Intuit Inc. (INTU) Executive Summary Intuit is a provider of financial, tax and accounting software and services for consumers and small businesses, operating as a recurring-revenue, high-margin, cash-generative software franchise with a history of compounding earnings. Key Strengths The company shows several clear strengths: five‑year diluted EPS compounded at roughly 20.0% ( 0.1996 ) and five‑ye
Intuit is a provider of financial, tax and accounting software and services for consumers and small businesses, operating as a recurring-revenue, high-margin, cash-generative software franchise with a history of compounding earnings.
The company shows several clear strengths: five‑year diluted EPS compounded at roughly 20.0% (0.1996) and five‑year revenue-per-share CAGR near 22.8% (0.2282), with split‑adjusted revenue per share at $71.48 and diluted EPS at $15.42 most recently. Profitability and cash generation are robust: gross margin sits at about 99.7% and trailing‑twelve‑month net margin is 21.6%, while operating cash flow was $6.98B TTM versus net income of $4.34B TTM, and free cash flow margin is roughly 32.9% — all consistent with strong cash conversion and high return on equity (22.8%).
Areas that warrant caution include pronounced seasonality and margin volatility. The business produces very large April-period spikes (e.g., revenue $7.75B and net income $2.82B in 2025‑04), while some mid‑year quarters have included small losses (net income of -$20M on 2024‑07‑31 and -$56M on 2022‑07‑31), which creates lumpy quarterly results. Valuation multiples have also contracted materially: trailing P/E fell from 64.2x on 2024‑01‑31 to 31.6x on 2026‑01‑31 (a 50.8% reduction), including a 30.7% quarter-over-quarter drop from 45.6x to 31.6x. Capital allocation flows show growing financing outflows — financing cash flow was -$4.42B TTM with a spike to -$6.64B in one period — and investing cash flow remains negative (-$1.14B TTM), both of which merit monitoring.
Key fundamental metrics to watch going forward include top‑line and earnings per‑share trends (Revenue & Net Income), EPS Diluted & Revenue per Share), the gap between operating cash flow and net income and free cash flow margin (Earnings Quality Analysis, Strategic Capital Allocation), continuing EPS versus revenue‑per‑share divergence (Revenue & EPS Growth), profit margin stability (Profit Margin Trends), ROE trends (Return on Equity (ROE)), and changes in market multiples (Price-to-Earnings (PE) Ratio Trend).
The foundation of business quality and long-term value creation
INTUIT INC.’s quarterly revenue and net income data show a clear, recurring pattern of large peaks in the April-period quarters and smaller results in the intervening quarters. Recent sequential data through January 31, 2026 show revenue rising from $3.88B (2025-10-31) to $4.65B (2026-01-31) and net income increasing from $446.0M (2025-10-31) to $693.0M (2026-01-31), following much larger April-period spikes ($7.75B revenue and $2.82B net income on 2025-04-30). Mid-year July-period results are frequently lower and have included small losses in some years (for example, net losses of -$20.0M on 2024-07-31 and -$56.0M on 2022-07-31).
Notable inflection points are the recurring high April-period quarters (2023–2025 April quarters show revenue of \$6.02B, \$6.74B, \$7.75B and corresponding net incomes of \$2.09B, \$2.39B, \$2.82B) and the mid-year troughs including occasional negative net income in July periods. Most recently, revenue and net income have been recovering sequentially from mid-2025 lows into January 2026. The most recent quarterly revenue was $4.65B and the most recent quarterly net income was \$693.0M.
Why Growth Matters
Consistent revenue and earnings growth are the lifeblood of successful long-term investments. Companies that can grow their top line (revenue) and bottom line (net income) over many years demonstrate they have products or services customers value and are willing to pay for repeatedly.
Revenue Growth shows whether the company is expanding its market reach, gaining market share, or successfully launching new products.Net Income Growth demonstrates the company can convert that revenue into actual profits while managing costs effectively.
Look for steady, sustainable growth rather than erratic spikes. The best businesses compound earnings year after year, creating tremendous value for shareholders over time. Companies that can grow earnings faster than revenue are improving their profitability—a sign of operational excellence and competitive strength.
Year-over-year growth rates for revenue and earnings per share
Reading the Growth Rate Chart
This chart converts the absolute per-share figures into year-over-year percentage changes, making it easy to see whether growth is accelerating, decelerating, or reverting to trend — regardless of the company's absolute size.
