Intuit Inc. (INTU) finished Friday's trading session at $399.40, posting a modest gain of 0.36% as markets headed into the long weekend. The stock experienced significant intraday volatility, swinging between $389.55 and $407.27 on volume of approximately 4.9 million shares.
AI Disruption Drives Sector Sell-Off
The financial software provider has faced intense pressure in 2026, with its share price declining roughly 40% year-to-date. This slump places it among the poorest performers in the Nasdaq 100 index. The sell-off reflects broad investor anxiety about how rapidly advancing artificial intelligence could disrupt traditional subscription-based software models, leading to a "sell first, ask questions later" mentality across the sector.
This trend is not isolated to Intuit. The S&P 500 Software & Services index has lost an estimated $2 trillion in market value since its peak last October, with half of that erosion occurring in the past two weeks alone.
Macro Backdrop Offers Limited Relief
Growth stocks, including Intuit, found some support from a cooler-than-expected January Consumer Price Index (CPI) report. The Labor Department noted a 0.2% monthly increase, bringing the annual inflation rate down to 2.4%. Core CPI, which excludes food and energy, rose 0.3% for the month and 2.5% year-over-year, marking its slowest pace in nearly five years.
Despite this moderation, analysts caution that underlying price pressures remain elevated, potentially limiting the Federal Reserve's appetite for near-term interest rate cuts. This environment continues to challenge highly-valued software stocks.
Earnings Report Looms as Key Catalyst
The company's next major test arrives after the market closes on Tuesday, February 26, when Intuit reports fiscal second-quarter results. Management will host an analyst call at 1:30 p.m. Pacific Time.
Investors will scrutinize updates on key business segments, including TurboTax and QuickBooks activity, the performance of Credit Karma and Mailchimp, and most critically, the company's strategic perspective on AI. Markets will watch to see if executives can frame AI as a growth opportunity rather than an existential threat.
U.S. markets will be closed Monday for the Presidents Day holiday and reopen Tuesday ahead of the earnings release.
