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On Friday, Piper Sandler, a financial services firm, adjusted its price target for Intuit (NASDAQ:INTU) shares, increasing it to $825 from the previous target of $785. The firm has maintained an Overweight rating on the stock. This change comes in the wake of Intuit’s impressive third-quarter financial results, which surpassed analysts’ expectations. According to InvestingPro data, 20 analysts have revised their earnings upward for the upcoming period, and the stock is currently trading near its 52-week high of $734.18.
Intuit reported robust third-quarter earnings, with revenues reaching $7.75 billion, which was $186 million higher than anticipated. Earnings per share (EPS) for the quarter stood at $11.65, exceeding forecasts by $0.70. The growth in revenue and EPS was attributed to several factors, including an 11% increase in Consumer growth, a significant 31% rise in Credit Karma, and a 20% expansion in the GBS Online Ecosystem. Notably, the Desktop Ecosystem also experienced an 18% increase from the previous year. The company maintains impressive gross profit margins of 80.26% and has achieved a 14.99% year-over-year revenue growth. For deeper insights into Intuit’s financial health and performance metrics, check out the comprehensive Pro Research Report available on InvestingPro.
The company’s success has been linked to its focus on ’done for you experiences,’ which leverage artificial intelligence (AI) and automation technologies. Intuit’s AI-powered tax offering, TurboTax Live, is expected to achieve a customer growth rate of 24% for the year, with an anticipated annual revenue growth of 47%. These projections are partly due to the implementation of an AI-enhanced interface.
Following the announcement of these strong results and the upward revision of its annual targets, Intuit’s stock price rose by 8% in after-hours trading. Piper Sandler’s analyst expressed confidence in Intuit’s trajectory, reiterating an Overweight rating and raising the price target, signaling a positive outlook for the company’s stock performance.
In other recent news, Intuit reported strong financial results for the third quarter of fiscal 2025, with revenue reaching $7.8 billion, a 15% increase year-over-year, surpassing the expected $7.56 billion. The company also posted a non-GAAP earnings per share (EPS) of $11.65, exceeding the forecast of $10.9. Following these robust results, Intuit has raised its fiscal 2025 guidance, projecting a 15% revenue growth, up from the previous estimate of 12-13%. Analysts have responded positively, with BMO Capital Markets raising Intuit’s stock price target to $820, while RBC Capital and Jefferies both increased their targets to $850, maintaining an Outperform and Buy rating, respectively.
The company’s performance was bolstered by strong growth in its Consumer segment and Credit Karma business, with the latter showing a revenue increase of 31%. Intuit’s strategic focus on AI-driven innovations and product expansions has been a key driver of its financial success. The success of TurboTax Live, which gained significant market share, and the momentum in the Global Business Solutions segment were highlighted as major contributors to the positive quarter. Additionally, Intuit has hinted at the introduction of new AI-driven products in fiscal year 2026, which are expected to enhance its market position further.
These recent developments reflect Intuit’s continued strong performance and the market’s positive reception to its updated guidance and strategic initiatives.
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