Customers are fleeing TurboTax over price, and Intuit’s stock is sliding

Wells Fargo has reduced its price target for Intuit stock (NASDAQ:INTU) to $300 from $360, while keeping an Equal Weight rating. The reduction is due to concerns over tax growth, as Intuit's consumer business is losing ground to DIY filers in the low-end market. This shift is expected to lower average revenue per customer, prompting the company to focus on acquiring quality customers and enhancing its e-file and wallet share.

Intuit has updated its growth outlook for various business units, including a more modest 10-15% compound annual growth rate (CAGR) in the Global Business Solutions segment, down from 15-20% previously. The Consumer segment now anticipates a 4-8% CAGR, down from 6-10% earlier. Despite these adjustments, Intuit remains on track to repurchase $5.5 billion in shares by fiscal 2028 and expects high-teens percentage non-GAAP earnings per share growth in the coming years.

The company's Enterprise Suite experienced a 28% year-over-year growth in Q4 fiscal 2026, with $145 million in annual recurring revenue, a four-fold increase from the previous year. Intuit's strong fourth-quarter results, with revenue growing 13.7% year-over-year and non-GAAP earnings per share reaching $4.03, still face a softer fiscal 2027 outlook, with revenue guidance now at 9-10%, down from the previous 14% growth.