform integration, and market expansion, investors are assessing if current momentum can be sustained over the long term. Let's explore further to determine whether it’s wise to consider taking or increasing positions in INTU or waiting for a better entry point.Image Source: Zacks Investment ResearchWhat’s Driving Intuit’s Growth — And Can It Last?An AI-Driven Financial Platform in Full Swing: At the center of Intuit’s growth story is its transformation into an AI-powered financial operating platform. Rather than remaining a provider of tax software or accounting tools, Intuit has evolved into an integrated ecosystem serving 100 million customers, ranging from individual filers to mid-market enterprises. This shift is now being reflected in the company’s fundamentals. Its third-quarter fiscal 2025 results demonstrated this momentum, with revenues growing 15.1% and the company raising full-year guidance based on strong performance across all segments.TurboTax and Credit Karma, Platform Synergies at Scale: TurboTax Live is seeing strong momentum, with customer numbers projected to rise 24% and revenues by 47% this fiscal year. Meanwhile, Credit Karma’s 31% revenue jump in the third quarter highlights its growing footprint beyond traditional tax and accounting offerings. More importantly, Intuit is unlocking strong platform synergies — 70% of Credit Karma users had seamless TurboTax access, driving new users, with 22% opting for Live services.Generative AI Is Driving Gains: Intuit’s Generative AI Operating System gives it a strong competitive edge by delivering automated, done-for-you experiences that automate complex tasks for users. Its done-for-you experiences are gaining traction, about 25% of invoicing customers have tried AI-generated reminders, leading to a more than 10% higher payment conversion rate on overdue invoices. Also, it reported a twofold rise in QuickBooks Live adoption, connecting customers to AI-enabled human experts.The recent introduction of transformative set of proactive Intuit AI agents focused on payments, customer management, project workflows, and accounting is poised to change the way small businesses run. By automating workflows and working with human experts, these agents will offer real-time insights and boost cash flow management for businesses.Capturing the Mid-Market Opportunity: Another key pillar of Intuit’s future growth lies in the mid-market. This segment, defined as businesses generating between $2.5 million and $100 million annually, represents an $89 billion total addressable market opportunity. Intuit is aggressively capturing this market with its Enterprise Suite (IES), which combines multi-entity accounting, payroll, marketing (via Mailchimp), and financial insights in a single, scalable solution.Subscription-Led Model Boosts Resilience: Intuit’s growth is underpinned by a highly predictable revenue model. Subscription-based services now account for 77% of total revenues, enabling the company to reinvest steadily while generating recurring revenues.INTU’s Estimates Revision and ValuationThe recent estimate revision trends also echo similar sentiments. The consensus mark for fiscal 2025 and 2026 EPS has been revised upward over the past two months, reflecting analysts’ bullish views.Image Source: Zacks Investment ResearchFrom a valuation perspective, in terms of forward 12-month Price/Sales (P/S), Intuit is currently trading at 10.04X, which is at a premium to the industry average of 8.82X. Moreover, compared with its peers, the stock trades at a premium to Autodesk and Commvault Systems. At present, Autodesk and Commvault Systems have P/S multiples of 8.47X and 6.49X, respectively.Although Intuit’s price-to-sales ratio reflects a premium valuation, it is underpinned by the company’s reliable subscription-driven revenue stream and its ability to capitalize on a rapidly expanding addressable market.Image Source: Zacks Investment ResearchFinal Take on INTUIntuit’s strong 2025 performance reflects the strength of its AI-driven transformation, diversified revenue streams, and growing presence in the mid-market. A 19.3% stock gain, raised guidance, and upward earnings revisions reinforce management’s confidence in sustaining double-digit growth. While the stock trades at a valuation premium, its recurring revenue model, platform synergies, and expanding TAM justify that multiple. With continued momentum across TurboTax, Credit Karma, and QuickBooks, and increasing AI adoption, Intuit is well-positioned for long-term value creation. For growth-focused investors seeking resilience and innovation, Intuit remains a solid pick heading into the second half of 2025 and beyond.Currently, Intuit sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intuit Inc. (INTU): Free Stock Analysis Report Autodesk, Inc. (ADSK): Free Stock Analysis Report CommVault Systems, Inc. (CVLT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks