MOUNTAIN VIEW, August 26, 2026, 05:25 EDT
- Intuit shares were at $315.77, falling 11.66% in premarket trading at 05:09 EDT.
- The decision wiped out approximately $11.4 billion from its market capitalization at the close.
- The midpoint of fiscal 2027 revenue guidance falls $324.5 million short of the LSEG consensus.
- TurboTax is expected to grow by 2%–3%, while Mailchimp could see a decline of 1%.
Intuit shares dropped 11.66% ahead of Wednesday’s market open after the company’s full-year forecast came in below analyst projections. Intuit Inc. (NASDAQ:INTU) was trading at $315.77 as of 05:09 EDT MarketWatch quote.
The drop reduced Intuit’s market value by around $11.4 billion at the close. That amount is approximately 35 times greater than the $324.5 million shortfall between its revenue midpoint and analyst consensus.
Scale is significant. Investors are factoring in over a year’s worth of sales shortfall into the stock. There are also concerns about the expense tied to Intuit’s drive for customer growth.
| Investor measure | Intuit figure | Reference |
|---|---|---|
| Share price | $315.77 before market open | Fell 11.66% from $357.46 at close |
| Fiscal 2027 revenue | $23.279B–$23.512B | $23.72B LSEG consensus |
| Fiscal 2027 adjusted EPS | $22.88–$23.12 | $27.32 analyst estimate |
| TurboTax revenue growth | 2%–3% | 7% for fiscal 2026 |
| Mailchimp revenue growth | Between −1% and unchanged | About $1.26B expected revenue |
The most recent quarter saw improved performance. Revenue for the fourth quarter increased by 14% to $4.35 billion, surpassing the $4.27 billion forecast reported by Reuters Reuters report.
The reset is part of TurboTax. CEO Sasan Goodarzi stated that price has become the main factor for customers leaving the platform. Intuit is reducing initial prices in an effort to boost its user base.
The decision puts strain on short-term revenue per filer. TurboTax’s revenue increased 7% to $5.3 billion last year, even as total federal units declined 2% to 39 million. TurboTax Live revenue climbed 37%, making up 53% of the franchise company results.
TurboTax revenue is now projected by management to increase between 2% and 3%. The Consumer Group is expected to see growth of 4%–6%, compared to 11% a year ago.
Mailchimp remains a weak spot. Intuit projects annual revenue between $1.256 billion and $1.266 billion, indicating flat growth to a 1% decrease. However, its larger Global Business Solutions unit is expected to expand by 13%–14%.
Caution is needed when comparing earnings. Intuit plans to incorporate share-based compensation costs in its adjusted results this year. According to the company, this change reduces the projected adjusted EPS by $5.81, making comparisons with earlier analyst forecasts less straightforward.
First-quarter guidance was also modest. The midpoint for revenue at $4.304 billion is roughly $56 million less than the $4.36 billion consensus reported by Reuters.
Intuit begins the reset period with strong cash flow. Fiscal 2026 revenue increased by 14% to $21.45 billion. The company bought back $5.5 billion worth of shares and closed the period with $7.2 billion in cash and investments.
Wall Street sentiment holds generally upbeat, though price targets vary significantly. Thirty-five analysts maintain a consensus Buy, with the average target at $446.02. The latest forecasted targets stretch from Piper Sandler’s $250 to Jefferies’ $500 consensus; analyst actions.
Risks: Reduced prices may drive a faster rebound in filer volumes. Growth in TurboTax Live could balance out softer performance in the do-it-yourself segment. However, ongoing softness in Mailchimp or higher discounting could weigh on margins and cash flow.
The upcoming checkpoint for Intuit is its investor day on September 17. Investors are expected to focus on customer acquisition goals and the impact of the pricing reset on margins.
