Shares of Intuit Inc. fell sharply on Wednesday after JPMorgan and Bank of America downgraded the company to Neutral, citing a broader-than-expected slowdown in growth across its core software platforms.
The reassessment followed Intuit’s fourth-quarter results, which missed Wall Street revenue expectations despite a 13.6% year-over-year increase to $4.35 billion. The company’s fiscal 2027 revenue guidance of $23.28 billion to $23.51 billion implied growth of 9% to 10%, below the $23.72 billion consensus estimate and down from 14% projected for fiscal 2026.
JPMorgan downgraded Intuit from Overweight to Neutral and cut its December 2027 price target from $605 to $331. Bank of America similarly downgraded the stock to Neutral from Buy and reduced its price objective from $400 to $360. The downgrades reflected concerns over sustained competitive pressure, particularly in TurboTax, where Intuit guided to just 2.2% growth versus the Street’s 6.8% expectation.
Analysts pointed to weaker Mailchimp sales, continued declines in desktop product revenue, and lower average revenue per TurboTax customer as key headwinds. Bank of America noted that TurboTax appears to be losing market share to lower-cost AI-driven alternatives, while JPMorgan highlighted rising disruption risks extending beyond TurboTax into the Global Business Solutions segment, which includes QuickBooks.
Intuit also lowered its long-term growth target for the Global Business Solutions segment to 10%–15%, down from the prior 15%–20% range. The company’s online QuickBooks customer base grew only 3% year-over-year, underscoring challenges in user retention and monetization.
Both brokerages emphasized that fiscal 2027 will be a heavier investment year for Intuit, driven by lower pricing, promotional offers, and expanded distribution to rebuild its customer pipeline. This strategic reset is expected to pressure near-term margins and earnings growth, contributing to the downgrades and share price decline. Intuit’s stock fell 1.94% in premarket trading to $362.74 before extending losses to 2.73% at $347.70 during the session.
