Global Finance News
26 Aug 2026, 10:05
Intuit Stock Sinks 12% as FY2027 Growth Outlook Signals Sharp Slowdown
Intuit (NASDAQ: INTU) shares fell about 12% in premarket trading Wednesday despite reporting solid fiscal 2026 results, as investors focused on a significant slowdown in projected revenue growth for fiscal 2027 and weakness at Mailchimp and TurboTax.
Intuit finished fiscal 2026 with revenue rising 14% to $21.4 billion. GAAP operating income increased 20% to $5.9 billion, while GAAP EPS climbed 20% to $16.46. Fourth-quarter revenue also grew 14% to $4.4 billion.
Why Is INTU Stock Falling?
The primary concern appears to be the FY2027 outlook. Intuit expects total revenue of $23.28 billion to $23.51 billion, representing growth of just 9%-10%. That marks a noticeable deceleration from the 14% growth delivered in FY2026.
Several individual businesses also point to slower growth. TurboTax revenue is expected to increase only 2%-3% in FY2027, while the broader Consumer segment is projected to grow 4%-6%.
Mailchimp is an even clearer weak spot. Intuit expects Mailchimp revenue to range from a 1% decline to flat growth in FY2027. The company is also separating Mailchimp from Global Business Solutions and will report it as a standalone segment beginning this fiscal year.
Underlying TurboTax customer trends add to the caution. Total U.S. TurboTax units declined 2% in FY2026 to 39 million, including a 2% decline in online units and a 7% drop in desktop units.
AI Growth Remains a Long-Term Catalyst
There were still significant positives. Intuit said its strategic "Big Bets" grew 34% in FY2026 and generated 30% of total revenue, while management continues to position the company as an AI-driven financial platform.
QuickBooks Online Accounting revenue grew 23% for the year, Credit Karma increased 20%, and TurboTax Live jumped 37%, reaching 53% of total TurboTax revenue.
Intuit also expects strong FY2027 earnings growth, including GAAP EPS growth of 22%-24%, and increased its quarterly dividend by 15%.
Still, the 12% premarket selloff suggests investors are prioritizing the expected slowdown in top-line growth, particularly the weak Mailchimp outlook and modest TurboTax growth, over Intuit's continued margin expansion and AI-driven long-term strategy.
Intuit (NASDAQ: INTU) shares fell about 12% in premarket trading Wednesday despite reporting solid fiscal 2026 results, as investors focused on a significant slowdown in projected revenue growth for fiscal 2027 and weakness at Mailchimp and TurboTax.
Intuit finished fiscal 2026 with revenue rising 14% to $21.4 billion. GAAP operating income increased 20% to $5.9 billion, while GAAP EPS climbed 20% to $16.46. Fourth-quarter revenue also grew 14% to $4.4 billion.
Why Is INTU Stock Falling?
The primary concern appears to be the FY2027 outlook. Intuit expects total revenue of $23.28 billion to $23.51 billion, representing growth of just 9%-10%. That marks a noticeable deceleration from the 14% growth delivered in FY2026.
Several individual businesses also point to slower growth. TurboTax revenue is expected to increase only 2%-3% in FY2027, while the broader Consumer segment is projected to grow 4%-6%.
Mailchimp is an even clearer weak spot. Intuit expects Mailchimp revenue to range from a 1% decline to flat growth in FY2027. The company is also separating Mailchimp from Global Business Solutions and will report it as a standalone segment beginning this fiscal year.
Underlying TurboTax customer trends add to the caution. Total U.S. TurboTax units declined 2% in FY2026 to 39 million, including a 2% decline in online units and a 7% drop in desktop units.
AI Growth Remains a Long-Term Catalyst
There were still significant positives. Intuit said its strategic "Big Bets" grew 34% in FY2026 and generated 30% of total revenue, while management continues to position the company as an AI-driven financial platform.
QuickBooks Online Accounting revenue grew 23% for the year, Credit Karma increased 20%, and TurboTax Live jumped 37%, reaching 53% of total TurboTax revenue.
Intuit also expects strong FY2027 earnings growth, including GAAP EPS growth of 22%-24%, and increased its quarterly dividend by 15%.
Still, the 12% premarket selloff suggests investors are prioritizing the expected slowdown in top-line growth, particularly the weak Mailchimp outlook and modest TurboTax growth, over Intuit's continued margin expansion and AI-driven long-term strategy.
