Intuit Stock: Is a Rebound Taking Shape?

After a challenging start to the year, Intuit shares appear to be searching for a bottom. The software giant is attempting to recover from multi-week lows, even as its underlying business fundamentals continue to look strong. The critical question for investors is whether the recent price stabilization marks the beginning of a sustainable recovery or if further declines are still possible.

Despite the recent pressure on its share price, Intuit's management has maintained ambitious growth targets for the current fiscal year 2026. The company forecasts revenue growth of 12 to 13 percent, reaching $21 billion. Operating income is projected to climb by an even more impressive 17 to 19 percent. The first quarter provided a strong foundation, delivering an 18 percent increase in revenue. Company leadership cites the integration of Artificial Intelligence into its core platforms as a primary driver for this "exceptional" performance.

Profitability metrics remain robust, with a net margin exceeding 21 percent and a return on equity of approximately 23.5 percent. These figures are particularly notable given the company's significant ongoing investments in AI-powered assistants for its financial planning and debt management products.

Should investors sell immediately? Or is it worth buying Intuit?

Technical Picture at a Critical Juncture

From a chart perspective, the stock is currently testing a crucial support zone as it tries to stabilize following pronounced losses in the opening weeks of January. Technical indicators, including the Relative Strength Index, suggest conditions had become oversold, which may have facilitated the recent bounce. Market observers are now watching to see if the area around $535 can solidify as a durable floor or if a retest of the psychologically significant $500 level is forthcoming.

Analysts Maintain Bullish Stance with Significant Upside

The professional analyst community remains largely optimistic, even after a share price decline of over 16 percent in the past 30 days. Out of 34 covering institutions, 83 percent maintain a "Buy" or equivalent rating on the stock. The consensus average price target stands near $793, implying substantial potential upside from current trading levels. Discounted Cash Flow models estimate the stock's intrinsic value to be around $764, suggesting the shares are trading at a discount of more than 28 percent.

The upcoming quarterly results will serve as an important test for the credibility of the company's growth narrative. For the second quarter, earnings per share are expected to land between $3.63 and $3.68. However, before the next earnings report, the stock must first overcome a key technical resistance level at $575 to confirm a renewed upward trend.