Intuit's muted forecast rekindles concerns over growth engine

TurboTax maker Intuit INTU.O forecast annual revenue below Wall Street estimates on Tuesday, saying efforts to expand its customer base and gain market share would pressure near-term sales growth.

Shares were down 12.23% at $313.76 premarket on Wednesday.

J.P. Morgan downgraded the stock to "neutral" from "overweight" and almost halved its price target to $331 from $605.

Morgan Stanley, with an "equal weight" rating and a $315 price target, said Intuit's lower FY27 and medium-term outlook have renewed concerns about slowing growth, but the reset lowers the bar for future performance, though execution risks around the new strategy remain.

J.P. Morgan said subdued new customer additions at the company's Global Business Solutions segment over the past year despite strong gains with mid-market customers increase concerns about disruption.

Wells Fargo, with an "equal weight" rating and a $300 price target, said long-term growth targets were lowered in both major segments, raising concerns about the AI growth story and the company's ability to deliver a high-teens compound annual growth rate in earnings per share.