Street View: Intuit's muted forecast rekindles concerns over growth engine

Intuit

26/08/2026 11:58

** TurboTax maker Intuit INTU.O forecast annual revenue below Wall Street estimates on Tuesday, saying efforts to expand its customer base and gain market share would pressure near-term sales growth
** Shares down 12.23% at $313.76 premarket on Wednesday
** J.P. Morgan downgrades stock rating to "neutral" from "overweight"; brokerage almost halves PT to $331 from $605
     
ROAD AHEAD GETS BUMPIER
** Morgan Stanley ("equal weight," PT: $315) says INTU's lower FY27 and medium-term outlook have renewed concerns about slowing growth, but the reset lowers the bar for future performance, though execution risks around the new strategy remain
** J.P. Morgan says subdued new customer additions at co's Global Business Solutions segment over the past year despite strong gains with mid-market customers increase concerns about disruption 
** Wells Fargo ("equal weight," PT: $300) says long-term growth targets were lowered in both major segments, raising concerns about AI growth story and co's ability to deliver a high-teens compound annual growth rate in earnings per share
** Morningstar (fair value: $430) says Turbo Tax's growth is likely to slow, but improvements to user experience should help retain its core do-it-yourself tax customers despite increasing competition
     
     

 (Reporting by Kanishka Ajmera in Bengaluru)
 ((Kanishka.Ajmera@thomsonreuters.com))