Key Takeaways
- Intuit shares plunged more than 10% in after-hours trading to $320.88 following disappointing fiscal 2027 revenue projections
- While adjusted earnings guidance appeared weak, an accounting methodology shift explains much of the shortfall—stock-based compensation now included in adjusted metrics
- Revenue projections represent the genuine concern: FY2027 outlook of $23.28B-$23.51B suggests 9-10% expansion, down from 14% growth this year
- TurboTax experienced a 2% unit decline in the quarter; Mailchimp forecasted flat to marginally negative
- CEO Sasan Goodarzi recognized emerging AI competitive threats and indicated potential price reductions to defend market position
Intuit delivered strong fiscal fourth-quarter results, with adjusted earnings per share reaching $4.03, exceeding analyst expectations of $3.59. The company’s revenue hit $4.35 billion, representing a 14% year-over-year increase and surpassing the $4.27 billion consensus. Credit Karma expanded 16% to $743 million, while the Global Business Solutions Group climbed 14% to $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
However, the positive quarterly performance was quickly overshadowed by forward guidance.
Intuit shares finished regular trading at $357.46, already declining 3.37%. In extended trading, the stock tumbled an additional $36.58, approximately 10%, settling at $320.88.
Management projected fiscal 2027 adjusted earnings per share between $22.88 and $23.12, significantly below Wall Street’s consensus estimate of approximately $27.30. The disparity initially appeared alarming.
However, the earnings shortfall is largely cosmetic. Beginning August 1, Intuit modified its adjusted earnings calculation methodology to incorporate stock-based compensation expenses. This accounting change alone explains $5.81 per share of the apparent miss. Adjusting for this difference, the guidance actually exceeds previous consensus expectations.
Revenue Deceleration Triggers Investor Concern
The authentic issue lies in top-line growth. Intuit projects FY2027 revenue between $23.28 billion and $23.51 billion, representing 9-10% growth. This forecast falls short of the $23.7 billion analyst consensus and marks a notable deceleration from the current year’s 14% expansion.
Customer acquisition is expanding at merely 3%, indicating Intuit is depending on pricing power and improved product mix rather than user base expansion.
TurboTax units contracted 2% during the quarter. Mailchimp is anticipated to deliver between a 1% decline and flat performance. The desktop segment is expected to decline in the low single-digit range.
Credit Karma and the Global Business Solutions Group demonstrate stronger momentum, with anticipated growth of 11-13% and 13-14% respectively.
Company leadership characterizes this approach as strategic, emphasizing customer acquisition and market share expansion over immediate revenue optimization per customer.
Emerging AI Threats Create Additional Headwinds
During a media discussion, CEO Sasan Goodarzi acknowledged Intuit faces legitimate competitive pressure from artificial intelligence capabilities and may require pricing adjustments to maintain market position. These remarks, released simultaneously with guidance, intensified the after-hours selloff.
Intuit shares had already declined over 40% year-to-date before earnings, pressured by broader software sector concerns that AI-powered tools could disrupt traditional subscription models.
Intuit has taken competitive action. The company enhanced Intuit Intelligence capabilities within QuickBooks Online Advanced and Intuit Enterprise Suite, incorporating conversational AI functionality. Additionally, Intuit secured a multi-year partnership with OpenAI, committing over $100 million to integrate Intuit-powered financial applications into ChatGPT.
As of July, the company maintained $7.2 billion in cash reserves, repurchased $5.5 billion in stock over the past year, and retains $7.9 billion in remaining share buyback authorization.
Analyst consensus rates Intuit as a Moderate Buy, with 13 Buy ratings, 6 Hold ratings, and 2 Sell ratings among 21 covering analysts. The average price target stands at $404.15, suggesting approximately 13% potential upside from Tuesday’s closing price.
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