JPMorgan Just Downgraded Intuit Stock. Here's Why.

Intuit (INTU) reported fiscal 2026 revenue of $21.4B, up 14%, but expects slower growth in 2027 (9-10%). The company plans to lower TurboTax revenue per user to attract more customers, aiming to offset this with higher-value services like TurboTax Live and Credit Karma. Intuit has $7.2B in cash and investments, with a strong dividend and share buyback program. However, TurboTax units declined 2%, and the strategy's success depends on retaining new customers and increasing cross-selling.

Intuit reported Q2 revenue of $4.35B, beating estimates, with 13.7% YoY growth. Adjusted EPS of $4.03 also beat estimates. Q3 revenue guidance of $4.31B is below expectations, and FY2027 EPS guidance misses estimates. Operating margin improved to 17.6%. The company highlighted mid-market revenue growth, AI adoption, and new customer acquisition strategies. Management expects short-term margin pressure due to increased investment in customer acquisition and competitive pricing adjustments.

Intuit Inc. reported a 3% slowdown in online paying customer growth for FY2026, prompting a strategic shift to focus on new customer acquisition and AI-driven 'Intuit Intelligence.' The company expects FY2027 revenue growth of 9-10%, with long-term targets of 10-15% for Global Business Solutions and 4-8% for the Consumer segment. Intuit also announced structural changes, including separating Mailchimp as a segment and adjusting share-based compensation reporting.

Salesforce (CRM) and CrowdStrike (CRWD) reported strong earnings, with AI-driven revenue growth. CRM's EPS beat estimates by 80.7%, and CRWD raised guidance. Both stocks surged over 19%. Other software stocks like SAP and Adobe also rose. Intuit (INTU) beat estimates but faces analyst downgrades. Workday and Autodesk (ADSK) report later.

Intuit Inc. (INTU) faces a securities fraud class action lawsuit over alleged misstatements about its tax-related business. The case covers the period from August 22, 2025, to May 20, 2026. Investors have until September 8, 2026, to seek lead plaintiff status. The lawsuit follows a stock price decline after layoffs and disappointing earnings were announced.

Analysts from Truist and BMO Capital provided updates on nCino (NCNO), Semtech (SMTC), and Intuit (INTU). NCNO received a Hold rating with a $20.00 target, SMTC a Buy with a $155.00 target, and INTU a Buy with a $412.00 target. Analyst consensus for NCNO is Moderate Buy ($23.20 avg. target), for SMTC is Strong Buy ($199.83 avg. target), and for INTU is Moderate Buy ($385.35 avg. target).