New York, January 28, 2026, 16:02 EST — After-hours trading session.
Intuit Inc shares slipped Wednesday as investors weighed the company’s risks tied to generative AI—the chatbots that generate responses from brief prompts. The stock last traded down roughly 1.2% at $539.13, fluctuating between $537.85 and $552.85 earlier in the session.
The drop keeps Intuit’s (INTU) central dilemma alive as the U.S. tax season ramps up: will consumers stick with TurboTax and professional assistance, or switch to more affordable, AI-driven tools for straightforward filings?
RBC Capital Markets stuck with its Outperform rating on Wednesday, holding the price target steady at $850. The firm said the recent dip reflects “AI fears” rather than any fundamental shift in the business. According to RBC, fewer than 15% of paid TurboTax users are “simple filers” — those with basic returns involving just wages and standard deductions — which reduces the direct threat posed by AI tools. 1
Intuit is ramping up its push into small-business hiring and payroll. On Monday, it announced a multi-year deal with background-check company Checkr to integrate screening directly into QuickBooks Online Payroll and Intuit Enterprise Suite. The goal: simplify the hiring process by cutting out extra steps. Checkr’s Kristen Faris noted smaller companies now want to “hire with the same speed and sophistication of large enterprises.” Meanwhile, Intuit’s Olivier Bartholot highlighted “tools that work together seamlessly, without adding complexity.” 2
A separate SEC filing revealed that Intuit’s board approved changes to its compensation program for non-employee directors during the annual meeting on Jan. 22. Shareholders re-elected all 11 directors, approved executive pay in an advisory vote, and ratified Ernst & Young as auditor. However, they rejected a proposal calling for a report on the return on investment of diversity and inclusion programs. 3
Intuit’s portfolio includes TurboTax for consumer tax filing and QuickBooks for accounting and payroll. Credit Karma and Mailchimp broaden its reach further. This positions the company in competition with H&R Block on tax prep and with payroll giants like ADP and Paychex in serving small businesses.
But the stock’s decline suggests investors aren’t finished crunching the downside risks. A quicker-than-anticipated move toward “good enough” free filing or softer small-business hiring could weigh on two key pillars Intuit depends on.
Traders are watching the human element of Intuit’s strategy closely. While assembling and maintaining an expert network can boost service revenue, it also adds costs that could hurt if demand falls short.
Intuit announced Wednesday it plans to upskill 1 million accounting students over the next five years through a new Career Pipeline Program. “Our commitment to upskill one million students is rooted in listening to our accounting partners,” said Simon Williams. Dave Zasada added, “AI and human intelligence work together to expand opportunity.” The company will kick off the program with a virtual “Career Lab” event scheduled for Feb. 3-4. 4
