| Position | Action |
|---|---|
| Current position at initiation | Size to 3-4% portfolio cap; no new additions prior to FQ1 FY27 print |
| Rally to $338-340 resistance zone (upper Bollinger Band) | Trim 10-15% of position to capture rebound premium |
| FQ1 FY27 validates: forward guidance maintained, restructuring savings visible, GBS growth holds at 15% | Add to 5% cap post-print |
| FQ1 FY27 guidance reset or estimates cut 10%+ | Trim toward 3% cap and reassess $295 stop trigger |
| Goodwill impairment event | Trim toward 3% cap |
INTU is a fundamentally excellent company being mispriced by a sentiment-driven market — a 14% grower with 23% EPS compounding and a 0.84 PEG trading 57% off its highs presents a rare asymmetric entry point, not a warning.
| Indicator | Value | Signal |
|---|---|---|
| close_50_sma | $291.17 | bullish |
| close_200_sma | $455.46 | bearish |
| macd | 10.12 | bullish |
| macds | 7.18 | — |
| rsi | 61.22 | neutral |
| atr | $14.86 | — |
| boll_ub | $339.37 | neutral |
| boll_lb | $268.88 | — |
Support: 268.88 · 291.17 · 304.13 | Resistance: 339.37 · 336.21
INTU's technical picture shows mixed signals across timeframes. Short-term indicators are constructive: price is above the 50-day SMA ($291.17), MACD is positive at 10.12 and above its signal line by 2.94, RSI is 61.22 (above neutral but below overbought), and price is in the upper half of the Bollinger range ($304.13 middle, $339.37 upper). However, the long-term trend remains bearish with price approximately 28.6% below the declining 200-day SMA at $455.46, and the MACD/signal spread has narrowed from 6.23 to 2.94, suggesting momentum acceleration may be moderating. The ATR of $14.86 indicates daily volatility of 4.6% of share price, warranting volatility-adjusted position sizing and stops.
This report is AI-generated for informational and educational purposes only and is not investment advice or a recommendation to buy or sell any security. Full disclaimer.
Hold INTU through FQ1 FY27 catalyst with 3-4% cap, trim into resistance, and tightened $295 stop
All three analysts converge on HOLD; probability-weighted return profile (bear ~$315 target vs. bull $400-450 thesis) produces roughly symmetric -8% to +11% outcome that does not justify directional bet against the catalyst window. Valuation dislocation exists at 11.89x forward P/E on 23% EPS CAGR with 0.84 PEG (comparable SaaS trades 25-35x), but thesis requires simultaneous validation of multiple assumptions — an asymmetric bet. Goodwill at 35.5% of assets ($13.98B, $8.1B in Credit Karma) is real but non-cash risk; core TurboTax/QuickBooks moat (80% SMB market share) provides execution certainty through catalyst window. Price target $315.00 reflects bear case alignment.
When: Price approaches $338-340 (upper Bollinger Band at $339.37, recent high at $336.21)
Then: Execute 10-15% trim to monetize 22% rebound from June 26 lows
Truist's $350 PT and Fundsmith exit are not bearish signals — they actually confirm upside remains
↩ rebuts: “Bear's reliance on Truist downgrade and Fundsmith exit as bearish evidence”
· concedes: Bear's risk management approach of waiting for confirmation above $339-340 is 'reasonable' but misses asymmetric entry; Bear correctly identifies volatility ahead; Timing uncertainty is real — the HOLD acknowledges quality but lacks timing conviction
INTU's "cheap" Forward P/E of 11.89x is a mirage built on consensus estimates that are about to be revised lower; the professional investment community (Fundsmith exit, Truist and TD Cowen downgrades) is rationally pricing in structural AI disruption risks, multiple compression, and goodwill writedown exposure that the bull thesis dismisses.
