Morgan Stanley reduced its price target on Intuit Inc. (NASDAQ: INTU) to $315 from $335, citing a softer revenue outlook for fiscal 2027 and elevated execution risk ahead of the May tax season.
The downgrade follows Intuit’s fourth-quarter results, which exceeded analyst expectations on both revenue and earnings. Revenue rose 13.7% year-over-year to $6.7 billion, surpassing the consensus estimate of 11.5%. Non-GAAP earnings per share came in at $4.03, above the expected $3.58, while operating margins expanded to 33.3% from 30.7% a year earlier.
However, Intuit’s fiscal 2027 revenue guidance of 9–10% growth marked a notable deceleration from the 14% growth projected for fiscal 2026. The company’s outlook represents the first sub-10% revenue growth projection since fiscal 2015, reflecting management’s decision to reset pricing in its low-end QuickBooks Online tier and prioritize customer growth over near-term profitability in its Tax business.
Morgan Stanley maintained an Equalweight rating on the stock, warning that execution risks remain high until the upcoming tax season. The firm also noted that while earnings guidance remains robust due to cost-cutting measures, the revenue outlook reflects a strategic shift rather than a fundamental deterioration in demand.
Mizuho reiterated an Outperform rating with a $430 price target, highlighting Intuit’s strong fourth-quarter performance. Jefferies maintained a Buy rating, though it acknowledged the deceleration in fiscal 2027 guidance.
Intuit’s shares were trading at $357.46, down 45% year-to-date, with a forward price-to-earnings ratio of 21.89 and a price-to-earnings-to-growth ratio of 0.63. The company’s valuation remains near 14 times calendar year 2027 earnings per share, according to Morgan Stanley’s assessment.
