Intuit Inc. (INTU): A Bull Case Theory

We came across a bullish thesis on Intuit Inc. on CosmicCapital’s Substack by CosmicCapital. In this article, we will summarize the bulls’ thesis on INTU. Intuit Inc.’s share was trading at $655.68 as of October 13th. INTU’s trailing and forward P/E were 49.88 and 29.50 respectively according to Yahoo Finance.

Intuit (INTU) is a market leader in financial and accounting software, operating dominant positions across both consumer tax preparation and business accounting segments. QuickBooks, the company’s flagship accounting platform, is deeply entrenched with small and mid-sized businesses, providing a cloud-based, subscription-driven solution that combines automation, payments, payroll, and extensive historical data.

The breadth and depth of QuickBooks’ data, hundreds of thousands of attributes across businesses, creates a significant competitive moat, allowing Intuit to deploy AI agents that automate key processes, from cash flow management to invoicing, while continuously enhancing customer experience.

The consumer segment, anchored by TurboTax and Credit Karma, represents 38% of group revenue. TurboTax dominates the U.S. tax preparation market, capturing ~60% of DIY returns, and is transitioning to a services-driven model with TurboTax Live, combining AI and human experts to offer both assisted and full-service filing. This shift moves the business upmarket, providing higher value, stickier revenue streams with lower churn.

Credit Karma complements this by delivering personalized financial products to 149 million members, leveraging Intuit’s extensive data to drive engagement, improve approval rates, and deepen integration with TurboTax. Both businesses benefit from generational AI integration, which enhances automation without replacing the critical human judgment required for complex returns.

Intuit’s consistent investment in R&D, cloud transition, and acquisitions like Credit Karma and Mailchimp strengthen its platform, creating high-margin, recurring revenue streams, while its disciplined capital allocation supports growth and shareholder returns. With strong management, resilient business models, high predictability, and a runway for continued automation and market expansion, Intuit is well-positioned to compound value over the long term, offering a balanced risk/reward profile for investors seeking durable growth in software-enabled financial services.

Previously we covered a bullish thesis on Intuit Inc. (INTU) by Quality Equities in May 2025, highlighting its durable competitive advantages, recurring revenue, and integrated ecosystem across TurboTax, QuickBooks, Credit Karma, and Mailchimp. The stock has been flat since our coverage as the thesis largely played out. The thesis still stands, while CosmicCapital emphasizes AI integration and TurboTax’s shift to a services-driven model.

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Disclosure: None.