TLDR
- Intuit stock rose ~5.5% on Monday even as a new class action lawsuit was filed against the company.
- The lawsuit covers investors who bought INTU between August 22, 2025, and May 20, 2026, alleging misleading statements about TurboTax growth.
- Markets largely shrugged off the news — the underlying issues were already priced in after a 20% drop on May 20, 2026.
- Intuit’s $8 billion buyback plan, part of a $22.5 billion total authorization, is helping support investor sentiment.
- Wall Street holds a Moderate Buy consensus on INTU with an average price target of $498.40.
Intuit (INTU) stock climbed roughly 5.5% on Monday, opening at $289.76 on Tuesday, even as multiple investor rights groups filed a new class action lawsuit against the company.
The lawsuit covers anyone who bought INTU stock between August 22, 2025, and May 20, 2026. It claims Intuit overstated its strengths, hid weakness in its TurboTax business, gave unreliable revenue guidance, and made misleading public statements.
Despite the legal headlines, markets barely flinched. The reason is simple: this isn’t new information.
On May 20, 2026, Intuit reported weak TurboTax growth and cut 17% of its workforce. The stock dropped 20% in a single day. Investors had already absorbed that blow months ago.
The lawsuit is tied to the same events. Wall Street has moved on.
Buyback Plan Boosts Confidence
One key factor keeping sentiment positive is Intuit’s buyback program. In May 2026, the company approved a new $8 billion stock repurchase plan, bringing total active buyback authorization to $22.5 billion.
That’s a strong signal from management that it believes the stock is undervalued at current levels.
Intuit also reported solid Q3 2026 results on May 20. EPS came in at $12.80, beating the consensus of $12.57. Revenue hit $8.56 billion, slightly above estimates, and was up 10.4% year-over-year.
The company has set Q4 2026 EPS guidance at $3.56–$3.62, and full-year FY2026 guidance at $23.80–$23.85 EPS.
Legal Risk Still Worth Watching
Intuit’s legal exposure isn’t new territory. The FTC previously ran a multi-year case against the company over its “free” tax-filing advertising, arguing most users didn’t actually qualify for the free service.
TipRanks data shows legal and regulatory risks account for 21% of Intuit’s total risk profile, above the industry average of 15.9%.
Still, institutional investors haven’t been spooked. AMG National Trust Bank increased its INTU holdings by 956.5% in Q1, acquiring an additional 11,067 shares. Hedge funds and institutional investors now own 83.66% of the company’s stock.
Director Vasant Prabhu also made a notable insider buy on May 22, picking up 1,250 shares at $309.45 per share.
INTU has a 52-week low of $252.84 and a 52-week high of $813.70. The stock’s 200-day moving average sits at $415.61, well above current trading levels.
Wall Street carries a Moderate Buy consensus based on 22 Buy ratings, seven Holds, and two Sells, with an average price target of $498.40.
A quarterly dividend of $1.20 per share is set to be paid on July 17, with an annualized yield of 1.7%.
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