Intuit's (INTU) fiscal Q3 results could act as a key catalyst, improving visibility on tax-season performance and potentially driving upward revisions to fiscal 2026 estimates, Morgan Stanley said in a Thursday note.

The company delivered strong fiscal Q2 results, including 17% total revenue growth, 18% growth in Global Business Solutions, 21% growth in the Online Ecosystem and about 40% growth in both QBO Advanced and the Intuit Enterprise Suite.

These results reinforced confidence in growth areas such as Assisted Tax and Mid-Market Accounting & Services. The highlighted key area could help Intuit return to a 20% long-term growth profile, according to the note.

The April quarter earnings report should provide clearer insight into how sustainable TurboTax growth is, along with further evidence of progress in Assisted Tax and Mid-Market Accounting & Services. Recent IRS tax and web-trends data also signal positive momentum for TurboTax and Credit Karma.

Morgan Stanley said it is elevating Intuit to top pick, citing its attractive valuation, strong product-cycle momentum toward 20% growth and an upcoming earnings catalyst.

The firm has an overweight rating and a $580 price target on Intuit.

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