BUZZ-Street View: Intuit's muted tax software sales outlook stirs concerns

Intuit Inc.

Intuit Inc.

INTU

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** Intuit INTU.O lowered annual revenue forecast for its tax-filing software, TurboTax, on Wednesday and said it would cut 17% of its full-time workforce

** Co sees fiscal 2026 TurboTax revenue at $5.277 bln-$5.282 bln vs prior projection of $5.305 bln-$5.330 bln

** Shares down 13.5% to $332 premarket


CRACKS UNFOLDING

** Barclays ("overweight," PT: $443) says, "these results are not a disaster, but they don't really help to diffuse the AI debate"

** Morgan Stanley ("overweight," PT: $580) says Intuit's roughly 7% FY26 TurboTax growth outlook, below buyside expectations of 10%, leaves it needing to push back against concerns that GenAI competition is weighing on the business

** Morningstar (fair value: $455) says despite Intuit's cost cutting efforts, the brokerage expects no margin upside from the layoffs due to intensifying competition in the software space

** BMO Capital Markets ("outperform," PT: $412) says, "Intuit is playing from a position of longer-term strength in its tax and accounting markets, but the catalyst path has extended"


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