Intuit Inc. (NASDAQ:INTU), featured among Insider Monkey’s 10 Best Software Stocks to Buy in 2026, has a growing financial marketplace inside its software business. Credit Karma revenue rose 20% to $2.64 billion in fiscal 2026. As banks tighten credit-card standards, insurance offers another way to grow. Yet personal loans and credit cards still generated most of the increase.
Intuit Inc. has a 13x forward P/E and an 18x trailing P/E. Trailing P/E uses past earnings, while forward P/E uses forecast earnings. Management separately projects fiscal 2027 GAAP EPS growth of 22%–24%. The forward valuation looks provisionally reasonable if stronger earnings support cash generation after higher tax payments.
The forward P/E was 35x in July 2025. Intuit Inc. now expects revenue growth of 9%–10%, versus 14% last year, supporting a more moderate valuation. Management also now includes stock compensation in adjusted earnings. That makes the distinction between operating progress and accounting adjustments important when assessing its guidance.
H&R Block, Inc., a close tax-preparation comparison, has a 7x forward P/E. Intuit Inc. guides to non-GAAP EPS growth of 23%–24% under its revised definition for the fiscal year ending July 2027, versus approximately 14%–18% for its rival’s June 2027 year. Faster growth and recurring business-software revenue support a premium over a business more dependent on seasonal tax preparation.
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From Loan Referrals to a Broader Financial Marketplace
Intuit Inc. added $441 million of Credit Karma revenue last year: $235 million from personal loans, $101 million from credit cards and $85 million from insurance. Lending supplied roughly 76% of incremental revenue; insurance contributed 19%. Diversification is advancing, but borrowing remains the main growth engine.
Intuit Inc. has products designed to encourage visits without another loan application. My Cards helps members manage existing card rewards, while Karma Drive uses driving data to identify insurance discounts. These services could reduce the cost of attracting returning customers and create referral opportunities. The test is whether customer benefits also improve shareholder economics. Revenue from additional visits must exceed product, marketing, and servicing costs.
Consolidated finances give Intuit Inc. room to invest. Fiscal 2026 operating cash flow reached $8.84 billion against $221 million of capital expenditure. It included a $2.06 billion stock-compensation addback. Credit Karma represented roughly 12% of group revenue, leaving accounting and tax products as substantial buffers.
Fiscal 2026 cash generation also benefited from lower cash-tax payments, including deductions for previously capitalized research spending. Management expects approximately $2 billion of cash taxes in fiscal 2027, so stronger operating earnings must help offset that higher cash outflow.
Revenue Diversification Must Survive Tighter Credit
For Intuit Inc., engagement and monetization can move in opposite directions. The Federal Reserve’s July survey found tighter credit-card lending standards despite broadly unchanged demand. Credit Karma generally earns card and personal-loan referral fees when cards are issued or loans funded. Fewer approvals can therefore reduce revenue even with steady traffic. Compared with putting customer knowledge to work through direct lending, referrals make partners’ willingness to approve and acquire borrowers central to revenue.
Insurance leads provide another revenue source without requiring new borrowing, but insurers can also cut acquisition budgets. Management’s 11%–13% Credit Karma growth forecast for fiscal 2027 anticipates moderation. Investors need evidence that insurance revenue, repeat engagement, and conversion improve together. The combined Consumer segment’s margin cannot isolate Credit Karma’s profitability.
Conclusion
Intuit Inc. looks fairly valued at 13x forward P/E. Sustaining that judgment requires operating profit growth to absorb higher cash taxes while insurance and other services expand their contribution. Resilient referral conversion during tighter credit would strengthen the case for more dependable earnings. Continued dependence on loan growth would leave the diversification thesis unfinished.
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This article is originally published at Insider Monkey.
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