Intuit reported fourth-quarter revenue growth of 13.6% to $4.35 billion, beating estimates, but its annual forecast for fiscal 2027 fell short of Wall Street expectations as the company prioritized customer growth over short-term profitability.
The company projected fiscal 2027 revenue between $23.28 billion and $23.51 billion, representing 9% to 10% growth, below the $23.72 billion estimate compiled by LSEG. Adjusted earnings per share were forecast at $22.88 to $23.12, including a $5.81 impact from share-based compensation, compared with analyst expectations of $27.32 per share. First-quarter revenue is expected to reach $4.29 billion to $4.31 billion, also trailing the $4.36 billion estimate.
Intuit’s guidance reflects deliberate trade-offs to accelerate customer growth, particularly in its core TurboTax and Mailchimp segments. TurboTax revenue is projected to grow 2% to 3% in fiscal 2027, a deceleration from 7% growth in fiscal 2026, while Mailchimp is expected to see flat to down 1% revenue in 2027. The company will begin reporting Mailchimp as a separate segment in the first quarter.
The slower growth outlook follows a 14% revenue increase in fiscal 2026, underscoring the impact of strategic shifts toward user acquisition. Weakness in the marketing platform and continued decline in desktop products are contributing factors, alongside lower average revenue per TurboTax customer due to pricing adjustments aimed at attracting more users.
Intuit’s shares have faced broader pressure alongside software stocks amid concerns that general-purpose AI tools could reduce demand for specialized software features. CEO Sasan Goodarzi emphasized the company’s focus on scaling its long-term initiatives, stating, "Looking ahead, we're focused on scaling our Big Bets, accelerating customer growth, and making deliberate choices to create a stronger foundation for durable long-term growth."
