NEW YORK, May 26, 2026, 12:04 (EDT)
- Intuit shares dropped 3.8% around midday, lagging most tech stocks, which traded higher.
- Mizuho lowered its price target to $500 from $600 but kept its Outperform rating.
- Investors continue to look at TurboTax’s weak results, AI rivals and a 17% staff cut.
Intuit Inc. shares slipped Tuesday as Mizuho lowered its price target on the tax and accounting software company. The move kept pressure on a stock that has already been under fire from concerns about TurboTax growth and competition from artificial intelligence.
The stock fell 3.8% to $307.93 by midday in New York after hitting a session low of $307.02. That drop caught attention, since the Invesco QQQ Trust, which tracks the Nasdaq 100, added 1.3%, while the SPDR S&P 500 ETF climbed 0.5%.
Why now: Shares slid Tuesday, the first full trading day after Memorial Day, following last week’s sharp move in Intuit. There’s rising investor worry about TurboTax, which has been a major cash driver. Some are questioning if it can keep up growth as more low-cost or free AI tax tools enter the market.
Mizuho’s Siti Panigrahi cut the Intuit price target to $500 from $600 but kept an Outperform rating on the stock. The analyst pointed to weakness in TurboTax, though said the bigger tax story is still solid thanks to TurboTax Live and other assisted tax offerings.
Intuit last week posted fiscal third-quarter revenue of $8.56 billion, up 10%. Non-GAAP earnings per share came in at $12.80. Non-GAAP numbers remove certain costs Intuit says aren’t part of its core operations. CEO Sasan Goodarzi said the quarter was “driven by our AI-driven expert platform strategy.” CFO Sandeep Aujla said the company is “raising our full-year revenue guidance.” Intuit Inc.
Intuit raised its full-year revenue forecast to a range of $21.341 billion to $21.374 billion and now sees adjusted EPS coming in between $23.80 and $23.85. But the outlook did not calm the market. Intuit said it will lay off 17% of its full-time staff and expects to take $300 million to $340 million in restructuring charges, most of them in the fiscal fourth quarter.
Tax was soft. Reuters said Intuit cut its full-year TurboTax revenue outlook to $5.277 billion to $5.282 billion, down from $5.305 billion to $5.330 billion. CEO Goodarzi told investors the company plans to “take pricing actions at the higher end” of the portfolio. Reuters
Questions are bigger than just this quarter. Generative AI, which spits out answers, text or code when prompted, is making investors look again at whether customers will keep paying up for tax guidance that could get easier to copy. Intuit is pitching its answer: more data, its network of human experts, and AI features built into TurboTax, QuickBooks and Credit Karma.
Analysts are mixed as some cut their targets but keep upbeat ratings. According to Benzinga’s tracker, the latest moves were by Mizuho, Freedom Broker, and UBS. Mizuho stuck with its Outperform on Tuesday. Freedom Broker and UBS dropped their targets last week.
Competitive trading was uneven. Workday dropped 2.7%, Adobe lost 0.9%. H&R Block, which competes in tax prep, ended close to flat. That suggests Intuit’s decline was more about its own issues than any widespread tax-software weakness.
But the risk isn’t one-sided. If TurboTax Live keeps grabbing share in assisted tax prep and QuickBooks pricing stays firm, the stock may be oversold after the slump. On the downside, it’s clearer: DIY filers keep leaving, AI tools squeeze prices, or changes inside the company slow product work just when Intuit has to speed things up.
