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

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

Wed, August 19, 2026 at 4:58 PM GMT+3 3 min read

• INTU +3.38%

Eagle Capital Management, an investment management company, released its second quarter 2026 investor letter. A copy of the letter can be downloaded here. In the quarter, Eagle Capital Management discussed how enthusiasm around AI capital spending has driven strong S&P 500 earnings growth while also increasing risks from elevated valuations, concentrated demand, and aggressive investment assumptions. Eagle remains a strong believer in AI but prefers constructing a portfolio that can perform across multiple outcomes rather than relying on one forecast. The firm believes current earnings can overstate underlying economics because semiconductor equipment is depreciated over several years, while free cash flow growth remains much weaker. It also expects competition and additional capacity across AI labs, hyperscalers, and semiconductors to eventually create winners and losers. These dynamics are encouraging Eagle to recycle capital toward attractive opportunities outside the most crowded AI trades while maintaining selective exposure to high quality beneficiaries. The portfolio trades at a 20% market discount with faster expected EPS growth. Please review the Strategy's top five holdings for key selections.

In its second-quarter 2026 investor letter, Eagle Capital Management highlighted Intuit Inc. (NASDAQ:INTU). Intuit Inc. (NASDAQ:INTU) provides financial management, payments and capital, compliance, and marketing products. On August 18, 2026, Intuit Inc. (NASDAQ:INTU) closed at $350.41 per share. One-month return of Intuit Inc. (NASDAQ:INTU) was 23.18% and its shares gained -49.88% over the past 52 weeks. Intuit Inc. (NASDAQ:INTU) has a market capitalization of $95.85 billion.

Eagle Capital Management stated the following regarding Intuit Inc. (NASDAQ:INTU) in its Q2 2026 investor letter:

"Software is controversial due to fears of Al-driven disruption. Al makes it easier to build software and will change workflows in how it is used. We believe there will be heightened competition and greater separation between winners and losers over the coming years. The industry is deservedly trading at a higher risk premium, but within the market there are plenty of mispricings.

Intuit Inc.'s (NASDAQ:INTU) QuickBooks, the dominant bookkeeping software for small and midsize businesses in the U.S., exists in a market that is difficult to serve profitably, given the low average selling price. Intuit's brand, scale, and network effect through the accountant channel give it formidable competitive advantages. It is well-placed to deliver Al solutions to this hard-to-reach customer. TurboTax, a relatively smaller part of the business, will likely adapt its business model to an Al world, but we have more modest expectations for its growth. We expect EPS growth in the high teens, driven by revenue growth, operating leverage, and share buybacks."

Intuit Inc. (NASDAQ:INTU) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 92 hedge fund portfolios held Intuit Inc. (NASDAQ:INTU) at the end of the first quarter which was 91 in the previous quarter. While we acknowledge the potential of Intuit Inc. (NASDAQ:INTU) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Intuit Inc. (NASDAQ:INTU) and shared Fundsmiths' insight on the company. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.