Intuit Inc. faced swift downgrades from Wall Street banks after the company’s weaker-than-expected guidance for fiscal 2027, prompting a sharp decline in premarket trading. JPMorgan and Bank of America both reduced their ratings to neutral, citing concerns over growth prospects and the impact of increased investment on margins.
JPMorgan lowered its rating on Intuit to neutral from overweight and slashed its December 2027 price target to $331 from $605. Bank of America similarly cut Intuit to neutral from buy and reduced its price objective to $360 from $400. The downgrades followed Intuit’s fourth-quarter results, which showed revenue rising 13.6% to $4.35 billion, exceeding analyst estimates of $4.27 billion.
The company’s guidance for fiscal 2027 revenue was lowered to a range of $23.28 billion to $23.51 billion, implying 9% to 10% growth. This marked a significant deceleration from the 14% growth projected for fiscal 2026 and fell short of the $23.72 billion consensus estimate tracked by LSEG. Analysts highlighted weaker-than-expected performance in key segments, particularly TurboTax, where Intuit guided to growth of just 2.2%, compared with the Street’s expectation of 6.8%.
Bank of America’s Tal Liani noted that the guidance reflected trends contrary to investor expectations, with TurboTax losing share to lower-cost AI-based alternatives rather than gaining traction in higher-value assisted offerings. The bank also pointed to a slowdown in enterprise-segment growth, with online customer counts rising only 3% year-over-year.
Intuit’s Global Business Solutions segment, which includes QuickBooks, saw its long-term growth target revised downward to a range of 10% to 15%, down from the prior 15% to 20%. The company emphasized heavier investments to rebuild its customer pipeline, a strategy that analysts warned could weigh on margins and take time to yield meaningful growth benefits.
JPMorgan’s Samik Chatterjee underscored that disruption risks had expanded beyond TurboTax to include the QuickBooks-focused segment, adding that the company’s ability to balance new customer acquisition with monetization would be critical in the coming year.