Revenue per Share Growth (1-year, split-adjusted) measures how quickly the top line is expanding on a per-share basis. Sustained positive growth signals that the company continues to win customers and grow its addressable market.EPS Diluted Growth (1-year, split-adjusted) measures how quickly earnings are compounding for each shareholder. When EPS growth consistently outpaces revenue growth, operating leverage and margin expansion are at work.
Look for consistency, not just magnitude. A company that reliably grows EPS 10–15% per year is far more valuable than one that alternates between 50% spikes and deep contractions. Negative EPS growth during a period of positive revenue growth is a red flag — costs are rising faster than sales. Quarters where both lines converge near zero or go negative deserve close scrutiny.
How revenue converts to net income for the most recent annual period
Period Information
Report Type: Annual (10-K)
Period: Feb 2025 to Jan 2026
Revenue composition by disclosure category for the latest period
Intuit derives income from a diverse range of financial and business products and services, including cloud-based and desktop accounting solutions, payment processing, lending, payroll, tax preparation, marketing automation, and professional services. Its offerings include QuickBooks, TurboTax, Credit Karma, Lightbox, and professional tax software, serving both consumers and professionals across multiple channels and regions.
Intuit serves a broad customer base, including individual consumers, small and mid-market businesses, professional accountants, tax preparers, and members of financial platforms like Credit Karma. Its professional offerings cater to accounting and tax professionals in the U.S. and Canada, while consumer products reach a wide audience interested in personal finance, tax, and banking solutions. It also partners with financial institutions, resellers, and technology providers to expand distribution and integration.
Intuit primarily operates and offers products in the U.S. and Canada for consumer tax and professional tax solutions. It serves international small and mid-market businesses and professionals through its Global Business Solutions platform and QuickBooks offerings. Its global customer support and outsourced service teams support worldwide operations.
Intuit markets its products through direct online channels via websites, mobile apps, and call centers. It maintains a direct sales force targeting accountants, bookkeepers, marketing professionals, and mid-market companies. Its partner channels include financial institutions, resellers, and retailers, distributing desktop and online products across online, offline, and retail environments. Mobile distribution is facilitated through proprietary app stores.
Recurring revenue includes subscription-based payroll solutions, QuickBooks Desktop subscriptions, and membership fees such as QuickBooks ProAdvisor programs. Tax and seasonal offerings generate revenue primarily during tax filing seasons, with online sales and electronically delivered desktop software representing the core channels. Physical supplies are shipped upon order.
Intuit heavily relies on partnerships with financial institutions, online merchants, and distributors for product distribution, particularly for TurboTax. Its infrastructure depends on public cloud providers, and it faces regulatory and compliance risks across multiple jurisdictions regarding tax, financial services, and personal finance. The company also manages significant data privacy, security, and fraud prevention obligations, along with dependence on third-party technology licenses, acquisitions, third-party support personnel, and outsourced customer success resources.
Analyzing long-term margin stability and competitive positioning
INTUIT INC.'s gross margin has been very high in most quarters, clustering around the high-90s for a prolonged period. There was a distinct multi-quarter trough in the high-70s to low-80s from mid-2023 through early 2024 (lowest readings 79.8–81.8%), after which gross margin returned to roughly 99.6–99.7% in the last several reported quarters. The series also shows occasional spikes above 100% in isolated quarters earlier in the dataset.
Net profit margin showed more variability: after peaks above 24% in 2020–2021, it declined into the mid-teens across 2022–2024, then has trended upward in recent quarters. From about 17.6% in 2024-10-31 the net margin climbed steadily to 21.6% by the most recent quarter.
Most recent gross margin: 99.7%
Most recent net profit margin: 21.6%
Understanding Profit Margins
Between Feb 2025 and Jan 2026, Intuit Inc converts every dollar of revenue through the following stages:
Sustainable competitive advantages reveal themselves through consistently superior profit margins over extended periods. Companies with durable economic moats maintain pricing power and operational efficiency that competitors struggle to match.
A sign of durable competitive advantage is earning sustained higher margins than competitors.Look for margins that remain stable or improve over time, especially during economic downturns. Declining margins may signal increasing competition, pricing pressure, or deteriorating business fundamentals.
Comparing reported earnings to actual cash generation
INTUIT INC. shows a consistent pattern over the TTM series where operating cash flow exceeds net income in every reported period. Both measures have trended upward in recent quarters, with a clear rise beginning in 2023 and continuing through the latest 2026-01-31 period. The divergence between operating cash flow and net income has persisted, with operating cash flow remaining several billion dollars higher than net income in the most recent quarters.
