INTU Stock In Focus: Jefferies Sees Recovery Opportunity Despite AI Fears Ahead Of Earnings

• Despite slashing Intuit’s price target, Jefferies maintained a ‘Buy’ rating on the stock with 36% upside potential. 
• Jefferies sees recovery potential for INTU but warns that forecasts may be too optimistic. 
• Analysts expect a 11% rise in Intuit’s Q4 revenue to $4.27 billion.

Intuit Inc. (INTU) stock is in focus after Jefferies lowered its price target ahead of earnings. The firm sees a mixed outlook, with shares down 45% this year and investor expectations low. Still, Jefferies believes the stock could recover. 

AI Disruption Remains A Concern For Intuit

Jefferies lowered its price target for Intuit to $500 from $550 while keeping a ‘Buy’ rating. The reduced price target still implies a 36% upside to the stock’s last closing price. The firm said the stock’s steep decline has reduced investor expectations, although forecasts for fiscal 2027 may still assume more growth than the company can realistically deliver.

Jefferies said artificial intelligence continues to weigh on the investment case. Investors remain concerned that AI-powered tools could challenge some of Intuit’s core products and pressure the company’s long-term growth prospects.

Still, the firm reasoned that those concerns may be overstated. Jefferies believes Intuit has stronger defenses around its business than many investors currently recognize, giving the stock an opportunity to recover if the company delivers better-than-feared results.

Intuit shares have fallen about 45% so far this year, creating a much lower starting point heading into earnings. Jefferies sees that decline as a double-edged sword. While the selloff reflects growing skepticism, it also means the stock could respond positively if evidence of business resilience emerges. The analyst nevertheless cautioned that consensus estimates for fiscal 2027 could remain too optimistic.

Intuit stock edged 0.4% higher in Monday’s premarket. The stock is on track for its second month of gains. 

Restructuring Puts Intuit’s AI Strategy In Focus 

Intuit’s stock has been pressured by broader software-sector weakness and worries that generative AI could threaten traditional software platforms. Intuit's cut to its TurboTax revenue outlook, driven by weaker tax-filing volumes, also added to the strain. 

In May, Intuit announced plans to cut about 17% of its workforce, or nearly 3,000 jobs, while shifting resources toward AI and product development. The company has since expanded AI features across Mailchimp, QuickBooks and its enterprise offerings.

Intuit is set to report fiscal Q4 and full-year 2026 results after the market close on August 25. Analysts expect revenue of about $4.27 billion, up roughly 11% year on year, with earnings of $3.59 per share. Full-year revenue is expected to reach about $21.37 billion, according to Fiscal AI data. 

INTU Stock: Retail View 

On Stocktwits, retail sentiment around the stock turned ‘neutral’ from ‘bullish’ the previous day. 

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