Intuit (INTU) Holds $650 Line Ahead of Earnings: Will AI Fuel Future Growth?

Intuit Inc. (NASDAQ: INTU), the financial software giant behind TurboTax and QuickBooks, is set to release its earnings report after market close today. The stock is currently trading at $652.79 in pre-market hours, a marginal increase of 0.33% from the previous close, reflecting a relatively flat performance leading into this crucial earnings announcement.

Analysts project an EPS of $3.09, up from $2.50 in the same quarter last year, indicating strong earnings growth. Revenue is expected to reach $3.76 billion, reflecting a solid 14.49% year-over-year increase. The market is keenly watching whether Intuit can demonstrate sustained growth, particularly in its AI-driven initiatives, to justify its valuation.

Intuit has been aggressively investing in artificial intelligence, and these efforts are expected to be a key driver of future growth. The company recently announced a significant partnership with OpenAI, committing over $100 million to integrate advanced AI models like ChatGPT into its financial tools.

This collaboration aims to provide users with AI-powered financial decision-making capabilities directly within platforms like TurboTax, Credit Karma, and QuickBooks. The market reacted positively to this news, with Intuit's shares rising 3.4% in premarket trading following the announcement.

Furthermore, Intuit launched five new AI agents designed to assist small and mid-sized businesses (SMBs) with tasks ranging from bookkeeping to lead generation. The promise of increased efficiency and potential revenue gains for SMBs has fueled optimism around Intuit's ability to penetrate this market segment further.

Intuit's strategic acquisition of GoCo, a provider of HR and benefits solutions, underscores its commitment to expanding its services for mid-market businesses. By integrating GoCo's capabilities into its Intuit Enterprise Suite and QuickBooks Payroll, Intuit aims to offer a comprehensive solution for managing both financials and employee lifecycles. The acquisition was met with positive market sentiment, with Intuit's stock climbing 3.3% following the announcement.

In its fiscal Q4 2025 earnings report, Intuit reported strong performance, with a 20% year-over-year revenue increase to $3.8 billion and adjusted earnings per share (EPS) of $2.75, surpassing analyst expectations. This growth was largely driven by strong demand for AI-powered tools across its business segments, particularly in Credit Karma, TurboTax Live, and QuickBooks Online.

However, Intuit's fiscal 2026 outlook, which projected first-quarter GAAP EPS between $1.19 and $1.26 and revenue growth of 14% to 15%, fell short of analyst expectations.

While the market seems to be focusing on short-term guidance and potential headwinds in specific segments,it's possible that Intuit's long-term investments in AI and strategic acquisitions are not fully priced into the current stock value. The integration of AI into financial services is still in its early stages, and Intuit's early mover advantage could lead to significant gains in market share and customer loyalty over the next few years.

Furthermore, the company's strong Q4 performance suggests that it has the financial strength and operational expertise to navigate any short-term challenges. This earnings call will be important to see if Intuit can assuage analyst fears regarding forward guidance.