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Intuit shares fell further on Wednesday after the company issued fiscal 2027 guidance that missed analyst expectations, with revenue projected at $23.28 billion to $23.51 billion and adjusted earnings of $22.88 to $23.12 per share, both below consensus. The weak outlook overshadowed a fourth-quarter beat that saw EPS of $4.03 on revenue of $4.35 billion. CEO Sasan Goodarzi acknowledged growing AI competition and suggested the company may lower prices to defend market share. Several analysts revised their price targets, with Piper Sandler raising its target to $290 while maintaining Underweight, Wells Fargo cutting to $300 with Equal-Weight, and Barclays lowering to $408 while keeping Overweight. The stock has declined 46% this year amid sector-wide AI disruption concerns.
Key Elements
Intuit Inc. (INTU) shares extended their slide on Wednesday after the financial software maker delivered a fiscal 2027 outlook that fell short of Wall Street expectations, prompting several analysts to revise their price targets on the stock.
The Mountain View, California-based company reported fourth-quarter results that beat estimates on both the top and bottom lines, but the forward guidance overshadowed the strong quarter. Intuit expects fiscal 2027 revenue between $23.28 billion and $23.51 billion, below the consensus estimate of $23.74 billion. Full-year adjusted earnings are projected at $22.88 to $23.12 per share, sharply below the $27.31 per share analysts had forecast.
The earnings guidance includes a $5.81 impact from share-based compensation expenses, which the company said makes estimates not directly comparable. Intuit also disclosed that Mailchimp will become a separate reportable segment beginning in fiscal 2027.
Shares fell 3.4% to $345.29 on Wednesday, adding to losses from the prior session. The stock had already declined 46% this year amid broader concerns that AI technologies could disrupt the software sector.
Q4 Results Beat, But Guidance Disappoints
For the fiscal fourth quarter, Intuit posted adjusted earnings of $4.03 per share on revenue of $4.35 billion, surpassing analyst forecasts of $3.58 per share and $4.27 billion in revenue. Total revenue grew 14% year over year.
Revenue by segment showed broad-based growth. Global Business Solutions generated $3.4 billion, up 14%, while the Consumer segment brought in $930 million, also up 14%. The Online Ecosystem posted $2.6 billion, a 17% increase.
The company ended the quarter with $7.2 billion in total cash and investments and $7.7 billion in debt. Intuit repurchased $5.5 billion of its common stock during the fiscal year, with $7.9 billion remaining on its buyback authorization at quarter’s end.
For the fiscal first quarter, Intuit guided for revenue of $4.29 billion to $4.31 billion, below estimates of $4.36 billion, and adjusted earnings of $2.44 to $2.48 per share, well under the $4.04 per share consensus.
CEO Acknowledges AI Competition
CEO Sasan Goodarzi framed the company’s strategy as winning “as an AI-driven expert platform by creating a financial system of intelligence that increasingly does the work for consumers, businesses and accountants.” He added that the company is focused on “scaling our Big Bets, accelerating customer growth, and making deliberate choices to create a stronger foundation for durable long-term growth.”
In a media interview tied to the earnings release, Goodarzi acknowledged that Intuit is facing competition from the growing proliferation of AI technologies and suggested the company may look to gain market share by potentially lowering prices across its business. Those comments, combined with the weak outlook, pressured the stock in after-hours trading.
Intuit has introduced its own AI products and updates to compete in the current environment, but with mixed results. The company’s product portfolio includes TurboTax, QuickBooks, and Credit Karma.
Analysts Adjust Price Targets
Following the earnings announcement, several Wall Street analysts revised their outlooks on Intuit, with divergent views on valuation.
| Firm | Rating | Old Target | New Target |
|---|---|---|---|
| Piper Sandler | Underweight | $250 | $290 |
| Wells Fargo | Equal-Weight | $360 | $300 |
| Barclays | Overweight | $443 | $408 |
Note: Price targets reflect changes announced following Intuit’s fiscal Q4 2026 earnings release on August 25, 2026.
Piper Sandler’s Billy Fitzsimmons maintained an Underweight rating while raising the target from $250 to $290, suggesting the analyst sees some improvement in fundamentals but still views the stock as overvalued relative to peers. Wells Fargo’s Michael Turrin kept an Equal-Weight rating and lowered the target from $360 to $300, reflecting tempered expectations. Barclays’ Raimo Lenschow maintained an Overweight rating but cut the target from $443 to $408, indicating continued confidence in the long-term story despite near-term headwinds.
Prior to the earnings release, Intuit held a consensus Moderate Buy rating among 21 Wall Street analysts, based on 13 Buy, six Hold, and two Sell recommendations. The average price target of $404.15 implied approximately 13% upside from levels before the post-earnings decline. Those ratings are likely to be reassessed in the days ahead.
Intuit executives discussed the quarter further on an earnings call scheduled for 4:30 p.m. ET on Tuesday.
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