Intuit Target Cut 47% to $276 as AI Tax Rivals Emerge
INTU•Goldman Sachs cut its rating on Intuit from Neutral to Sell and slashed its 12-month target by 47% to $276, warning AI-powered rivals could erode TurboTax’s revenue, which averages $162 per return versus $0.12 cost for AI processing. Intuit shares have fallen about 46% year-to-date, while Mailchimp faces competitive headwinds.
1. Analyst Downgrade and Price Target Cut
Intuit was downgraded from Neutral to Sell with its 12-month price target cut by 47% to $276, reflecting concerns over long-term growth as industry competition intensifies.
2. Rising Competition from AI Tax Platforms
Analysts flagged AI-powered services like Prime Meridian, Perplexity Tax and Chime Tax that can process returns at roughly $0.12 cost versus TurboTax’s $162 average revenue, posing risk to market share and pricing power.
3. Share Performance and Outlook
Intuit shares have declined about 46% since January 2026, underperforming the S&P 500’s 11% gain, with analysts expecting a largely rangebound trading pattern in upcoming quarters.
4. Mailchimp Business Risks
Concerns also extend to Mailchimp, which contributes about 7% of revenue, as increased competition and pricing pressure could slow growth in the email marketing and automation unit.
