Key Takeaways:
- Financial Powerhouse: Intuit serves nearly 100 million people through household names like TurboTax, Credit Karma, QuickBooks, and Mailchimp.
- Price Target: Based on current expansion, Intuit stock could reach $954 by July 2028.
- Total Return: This projection suggests a 41% total gain from today’s price of $676.55.
- Annual Growth: Investors could see a steady 14% return per year over the next 2.6 years.
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Intuit (INTU) is the undisputed king of financial software. Whether you are an individual filing taxes or a small business managing payroll, you likely use one of their products.
The company is entering the upcoming tax season with massive momentum. Last year, their “assisted tax” business—where humans help you file—grew by 47%.
With a market cap of $188 billion, Intuit is a heavy hitter and is down 15% from all-time highs. While the stock isn’t exactly “cheap,” its move into new, multi-billion dollar markets suggests there is still plenty of room to run.
See analysts’ full growth forecasts and estimates for Intuit stock (It’s free) >>>
What the Model Says for Intuit Stock
We analyzed Intuit’s potential by looking at its shift toward AI and its aggressive push into the “mid-market” (larger small businesses).
Our model projects the stock will climb to $954 by mid-2028. This assumes 13% annual revenue growth and profit margins of 41.4%.
We used a 28x Price-to-Earnings (P/E) multiple, which is actually more conservative than its five-year average of 35x.
By being a bit cautious with the valuation, we ensure the projection stays grounded in reality.
Our Valuation Assumptions
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Our Valuation Assumptions
TIKR’s Valuation Model lets you plug in your own assumptions for a company’s revenue growth, operating margins, and P/E multiple, and calculates the stock’s expected returns.
Here’s what we used for Intuit stock:
1. Revenue Growth: 12.7%
Intuit is no longer just for the “Do-It-Yourself” crowd. They are going after two massive new groups:
- The Assisted Tax Market: For years, Intuit dominated the $5 billion “DIY” tax market. Now, they are moving into the $35 billion market where people pay pros to do their taxes. By opening 600 local offices and using Credit Karma to find customers, they are seeing 5x better conversion rates.
- The Mid-Market (Intuit Enterprise Suite): They are launching a new suite for businesses making up to $100 million. About 800,000 of these companies already use basic QuickBooks. When they upgrade to the “Enterprise Suite,” they typically pay twice as much and stay even longer.
- The OpenAI Edge: Through a partnership with OpenAI, Intuit can reach 800 million weekly ChatGPT users. When people ask tax questions on ChatGPT, Intuit’s tools provide the answers, creating a massive, low-cost marketing machine.
2. Operating margins: 41%
Intuit is incredibly profitable, and AI is making them even more efficient.
AI Savings: The company expects to save $135 million this year alone by using AI to handle customer support questions.
Faster Development: Their engineers are 30% more productive because of AI tools. They built their new Enterprise Suite in just 14 months—a project that used to take years.
Scalability: When more people use QuickBooks to process payments, Intuit doesn’t need to hire more people to manage the risk. The software handles it, meaning more of that revenue goes straight to profit.
3. Exit P/E Multiple: 28x
The market currently values Intuit at 28.6x its future earnings. We stuck with a 28x multiple for our exit target.
- Subscription-Like Stability: Even though people only file taxes once a year, they stick with TurboTax year after year. Intuit boasts an 80% retention rate, giving it the steady, predictable income that investors love.
- New Revenue Streams: The move into assisted tax and mid-market accounting isn’t just a small tweak—it’s like opening two entirely new businesses inside the same company.
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What Happens If Things Go Better or Worse?
Every investment has risks. Here is how INTU might perform in different scenarios through 2028:
- Low Case: If growth slows to 11% and margins take a hit, the stock could still return 8% annually.
- Mid Case: With steady 12-13% growth and high margins, we expect a 14% annual return.
- High Case: If the mid-market expansion takes off faster than expected, returns could hit 19% annually.
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Intuit is a rare combination of a dominant market leader that is still innovating like a startup.
By using AI to lower costs and moving into the much larger “assisted” and “enterprise” markets, the company is set for another decade of growth.
How Much Upside Does Intuit Stock Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
