Intuit Shares Halve from $786 to $370 as AI Fears Compress P/E to 16x
Intuit reported revenue of $4.7B in Q2 FY26, up 17% year over year, while QuickBooks Online revenue grew 24%. Despite this, shares plunged from a $786 peak to around $370 as forward P/E fell from 39x to 16x, driven by AI disruption fears and management forecasting only 10% Q3 growth.
1. Q2 FY26 Performance
Intuit delivered $4.7 billion in Q2 FY26 revenue, up 17% year-over-year driven by an 18% increase in Global Business Solutions to $3.2 billion and 21% growth in Online Ecosystem to $2.5 billion. QuickBooks Online led with 24% revenue growth, excluding Mailchimp contributions.
2. Valuation and Stock Movement
Shares plunged from a mid-2025 peak near $786 to about $370, reflecting a forward P/E contraction from 39x to 16x. Investors cite threats from low-cost AI bookkeeping tools as the primary driver of the 50% valuation reset.
3. AI Strategy and Adoption
In Q2, over 3 million customers engaged with Intuit autonomous AI agents, achieving an 85% repeat engagement rate. Management is embedding generative AI into workflows to enhance stickiness and defend against third-party AI solutions.
4. Q3 Outlook and Profitability
Management forecasts 10% growth in Q3, signaling a slowdown from recent highs. Intuit generated $6.8 billion in free cash flow over the past twelve months and expanded operating margins from 20.1% in 2022 to 27.1% in 2025.