Intuit Stock Slips Today Even After Stabilizing Near Multi-Year Lows on AI Disruption Fears This Year

Intuit shares slipped slightly Tuesday, easing back from a recent stabilization near 52-week lows as the QuickBooks and TurboTax maker continues working through one of the most punishing stretches in its history as a publicly traded company.

Shares of the Mountain View, California-based financial software giant were trading at $264.78 as of 9:51 a.m. EDT, down $1.61, or 0.61%, on the day. The modest pullback follows a brutal year-to-date slide that has made Intuit one of the worst-performing stocks in the entire S&P 500, with shares down more than 51% so far in 2026 and roughly 62% off the all-time high of $813.70 the stock reached in July 2025. The decline has erased more than $131 billion in market value over the past year, pushing Intuit's market capitalization down to roughly $73 billion from a peak above $219 billion.

The root of Intuit's collapse traces back to mounting investor fears that generative artificial intelligence tools could disrupt the company's core software businesses, particularly TurboTax, its do-it-yourself tax preparation product that accounts for roughly a quarter of Intuit's total revenue and operating income. Concerns intensified in February following the release of an updated Claude AI model from Anthropic, which the company said could automate a wide range of tasks across customer service, product management, marketing, legal work and data analysis, fueling speculation that AI-native competitors could eventually erode demand for traditional software subscriptions like TurboTax.

Those fears compounded sharply on June 2, when Intuit shares plunged 8.9% in a single session after Goldman Sachs analyst Gabriela Borges downgraded the stock from Neutral to Sell, slashing the 12-month price target to $276 from an earlier estimate of $519, a reversal from projecting roughly 61% upside to forecasting a 14% decline. Borges cited specific concern that a new generation of AI-driven tax platforms, including products like Perplexity Tax, could erode both TurboTax's pricing power and its market share over the next two years. That single-day decline made Intuit the worst-performing stock in the entire S&P 500 for the year at the time, trailing only real estate analytics firm CoStar Group and medical device maker Insulet among the index's steepest decliners.

The downgrade followed roughly a month after Intuit had already rattled investors with a separate announcement: the company disclosed it would cut its full-time global workforce by 17%, or approximately 3,000 roles, while simultaneously lowering its full-year revenue estimates for TurboTax. Shares fell more than 14% on that news alone, part of a broader pattern that has seen Intuit's stock repeatedly punished throughout the year as the company has tried to recalibrate investor expectations around its AI strategy and its traditional, high-margin tax business simultaneously.

Intuit has continued to defend its broader business performance even amid the stock's collapse. The company's third-quarter fiscal 2026 results, reported May 20, showed revenue rising 10.4% year-over-year to $8.56 billion, with growth led by its Global Business Solutions segment and TurboTax Live, the company's assisted tax-filing offering. Non-GAAP earnings per share beat Wall Street's consensus estimate for the 19th time in the past 20 quarters, and management used the report to raise its full-year revenue guidance to approximately $21.3 billion, signaling continued confidence in the company's broader growth trajectory even as the stand-alone, do-it-yourself TurboTax segment has faced industry-wide contraction and elevated customer churn. Shares initially surged roughly 5% following that earnings report, though the gains proved short-lived against the backdrop of the broader AI disruption narrative that has continued to weigh on the stock in the weeks since.

To shore up its balance sheet amid the turbulence, Intuit completed two fixed-rate senior unsecured note offerings on June 11, raising approximately $1.74 billion in net proceeds through $750 million of 4.950% notes due 2031 and $1 billion of 5.500% notes due 2036. The company has said the proceeds may be used for general corporate purposes, including refinancing nearer-term debt maturities, with some analysts characterizing the move as largely routine balance sheet management rather than a signal of financial distress.

Wall Street's broader view of the stock has grown more divided as the selloff has deepened. Stifel downgraded Intuit to Hold from Buy on June 17, cutting its price target to $275 from $375, with the firm citing concerns that management may need to lower its near-to-medium-term growth targets given the competitive pressures facing TurboTax. Citi, by contrast, reaffirmed its Buy rating on the stock on June 25, while other analysts have pointed to Intuit's steep valuation compression, with its forward price-to-earnings ratio falling to roughly 12 against a 20-year historical average closer to 30, as evidence the selloff may have run further than the underlying fundamentals justify. Despite the recent string of downgrades, the broader analyst consensus tracked across 34 firms remains a "Buy" rating, with an average 12-month price target of roughly $486.61, implying substantial potential upside from current trading levels.

The stock found some relief late last week, climbing alongside a broader rebound in heavily shorted and beaten-down software names as the technology sector stabilized following weeks of pressure tied to fears, sometimes referred to as the "SaaSpocalypse," that AI tools from companies like OpenAI and Anthropic could fundamentally disrupt traditional subscription software business models. The iShares Expanded Tech-Software Sector ETF jumped more than 3% in that session, helping lift Intuit even as the broader Nasdaq-100 slipped on continued weakness in semiconductor stocks. Even with that bounce, Intuit remained deep in a longer-term technical downtrend, trading well below its 20-day, 50-day, 100-day and 200-day moving averages.

Intuit has continued to push forward with new AI-related product launches despite the stock turbulence, including the May 28 launch of Mailchimp Analytics AI, designed to give brands conversational, AI-powered marketing intelligence and expanded data integrations. The company also continues to pay a quarterly dividend, with its most recent payout set at $1.20 per share and an ex-dividend date of July 9, alongside a forward annual dividend yield of roughly 1.8%.

Adding another layer of scrutiny to the stock, securities law firm Bleichmar Fonti & Auld announced an investigation in late June into Intuit for potential securities fraud tied to the company's 2026 tax-season disclosures, joining a string of similar investigation announcements from the firm dating back to early June. Intuit's next quarterly earnings report is expected around Aug. 19, a date that will offer investors their next substantive opportunity to assess whether the company's AI-driven growth strategy across QuickBooks, Credit Karma and its broader mid-market platform can offset continued pressure on TurboTax pricing and market share heading into the back half of the year.