Intuit stock drops 5% into the new week as IRS ends Direct File and jobs report nears

NEW YORK, Jan 4, 2026, 18:29 ET — Market closed

• Intuit shares closed down 5% on Friday, underperforming the software group.
• The IRS is discontinuing its Direct File program for the 2026 filing season, a potential shift in the tax-software landscape.
• Traders are eyeing the Jan. 9 U.S. jobs report and Intuit’s Jan. 9 dividend record date as near-term catalysts.

Intuit Inc shares ended Friday down 4.98% at $629.46, after swinging between $622.31 and $665.02 in the first session of 2026.

The pullback matters because Intuit is heading into a seasonally important stretch for its TurboTax business, while markets are also repricing high-multiple software names as 2026 begins. The close leaves the stock on the back foot going into Monday’s reopening, with investors split between bargain-hunting and protecting gains.

Friday’s tape was choppy beneath the surface. The Dow and S&P 500 eked out gains while the Nasdaq finished flat, and a Reuters poll pointed to the Jan. 9 employment report as the next potential catalyst for rate expectations. “Buy the dip, sell the rip,” is the mindset in this market, Charles Schwab’s Joe Mazzola told Reuters, as investors stay alert to what they are paying for growth. Reuters

Software stocks were among the laggards, with the iShares Expanded Tech-Software Sector ETF down 2.86% on the day. Intuit fell more than peers cited in MarketWatch’s sector comparison, including tax rival H&R Block, which dropped 2.23% in the same session.

On the fundamental side, a tax-policy headline is back in focus. The IRS is discontinuing its Direct File program for the 2026 filing season, Investopedia reported, removing a free government-run option that had been available to filers in 25 states. Treasury Secretary Scott Bessent said the private sector offers “better alternatives,” according to the report. Investopedia

Investors are also watching Intuit’s upcoming shareholder timetable. A November SEC filing showed the board approved a $1.20 per share dividend payable on Jan. 16, 2026, to shareholders of record as of the close on Jan. 9, 2026.

Technically, Intuit finished the week below its 50-day and 200-day moving averages — around $659.87 and $682.48, respectively — levels traders often use as quick reads on short- and long-term trend. The stock’s 52-week range is roughly $532.65 to $813.70, leaving Friday’s close about 23% below the high.

The next major company checkpoint is earnings. Nasdaq’s earnings calendar estimates Intuit will report around Feb. 24, though the company has not posted a date on that page.

But risks cut both ways. A weaker-than-expected jobs report on Jan. 9 could revive growth scares and pressure richly valued software stocks, while any renewed scrutiny of tax-prep pricing or changes in consumer filing behavior could blunt the benefit from policy shifts like Direct File’s suspension.

Markets reopen on Monday, with investors focused on whether INTU stabilizes after Friday’s selloff. The next specific catalysts are the Jan. 9 U.S. employment report and Intuit’s Jan. 9 dividend record date, ahead of the Jan. 16 payout and a late-February earnings window.