Intuit shares fall on weak fiscal 2027 guidance

Intuit Inc. reported fourth-quarter fiscal 2026 results that exceeded analyst expectations, with revenue rising 14% year-over-year to $4.35 billion and adjusted earnings per share reaching $4.03. The company also reached a milestone of $21.4 billion in total annual revenue for the fiscal year.

Despite the strong quarterly performance, Intuit shares fell significantly due to weaker-than-expected guidance for fiscal 2027. The company projected revenue growth to slow to between 9% and 10%, down from the 14% growth seen in 2026. Management attributed this deceleration to several factors, including softness in Mailchimp, a decline in the desktop ecosystem, and a strategic decision to accept lower average revenue per customer in TurboTax to accelerate new customer acquisition.

Financial institutions, including Bank of America and JPMorgan Chase, downgraded the stock following the announcement. Analysts cited concerns regarding structural threats from artificial intelligence, noting that TurboTax may face increased competition from low-cost, AI-driven alternatives. In response to these shifts, Intuit has entered a partnership with OpenAI to develop AI-powered tax tools and restructured its workforce to reallocate resources toward AI development.