From 2023-01-31 to 2026-01-31, trailing twelve-month operating cash flow increased from $4.27B to $6.98B (+$2.71B) while trailing twelve-month net income rose from $1.95B to $4.34B (+$2.39B), keeping a positive cash-over-earnings gap throughout. The most recent trailing twelve-month operating cash flow was $6.98B. The most recent trailing twelve-month net income was $4.34B.
The Earnings vs. Cash Flow Gap
Reported earnings (Net Income) doesn't always reflect actual cash generation. Companies use accrual accounting, which recognizes revenue when earned and expenses when incurred—not when cash actually changes hands. This creates timing differences and opportunities for accounting discretion that can mask underlying business health.
Net Income (the "earnings" number) can be influenced by non-cash items like depreciation, stock-based compensation, and changes in accounting estimates.Operating Cash Flow, however, shows the actual cash the business generates from its core operations—a harder number to manipulate.
What to Look For
Key Insight: Companies with durable competitive advantages typically show operating cash flow that meets or exceeds net income over time, demonstrating they convert accounting profits into actual cash that can be returned to shareholders or reinvested in the business.
Measuring management's efficiency at generating profits from shareholder capital
INTUIT INC.'s trailing-twelve-month ROE has risen steadily over the past several quarters. After a run of mid‑teens readings through 2024 (16.4% in 2024‑04; 16.1% in 2024‑07 and 2024‑10), ROE moved up to 16.9% (2025‑01), 17.2% (2025‑04), then accelerated to 19.6% (2025‑07), 21.3% (2025‑10) and 22.8% (2026‑01). The most notable recent inflection is the sustained quarter‑to‑quarter increase beginning in early 2025.
Over the longer history shown, ROE has been materially volatile with multi‑year peaks well above current levels (including readings above 40% and several extreme spikes in the 2016–2020 period) before normalizing to mid‑teens in 2023–2024 and rising again in 2025–2026. The most recent trailing twelve-month ROE for INTUIT INC. was 22.8% as of the period ending 2026-01-31.
The Gold Standard of Profitability
Return on Equity (ROE) is a powerful measure of how effectively a company's management is using the money shareholders have invested. Calculated by dividing Net Income by Shareholders' Equity, it reveals how much profit is generated for every dollar of equity capital.
A consistently high ROE (typically above 15-20%) is often the signature of a "quality" business with a durable competitive advantage. It indicates that the company can generate high returns on its own capital, which it can then reinvest at these high rates to compound value over time.
What to Look For:
How the company generates and deploys its cash
INTUIT INC.'s trailing twelve-month operating cash flow shows a clear upward trend, accelerating in the most recent year. After roughly $6.21B in the 2025-07 TTM and $6.48B in the 2025-10 TTM, operating cash flow rose to $6.98B in the 2026-01 TTM, continuing a multi-year increase from the low‑$3B range in 2020.
Investing cash flow has been persistently negative over the period shown, with large outflows in the 2021–2022 window and more moderate negative amounts recently: -2.32B (2025-07 TTM), -932.0M (2025-10 TTM) and -1.14B (2026-01 TTM).
Financing cash flow has been more variable but has shifted toward larger net outflows in recent TTMs. Financing was -1.20B in the 2025-04 TTM, moved to -1.51B (2025-07 TTM), spiked to -6.64B (2025-10 TTM) and was -4.42B in the 2026-01 TTM, marking a notable increase in net financing outflows versus earlier years.
Most recent TTM values: Operating Cash Flow $6.98B; Investing Cash Flow -1.14B; Financing Cash Flow -4.42B.
Understanding Company Strategy
Capital allocation refers to how management decides to spend and invest the company's cash. Analyzing the three primary categories of cash flow reveals a company's true operational strategy:
What to look for: Is the company bootstrapping (funding growth solely from operating cash)? Are they borrowing to fund aggressive expansion or dividends? Or are they capital raising by issuing new shares, potentially diluting your ownership? A healthy, mature company typically generates strong operating cash, moderately invests in growth, and returns the surplus to shareholders through financing activities.
Net assets attributable to each share — the accounting floor of intrinsic value
Why Book Value per Share Matters
Book value per share is the net worth of the company — total assets minus total liabilities — divided by shares outstanding (split-adjusted). It represents the theoretical liquidation value per share if every asset were sold and every liability repaid at balance-sheet carrying values. It is the accounting foundation upon which much of equity valuation is built.
A steadily rising book value per share is one of the most reliable signals of compounding wealth creation. It means the company is retaining earnings and building net worth faster than it is returning capital or eroding it. Warren Buffett famously tracked Berkshire Hathaway's book value per share for decades as his primary measure of intrinsic value growth.
