Why Intuit Stock (INTU) Is Getting Hammered Today

Intuit shares take a nosedive as earnings reality bites.

Market Shockwaves

INTU investors are scrambling after disappointing quarterly results hit the tape. The tax software giant missed revenue targets by a wider margin than analysts anticipated—sending shares down double-digits in early trading.

Growth Engine Sputters

Small business segment growth slowed to a crawl while consumer tax products failed to offset declining desktop software sales. Management's guidance now projects weaker-than-expected performance through next fiscal year.

Competition Heats Up

New fintech players are eating Intuit's lunch with cloud-native solutions that bypass legacy infrastructure. The company's attempt to pivot toward AI-driven features hasn't yet moved the needle with cost-conscious SMBs.

Wall Street's verdict? Another legacy tech play learning that quarterly earnings beat visionary promises—especially when those promises come with premium valuations. Maybe they should've invested in Bitcoin instead.

Intuit reported a strong quarter but weak guidance

The company behind TurboTax and Credit Karma posted its fiscal fourth-quarter earnings of $2.75 per share on $3.83 billion in sales for the period ended July 31, above Wall Street's expectations. Intuit credited artificial intelligence (AI) for much of the momentum, highlighting how AI tools like Intuit Assist are driving adoption and higher customer spending across its platforms.

Looking ahead, Intuit guided for fiscal 2026 earnings of roughly $23 per share, paired with revenue of roughly $21 billion. The company stressed that its guidance style is intentionally conservative to preserve credibility with investors.

Image source: Getty Images.

This is being driven primarily by slowing sales from its Mailchimp product, but Intuit's CFO assured investors it was transitory. The company has been reworking how it packages its products, leading to some businesses finding it "a bit harder to use." That should change as users grow accustomed to the new paradigm.

Nonetheless, the weak guidance is sending Intuit shares lower

Intuit's stock was still hit, despite the CFO's comments on the dip being temporary. I think Intuit is in a good position to sustain long-term growth. Its products have a solid moat; the switching costs for a company to change aren't negligible. The stock isn't cheap, but I think it is still a solid pick.