Last week, you might have seen that Intuit Inc. (NASDAQ:INTU) released its annual result to the market. The early response was not positive, with shares down 3.8% to US$348 in the past week. Intuit reported US$21b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$16.46 beat expectations, being 3.5% higher than what the analysts expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

After the latest results, the 30 analysts covering Intuit are now predicting revenues of US$23.4b in 2027. If met, this would reflect a notable 9.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 22% to US$20.28. In the lead-up to this report, the analysts had been modelling revenues of US$23.8b and earnings per share (EPS) of US$19.41 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target fell 5.1% to US$423, suggesting the increase in earnings forecasts was not enough to offset other the analysts concerns. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Intuit at US$921 per share, while the most bearish prices it at US$290. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Intuit's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 9.1% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 17% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Intuit.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Intuit's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Intuit. Long-term earnings power is much more important than next year's profits. We have forecasts for Intuit going out to 2029, and you can see them free on our platform here.

It might also be worth considering whether Intuit's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.