MOUNTAIN VIEW, California, August 25, 2026, 16:24 EDT — Shares of Intuit (INTU.O) fell more than 7% after the company forecast a 9%-10% increase in revenue for 2027, signaling a slowdown in expected growth.
- Shares of Intuit dropped over 7% in after-hours trading, following a close at $358.91, down 3.0%.
- Revenue is projected to grow by 9%–10% in fiscal 2027, down from 14% growth expected in fiscal 2026.
- The variance in first-quarter adjusted EPS is mainly due to a revised approach to stock compensation accounting.
- Mailchimp revenue is projected to range from a 1% decrease to flat growth this year.
Shares of Intuit Inc. NASDAQ:INTU dropped over 7% in after-hours trading on Tuesday. The financial-software company surpassed fourth-quarter expectations, but its projected fiscal 2027 revenue growth came in lower.
The response wiped out about $6.9 billion in market capitalization, calculated from the company’s value before the report. Intuit shares had ended the session down 2.98% at $358.91 prior to the earnings announcement.
The initial earnings comparison appears less favorable than the forecast itself. Intuit’s latest non-GAAP figures now factor in stock-based compensation, making them less directly comparable to earlier Wall Street projections.
Management forecast adjusted earnings per share for the first quarter between $2.44 and $2.48. Without the additional $1.48 charge for stock compensation, the midpoint would stand at $3.94. This represents a 2.5% decrease from analysts’ average estimate of $4.04, rather than the headline figure of a 39% decline.
Revenue guidance sounds the loudest note of caution. Intuit projects annual revenue between $23.279 billion and $23.512 billion, representing 9% to 10% growth. In fiscal 2026, the company reported a 14% increase in revenue, reaching $21.448 billion.
Mailchimp represents the most vulnerable link in that chain. Intuit projects segment revenue between $1.256 billion and $1.266 billion, indicating growth will be flat at best or drop by 1%. The company plans to report this business as a separate segment starting in fiscal 2027.
Other divisions continue to perform well. Global Business Solutions is projected to increase by 13%–14%. Credit Karma is forecast to rise 11%–13%, and TurboTax is anticipated to see slower growth of 2%–3%.
The quarter topped forecasts. Adjusted earnings were $4.03 per share, above the anticipated $3.58. Revenue came in at $4.354 billion, surpassing the consensus estimate of $4.27 billion by roughly 2%.
Revenue from Online Ecosystem climbed 17% to $2.6 billion. QuickBooks Online Accounting increased 20%, and Online Services were up 15%. Without Mailchimp, Online Services saw a 21% rise.
Chief Executive Sasan Goodarzi stated the company achieved over $20 billion in revenue for the year. Goodarzi also reported that the firm’s Big Bets expanded by 34% and contributed 30% of yearly revenue.
| Analyst | Rating | Target | Latest action |
|---|---|---|---|
| Jefferies | Buy | $500 | Lowered from $550 on Aug. 23 |
| Citi | Buy | $457 | Reduced from $591 on Aug. 17 |
| TD Cowen | Hold | $328 | Lifted from $304 on Aug. 11 |
| Consensus | Buy | $446.02 | 35 analysts |
The average target is still roughly 24% higher than Tuesday’s close. However, analysts had already lowered targets ahead of the results, signaling expectations for a downturn. Two days prior, Jefferies cautioned that fiscal 2027 forecasts were overly optimistic.
Intuit has ample financial capacity to manage the transition. At the end of July, it held $7.2 billion in cash and investments, compared with $7.7 billion in debt. The company bought back $5.5 billion in shares over fiscal 2026 and still has $7.9 billion available for repurchases.
Risks: The after-hours movement could shift ahead of Wednesday’s open. Higher QuickBooks monetization or increased TurboTax Live growth might counterbalance Mailchimp weakness, while a sharper slowdown among small businesses may increase the guidance gap.
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