Intuit Shares Plunge 12% After Fiscal 2027 Revenue Guidance Falls Well Short of Wall Street Estimates

Intuit shares fell roughly 12% on August 26, extending a 10%-plus drop in after-hours trading the prior session, after the company issued fiscal 2027 revenue guidance of $23.28 billion to $23.51 billion, implying 9% to 10% growth, which trailed Wall Street forecasts. The selloff came despite a strong fiscal fourth quarter, where revenue rose 14% year over year to $4.35 billion and non-GAAP earnings per share of $4.03 beat expectations. The softer outlook reflects a deliberate strategic reset: Intuit is widening access to QuickBooks by targeting lower-cost tiers, reworking TurboTax pricing after cost-conscious customers fled the platform, and absorbing near-term revenue pressure as it prioritizes customer acquisition and market share.

TurboTax growth is projected to slow to just 2% to 3% in fiscal 2027, while Mailchimp guidance was flat to down 1%. Management projects non-GAAP EPS growth of 20.6% for the year, arguing the reset builds a stronger long-term foundation, but Wall Street was not persuaded in the near term. JP Morgan downgraded Intuit from Overweight to Neutral with a $331 price target, and BofA Securities cut its rating from Buy to Neutral with a $360 target.

Wolfe Research also downgraded the stock on tax growth concerns. Price targets were slashed broadly: Deutsche Bank cut to $400 from $425, Barclays to $408 from $443, Morgan Stanley to $315 from $335, RBC to $385 from $500, Truist to $300 from $350, and Wells Fargo to $300 from $360, citing tax segment headwinds and the revenue guide miss. A handful of firms held more constructive views, with Jefferies and BMO reiterating Buy and Outperform ratings respectively, Mizuho maintaining an Outperform with a $430 target, and Piper Sandler raising its target to $290 from $250 on higher cash flow margin expectations.

AI disruption fears also weighed on sentiment, with the TurboTax and QuickBooks franchises seen as increasingly exposed to competition, dragging shares of Adobe and ServiceNow lower by about 3% in sympathy.