Can Intuit (INTU) Turn AI Disruption Into an Advantage?

Eagle Capital Management's Q2 2026 investor letter highlights Intuit Inc. (NASDAQ:INTU) as a company benefiting from AI disruption while acknowledging the risks of elevated valuations. Intuit provides financial management, payments, capital, compliance, and marketing products. The company's QuickBooks software, a dominant bookkeeping solution for small and midsize businesses in the U.S., faces potential disruption from AI-driven competition.

However, Intuit's brand, scale, and network effect through the accountant channel provide it with a competitive advantage. TurboTax, a smaller part of the business, is expected to adapt its business model to an AI world but has more modest growth expectations. Intuit's EPS growth is projected to be in the high teens, driven by revenue growth, operating leverage, and share buybacks.

Eagle Capital Management currently holds Intuit Inc. (NASDAQ:INTU) in their portfolio at a 20% market discount, expecting faster EPS growth. While they acknowledge the potential of Intuit Inc. (NASDAQ:INTU) as an investment, they believe other AI stocks offer greater upside potential and carry less downside risk.