Intuit reported better-than-expected results for its latest quarter on Tuesday, but its revenue outlook is likely to disappoint Wall Street, as the company looks to gain market share by potentially lowering prices across its business.
The stock fell 14% in after-hours trading following the report.
Intuit reported fiscal fourth-quarter adjusted earnings of $4.03 per share on revenue of $4.35 billion. Analysts surveyed by FactSet were expecting earnings of $3.58 per share on revenue of $4.27 billion.
For the full fiscal year, Intuit estimates earnings to be between $22.88 and $23.12 per share, compared with analyst expectations of $27.34. Intuit says the disparity is explained by a decision to begin including the cost of share-based compensation in its earnings. The company said its non-GAAP expenses would come to $5.81 for fiscal 2027.
Revenue for the year is expected to be between $23.3 billion to $23.5 billion, which implies 9% to 10% growth from the prior year. That's below analyst estimates of $23.7 billion and a slowdown from the 14% revenue growth the company saw in fiscal 2026.
CEO Sasan Goodarzi told Barron's that Intuit is focused on gaining market share in a competitive environment as artificial intelligence software becomes more powerful. This means making choices like being competitive on pricing, he said, to ensure improved customer acquisition for long-term growth.
Intuit shares have tumbled 46% in 2026. The stock has been hit by concerns seen across the entire software sector about whether AI will replace critical software functions.
Intuit has introduced its own AI updates to compete in this environment.
"We have really been focused on creating an agentic platform where, for consumers and businesses, from credit to wealth and lead to cash, we can become the intelligence player for those that we serve," Goodarzi said.
As for its outlook, Goodarzi said: "I want to provide both our teams and the company flexibility to be able to compete at the low end and win market share, because, for instance, the faster we gain market share in DIY tax, the more we can deliver benefits across our consumer platform with financial products, with money products, to deliver more benefits and be able to monetize."
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