Intuit (INTU) Slipped as the Outlook and Guidance Fell Short of Expectations

1 day ago 4

Soumya Eswaran

Wed, December 31, 2025 astatine 7:15 AM CST 3 min read

Bristol Gate Capital Partners, an concern absorption company, published its Q3 2025 capitalist missive for the “US Equity Strategy”. A transcript of the missive tin beryllium downloaded here. The strategy underperformed the benchmark, the S&P 500® Total Return Index, this quarter, but inactive surpassed the scale successful dividend growth. The underperformance was owed to a deficiency of important vulnerability to the AI/TMT assemblage oregon the Value sector, which provides advantages stemming from the Federal Reserve's complaint cut. The portfolio returned 15% dividend maturation implicit the trailing 12 months, driven by the beardown underlying fundamentals. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its third-quarter 2025 capitalist letter, Bristol Gate US Equity Strategy highlighted stocks specified arsenic Intuit Inc. (NASDAQ:INTU). Intuit Inc. (NASDAQ:INTU) offers fiscal management, payments and capital, compliance products and services. The one-month instrumentality for Intuit Inc. (NASDAQ:INTU) was 5.39%, and its shares gained 6.58% implicit the past 52 weeks. On December 30, 2025, Intuit Inc. (NASDAQ:INTU) banal closed astatine $669.88 per share, with a marketplace capitalization of $186.495 billion.

Bristol Gate US Equity Strategy stated the pursuing regarding Intuit Inc. (NASDAQ:INTU) successful its 3rd 4th 2025 capitalist letter:

"Carrier, Accenture and Intuit Inc. (NASDAQ:INTU) were the main detractors from an implicit perspective. Intuit declined chiefly due to the fact that of the company’s outlook and guidance for the upcoming fiscal twelvemonth fell abbreviated of immoderate investors’ expectations. Ongoing weakness successful MailChimp (marketing platform) and a diminution successful full TurboTax units arsenic the institution focuses connected higher-value customers besides fueled concerns. For FY26, absorption stated EPS is expected to beryllium $22.98-23.18 vs statement $23.02, representing 14.5% y/y maturation astatine the midpoint. Revenue is forecast to beryllium $20.997-21.186B vs statement $21.10B, and up 12% astatine the midpoint. Consensus whitethorn person beryllium disappointed with the guidance, but we were not. Intuit continues to marque advancement successful penetrating the assisted taxation marketplace and successful larger enterprises with its accounting platform. We judge some segments volition assistance prolong charismatic maturation implicit the adjacent respective years."

Intuit Inc (NASDAQ:INTU) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 96 hedge money portfolios held Intuit Inc. (NASDAQ:INTU) astatine the extremity of the 3rd quarter, which was 105 successful the erstwhile quarter. In the archetypal 4th of fiscal 2026, Intuit Inc. (NASDAQ:INTU) reported revenue of $3.9 billion, representing an summation of 18% year-over-year. While we admit the imaginable of Intuit Inc. (NASDAQ:INTU) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.