Intuit (INTU) Fell Despite Reporting Strong Results

INTU +0.63%

Brown Advisory, an investment management company, released its “Brown Advisory Large-Cap Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy returned -0.88% (net) during the third quarter, underperforming the benchmark, the Russell 1000 Growth Index. Even though the portfolio has significant exposure to AI, its underweight to the most speculative momentum-driven parts of the trade was a headwind to performance. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Brown Advisory Large-Cap Growth Strategy highlighted stocks such as Intuit Inc. (NASDAQ:INTU). Intuit Inc. (NASDAQ:INTU) offers financial management and compliance products and services. The one-month return of Intuit Inc. (NASDAQ:INTU) was -2.76%, and its shares lost 2.01% of their value over the last 52 weeks. On December 02, 2025, Intuit Inc. (NASDAQ:INTU) stock closed at $635.63 per share, with a market capitalization of $176.959 billion.

Brown Advisory Large-Cap Growth Strategy stated the following regarding Intuit Inc. (NASDAQ:INTU) in its third quarter 2025 investor letter:

"Intuit Inc. (NASDAQ:INTU), a leader in tax preparation, accounting, and financial management software, saw its stock trade lower during the period despite reporting strong quarterly results that exceeded top- and bottom-line expectations. We believe the decline was driven by forward guidance that did not meet investors’ buyside expectations. Later in the quarter, the company held its investor day, which reinforced market confidence in its long-term growth strategy and highlighted continued opportunities across the business."

Intuit Inc. (NASDAQ:INTU) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 96 hedge fund portfolios held Intuit Inc. (NASDAQ:INTU) at the end of the third quarter, which was 105 in the previous quarter. In the first quarter of fiscal 2026, Intuit Inc. (NASDAQ:INTU) reported revenue of $3.9 billion, representing an increase of 18% year-over-year. 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 the list of best strong buy AI stocks to invest in. In its Q3 2025 letter, RiverPark Large Growth Fund highlighted that Intuit Inc. (NASDAQ:INTU) is a high-quality software provider with strong recurring revenue, a large customer base, and growth potential through its connected financial platforms. In addition, please check out our hedge fund investor letters Q3 2025 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.