Intuit Incorporated stock jumped in afterhours trading as the company reported strong numbers, mainly supported by AI-powered financial tools launched during the quarter. Intuit Incorporated is currently in a bullish breakout on technical charts and if overall market sentiment remains favorable, we can see much higher levels for this stock.

Recent Financial Performance

Intuit reported adjusted earnings of $3.32 per share on revenue of $3.96 billion for its fiscal second quarter of 2025. This result exceeded analysts' expectations of $2.57 per share and $3.83 billion in revenue. The company’s performance represents a 26% increase in earnings and a 17% rise in sales compared to the same period last year. This impressive growth is primarily driven by the expansion of its QuickBooks and Credit Karma segments.

Optimism Fueled by the U.S. Tax Season

The ongoing tax season in the United States is a crucial driver of Intuit’s strong outlook, with a significant portion of individual and business tax filings expected to occur in the third quarter. This seasonal demand traditionally benefits Intuit's TurboTax software, which remains one of the most widely used tax preparation tools.

"We continue to feel very optimistic about the full year," said Sandeep Aujla, Intuit’s Chief Financial Officer, adding that the company is witnessing a robust start to the tax season.

AI-Powered Financial Solutions Gaining Traction

Intuit has significantly expanded its AI-driven capabilities, integrating Intuit Assist, its AI-powered virtual assistant, across all its core products. This AI tool enhances customer experiences by automating bookkeeping, providing financial recommendations, and streamlining tax filings.

In November 2024, the company introduced an AI-powered tool for QuickBooks, aimed at helping small businesses manage taxes and financial operations more efficiently. This latest innovation underscores Intuit’s commitment to leveraging artificial intelligence to simplify financial management for businesses and individuals alike.

Key Product Offerings Driving Growth

Intuit continues to dominate the financial software sector with its portfolio of solutions:

TurboTax – A widely used tax-preparation software that simplifies filing for individuals and businesses.
QuickBooks – A comprehensive accounting and financial management software designed for small businesses.
Credit Karma – A personal finance platform offering credit score tracking, loan recommendations, and financial insights.
Intuit Assist – An AI-powered assistant that enhances financial planning by automating key tasks.

Strategic Workforce Adjustments

Last year, Intuit implemented a 10% workforce reduction, with plans to rehire for impacted roles as business needs evolved. The company has now recovered from these layoffs faster than expected, indicating strong demand for its products and rapid hiring to support its growth trajectory.

"We ended up filling the roles at a faster pace than we had expected," Aujla noted.

Analyst Ratings and Price Targets

Financial analysts remain optimistic about Intuit’s future trajectory. Stifel maintains a "Buy" rating with a price target of $725, while BMO Capital Markets has set a price target of $714 with an "Outperform" rating. The average price target for the stock currently stands at $712.26, indicating a potential upside from its recent trading levels.

Technical Analysis

Candlestick Patterns:
Recent daily charts indicate a bullish engulfing pattern, suggesting potential upward momentum for the stock.

Fibonacci Levels:
Key Fibonacci retracement levels are observed at:

38.2%: $600
50%: $580
61.8%: $560
These levels could act as crucial support zones in case of any downward correction.
Support and Resistance Levels:

Immediate support: $615
Immediate resistance: $640
A breakout above $640 could push the stock toward new highs, while a dip below $615 may indicate further correction.

Competitive Landscape

Intuit operates in a competitive fintech ecosystem, with H&R Block (NYSE: HRB) and Oracle Corporation (NYSE: ORCL) as key rivals.

H&R Block is a significant competitor specializing in tax preparation services.
Oracle Corporation dominates the enterprise software and cloud computing space.
Despite the competition, Intuit’s strong positioning in small business accounting and personal finance software gives it a competitive edge.