Intuit (INTU) stock rallied 24 percent in October as investors rotated into beaten-down stocks and the company moved aggressively to embed artificial intelligence across its product suite.
The catalyst: Intuit announced the acquisition of Sequence, a revenue automation platform, on October 15. The stock jumped 6.4 percent that day. Sequence automates the quote-to-cash cycle—a high-value process that generates recurring revenue—and will integrate directly into QuickBooks and the Enterprise Suite.
Management framed the deal plainly: the acquisition gives Intuit mature revenue management capabilities for B2B software and professional services customers, industries increasingly structured around AI consumption models.
Later in October, Intuit rolled out upgrades to its Intuit Intelligence platform, embedding AI directly into QuickBooks and Enterprise Suite, and launched new industry-specific editions designed to tailor AI capabilities to distinct vertical needs.
The moves directly address the core drag on Intuit's valuation. Investors had worried that AI-native competitors could disrupt TurboTax and other core products. That fear pushed Intuit to a 48 percent year-to-date decline and compressed the stock to a price-to-earnings multiple of 21—below its historical average. The market also priced in slowed earnings per share growth in the coming fiscal year.
Sequence and the intelligence platform upgrades are not defensive patches—they are offense. Sequence gives Intuit a recurring, high-margin revenue stream in a category where AI automation is table stakes. The platform enhancements let Intuit own the customer's AI investment, not lose it to startups.
At a P/E of 21 and with a credible path to revived earnings growth, Intuit looks underpriced against the execution risk of these initiatives now priced in. Watch fiscal 2025 guidance and Sequence customer adoption metrics in the March earnings call.
