INTU Options: Neutral Signal, Key Levels to Watch

Intuit is a global financial technology platform serving consumers, small businesses, and accounting professionals. Its core offerings include 'TurboTax' for consumer tax preparation, 'Credit Karma' for personal finance management, 'QuickBooks' and 'Intuit Enterprise Suite' for small and mid-market business solutions, and 'Mailchimp' for marketing automation. Target markets encompass individual taxpayers, small to mid-sized businesses, and accounting professionals in the U.S., Canada, and internationally. Intuit differentiates itself through an AI-driven expert platform, connecting customers to AI agents and human experts to automate tasks and provide financial insights. Their strategy focuses on providing 'done-for-you' experiences and integrating AI with human intelligence to deliver comprehensive financial solutions.

INTU's technical outlook is bearish. The stock price has experienced a significant decline over the past 90 days, falling from a high near $813 in late July to close recently at $660.55. The price is currently below its 21-day EMA ($669.23) and 50-day SMA ($669.30), both acting as resistance. The 200-day SMA is $669.20. Momentum indicators confirm the bearish sentiment. The MACD is negative and trending downward, with the MACD line at -1.25 and the MACDs line at -2.49, indicating further bearish momentum. The RSI is at 53.02, indicating selling pressure. The STOCHk is at 51.53, and the STOCHd is at 45.18. The ADX is at 18.92, suggesting a weak trend, but the recent price action suggests the downtrend may continue. The ROC_20 is at 0.91, which is not a bullish signal. The recent price action shows a consistent pattern of lower highs and lower lows, confirming the downtrend and suggesting further downside potential in the coming 1–3 months.

Intuit's Q3 Fiscal 2025 MD&A reveals a strong financial performance. Total `net revenue` for the third quarter increased by 15% to $7,754 million, up from $6,737 million in the same quarter of the previous year. For the first nine months of fiscal 2025, total `net revenue` increased by 14% to $15,000 million, compared to $13,101 million in the corresponding period of fiscal 2024. The growth was primarily driven by increases in the Global Business Solutions, Consumer, and Credit Karma segments. `Net cash provided by operating activities` was $5,826 million for the nine months ended April 30, 2025, an increase of $1,359 million from $4,467 million for the same period last year. Management highlights the company's AI-driven expert platform strategy and its five Big Bets, which focus on solving key customer problems and growth opportunities, positioning Intuit for durable growth. They are investing in AI capabilities, including GenAI, to deliver 'done for you' experiences and connect customers with AI-powered human expertise.

Intuit's Q4 and FY25 earnings call paints a moderately bullish picture, underscored by strong financial results and promising future outlook. CEO Sasan Goodarzi highlighted 'outstanding results' driven by a 16% full-year revenue growth and operating margin expansion. CFO Sandeep Aujla projected a 12% to 13% revenue growth for fiscal year 2026, with GAAP diluted EPS growth of 13% to 15%. Key drivers include the Global Business Solutions Group, expected to grow 14% to 15%, and TurboTax, projected to grow 8%. Goodarzi emphasized the company's focus on AI, citing the launch of a 'transformative virtual team of AI agents' and strong customer engagement. While Mailchimp has been a drag on growth, management expects it to exit fiscal 2026 growing double digits, fueled by sales playbook improvements and product enhancements reflected in higher customer satisfaction. The company also reiterated long-term revenue growth expectations for TurboTax and Credit Karma. Overall, Intuit's focus on AI-driven solutions, coupled with strong performance in key segments like TurboTax Live (47% growth), suggests continued momentum.

INTU's financial performance presents a mixed but overall stable outlook. Revenue has grown from $2.978B in Q1 2024 to $3.831B in Q4 2025, indicating positive top-line growth. Profitability, as indicated by the grossProfitRatio, has fluctuated, ranging from 0.744 in Q1 2024 to a high of 0.853 in Q3 2025, before settling at 0.782 in the latest quarter, suggesting some variability in cost management. The operatingCashFlow has also been inconsistent, with a low of -$97M in Q1 2024 but recovering to $381M in Q4 2025, which could raise concerns about short-term liquidity at times. Total debt has remained relatively stable, starting at $6.437B in Q1 2024 and ending at $6.570B in Q4 2025. While the company has demonstrated revenue growth and a generally healthy gross profit margin, the variability in operating cash flow warrants monitoring. The relatively stable debt suggests a manageable leverage position.

The company demonstrates a moderately bullish profile, characterized by solid revenue growth and improving profitability. Revenue has consistently increased, indicating strong market demand. The gross margin exhibits stability, suggesting efficient cost management. Return on Equity (ROE) has shown positive movement, signaling enhanced profitability and efficient use of shareholder equity. The Price-to-Earnings (P/E) ratio, while elevated, might be justifiable given the growth trajectory and positive ROE trend. The Debt-to-Equity ratio shows a slight increase, which warrants monitoring, but is counterbalanced by a healthy Current Ratio, implying sufficient liquidity to meet short-term obligations. Overall, the company presents a favorable picture with growth and profitability, though the leverage should be watched closely. The combination of growth and profitability suggests potential for continued positive performance over the next 12 months.