Intuit Stock Pops on Sequence Acquisition News

Intuit (INTU) shares are extending gains on Thursday after the company announced an agreement to acquire Sequence, an artificial intelligence (AI)-powered revenue management startup. The deal will bring automated pricing, billing, and collections capabilities to INTU’s fast-growing business software portfolio. Financial terms of the transaction have yet to be disclosed, though.

The announcement brings a much-needed reprieve to Intuit stock, which is still trading roughly 50% below its price at the start of this year. 

What the Sequence Acquisition Means for Intuit Stock

Sequence addresses a key hurdle in Intuit's push toward larger customers: increasingly complicated revenue streams. Its technology handles billing tied to usage, subscription seats, and project milestones, alongside collections and revenue recognition. 

Intuit plans on incorporating those capabilities into its Enterprise Suite and QuickBooks Online Advanced, developing an integrated offering in the coming months. 

For shareholders, the potential benefit is keeping customers as their financial needs become more demanding. A software business charging for AI consumption, for example, may have fewer reasons to migrate to a competing enterprise system. That creates an opportunity for stronger retention and additional sales, which is why INTU shares are in the green today. 

What Else Makes INTU Shares Worth Buying?

Beyond Sequence, management’s earnings outlook offers a tangible reason to buy Intuit shares.

Management sees fiscal 2027 revenue coming in at $23.395 billion, representing a 9.5% year-over-year increase, and GAAP diluted earnings per share (EPS) of $20.24, a roughly 23% year-over-year increase.

As of this writing, INTU is trading at a forward price-to-earnings (P/E) ratio of about 13x, which makes it rather attractive given the improving profitability. 

The software giant currently pays a dividend yield of 1.67% as well; this means it’s even more compelling as a long-term holding for income-focused investors.

Wall Street Remains Bullish on Intuit

Crucially, Wall Street analysts remain convinced that Intuit is undervalued at the current price and is poised for a rally heading into 2027. 

The consensus rating on INTU stock sits at “Moderate Buy,” with the mean price objective of about $410 indicating potential upside of roughly 25% from here. 

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.