Why Intuit Stock Dropped Today
2026-08-26 15:15
•Rich Smith •The Motley Fool
•• • Axe Cap view
Intuit’s Growth Slowdown Spooks Investors, But Is It Time to Buy?
Strong recent results weren’t enough to stop Intuit’s shares falling on weaker future guidance.
Intuit’s recent earnings beat shows solid 14% revenue growth, impressive in any market. But investors didn’t like the forecast for slower growth next year — sales expanding at 9-11% compared to last year’s pace. The sell-off feels overdone; the shares now trade below a PEG ratio of 1, suggesting the market isn’t fully pricing in the company’s longer-term profit potential. For us in South Africa, the direct hit is limited as Intuit isn’t listed on the JSE, but it’s a useful reminder that even solid results need strong forward guidance to keep investor confidence. If dollar strength versus the rand extends, it could lift the appeal of US tech stocks like Intuit for rand-based investors. Still, if the global economy dips unexpectedly or competition intensifies, Intuit’s growth story might falter. this is just our opinion and not financial advice
Watch Intuit for now; consider adding if the USD/ZAR stays stable or the stock dips further, given its attractive valuation and steady earnings growth. Avoid chasing rally without clearer signs of sustained momentum.
- INTU
- USD/ZAR
- Global economic slowdown hurting tech spending
- Stronger-than-expected competition impacting Intuit’s market share
5/10
Intuit stock fell 4% despite beating Q4 and fiscal 2026 earnings expectations with strong 14% revenue growth. The sell-off was triggered by weaker-than-expected forward guidance, with the company forecasting Q1 2027 sales growth to slow to 11% and full-year 2027 growth of only 9-10%. However, the analyst argues the stock appears undervalued at a sub-1.0 PEG ratio with expected 22-24% earnings growth.
Our take is based on reporting first published by The Motley Fool.