Intuit (INTU) Fell as Guidance Fell Short of Expectations

Magellan Asset Management, an investment management company, released the third quarter 2025 investor letter for “Magellan Global Fund”. A copy of the letter can be downloaded here. The fund focuses on outstanding companies at attractive prices and, at the same time, leverages a deep understanding of the macroeconomic landscape to manage risk. As measured by the MSCI World Index in USD, the global equities rose 7.3% in the September quarter. The portfolio underperformed the index in the quarter due strong performance of more speculative companies in the risk-on environment. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Magellan Global Fund highlighted stocks such as Intuit Inc. (NASDAQ:INTU). Intuit Inc. (NASDAQ:INTU) offers financial management and compliance products and services. The one-month return of Intuit Inc. (NASDAQ:INTU) was 3.86%, and its shares lost 0.09% of their value over the last 52 weeks. On December 12, 2025, Intuit Inc. (NASDAQ:INTU) stock closed at $670.92 per share, with a market capitalization of $186.786 billion.

Magellan Global Fund stated the following regarding Intuit Inc. (NASDAQ:INTU) in its third quarter 2025 investor letter:

“The largest detractors to the portfolio’s performance over the quarter were Chipotle Mexican Grill, Intuit Inc. (NASDAQ:INTU) & SAP. Intuit underperformed following the release of forward guidance for its Small and Medium Business (SMB) segment that was modestly below consensus expectations. We attribute this conservatism to a more moderate pricing strategy for the upcoming period rather than a fundamental deterioration in end-market demand.”

Intuit Inc. (INTU): "I Really Love" It, Says Jim Cramer

Intuit Inc (NASDAQ:INTU) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 96 hedge fund portfolios held Intuit Inc. (NASDAQ:INTU) at the end of the third quarter, which was 105 in the previous quarter. In the first quarter of fiscal 2026, Intuit Inc. (NASDAQ:INTU) reported revenue of $3.9 billion, representing an increase of 18% year-over-year. While we acknowledge the risk and potential of Intuit Inc (NASDAQ:INTU) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Intuit Inc (NASDAQ:INTU) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Intuit Inc (NASDAQ:INTU) and shared L1 Capital International Fund’s views on the company. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.