Intuit (NASDAQ:INTU) delivered impressive fiscal Q3 results, reporting an adjusted EPS of $11.65 on $7.75 billion in revenue, exceeding consensus estimates of $10.91 and $7.56 billion. Its outstanding performance during the tax season, coupled with success in QuickBooks and Credit Karma, contributed significantly to these figures.

Key Highlights from Q3

• Consistent EPS Surprises: Intuit has now topped estimates for nine consecutive quarters, with an average surprise of 6% according to Entreprenerdly’s Historical Earnings API.
• Revenue Growth: Revenue increased 19% year-on-year, primarily driven by TurboTax, QuickBooks Online, and robust subscription additions.
• Operating Margins: A reported 56% operating margin surpassed analyst forecasts of 54%, demonstrating scalable software revenue.

Revised Guidance Reflecting Confidence

• Q4 Guidance: Expected EPS of $2.63-$2.68 (vs. $2.60 previously forecasted) with revenues anticipated between $3.723-$3.760 billion (previously $3.53 billion).
• Full-Year Outlook: Non-GAAP EPS expected between $20.07-$20.12 (growth of 18-19%) and revenue projected at $18.723-$18.760 billion (approximately 15% growth), up from prior estimates.

Valuation Insights and Growth Potential

Following these results, analysts have raised their price targets for Intuit, with a consensus sitting around $650 and a high of $720. Investors can model various scenarios with Entreprenerdly’s Advanced DCF API to assess how enhanced cash flows impact intrinsic share valuation.

With robust momentum from tax season and increased demand for cloud finance tools, Intuit’s revised guidance and consistent earnings outperformance solidify its position in the software sector, paving the way for future earnings upgrades.