Intuit Stock Tumbles 12% After Massive Workforce Cuts and Revenue Miss

Key Stats for Intuit Stock

• Pre-market price change for Intuit stock: -12%
• $INTU Stock Price as of May. 20: $384
• 52-Week High: $814
• $INTU Stock Price Target: $592

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What Happened?

Intuit (INTU) stock dropped 13% in after-hours trading on Wednesday after the company announced it is cutting 17% of its full-time workforce — more than 3,000 employees — alongside its fiscal Q3 earnings report.

• The layoffs are part of a broader restructuring.
• Intuit CEO Sasan Goodarzi said the company needs to move faster and operate with fewer layers of management.
• Offices in Reno and Woodland Hills will close.
• The company is also pulling back from Mailchimp and eliminating duplicate roles created after the merger of TurboTax and Credit Karma.
• The restructuring will cost between $300 million and $340 million, mostly hitting this quarter.
• On the earnings side, results were mixed.
• Intuit reported $12.80 in adjusted EPS on $8.56 billion in revenue. Analysts expected $12.57 per share, so earnings beat — but revenue came in just short of the $8.61 billion forecast.
• Revenue grew 10% from a year ago, the slowest pace since 2024.

Despite the miss, Intuit raised its full-year guidance. The company now expects $21.34 to $21.37 billion in revenue and $23.80 to $23.85 in adjusted EPS for fiscal 2026, both above Wall Street’s prior estimates.

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What the Market Is Telling Us About Intuit Stock

Intuit stock has already had a rough 2025, falling almost 40% this year while the S&P 500 is up about 8%. Investors have been worried that AI could eat into demand for products like TurboTax and QuickBooks.

The layoff news — while framed as an efficiency move — adds to that unease. Intuit stock isn’t alone here. ZoomInfo, Cloudflare, Cisco, and Meta have all announced major cuts in recent weeks.

But for a company already under pressure, the combination of a revenue miss and mass layoffs is a tough pill for investors to swallow.

The raised guidance offers some comfort, but until Intuit stock shows it can grow revenue at a faster clip, sentiment is likely to stay cautious.

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!