INTU Stock Plummets After Q4 Results Leave Wall Street Divided: ‘Unsatisfying Growth’ Meets ‘Foundations Take Time’

• Bank of America and JPMorgan downgraded the stock, citing slowing growth and expanding AI "disruption risks."
• Barclays flagged "unsatisfying growth" at the lower end of Intuit’s customer base, which could affect future upselling.
• Stifel and Piper Sandler raised their price targets despite maintaining ‘Hold’ and ‘Underweight’ ratings, respectively.

Intuit (INTU) shares plunged in pre-market trading on Wednesday after the company’s fourth-quarter results left Wall Street divided, with some analysts issuing downgrades while others raised price targets. Some warned of “unsatisfying growth” and AI disruption risks while others said the company’s “foundations take time.”

Intuit beat Wall Street's earnings and revenue expectations for the fifth consecutive quarter, posting adjusted earnings per share (EPS) of $4.03 and crossing $20 billion in annual revenue for the first time. 

However, the company's fiscal 2027 guidance called for total revenue growth of between 9% to 10%, a sharp deceleration from the 14% pace it posted in fiscal 2026. CEO Sasan Goodarzi acknowledged on the earnings call that Intuit "lost quality DIY customers to low-cost providers this year" due to TurboTax pricing friction, with TurboTax unit growth guided at just 2-3% for the year ahead.

INTU stock dropped as much as 12% in pre-market trade and was among the top trending tickers on Stocktwits at the time of writing. Retail sentiment around financial technology company rose to ‘extremely bullish’ from ‘neutral’ territory, and chatter jumped to ‘extremely high’ from ‘high’ levels. 

Who Downgraded INTU Stock?

In a note to investors cited by TheFly, Bank of America (BofA) analyst Tal Liani downgraded Intuit to ‘Neutral’ from ‘Buy’ with a price target of $360, down from $400. Meanwhile, JPMorgan downgraded Intuit to ‘Neutral’ from ‘Overweight’ with a price target of $331, down from $605, following the fiscal Q4 report. 

Both firms called that the company's AI "disruption risks" are extending beyond TurboTax to the QuickBooks business. They also flagged that Intuit is seeing a lower pace of new customer additions across QuickBooks. 

JPMorgan said Intuit's valuation multiple is likely to stay under pressure until investors "get more comfort around execution to mitigate disruptions," while BofA said the weak fiscal 2027 guidance reflects trends that "appear to be contrary to investors' expectations."

Analysts Cut INTU Stock Price Targets On Growth Concerns

Morgan Stanley lowered its price target on Intuit to $315 from $335 while maintaining an ‘Equal Weight’ rating. The firm called Intuit's fiscal 2026 results "solid" but said the fiscal 2027 guidance came in below expectations, adding that the "burden of proof remains high" as investors wait for confirmation that fiscal 2027 marks the growth trough rather than the start of a longer slide.

Wells Fargo also lowered its target to $300 from $360 and kept an ‘Equal Weight’ rating. The firm said the quarter left investors with "more to chew on," pointing to initial fiscal 2027 TurboTax growth guidance of roughly 2% to 3%.

Barclays cut its target to $408 from $443 but maintained an ‘Overweight’ rating. The firm said the company appears to be facing similar issues across its two main business segments, with "unsatisfying growth" at the lower end creating problems for future upselling.

Some Analysts Still See Value In Intuit

Stifel raised its price target to $300 from $275 while keeping a ‘Hold’ rating. The firm said Intuit had reset expectations with fiscal 2027 guidance below consensus and lower three-year growth targets, adding that "foundations take time."

Piper Sandler raised its target to $290 from $250 but maintained an ‘Underweight’ rating. The firm said Intuit delivered good fourth-quarter results, but the initial fiscal 2027 revenue growth midpoint of 9.1% was below its 11.1% consensus estimate.

INTU stock has fallen over 45% this year. Investors have been largely concerned about how generative AI tools might erode the value of software products like TurboTax and QuickBooks that have historically relied on complexity and expert assistance to justify their pricing. 

Goodarzi has pushed back on that framing directly, telling analysts on the earnings call that "AI will be a disruptor, and we intend to be the disruptor," pointing to Intuit's "Big Bets" initiatives, which grew 34% in fiscal 2026 and now account for 30% of total revenue.

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