TLDR
- Intuit stock dropped ~13% in premarket trading after Q3 earnings and a workforce reduction announcement
- Q3 adjusted EPS of $12.80 beat estimates of $12.57; revenue of $8.56B edged past the $8.54B forecast
- The company is cutting 17% of its full-time workforce, expecting $300–$340M in restructuring charges
- Full-year guidance was raised: revenue of $21.34–$21.37B and adjusted EPS of $23.80–$23.85
- TurboTax annual revenue forecast was trimmed, and CEO noted IRS tax filings are down ~2 million vs. broader forecasts
Intuit stock was down more than 13% in Thursday premarket trading after the company posted Q3 results and announced it would cut 17% of its full-time workforce. The stock was trading around $334.50, down from $383.93.
The results themselves were solid. Adjusted EPS came in at $12.80, topping the $12.57 Wall Street estimate. Revenue of $8.56 billion beat the $8.54 billion consensus and was up 10% year-over-year — though that’s a step down from the 15% growth posted in the same quarter last year.
Full-year guidance was also lifted. Intuit now expects fiscal 2026 revenue of $21.34–$21.37 billion and adjusted EPS of $23.80–$23.85, both above prior guidance and analyst estimates.
$INTU Q3 EARNINGS HIGHLIGHTS
🔹 Revenue: $8.6B (Est $8.54B) 🟢; +10% YoY
🔹 Adj. EPS: $12.80 (Est $12.57) 🟢
🔹 TurboTax Live Revenue: Expected to grow 36% to $2.8B for FY26
🔹 TurboTax Live Customers: Expected to grow 38%
🔹 TurboTax Online ARPU: Expected to increase ~11%Q4… pic.twitter.com/zlm0JdP6Lu
— Wall St Engine (@wallstengine) May 20, 2026
Despite the beats, the layoff news hit hard. The company said it expects to incur restructuring charges of $300–$340 million, mostly in Q4.
CEO Sasan Goodarzi was direct when asked about AI’s role in the cuts. “This is not an AI layoff,” he said. “Frankly, I think we overuse that as a reason to communicate across the industry.” He framed the move as making Intuit a faster and leaner company.
That pushback carries some weight. Many tech firms have cited AI as a driver of recent headcount reductions. According to Layoffs.fyi, 111,173 tech workers have lost their jobs so far in 2026 — close to the 124,201 total for all of 2025. Meta, Cloudflare, and Snap have all made cuts this year.
TurboTax Faces Pressure
Not everything trended up. Intuit trimmed its TurboTax revenue forecast for the full year to $5.277–$5.282 billion, down from a prior range of $5.305–$5.330 billion.
Goodarzi said total IRS tax filings are projected to fall nearly 30 basis points this season — roughly 2 million below broader economic forecasts and the sharpest industry-wide contraction since the post-COVID period.
TurboTax Live returns grew 38% year-over-year, but heavy promotional activity pushed average revenue per unit down 1%. That growth rate also slowed from 47% the prior year.
AI as a Tailwind, Not a Threat
Intuit CFO Sandeep Aujla pushed back on the idea that AI disruption is being fairly priced into the stock. “Customers buy confidence, not code,” he said, noting customers spend at least seven times more on accounting and tax experts than on software alone.
Aujla described AI as “a clear net tailwind” for the business, pointing to Intuit’s proprietary data built on decades of filer information — something he said generic AI agents can’t replicate.
The Consumer segment, which includes TurboTax and Credit Karma, posted revenue of $5.3 billion, up 8%.
Morgan Stanley analyst Keith Weiss noted the Q3 results “failed to provide the positive catalyst” expected from TurboTax Live but called the stock’s valuation “very undemanding” relative to its long-term earnings growth potential.
Intuit also repurchased $1.6 billion of stock in the quarter and received board approval for a new $8 billion buyback. The board approved a quarterly dividend of $1.20 per share, a 15% year-over-year increase.
INTU stock has fallen roughly 42% in 2026.
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