L1 Capital International Sees Intuit’s (INTU) Decline as Market’s Overreaction

3 weeks ago 11

Soumya Eswaran

Mon, July 20, 2026 astatine 8:38 AM CDT 4 min read

L1 Capital, an concern absorption firm, released its "L1 Capital International Fund" (unhedged) second-quarter 2026 capitalist letter. A transcript of the missive tin beryllium downloaded here. The missive discusses the existent concern situation arsenic a 'two-speed' but resilient planetary economy, accompanied by an uncertain future. The missive explores the imaginable of an AI bubble, distinguishing betwixt beardown fundamentals and speculative momentum. Additionally, the marketplace displays a 'narrow' character, marked by precocious exuberance and pronounced over-pessimism. Against this backdrop, the Fund returned +2.6% (net of fees) during the June 2026 quarter, compared to the benchmark instrumentality of +12.5% (all successful A$). The underperformance was driven much by which investments were not held successful the Fund. The Fund remains focused connected quality, valuation and the avoidance of imperishable superior loss, and believes the portfolio is positioned to present charismatic risk-adjusted returns for diligent investors. In addition, you tin cheque the Fund's apical 5 holdings to cognize its champion picks successful 2026.

In its Q2 2026 capitalist letter, L1 Capital International Fund highlighted Intuit Inc. (NASDAQ:INTU). Intuit Inc. (NASDAQ:INTU) is simply a fiscal bundle institution offering products and services for fiscal management, payments, capital, compliance, and marketing. On July 17, 2026, Intuit Inc. (NASDAQ:INTU) closed astatine $291.09 per share. One-month instrumentality of Intuit Inc. (NASDAQ:INTU) was 12.93%, and its shares mislaid 61.88% implicit the past 52 weeks. Intuit Inc. (NASDAQ:INTU) has a marketplace capitalization of $79.62 billion.

L1 Capital International Fund stated the pursuing regarding Intuit Inc. (NASDAQ:INTU) successful its Q2 2026 capitalist update:

"Intuit Inc.'s (NASDAQ:INTU) Q3 2026 quarterly results were moderately beneath our – and the market's – expectations. The stock terms fell astir 40% during the June 2026 quarter. While we see the market's effect excessive, it was not without reason. Intuit operates a fig of bundle businesses. QuickBooks (accounting, payroll and payments) continues to execute solidly though maturation rates are expected to slow. Credit Karma (personal finance) has performed exceptionally well, portion Mailchimp (marketing) has struggled since acquisition though this is not caller information. The halfway disappointment was the TurboTax business.

TurboTax is simply a communicative of 2 cities. Intuit has been investing successful AI for galore years. TurboTax has developed a hybrid offering betwixt AI driven bundle and a quality taxation adept called TurboTax Live which is rapidly disrupting the 'do it for me' taxation filing industry. This portion of TurboTax grew astatine a mid-30s maturation complaint and is present implicit 50% of full TurboTax revenue. However, the 'do it yourself' TurboTax merchandise mislaid meaningful stock amongst terms sensitive, low-income filers, causing a humble downgrade to expected full TurboTax divisional maturation from astir 8% to astir 7% for FY2026. On its aboveground the somewhat little gross expectations look de minimis, but we had expected Intuit to transcend its anterior guidance. The cardinal concern question is whether caller marketplace stock nonaccomplishment reflects impermanent execution issues oregon a structural alteration successful competitory dynamics resulting from AI. Intuit is present trading good beneath our appraisal of just value. Execution volition beryllium captious and grounds of betterment volition instrumentality time. Given the heightened uncertainty, the present smaller presumption reflects what we see to beryllium an due equilibrium betwixt hazard and imaginable return."

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