Intuit Stock Dips on Weak 2027 Forecast

Intuit's stock saw a significant drop in after-hours trading on Tuesday after the company provided fiscal 2027 guidance that did not meet Wall Street's expectations.

The financial software firm announced its fourth-quarter results, which exceeded analyst estimates, reporting adjusted diluted earnings per share of $4.03 on revenue of $4.35 billion, a 14% year-over-year increase.

However, the outlook for fiscal 2027 revealed expected challenges. Intuit forecasts adjusted diluted earnings per share to be between $2.44 and $2.48 for the first quarter and between $22.88 and $23.12 for the full fiscal year, both significantly below consensus estimates. Revenue projections for the full fiscal year also fell short of expectations.

Intuit cited softer Mailchimp growth, a declining Desktop ecosystem, and deliberate changes to its TurboTax strategy as key drivers for the anticipated deceleration. The company is accepting lower upfront revenue per customer in TurboTax to boost customer acquisition and market share.

Beginning in fiscal 2027, Intuit will modify its adjusted measures to include share-based compensation expense, and Mailchimp will be reported as a distinct segment. The company's performance in fiscal year 2026 saw adjusted diluted earnings per share of $24.27 and total revenue of $21.45 billion, both surpassing consensus.

CEO Sasan Goodarzi highlighted the company's strategy to become an AI-driven expert platform, aiming to "create a financial system of intelligence" to assist consumers, businesses, and accountants.