Jefferies has reaffirmed its Buy rating on Intuit Inc. (NASDAQ: INTU) with a $500 price target, citing the company's conservative fiscal 2027 guidance despite a strong fourth-quarter performance.
The firm highlighted Intuit's adjusted earnings of $4.03 per share for the quarter, exceeding analyst expectations of $3.54 per share and marking a 47% year-over-year increase. Revenue totaled $4.4 billion, surpassing projections of $4.28 billion. The company also reported a gross profit margin of 81% and a Piotroski Score of 9, indicating robust financial health.
Intuit's fiscal 2027 total revenue guidance of 9% to 10% represents a significant deceleration from the 14% growth projected for fiscal 2026. This marks the first time since fiscal 2015 that Intuit's growth is expected to fall below 10%. The guidance for TurboTax, its core product, is particularly conservative, with projected growth of just 2% to 3% for fiscal 2027. This contrasts with competitor H&R Block's guidance of 4.8% for the same period, though Intuit noted that TurboTax revenue has not grown below 7% in the past 11 fiscal years.
TurboTax Live, a premium offering, grew 37% in fiscal 2026 and is guided to mid-teens growth in fiscal 2027, following a 47% increase in fiscal 2025. Mid-market accounting services also showed strong performance, with 39% growth in fiscal 2026, aligning with the 40% growth recorded in fiscal 2025.
Intuit's aggressive share repurchase program continues, with $5.5 billion in buybacks completed in fiscal 2026, more than double the $2.1 billion repurchased in fiscal 2025. In the fourth quarter alone, the company repurchased $2.1 billion in shares, bringing the remaining authorization to $7.9 billion. Intuit's stock has declined 46% year-to-date, trading at $357.46 at the time of the report.
