New York, Feb 4, 2026, 11:56 EST — Regular session
- Intuit shares climbed 0.5% in late trading, recovering from a sharp swing earlier in the session
- Software stocks continue falling amid renewed concerns that AI tools could erode market share for established players
- Investors are eyeing Intuit’s February 26 earnings for insights on demand trends and competitive challenges
Intuit shares ended Wednesday up 0.5% at $436.13, bouncing between a low of $411.48 and a high of $447.00 amid ongoing volatility in software stocks.
The churn is crucial now as a selloff that began this week has morphed into a wider discussion about whether new artificial intelligence offerings might erode the “stickiness” of enterprise software—and the associated fees. This pressure hit the S&P 500 software and services index, even while the broader S&P 500 hit a record earlier in the week. (Reuters)
Anthropic’s launch of plug-ins for its “Claude Cowork” agent — extensions that link the AI tool directly to real-world work tasks — has stoked worries among traders and analysts. They fear automation might advance more quickly than established companies can keep up with. (Reuters)
“Sometimes the market just shoots first and asks questions later,” said Mike Archibald, a portfolio manager at AGF Investments, capturing investors’ swift reaction to the legal-automation theme. (Reuters)
Mark Murphy, J.P. Morgan’s head of U.S. enterprise software research, dismissed the idea that new productivity tools will lead companies to ditch “every layer” of essential software as “an illogical leap.” Meanwhile, Ben Barringer from Quilter Cheviot warned the episode might trigger “further volatility” as investors reevaluate pricing power. (Reuters)
Intuit faces a tricky moment, with its fiscal second-quarter report set for release after the close on Feb. 26. The company usually uses this update to share demand trends for key products like TurboTax, Credit Karma, QuickBooks, and Mailchimp. (Intuit Inc.)
Other software stocks added to the day’s volatility. The broader U.S. software and services index kept sliding through multiple sessions Wednesday, weighed down by names like CrowdStrike and Adobe. Investors shifted focus amid earnings reports and shifting macroeconomic news. (Reuters)
The downside scenario is straightforward: if customers find ways to get by with fewer paid seats, or develop tools internally faster than vendors can respond, those lofty sector multiples could shrink fast, even if revenue stays steady for now.
Investors will be looking closely at Intuit’s Feb. 26 earnings call for clues on shifts in customer behavior, pricing power, or competitive pressures as AI tools gain ground in finance, tax, and compliance tasks.
