Down 20%, Is Intuit the Best Fintech Stock to Buy Today?

Intuit (NASDAQ:INTU) has evolved from a simple tax software provider into a fintech powerhouse over the past decade. Initially focused on TurboTax and QuickBooks, it has expanded into artificial intelligence (AI)-driven financial tools, serving small businesses, consumers, and mid-market firms globally. 

The company’s transformation accelerated with investments in AI, cloud computing, and personalized financial solutions. At its recent September Analyst Day conference, CFO Sandeep Aujla highlighted this growth, noting, “About 10 years ago, we were less than $5 billion in size, growing 8%. Today, we are four times that size, nearly $20 billion, growing at double the rate at 16%, with 40% operating margins, and the best is yet to come.” 

This reflects Intuit’s shift to a scalable, high-margin business. With INTU stock down 20% from its recent all-time high, is this the best fintech stock to buy for long-term returns?

Building On a Strong Foundation

Intuit’s second quarter earnings report in August showcased robust growth, reinforcing its long-term potential. Revenue grew 20% year-over-year to $3.8 billion, driven by the Global Business Solutions (GBS) segment, which saw a 16% increase. Non-GAAP diluted earnings per share rose to $2.75, up 38%, while GAAP diluted earnings hit $1.35 per share, a major turnaround from a $0.07 per share loss a year ago. 

These figures exceeded analyst expectations, highlighting operational efficiency and demand for AI-enhanced tools like QuickBooks and TurboTax Live. The company also raised its full-year guidance, projecting GAAP earnings of $12.34 to $12.54 per share, indicating 18% to 20% growth, and adjusted EPS of $19.16 to $19.36, or 13% to 14% growth. 

This performance underscores Intuit’s ability to navigate economic cycles, with AI-driven personalization boosting customer retention and upsell opportunities. Intuit’s high operating margins (40%) signal a moat against competitors, positioning INTU for sustained profitability.

AI Leadership and Future Growth

In its Analyst Day presentation, Intuit outlined its AI strategy, emphasizing its edge in handling AI search impacts. The CFO’s comments underscored a shift from $5 billion to $20 billion in revenue, with 16% growth and 40% margins, fueled by AI innovations. Executives detailed plans to leverage AI for tax preparation, financial planning, and small business management, targeting a $100 billion total addressable market. 

An RBC Capital Markets analysis highlights Intuit’s resilience against AI search disruptions. Intuit CEO Sasan Goodarzi noted, “We’ve been delivering value to customers for years, and that’s just gaining importance.” 

This positions INTU to capture market share as AI transforms financial services, with investments in platforms like TurboTax and QuickBooks ensuring long-term relevance.

Key Takeaway

Intuit’s 20% stock dip from its high offers a buying opportunity, given its strong fundamentals and growth trajectory. The Q2 earnings demonstrate consistent revenue and profit growth, supported by strong operating margins that outpaces peers. 

It is also generating plenty of free cash flow to support a quarterly dividend of $1.20 per share. The fintech began paying dividends in 2011 and has consistently raised them every year since. This month’s payout represents a 15% increase and yields 0.7% annually at current prices.

Intuit’s Analyst Day vision, backed by AI leadership and analyst endorsement of its position, suggests the company can thrive amid technological shifts. With a market cap of $181 billion and a projected 14% long-term earnings growth, INTU balances stability and upside, making it a top fintech pick for long-term investors despite short-term volatility.