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Investing.com - RBC Capital has reiterated its Outperform rating and $850.00 price target on Intuit (NASDAQ:INTU), citing strong mid-market performance and long-term growth potential. The software giant, currently valued at $188.18 billion, maintains impressive gross profit margins of 80.39%. According to InvestingPro data, analyst targets range from $600 to $971, with a strong consensus recommendation of 1.61 (Buy).
The financial software provider reaffirmed its fiscal first-quarter 2026 guidance and full-year revenue forecast of $20,997-$21,186 million, representing 12-13% growth. Intuit also maintained its non-GAAP earnings per share guidance of $22.98-$23.18, projecting 14-15% growth for the fiscal year. This guidance aligns with the company’s historical performance, as InvestingPro shows a robust 5-year revenue CAGR of 20%.
RBC Capital highlighted Intuit’s impressive mid-market revenue growth of 40% in fiscal year 2025, with the Enterprise Suite (IES) achieving an average revenue per customer of $27,000. The company reported a 23% increase in mid-market customers to 349,000, with improved penetration rates across Payroll and Payments services.
While Mailchimp currently weighs on Intuit’s Global Business Solutions segment growth, management expects the email marketing platform to achieve double-digit growth by the end of fiscal year 2026. Intuit’s Online Ecosystem grew 25% excluding Mailchimp, which generated $1.3 billion in revenue during fiscal year 2025.
Intuit closed fiscal year 2025 with 16% revenue growth and 40% non-GAAP operating margin, reinforcing management’s long-term target of accelerating revenue growth to 20% while maintaining approximately 40% margins. RBC Capital’s price target implies a 32x enterprise value to calendar year 2026 estimated free cash flow multiple.
In other recent news, Intuit has reaffirmed its financial guidance for the first quarter and full fiscal year 2026. The company projects full-year revenue between $20.997 billion and $21.186 billion, reflecting growth of approximately 12% to 13%. Intuit also maintained its GAAP operating income forecast of $5.782 billion to $5.859 billion and non-GAAP operating income of $8.611 billion to $8.688 billion. Despite this, the company’s first-quarter fiscal 2026 guidance was described as "light" by RBC Capital, which reiterated its Outperform rating and $850 price target. Meanwhile, KeyBanc lowered its price target to $825 due to headwinds from Mailchimp but maintained an Overweight rating. Mizuho also upheld its Outperform rating with an $875 target, viewing recent share weakness as a buying opportunity. The firm noted Intuit’s goal to accelerate revenue growth to 20% by 2030, with strong momentum in key growth segments. Intuit’s recent fourth-quarter results showed revenue growth of 20%, surpassing expectations despite a reduced outlook for fiscal year 2026.
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