Mizuho Securities reiterated an Outperform rating and maintained a $430 price target on Intuit Inc. shares, citing the company's sustained execution despite a moderating growth outlook.
The reiteration follows a fourth-quarter report in which Intuit posted revenue of $4.4 billion, up 13.7% year-over-year and exceeding the $4.28 billion consensus estimate. Adjusted earnings per share reached $4.03, ahead of the $3.58 estimate, while operating margins expanded to 33.3% from the 30.7% forecast. Gross profit margins remained robust at 80.79%, supported by growth in mid-market, assisted tax, and money portfolio segments, which rose 34% and accounted for 30% of full-year revenue.
Despite the strong quarter, management lowered its fiscal 2027 revenue growth guidance to 9%-10%, down from 14% in fiscal 2026. TurboTax revenue growth is now projected at 2%-3%, reflecting intensifying price competition in the DIY tax preparation market and slower customer acquisition. Profitability guidance for fiscal 2027 was raised, excluding stock-based compensation, though long-term targets for the Global Business Solutions Group and consumer/TurboTax segments were reduced.
Jefferies maintained a Buy rating with a $500 target, while Intuit's stock declined following the report, pressured by concerns over customer growth and the softer fiscal 2027 outlook. Management reaffirmed a commitment to margin expansion and non-GAAP EPS growth in the high teens or greater in the coming years.
