Intuit Plunges 20% on Softer Tax Trends and 17% Workforce Cut
Intuit shares plunged 20.38% to a 52-week low after Q3 earnings topped estimates but revealed weaker tax filing trends, with TurboTax volumes expected to drop 2% and IRS filers down 30 basis points. The company cut 17% of its workforce, authorized an $8 billion share buyback, pivoting to AI-driven expert platforms.
1. Sharp Stock Decline and Soft Tax Guidance
Intuit shares fell 20.38% to a 52-week low after the company reported Q3 revenue and earnings that beat Wall Street forecasts but flagged weakening tax filing trends. Management forecasted a 2% decline in TurboTax volumes and a 30 basis-point drop in total IRS filers for the upcoming season.
2. 17% Workforce Reduction and Structural Simplification
The company is cutting 17% of its global workforce, targeting overlapping roles between TurboTax and Credit Karma and consolidating real estate to foster closer collaboration. Leadership emphasized the move is driven by organizational flattening and faster decision-making, not AI automation.
3. $8 Billion Buyback and AI-Driven Strategy
Intuit’s board approved an $8 billion share repurchase to support the stock and return capital to investors. Simultaneously, the company is accelerating its shift toward AI-driven expert service platforms to bolster long-term growth amid near-term revenue headwinds.