· concedes: INTU is a high-quality business; There is genuine value in the platform if AI disruption risks prove overstated; Buybacks at current levels provide some floor support; The stock has rallied 22% in six weeks, demonstrating some level of market disagreement with the bearish thesis
→ vs conservative: Truist downgrade to $350 from $410 still implies upside from current $325 price, suggesting the analyst doesn't truly see downside—fundsmith exit was portfolio rebalancing, not conviction-based selling, and the 200-day SMA declining from $461 to $455 means the rate of decline is decelerating, not accelerating
→ vs neutral: The 8% downside vs 11% upside framing ignores that comparable SaaS names trade at 25-35x forward earnings; a forward P/E of 11.89x with 23% EPS growth and 0.84 PEG ratio represents a severe dislocation, not symmetric risk-reward
Market Cap
$88.97B
TTM P/E
19.84x
Forward P/E
11.89x
PEG Ratio
0.84
P/B
4.32x
Beta
0.96
Dividend Yield
1.49%
52-Week High
$762.48
52-Week Low
$252.84
50-Day MA
$290.68
200-Day MA
$465.29
Drawdown from 52W High
-57%
Revenue FY2025
$18.831B
Revenue FY2024
$16.285B
Revenue FY2023
$14.368B
Revenue FY2022
$12.726B
Revenue 4Y CAGR
~14.0%
Net Income FY2025
$3.869B
Net Income FY2024
$2.963B
Net Income FY2023
$2.384B
Net Income FY2022
$2.066B
EPS 4Y CAGR
~23.4%
Diluted EPS FY2025
$13.67
Diluted EPS FY2024
$10.43
Diluted EPS FY2023
$8.42
Diluted EPS FY2022
$7.28
Q3 FY2026 Revenue
$8.558B
Q3 FY2026 Revenue YoY
+10.4%
Q3 FY2026 Diluted EPS
$11.09
Q3 FY2026 EPS YoY
+10.7%
Q3 FY2026 Gross Margin
83.9%
Operating Margin FY2025
26.2%
Operating Margin FY2024
23.7%
Operating Margin FY2023
21.9%
Operating Margin FY2022
20.1%
Gross Margin TTM
80.8%
Operating Margin TTM
47.0%
Net Margin
21.9%
ROE
22.5%
ROA
9.5%
Total Assets Apr 2026
$39.330B
Total Assets Apr 2025
$36.593B
Cash & Equivalents Apr 2026
$4.681B
Cash & Equivalents Apr 2025
$5.443B
Short-term Investments Apr 2026
$3.761B
Short-term Investments Apr 2025
$0.731B
Restricted Cash Apr 2026
$7.383B
Goodwill Apr 2026
$13.982B
Goodwill Apr 2025
$13.847B
Intangibles Apr 2026
$4.807B
Intangibles Apr 2025
$5.397B
Total Debt Apr 2026
$6.900B
Total Debt Apr 2025
$7.087B
Long-term Debt Apr 2026
$5.412B
Long-term Debt Apr 2025
$5.906B
Stockholders' Equity Apr 2026
$20.629B
Stockholders' Equity Apr 2025
$20.125B
Net Debt Apr 2026
$1.481B
Net Debt Apr 2025
$0.963B
Working Capital Apr 2026
$5.561B
Working Capital Apr 2025
$4.311B
Current Ratio Apr 2026
1.45
Current Ratio Apr 2025
1.41
Debt/Equity
33.4%
Interest Coverage
~50x
TTM Free Cash Flow
$5.232B
FCF Margin FY2025
32.3%
FCF Margin FY2024
28.5%
FCF Margin FY2023
33.3%
FCF Margin FY2022
28.8%
FCF 4Y CAGR
~18.5%
Capex FY2025
$124M
Capex % Revenue FY2025
0.66%
Capex FY2024
$250M
Capex % Revenue FY2024
1.5%
FCF Yield
~5.9%
Share Buybacks TTM
~$4.09B
Dividends Paid TTM
~$1.32B
Total Capital Return TTM
~$5.4B
Buybacks FY25
$2.77B
Buybacks FY24
$1.98B
Dividends FY25
$1.189B
Dividends FY22
$774M
Strengths
Concerns
Intuit operates a dominant SaaS platform franchise (TurboTax, QuickBooks, Credit Karma, Mailchimp) delivering 14% revenue CAGR and 23%+ EPS CAGR with strong operating leverage, translating to $5.2B TTM free cash flow at 5.9% yield. The stock has suffered a 57% drawdown to ~$325, creating an anomalous forward P/E of 11.89x and PEG of 0.84 that appear mispriced relative to comparable SaaS peers trading at 25-35x earnings, though AI disruption concerns and $14B in goodwill warrant monitoring. The setup represents a "growth-at-a-reasonable-price after sentiment-driven drawdown" opportunity with best risk-adjusted entries likely on confirmed basing above the 50-day moving average.