Good morning, CFOs. Intuit's decision to lower its guidance for 2027 revenue growth added more short-term pain to a company that, over the past year, has experienced quite a bit of it. The WSJ Leadership Institute's Kristin Broughton writes for today's Morning Ledger:
Shares of the company have been pummeled by investors worried about the impact of AI. The company earlier this year said it would lay off 17% of its workforce to focus on the company's "big bets," which include putting AI at the center of its business.
On Tuesday, Intuit said it expects revenue to increase between 9% and 10% in the year ahead, down from 14% during the 2026 fiscal year. The slowdown is due in part to intentional moves by the company to woo new TurboTax customers, including a potential free offering, as well as ongoing declines in the company's desktop and Mailchimp businesses.
Providing revenue guidance in the current climate is tricky, said Sandeep Aujla, the company's finance chief. A forecast too high could show the company being overly optimistic, while one that's too low could validate skeptics. In developing its forecast, Intuit focused on changes that the company needs to make to set itself up for long-term, sustainable growth, Aujla said.
"We just want to make sure that we set the near-term noise aside, because you can't play the short-term myopic games," he said, "but as a management team just play to win the long-term."
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-Reporting by Kristin Broughton
The Day Ahead
📆 Earnings
HP
📈 Economic Indicators
The Bureau of Economic Analysis releases the personal consumption expenditures reading for July.
The BEA also releases its revised second-quarter estimate for gross domestic product growth.
The Federal Reserve Bank of Atlanta releases its latest GDPNow index reading.
The Census Bureau releases the durable goods report for July.
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What Else Matters to CFOs
Add Harley-Davidson motorcycles and food like dairy products, clams and frozen octopus to the casualty tally, as the Carney-Trump feud escalated this week. The trade war also can be expected to hit U.S. consumers already burdened by higher prices.
Canada is retaliating against the U.S. following the collapse of trade talks, and aiming at about 700 products for tariffs, which will impact about $20 billion of goods, or roughly 7% of total U.S. imports. U.S. steel and aluminum were already subject to a 25% tariff, but that will now double to 50%, officials said. The tariffs will become effective Sept. 8, or the day after Labor Day, the WSJ's Paul Vieira reports.
Context and background: Canada's pending duties are in response to the Trump administration's new 50% tariff on about $20 billion of Canadian imports, which took effect Saturday after weeks of trade talks broke down at the 11th hour despite optimism the two sides were inching toward a deal. Canada is the U.S.'s second-largest trading partner, behind Mexico and ahead of China.
What's Getting Hit With the New U.S.-Canada Tariffs
Detroit Needs Canada More Than the Rest of the U.S. Does
Trump Threatens to Rename Lake Ontario as Spat With Canada Escalates
📈 Spotlight: Canada Bank Earnings
Bank of Montreal Plans to Buy Back Shares After Strong Quarter
Scotiabank Earnings Lifted by Record Result in Wealth Management
For more earnings news, click here.
📰 Other headlines
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The Fed Chairman Is Heading to Jackson Hole Without a Clear Stance on Inflation
U.S. Consumer Sentiment Fell in August, Conference Board Says
SpaceX Rockets Are Coming to Coastal Louisiana, and Locals Are Divided
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Years Late, Billions Over Budget: California's High-Speed Rail Hasn't Laid a Track
Podcast: Nvidia's Strategy to Make Sure the AI Boom Doesn't Go Bust
The Big Number
Percentage increase in hotel sales nationwide in the first two quarters of 2026, compared with the same quarters last year, according to data-provider MSCI.
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The WSJ Leadership Institute's CFO Journal offers corporate leaders and professionals CFO analysis, advice and commentary to make informed decisions. We cover topics including corporate tax, accounting, regulation, capital markets, management and strategy.
Follow us on X @WSJCFO. The WSJ CFO Journal Team comprises reporters Kristin Broughton, Jennifer Williams and Bureau Chief Walden Siew.
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