Intuit stock falls despite Goldman Sachs reiterating Buy rating

Investing.com - Intuit (NASDAQ:INTU) shares dropped 6% in after-hours trading following the company’s fiscal fourth-quarter 2025 results, despite Goldman Sachs maintaining its Buy rating and $860 price target on the stock. According to InvestingPro data, the stock’s RSI suggests oversold conditions, while analyst targets range from $600 to $1,000, with the company commanding a substantial market capitalization of $195 billion.

The financial software provider reported revenue that exceeded consensus expectations by 2%, with its GoPayment Business Solutions segment outperforming by 1% and Credit Karma beating estimates by 12%. However, the Consumer segment underperformed by 3%, and free cash flow margin came in 400 basis points below expectations. The company maintains impressive gross profit margins of 80.4%, reflecting its strong market position. InvestingPro subscribers can access 14 additional key insights about Intuit’s financial performance and valuation metrics.

Intuit’s fiscal 2026 guidance largely aligned with consensus across key metrics, but the stock reaction suggests investors had higher expectations, particularly after the company’s fiscal 2025 revenue growth accelerated to 16% from 13% in fiscal 2024.

Goldman Sachs identified several factors affecting the fiscal 2026 guidance, including moderation of pricing benefits in the Business Solutions segment, ongoing challenges with Mailchimp, and normalization of QuickBooks Online desktop subscription transitions.

Despite these challenges, Goldman Sachs remains positive on Intuit’s execution across key growth areas, noting 40% year-over-year growth in QuickBooks Online Advanced and IES for the second consecutive quarter, expanding AI initiatives, and 47% growth in TurboTax Live compared to 17% in fiscal 2024. With overall revenue growth of 15.6% and a strong financial health score from InvestingPro, the company continues to demonstrate robust operational performance. Detailed analysis of Intuit’s growth metrics and future prospects is available in InvestingPro’s comprehensive research report, part of its coverage of over 1,400 US stocks.

In other recent news, Intuit Inc. reported robust fiscal fourth-quarter results, surpassing Wall Street expectations. The company achieved an earnings per share (EPS) of $2.75, exceeding the forecasted $2.66. Revenue also came in higher than anticipated, reaching $3.8 billion compared to the projected $3.74 billion. Despite these positive results, Intuit’s stock experienced a slight decline in after-hours trading. Analysts had anticipated strong performance, and the company delivered with these financial outcomes. The results underscore Intuit’s ability to outperform market expectations in a competitive environment. These developments reflect the latest updates concerning Intuit’s financial performance.

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