What Happened?
Shares of financial technology platform Intuit (NASDAQ: INTU) fell 4.3% in the afternoon session after it issued a disappointing revenue forecast for the upcoming quarter, which overshadowed its strong fourth-quarter results.
The slide occurred despite the company reporting fiscal fourth-quarter results that beat analyst expectations. For the quarter, Intuit posted revenue of $3.83 billion and adjusted earnings per share of $2.75, both topping Wall Street's projections. However, investors focused on the company's weaker-than-anticipated guidance for the upcoming quarter. Management's revenue forecast of $3.76 billion came in below consensus estimates, signaling potential headwinds and prompting a negative reaction in the market.
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What Is The Market Telling Us
Intuit’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 6 months ago when the stock gained 13.6% on the news that the company delivered strong fourth-quarter 2024 results, beating analysts' billings forecasts as revenue climbed 17% year on year. Growth came from a 19% jump in its Global Business Solutions Group, powered by QuickBooks and Mailchimp, while Credit Karma revenue soared 36%, driven by rising demand for credit cards and personal loans. Profits grew even faster. Operating income surged 61% under GAAP accounting, while non-GAAP operating income rose 26%, thanks to better margins. This strength lifted non-GAAP EPS by 26%, topping expectations. For the full year, the company reaffirmed its outlook. Overall, the quarter was strong, with solid revenue and profit growth, though the unchanged full-year forecast signals stable rather than accelerating momentum.
Intuit is up 6.9% since the beginning of the year, but at $665.46 per share, it is still trading 17.6% below its 52-week high of $807.39 from July 2025. Investors who bought $1,000 worth of Intuit’s shares 5 years ago would now be looking at an investment worth $1,998.
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