Intuit shares fell sharply in after-hours trading on Aug. 25 after the company issued fiscal 2027 revenue guidance that missed analyst expectations. The stock dropped 8.69% to $326.39 in one report, while another data point showed a decline of more than 10% to $320.88 after the closing bell. During the regular session, Intuit had already fallen 3.37% to close at $357.46.
For the fiscal fourth quarter, Intuit posted adjusted EPS of $4.03, beating Wall Street's estimate of $3.59. Revenue came in at $4.35 billion, up 14% year over year and above the $4.27 billion consensus. Credit Karma grew 16% to $743 million, while the Global Business Solutions Group increased 14% to $3.4 billion. TurboTax units, however, fell 2% in the quarter.
The selloff was driven by the company's fiscal 2027 outlook. Intuit forecast revenue of $23.279 billion to $23.512 billion, implying growth of 9% to 10%, down from 14% growth in fiscal 2026 and below the roughly $23.72 billion analyst consensus estimate. Management framed the softer guidance as a deliberate strategy to prioritize customer acquisition and market-share gains rather than near-term revenue per customer.
Intuit also guided fiscal 2027 adjusted EPS of $22.88 to $23.12, versus a consensus around $27.30. Much of that gap reflects an accounting change: starting Aug. 1, Intuit began including stock-based compensation in adjusted figures, which alone accounts for $5.81 per share of the difference. Stripping that out, guidance actually lands above the old consensus. The real concern for investors was the revenue outlook, with customer growth running at just 3% and Mailchimp guided flat to slightly down.
CEO Sasan Goodarzi acknowledged rising AI competition and said the company may lower prices to hold market share. Intuit has expanded AI tools inside QuickBooks Online Advanced and Intuit Enterprise Suite, and it signed a multi-year deal with OpenAI worth more than $100 million to bring Intuit-powered financial apps into ChatGPT. Intuit ended July with $7.2 billion in cash, repurchased $5.5 billion in stock last year, and has $7.9 billion in remaining buyback authorization. Wall Street consensus remains a Moderate Buy with an average price target of $404.15.