Context is essential. Asset-heavy businesses (banks, manufacturers, utilities) should be judged by book value more directly than asset-light businesses (software, consumer brands), where intangible assets like intellectual property and customer loyalty may far exceed their balance-sheet carrying values. A company trading at a large premium to book value is not necessarily overvalued — it may simply possess competitive advantages that accounting rules do not capture. Conversely, a declining book value per share — especially over multiple years — is a serious warning sign of capital destruction.
How much of the company is financed by debt versus shareholders' equity
Reading the Debt-to-Equity Ratio
The debt-to-equity (D/E) ratio compares total financial debt to shareholders' equity. A ratio of 1.0 means the company has borrowed one dollar for every dollar of equity; a ratio of 2.0 means it has borrowed twice as much as it owns. Financial leverage amplifies both returns and risk: in good times, debt turbocharges equity returns; in bad times, it accelerates losses and can threaten solvency.
Trends matter more than a single number. A rising D/E ratio can mean the company is taking on debt to fund growth — potentially value-creating if returns exceed the cost of capital. But it can also mean equity is being eroded through losses or that the business is borrowing simply to sustain operations. A falling D/E ratio generally reflects strengthening financial health: earnings are being retained, debt maturities are being paid down, or both.
Industry norms vary enormously. Capital-intensive sectors (utilities, real estate, financials) routinely carry high D/E ratios that would be alarming in, say, a technology company. Always compare against sector peers. As a rough rule of thumb, a D/E above 2× in a cyclical business warrants careful scrutiny of interest coverage and refinancing risk.
Short-term liquidity — can the company cover its near-term obligations?
Liquidity: Can the Business Pay Its Bills?
The current ratio is calculated as current assets divided by current liabilities. A ratio of 1.5 means the company has $1.50 of short-term assets — cash, receivables, inventory — for every $1.00 of obligations due within the next twelve months. It is the most direct measure of near-term financial resilience: can the business meet its obligations without needing to raise new capital or sell long-term assets at a discount?
A ratio above 1.0 is generally healthy, meaning current assets exceed current liabilities. A ratio consistently above 2.0 may indicate the company is holding excess cash or inventory that could be deployed more productively. A ratio below 1.0 is a warning sign — the company is relying on future cash generation or external financing to cover its near-term obligations, which is manageable in normal conditions but dangerous during a downturn.
Trends and context matter.A declining current ratio isn't always alarming — highly efficient businesses (e.g., large retailers with reliable daily cash flows) often run leaner balance sheets intentionally. Conversely, a rapidly rising current ratio can signal slowing sales causing inventory to build, or customers taking longer to pay. Always compare the trend against industry peers and cross-reference with the cash flow statement to assess whether the business is genuinely liquid or just holding non-cash current assets.
How much the market is paying for each dollar of company earnings
INTUIT INC.'s trailing twelve-month P/E ratio traded in a sustained elevated range through 2024 and most of 2025, holding between roughly 50x and 64x from 2024-01-31 (64.2x) through 2025-07-31 (57.1x). Beginning with the 2025-10-31 quarter (45.6x), the ratio contracted and the most recent quarter shows a pronounced decline to 31.6x on 2026-01-31. The change from 64.2x on 2024-01-31 to 31.6x on 2026-01-31 represents a 50.8% reduction, and the drop from the prior quarter (45.6x) to the latest quarter is a 30.7% decline.
Viewed over the longer sample, the P/E has exhibited wide swings—peaking above 80x in 2015 and spending the early 2010s mostly in the 20–30x range—before the multi-year elevation and the recent contraction. The most recent trailing twelve-month P/E ratio was 31.6x.
What Is the PE Ratio?
The Price-to-Earnings (PE) ratio is one of the most widely used valuation metrics in investing. It divides the current stock price by the company's earnings per share (EPS), revealing how much investors are willing to pay for each dollar of earnings. A high PE can signal that the market expects strong future growth, while a low PE may suggest undervaluation—or reflect genuine concerns about the company's prospects.
Context matters:PE ratios vary significantly across industries. High-growth technology companies routinely trade at PE ratios above 30x or 40x, while mature, low-growth sectors like utilities or financials often trade closer to 10–15x. Always compare a company's PE to its own history and its industry peers, not just an absolute number.
What to Look For:
Key Insight:The PE ratio is a snapshot of market sentiment and expectations. Tracking it over time alongside earnings trends reveals whether the market's valuation has expanded or contracted—and whether that change is justified by fundamentals.