Intuit stock price target lowered to $840 by Wells Fargo on mixed outlook

Investing.com - Wells Fargo has lowered its price target on Intuit (NASDAQ:INTU) to $840 from $880 while maintaining an Overweight rating on the stock following the company’s fiscal first-quarter results. According to InvestingPro data, Intuit currently trades at a P/E ratio of 47.25, which aligns with the ProTip indicating the stock is "trading at a high earnings multiple." Despite the price target reduction, analysts maintain an overall positive outlook with a consensus recommendation of 1.7 (Strong Buy).

Intuit reported total revenue of $3.9 billion, representing 18% year-over-year growth and exceeding the high end of guidance by approximately 3%. This performance was slightly below the company’s historical first-quarter beats of around 3.5% from fiscal years 2023 to 2025. The company’s impressive 80.73% gross profit margin, highlighted as an InvestingPro Tip, continues to demonstrate Intuit’s strong operational efficiency in the software sector.

The company’s Growth & Business Services (GBS) segment led the strong performance with 18% revenue growth, or 20% excluding Mailchimp. Within this segment, mid-market solutions grew 40% year-over-year, while QuickBooks Online Advanced (QBOA) increased 25%.

Credit Karma exceeded consensus estimates by approximately 12%, consistent with the previous quarter’s performance. Wells Fargo noted this extends a nearly 30% streak led by several percentage points of share gains in origination for personal loans and credit cards.

For the fiscal second quarter, Intuit provided revenue guidance of 14-15% growth, which came in above expectations, while earnings per share guidance of 9-11% growth fell below analyst projections. The company maintained its full-year guidance unchanged, which Wells Fargo indicated is typical for Intuit at this point in the fiscal year.

In other recent news, Intuit reported impressive fiscal first-quarter results, surpassing expectations across various segments. The company’s revenue exceeded forecasts by 3%, with notable contributions from the Credit Karma segment, which performed 12% above projections. Intuit’s QuickBooks Online ecosystem also outperformed, contributing to the company’s strong start to fiscal year 2026, with an 18% growth in revenue. Stifel, Evercore ISI, and RBC Capital all reiterated their positive ratings on Intuit, highlighting the company’s robust performance and maintaining high price targets of $800, $875, and $850, respectively. BMO Capital, however, adjusted its price target to $810 from $870 while keeping a Market Perform rating, noting the company’s strong results. Goldman Sachs reiterated its Buy rating, emphasizing Intuit’s momentum in AI, with a price target of $860. Additionally, Intuit maintained its fiscal year 2026 guidance, supported by a beneficial mix shift in its QuickBooks Online base toward advanced products. These developments reflect Intuit’s continued strength across its business segments.

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