Wells Fargo reduced its price target on Intuit to $300 from $360 while maintaining an Equal Weight rating, citing concerns over long-term growth in the company’s tax segment. The adjustment follows a broader reassessment of Intuit’s outlook after management revised its guidance for the Global Business Solutions segment to a 10-15% compound annual growth rate over the next three years, down from a prior 15-20% range.
The consumer business outlook was also lowered, with TurboTax and Credit Karma now expected to grow at a 4-8% CAGR, compared with previous ranges of 6-10% and 10-15%, respectively. Intuit’s stock closed at $357.46 on Aug. 24, down 3.37% for the session, and was indicated at $313.03 in pre-market trading on Aug. 25, a decline of 12.43%.
Revenue for the fourth quarter of fiscal 2026 rose 13.7% year-over-year, exceeding the consensus estimate of 11.5%, while non-GAAP earnings per share reached $4.03, surpassing the forecast of $3.58. For fiscal 2027, Intuit guided revenue growth to 9-10%, a deceleration from the 14% growth recorded in fiscal 2026.
Intuit’s tax segment faces pressure as the company shifts strategy to prioritize customer acquisition and retention over average revenue per user in the DIY filing market. Management acknowledged losing share among price-sensitive filers, though the company aims to offset this by expanding its e-file market share and increasing wallet share in other segments.
Other analysts took a divergent view. Morgan Stanley trimmed its target to $315, while Mizuho maintained an Outperform rating with a $430 target and Jefferies reiterated a Buy rating with a $500 target. Jefferies characterized the guidance as conservative, setting a low bar for future performance. Intuit’s stock trades at a P/E of 21.9 and a PEG ratio of 0.63.
