Is Intuit (INTU) a Resilient Company?

Baron Funds released its “Baron Durable Advantage Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund primarily focuses on investing in securities of large-sized companies. The fund increased 15.6% (Institutional Shares) in the second quarter compared to a 10.9% return for the S&P 500 Index (the Index). The Fund is up 7.5%, year to date, compared to the 6.2% gain for the Index. After two consecutive years of strong market recovery, there was a correction at the end of the first quarter and the early part of the second quarter. But later in the second quarter, the market rebounded meaningfully. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its second-quarter 2025 investor letter, the Baron Durable Advantage 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 -10.68%, and its shares gained 4.88% of their value over the last 52 weeks. On August 21, 2025, Intuit Inc. (NASDAQ:INTU) stock closed at $697.76 per share, with a market capitalization of $194.638 billion.

Baron Durable Advantage Fund stated the following regarding Intuit Inc. (NASDAQ:INTU) in its second quarter 2025 investor letter:

“Very briefly on the other, smaller adds to existing investments during the second quarter. Tax and small business software provider Intuit Inc. (NASDAQ:INTU) – the company continues to execute at a high level and has not seen a cyclical slowdown with stable Small Business revenue growth at 19% in the company’s most recently reported quarter, strong Consumer segment growth of 11%, and very robust Credit Karma growth of 31%, which underpinned annual guidance raise to 15% revenue growth and 18% to 19% EPS growth.”

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Intuit Inc. (NASDAQ:INTU) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 105 hedge fund portfolios held Intuit Inc. (NASDAQ:INTU) at the end of the second quarter, which was 87 in the previous quarter. 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 the list of best IT stocks to buy for the long term. In addition, please check out our hedge fund investor letters Q2 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.