Intuit Inc. (NASDAQ: INTU) faced a wave of analyst downgrades and target reductions following its latest quarterly results and a cautious outlook for fiscal 2027. Freedom Broker lowered its price target to $370 from $430 while maintaining a Hold rating, citing muted guidance and transitional pressures despite solid Q4 performance.
The company reported Q4 revenue of $4.354 billion, a 14% increase that exceeded expectations by 2.1%. The Global Business Solutions Group generated $3.424 billion in revenue, driven by growth in midmarket products and online accounting services. Credit Karma also outperformed, posting a 16.5% year-over-year revenue increase.
Analysts, however, highlighted concerns over Intuit’s fiscal 2027 guidance, which suggests a deceleration in growth. Freedom Broker pointed to temporary pressures on client monetization, price cuts in the TurboTax DIY segment, and stagnation in Mailchimp as key factors. The firm also noted the adoption of a new accounting methodology for stock-based compensation expenses as a contributing factor to the revised outlook.
Other brokerages followed suit. Truist Securities reduced its target to $300 while maintaining a Hold rating, while Piper Sandler raised its target to $290. Stifel increased its target to $300, reflecting a mixed but cautiously optimistic view of the company’s near-term prospects.
Intuit’s stock was trading at $345.60 at the time of reporting, down 47% year-to-date. The broader analyst community appears divided, with Wolfe Research downgrading Intuit’s rating due to shifts in tax revenue guidance and customer strategy, while BMO Capital reiterated an Outperform rating despite acknowledging moderating growth outlooks.
The company’s gross profit margin remained robust at 81%, and its P/E ratio stood at 21, offering some reassurance amid the cautious guidance. InvestingPro data indicated that six analysts had revised their earnings estimates downward for the upcoming period, underscoring the uncertainty surrounding Intuit’s growth trajectory.
