INTU's Big Bets Keep Scaling: Can These Become Its Main Growth Engine?
Intuit Inc. INTU is trying to make three businesses a larger part of its revenue mix. Assisted Tax, Money and Mid-Market, which Intuit calls its “Big Bets,” represented about 30% of fiscal 2026 revenues and grew more than 30% year over year. Since fiscal 2023, these businesses have compounded above 30% annually versus 14% for revenues.
The growth is broad-based. Assisted Tax revenues rose 37% to $2.8 billion, while customers increased 38% to 13 million. Business Money revenues climbed 31% to $1.8 billion, Consumer Money revenues increased 26% to $600 million, and Mid-Market revenues jumped 39% to $1.6 billion as customers grew 28% to 449,000.
Intuit sees room to expand. Management estimates a total addressable market above $300 billion with 7% penetration. This includes $97 billion in small business, $89 billion in mid-market and $142 billion in consumer opportunities.
AI is central to scaling these businesses. Intuit says its platform draws on data from 82 million consumers, 10 million businesses and 650,000 accountants. Its AI agents can use more than 60 large language models and 100-plus Intuit AI skills, while human expertise remains part of workflows requiring accuracy and compliance.
However, the pressure point is customer acquisition. Intuit said fiscal 2026 new-customer growth fell short of expectations, with TurboTax IRS e-file share down one point and DIY share down three points. For fiscal 2027, management expects revenue growth of 9%-10% and Global Business Solutions growth of 13%-14% while investing to widen customer entry points and keep scaling the Big Bets.
Intuit’s Peers Scale AI, Tax & Small-Business Growth Engines
H&R Block HRB is pairing expert-led tax preparation with AI to deepen its core franchise. H&R Block’s fiscal 2026 revenues rose 4.9% to $3.95 billion, while AI Tax Assist handled 4.1 million client messages, up 88%. With fiscal 2027 revenues guided to $4.11-$4.16 billion, H&R Block is scaling technology alongside experts.
Paychex PAYX is scaling AI across payroll and HR, with WISE moving from launch to adoption. Paychex fiscal 2026 revenues rose 17% to $6.51 billion. As of Aug. 31, more than 50,000 businesses were using WISE. Paychex also reported that nearly 90% of flagged time and pay-rate errors were corrected before payroll processing.
INTU’s Price Performance, Valuation and Estimates
Shares of Intuit have gained 17.6% over the past three months, underperforming the broader industry but outperforming the S&P 500 composite.
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In terms of forward 12-month Price/Sales (P/S), Intuit is currently trading at 3.42X, which is at a discount to the industry average of 6.06X.
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INTU’s estimates for both fiscal 2027 and 2028 have been revised southward over the past month.
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Currently, Intuit carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
