What Happened?
Shares of financial technology platform Intuit (NASDAQ: INTU) fell 20.3% in the afternoon session after the company reported underwhelming first quarter financial results and announced plans to cut 17% of its global workforce, or about 3,000 jobs, as part of an 'aggressive AI efficiency push.'
Despite raising its full-year revenue guidance, the company lowered its forecast for its key TurboTax product, fueling fears that AI could weaken the value proposition of guided financial software. Intuit's value historically came from the "guided help" layer: wizards walking users through tax filing, bookkeeping, marketing automation. Generative AI threatens to commoditize exactly that layer. When even a beat-and-raise print can't support the stock, the market is pricing a structural rerating.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Intuit? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Intuit’s shares are quite volatile and have had 17 moves greater than 5% over the last year. But moves this big are rare even for Intuit and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 6 days ago when the stock gained 4.5% on the news that President Trump's state visit to Beijing lifted market sentiment across tech, with the S&P hitting a record high above 7,500 for the first.
While the Trump-Xi summit produced fewer concrete deals than investors had hoped for, the general mood around US-China trade relations shifted from confrontational to cautiously constructive and for a sector as globally exposed as software, that reduction in uncertainty was enough to drive buyers back in.
Adding to the positive sentiment, Figma posted 46% revenue growth with early AI monetisation showing genuine traction, and ServiceNow announced a multi-year AI partnership with Experian. Each print reinforced the same thesis: that enterprise software companies are successfully embedding AI into their products and charging for it, rather than being disrupted by it a concern that had weighed heavily on the sector earlier in the year.
Intuit is down 51.2% since the beginning of the year, and at $306.87 per share, it is trading 62% below its 52-week high of $807.39 from July 2025. Investors who bought $1,000 worth of Intuit’s shares 5 years ago would now be looking at only $708.00.
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