Is Intuit a Buy After Losing More Than 50% Year to Date?

It hasn't been a good year for Intuit (NASDAQ: INTU). The stock is down by more than 50% year to date as investors worry that artificial intelligence could weaken demand for many of the company's core products, including TurboTax.

However, a stock can only fall by so much before it's considered undervalued, especially given that Intuit is still gaining market share in key industries.

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A beat-and-raise quarter casts doubts on AI worries

Intuit eased worries about AI competition by beating guidance and raising its outlook for the rest of its fiscal 2026. Notably, TurboTax revenue was up 7% year over year in a quarter that saw 10% overall revenue growth. Full-year fiscal 2026 sales are expected to increase by 13% to 14% year over year.

TurboTax also has a major growth engine that can accelerate future growth. Intuit said that TurboTax Live will make up more than half of total revenue and that fiscal 2026 will close up 38% year over year. TurboTax Live lets users connect with a professional tax expert who can assist when filing taxes. This service has been around for almost a decade and lets people find tax experts who can answer questions, review paperwork, or handle all the prep work, depending on the tier you choose.

People who enjoy working with tax professionals will likely stick with that route. It saves time, and people who work with the same tax professional come to trust that expert over time.

Intuit isn't just TurboTax

TurboTax is a major part of Intuit's business, but it's not the only software that is driving growth. TurboTax accounts for a little more than half of total revenue, and the other half is made up of many fast-growing businesses.

Global Business Solutions' revenue was up by 15% year over year, with QuickBooks Online Accounting leading the way with 22% year-over-year revenue growth. Intuit serves businesses that may need multiple software products. For instance, it is realistic for a business that uses QuickBooks to also have a Mailchimp subscription.

It's also similar on the consumer segment side. People who use TurboTax may also need to take out a loan or line of credit with Credit Karma.

Intuit has many synergies in its ecosystem, and many of them generate annual recurring revenue through subscription plans. That setup makes growth more scalable and predictable.

AI fears have driven Intuit's stock to a compelling 10 forward P/E ratio. Revenue and net income are still growing, despite the naysayers. It appears Intuit is due for a rebound, and subsequent earnings results may make that point clear.

Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intuit. The Motley Fool has a disclosure policy.