Intuit's AI partnership with Anthropic has sent INTU stock soaring, but investors face a complex decision. The deal, announced Feb. 23, has already boosted shares from $359.55 to $394.42 by Feb. 26, a 9.7% gain. However, the stock remains down 20.6% in the past month and 37.5% over three months, reflecting broader software sector weakness.

Intuit, based in Mountain View, California, specializes in accounting and tax-preparation software with a $109.75 billion market cap. The company's fiscal Q2 revenue grew 17% to $4.7 billion, while operating income jumped 44% to $855 million. Under the agreement, Intuit will provide AI agents to medium-sized businesses and migrate its software into Anthropic's offerings, while customers can create their own AI agents using Anthropic's technology.

The partnership offers short-term protection against AI disruption but doesn't eliminate long-term threats to Intuit's business model. With shares trading at 24 times forward earnings, the stock remains expensive despite recent weakness. The Street's positive reaction to the deal may be overblown given persistent concerns about AI replacing traditional software companies.