Intuit Delivers 18% Growth With 20x P/E as Shares Drop 32%
Intuit's investment-grade bonds due 2033 trade at issuance spreads after its credit rating was upgraded to A, while shares have declined 32% year-to-date amid broader software debt sell-off. In fiscal H1 2026, Intuit delivered 18% revenue growth with expanding margins, reaffirmed full-year guidance and trades at 20x forward P/E.
1. CLO Sell-off Pressures
Collateralized loan obligation managers have been reducing software exposures, contributing to widened credit spreads in the sector. This trend reflects concerns over AI-driven disruption and potential downgrades on high-yield loans backing software buyouts.
2. Intuit Bond Trading and Credit Upgrade
Intuit’s 2033 investment-grade bonds are trading at the original issue spread after S&P upgraded the rating to A in October. Despite broader sell-off pressures, the upgrade underscores Intuit’s credit resilience even as shares fall 32% year-to-date.
3. Strong Growth and Valuation Discount
In the first half of fiscal 2026, Intuit posted 18% revenue growth with expanding margins and reaffirmed full-year guidance. The stock trades at 20x forward P/E, below its historical average, suggesting a valuation discount given its AI-driven strategy.