Key Stats for Intuit Stock
- Price Change for $INTU stock: -5%
- Current Share Price: $663
- 52-Week High: $814
- $INTU Stock Price Target: $835
What Happened?
Intuit (INTU) shares plummeted 5% on Friday following the company’s weaker-than-expected fiscal 2026 guidance, despite posting strong fourth-quarter results that beat estimates.
The tax and accounting software maker projected first-quarter GAAP earnings per share of $1.19 to $1.26 and revenue growth of 14% to 15%, falling short of analyst expectations for $1.31 EPS and 16.2% revenue growth.
Intuit’s full-year fiscal 2026 EPS guidance of $15.49 to $15.69 also came in below forecasts. The disappointing outlook was attributed to ongoing challenges with its Mailchimp marketing platform and softer demand trends in certain segments, particularly around lower Average Revenue Per Return (ARPR) customers in TurboTax.
Despite the guidance concerns, Intuit delivered impressive Q4 results with adjusted EPS of $2.75 on revenue that increased 20% year-over-year to $3.83 billion, both beating estimates.
CEO Sasan Goodarzi highlighted its AI initiatives, including the launch of a “virtual team of AI agents and AI-enabled human experts” that drove strong customer engagement with millions of users interacting with the new platform.
See analysts’ growth forecasts and price targets for Intuit stock (It’s free!) >>>
What the Market Is Telling Us About INTU Stock
The sharp selloff in Intuit stock reflects investor disappointment that Intuit’s near-term growth trajectory may be moderating, even as it invests heavily in AI capabilities and platform consolidation.
Particularly concerning is the ongoing drag from Mailchimp, which has weighed on growth throughout fiscal 2025, though management expressed confidence in returning the platform to double-digit growth by Q4 of fiscal 2026.
The guidance also suggests challenges in TurboTax, where U.S. units fell 2% to 39.2 million as the company yielded share among lower ARPR customers.
This indicates Intuit may be prioritizing higher-value customers over volume growth, which could pressure near-term revenue but potentially improve long-term profitability.
However, the underlying business fundamentals remain strong, with Global Business Solutions Group revenue growing 18% and significant momentum in mid-market customers through QuickBooks Online Advanced and Intuit Enterprise Suite.
Intuit’s early AI investments are showing promising engagement metrics, and management maintains confidence in long-term growth targets of 12-13% revenue growth.
While the guidance disappointment has created near-term pressure, Intuit’s strategic positioning in AI-driven financial software and strong competitive moats suggest the current weakness may represent a temporary setback rather than fundamental deterioration.
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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!
