Why Intuit (INTU) Stock Is Down Today

What Happened:

Shares of tax and accounting software provider, Intuit (NASDAQ:INTU) fell 8.3% in the afternoon session after the company reported second-quarter earnings results. Its gross margin declined, and its billings missed Wall Street's estimates. The company also provided underwhelming long-term guidance ahead of its investor day session. FY25 growth projection for the Consumer segment was lowered to 6-10% (from prior 8-12%). Similarly, Credit Karma revenue forecast was revised to 10-15% (from the prior 20-25%), while the SBSE ( Small Business and Self Employed) unit was unchanged at 15-20%. Overall, it was a challenging quarter, given the weak outlook.

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What is the market telling us:

Intuit’s shares are quite volatile and over the last year have had 2 moves greater than 5%. In context of that, today’s move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Intuit is up 2.2% since the beginning of the year, and at $617.31 per share it is trading close to its 52-week high of $670.49 from August 2024. Investors who bought $1,000 worth of Intuit’s shares 5 years ago would now be looking at an investment worth $2,215.

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