Intuit Inc. (INTU): A Bull Case Theory

Ricardo Pillai

Tue, May 13, 2025, 8:15 AM 3 min read

We came across a bullish thesis on Intuit Inc. (INTU) on Substack by Quality Equities. In this article, we will summarize the bulls’ thesis on INTU. Intuit Inc. (INTU)'s share was trading at $662.30 as of May 12^th. INTU’s trailing and forward P/E were 61.96 and 30.67 respectively according to Yahoo Finance.

An experienced tax accountant reviewing paper work on their desk.

Intuit (INTU) offers a compelling long-term investment opportunity driven by its durable competitive advantages, strong recurring revenue model, and strategic ecosystem spanning consumer and business financial services. The company’s core platforms—TurboTax, QuickBooks, Credit Karma, and Mailchimp—serve individuals, small businesses, and the self-employed, and are deeply integrated into their users’ financial and operational routines. This embeddedness translates to high customer retention and significant pricing power, especially in QuickBooks, which has become indispensable to small businesses, and TurboTax, which remains the leading platform in consumer tax filing. These elements form the foundation of Intuit’s economic moat and support its position as a mission-critical software provider.

Financially, Intuit is a capital-light, high-margin business with strong free cash flow generation. Its transition to a SaaS model has not only stabilized revenues through recurring subscriptions but also enabled continuous reinvestment into product development and AI automation, further strengthening customer engagement. The company is shifting toward integrated platform solutions, using its scale and user data to drive cross-sell opportunities and expand its average revenue per user. This strategy has led to resilient earnings and revenue growth, even in uncertain economic conditions.

Intuit is also actively pursuing growth across multiple vectors. It is expanding globally, moving into mid-market accounting, launching fintech lending offerings, and investing in AI-powered tools for business automation. Credit Karma and Mailchimp have added depth and reach to its consumer finance and marketing solutions, bringing synergy and optionality to the broader platform. While risks exist—including fintech competition, seasonal tax-related revenue concentration, and potential regulatory shifts—Intuit’s entrenched market position and network effects serve as strong mitigants.

Despite its strong fundamentals, the company trades at a reasonable valuation, with a 3.11% free cash flow yield and projected earnings growth of over 20% CAGR for the next five years. This combination of predictability, pricing power, and growth potential makes Intuit a rare compounder in today’s market. With its strategic evolution into a holistic financial platform, robust financial performance, and long growth runway, Intuit is well positioned to deliver strong shareholder returns over the long term.