Intuit shares dropped 11.8% in premarket trading after the company issued conservative guidance for fiscal 2027, citing a strategic shift aimed at accelerating customer growth and long-term durability. The adjustment reflects softer Mailchimp performance, a declining Desktop ecosystem, and deliberate changes to TurboTax pricing that prioritize customer acquisition over near-term revenue per user.
For the first quarter of fiscal 2027, Intuit guided adjusted diluted EPS to $2.44-$2.48, below the $4.02 consensus estimate, with revenue projected at $4.29-$4.31 billion against a $4.35 billion consensus. Full-year guidance set adjusted diluted EPS at $22.88-$23.12, missing the $27.30 consensus, while total revenue was forecast at $23.28-$23.51 billion versus a $23.74 billion consensus. Structural changes include ending the exclusion of share-based compensation expenses from adjusted metrics starting in fiscal 2027 and separating Mailchimp as its own segment from Global Business Solutions.
The guidance revision follows a fiscal fourth-quarter report that exceeded expectations, with adjusted diluted EPS of $4.03 beating the $3.59 estimate and total revenue rising 14% year-over-year to $4.35 billion, surpassing the $4.27 billion consensus. Segment performance showed strength in Global Business Solutions, which grew 14% to $3.4 billion, while the Online Ecosystem climbed 17% to $2.6 billion. QuickBooks Online Accounting revenue increased 20%, driven by higher effective prices, customer growth, and mix shifts.
Consumer revenue rose 14% to $930 million, Credit Karma revenue grew 16% to $743 million on strength in personal loans, auto insurance, and credit cards, and TurboTax revenue advanced 3% to $153 million. ProTax revenue increased 6% to $34 million. For the full fiscal year 2026, adjusted diluted EPS reached $24.27, above the $23.83 consensus, with total revenue up 14% to $21.45 billion, exceeding the $21.37 billion consensus.
Analysts at Stifel noted that the guidance reset aligns with their downgrade, citing structural challenges in rebuilding the top-of-funnel go-to-market strategy and expecting Intuit to underperform peers in the near term. CEO Sasan Goodarzi emphasized the company's progress toward its AI-driven platform vision, stating that the five strategic priorities—collectively termed "Big Bets"—grew 34% and accounted for 30% of full-year revenue.
