Intuit Inc. shares fell after the company lowered its full-year guidance, prompting analysts to reassess the stock’s valuation following a sharp pullback.
The financial software provider, known for products such as TurboTax and QuickBooks, cited softer-than-expected demand in its small-business and self-employed segments as the primary driver behind the revised outlook. The company now expects adjusted earnings per share for fiscal 2025 to range between $14.10 and $14.50, down from its prior guidance of $14.90 to $15.30. Revenue growth was also trimmed to a mid-single-digit percentage, reflecting macroeconomic pressures on discretionary spending.
Shares of Intuit declined over 5% in extended trading following the announcement, extending a recent downward trend that has erased roughly 12% of the stock’s value from its 52-week high. The selloff comes despite the company’s long-term growth narrative, anchored by its dominant position in tax preparation and small-business accounting software.
Analysts at major brokerages offered mixed views on the pullback. Some, including those at JPMorgan, maintained buy ratings but reduced their price targets, citing near-term headwinds. Others, such as Wedbush, argued that the valuation now reflects excessive pessimism, given Intuit’s recurring revenue model and expanding ecosystem of financial tools. Wedbush’s target price of $720 per share implies a potential upside of more than 20% from current levels.
The guidance revision follows a broader trend among software companies, where elevated interest rates and cautious enterprise spending have weighed on growth forecasts. Intuit’s exposure to consumer discretionary spending—particularly in its consumer tax business—has made it more vulnerable to economic downturns compared to enterprise-focused peers.
Investors will closely monitor the company’s upcoming earnings call for further details on demand trends and margin expectations. For now, the debate centers on whether the pullback represents an overreaction or a justified repricing of growth expectations.
