Intuit shares tumble 17% after Q3 beat, FY26 guide cut and 3,000 layoffs
INTU•Intuit shares plunged 17% after Q3 revenue of $8.56 billion and EPS of $12.80 beat estimates but management cut FY26 TurboTax guide by one point and announced 3,000 layoffs. Jefferies cut its price target to $550 from $650, highlighted a 12x CY2027 P/E, and expects 36% TurboTax Live revenue growth.
1. Q3 Financial Results and Stock Reaction
Intuit reported fiscal Q3 revenue of $8.56 billion, up 10.4% year-over-year, and adjusted EPS of $12.80, beating consensus forecasts. Despite the beat, shares tumbled about 17% post-market as investors weighed other developments.
2. Fiscal 2026 TurboTax Outlook and Workforce Cuts
Management trimmed its FY26 TurboTax revenue guide by one percentage point while projecting TurboTax Live revenue to grow 36% to $2.8 billion with customer count up 38%. The company also announced plans to cut roughly 3,000 jobs (17% of its workforce) and record $300–340 million in restructuring charges.
3. Jefferies Valuation Review
Jefferies noted Intuit’s stock now trades at 12x calendar-year 2027 P/E, the lowest level since 2009, and lowered its price target to $550 from $650 based on 14x EV/EBITDA. The firm maintained a Buy rating, citing strong segment growth and limited AI threats to Intuit’s business.
