Intuit Stock Dropped -40%, Here’s Why
Between late November 2025 and late February 2026, Intuit (INTU) saw its stock plunge 35%, driven by a steep P/E contraction as growth prospects cooled. Despite robust mid-market gains and a deepening AI push, concerns over slowing revenue and Mailchimp integration woes sparked a notable pullback.
Here Is Why Intuit Stock Moved
- Slowing Growth Outlook: Q3 revenue growth guidance of 10% is a significant deceleration from the 17% growth reported in Q2, indicating a potential slowdown in business momentum.
- Mailchimp Integration Issues: Excluding Mailchimp, Global Business Solutions revenue grew 21% in Q2, revealing Mailchimp’s continued drag on the segment’s overall 18% growth.
- Mid-Market Traction: Online Ecosystem revenue for QBO Advanced and Intuit Enterprise Suite grew approximately 40% in Q2, showing strong adoption in the mid-market segment.
- Consumer Segment Strength: Credit Karma revenue grew 23% in Q2, driven by personal loans and credit cards, demonstrating resilience in the consumer financial services market.
- AI Strategy Execution: A new multi-year partnership with Anthropic was announced in Q2, deepening the company’s investment in AI to personalize customer experiences.
Current Assesment Of INTU Stock
The core investment debate is centered around: Can Intuit’s dominant ecosystem and pricing power overcome mounting regulatory pressure, tax season uncertainty, and valuation headwinds?
The prevailing sentiment appears to be bearish. The fortress is strong but under siege. Accelerating QuickBooks growth is offset by significant tangible risks like the FTC trial and insider selling. Guidance deceleration into a tough tax season comparison kills conviction.
| Bull View | Bear View |
|---|---|
| Bulls believe high switching costs and a strong moat will allow continued price increases and cross-selling, driving durable growth regardless of external noise. | Bears see a convergence of risks: FTC litigation, tough tax season comps, and high valuation creating significant downside risk if guidance falters. |
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