JPMorgan analysts downgraded Intuit (INTU) shares to “Neutral” and slashed their price target after the company’s disappointing future guidance overshadowed its Q4 beat. INTU posted $4.35 billion in revenue and $4.03 in earnings per share (EPS) for its fourth quarter, handily beating the $4.27 billion and $3.58 per share, respectively, that analysts had forecast.
Following the post-earnings decline, Intuit stock is trading nearly 50% below its year-to-date high.
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www.barchart.comWhy JPMorgan Downgraded Intuit Stock?
JPMorgan’s key concern is that artificial intelligence (AI) is becoming a broader threat to Intuit’s business rather than remaining concentrated around TurboTax.
Analyst Mark Murphy now sees AI-related disruption risks extending into QuickBooks, INTU’s flagship small-business software platform. That raises questions about the firm’s ability to attract new customers while maintaining its growth trajectory.
In his research note, Murphy also highlighted a slower pace of new customer additions across both QuickBooks and TurboTax DIY.
The combination is forcing Intuit to invest more heavily in the business at a time when growth expectations are already coming down.
Murphy believes INTU stock’s valuation could remain under pressure until investors gain greater confidence that Intuit can successfully navigate those disruptions.
Why INTU Shares Aren’t Worth Buying on the Dip
The downgrade also reflects Intuit’s softer outlook for fiscal 2027, which overshadowed its better-than-expected fourth-quarter performance.
The company expects $23.4 billion in revenue, representing about 9% growth year-on-year, much lower than the 11% consensus. Management also expects adjusted earnings of roughly $23 per share, compared with analysts’ expectations of roughly $27.34.
The weaker forecast comes as Intuit works to rebuild its TurboTax customer base while investing in AI and other growth initiatives.
For JPM, those investments, slower customer additions, and growing AI concerns create too much uncertainty to maintain an “Overweight” rating, prompting the sharp cut in its price target to $331.
How Wall Street Recommends Playing Intuit
Heading into Aug. 26, Wall Street had a consensus “Moderate Buy” rating on Intuit shares, with a mean price target of about $450.
However, it’s reasonable to expect downward revisions as analysts move to factor in the company’s muted future guidance in the days ahead.
www.barchart.com On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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