INTU$353.76

Intuit shows strong, durable non-financial performance. Revenue compounded well from FY2021 to FY2025, and TTM growth of 15.0% remains healthy, though slightly below the prior year’s 15.6%, suggesting steady rather than accelerating momentum. Net income and EPS have grown faster than revenue, showing good operating leverage. Gross margin has remained very high and stable around 79–83%, while operating margin expanded to 26.1% in FY2025 and 27.5% TTM, indicating improving conversion of sales into profit. There are no major one-off distortions; other income/expense and tax rates moved, but not disruptively. Assuming a software-led tax and accounting platform, these margins are excellent versus peers. Key risks are expense growth and the need to sustain high growth without margin pressure.

Intuit’s balance sheet is generally solid, with liquidity improving and equity steadily compounding. Total current assets rose to 14,107 in FY2025 from 9,678 in FY2024, while current liabilities also increased to 10,370, leaving positive working capital of 3,737. Cash and short-term investments were 4,552, and TTM liquidity strengthened further to 6,780. Total assets expanded to 36,958, supported by rising retained earnings and shareholders’ equity of 19,710, up from 18,436. Leverage is manageable, though total liabilities climbed to 17,248 and debt remains meaningful at 6,570. The main quality concern is the asset mix: goodwill and intangibles are large, making tangible book thin, though it is now positive on a TTM basis.

Cash generation is strong and broadly improving, with operating cash flow rising from $3.25B in FY2021 to $6.21B in FY2025, and TTM at $7.89B, above the latest fiscal year. Free cash flow has been consistently robust, growing from $3.18B to $6.12B, with a healthy TTM margin of 37.1% despite modest CapEx. The main quality issue is heavy stock-based compensation and sizable investing outflows, especially purchases of investments and acquisitions in earlier years, but these have not prevented strong cash conversion. Capital allocation is shareholder-friendly, with substantial buybacks and dividends, though repurchases are aggressive. Overall, cash flow quality is solid, stable, and well above typical software-sector norms.

Intuit shows a generally solid financial profile with a few balance-sheet caveats. Liquidity weakened from FY2021 through FY2025 as the quick ratio fell from 1.7 to 0.63 before recovering to 0.77 in the latest period, while the current ratio stayed above 1.0 and improved to 1.45, suggesting short-term obligations remain manageable. Leverage has eased overall, with debt-to-equity declining from 0.45 to 0.33 and net debt moving close to neutral, indicating a more conservative capital structure. Efficiency is mixed: asset turnover improved modestly but remains moderate, and no receivables or inventory turnover data is provided. Profitability is strong, with ROE, ROA, ROIC, and ROCE all trending higher again after a mid-period dip.

Historical results run through FY2025, while FY2026 is the analyst-covered forecast year. Revenue expanded strongly overall, with a brief slowdown in FY2023 before reaccelerating in FY2024 and FY2025; FY2026 still implies solid double-digit growth, though slightly below FY2025’s pace. EPS was more volatile early on, dipping in FY2022, then rebounding and accelerating faster than revenue in FY2024 and FY2025, suggesting margin improvement. The forward P/E compresses sharply in FY2026 versus prior years, which looks more consistent with the forecast earnings ramp. Analyst sentiment is constructive: Buy consensus, 34 analysts on targets, and a stable-to-improving recommendation mix over recent months, with mostly Strong Buy/Buy ratings and no new Sell calls.