TLDR
- Intuit stock dropped over 10% after hours to $320.88 after the company issued weaker-than-expected fiscal 2027 guidance
- The earnings “miss” on guidance is largely due to an accounting change, as Intuit will now include stock-based compensation in adjusted figures
- Real concern is the revenue outlook: $23.28B to $23.51B for FY2027, implying 9-10% growth, down from 14% last year
- TurboTax units fell 2% in the quarter; Mailchimp is guided flat to slightly down
- CEO Sasan Goodarzi acknowledged AI competition and said the company may lower prices to gain market share
Intuit posted a solid fiscal fourth quarter, with adjusted EPS of $4.03 beating Wall Street’s $3.59 forecast. Revenue came in at $4.35 billion, up 14% year over year, topping the $4.27 billion estimate. Credit Karma grew 16% to $743 million, and the Global Business Solutions Group added 14% to reach $3.4 billion.
INTUIT $INTU Q4’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $4.4B (Est. $4.27B) 🟢; +14% YoY
🔹 Adj. EPS: $4.03 (Est. $3.58) 🟢FY27 Guide:
🔹 Revenue: $23.3B-$23.5B (Est. $23.72B) 🟡
🔹 Adj. EPS: $22.88-$23.12 (Est. $27.32) 🔴Q1 Guide:
🔹 Revenue: $4.29B-$4.31B (Est. $4.36B) 🟡
🔹… pic.twitter.com/EkDpXXyTVz— Wall St Engine (@wallstengine) August 25, 2026
That was the good news. Then came the guidance.
Intuit’s stock closed the regular session at $357.46, already down 3.37%. After hours, it dropped a further $36.58, or about 10%, to $320.88.
The company guided fiscal 2027 adjusted EPS of $22.88 to $23.12, versus a Wall Street consensus of around $27.30. That gap looked brutal at first glance.
But most of it is not what it seems. Starting August 1, Intuit changed how it reports adjusted earnings, now including stock-based compensation. That shift alone accounts for $5.81 per share of the gap. Strip that out and guidance actually lands above the old consensus.
The Revenue Slowdown Is the Real Story
Where investors have a legitimate gripe is revenue. Intuit expects FY2027 revenue of $23.28 billion to $23.51 billion, growth of 9% to 10%. That is below the analyst estimate of $23.7 billion and a step down from the 14% growth posted this year.
Customer growth is running at just 3%, which means Intuit is relying on price increases and product mix rather than bringing in new users.
TurboTax units fell 2% in the quarter. Mailchimp is expected to land somewhere between a 1% decline and flat. The desktop business is projected to shrink in the low single digits.
Credit Karma and the Global Business Solutions Group are healthier, with projected growth of 11-13% and 13-14% respectively.
Management is framing this as a deliberate strategy, prioritising customer acquisition and market share over near-term revenue per customer.
AI Competition Adds Pressure
CEO Sasan Goodarzi said in a media interview that Intuit is facing real competition from AI and may need to lower prices to hold market share. Those comments hit at the same time as the guidance and added to the selloff.
Intuit’s stock was already down more than 40% this year heading into earnings, beaten up by the same fear hanging over the whole software sector: that AI tools could replace paid subscriptions.
Intuit has moved to compete. It expanded Intuit Intelligence inside QuickBooks Online Advanced and Intuit Enterprise Suite, adding conversational AI tools. It also inked a multi-year deal with OpenAI, committing more than $100 million to bring Intuit-powered financial apps into ChatGPT.
The company ended July with $7.2 billion in cash, bought back $5.5 billion in stock last year, and has $7.9 billion of buyback authorisation remaining.
Wall Street’s consensus sits at Moderate Buy, based on 13 Buy, 6 Hold, and 2 Sell ratings from 21 analysts. The average price target is $404.15, implying about 13% upside from Tuesday’s close.
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