Intuit shares declined 1.3% during Monday's session, closing at $438.01 and moving against a broader software sector that gained approximately 2.4%. The stock traded between $431.53 and $447.00 throughout the day.
Analysts Split on AI Threat Assessment
TD Cowen reduced its price target for Intuit to $658 from $802, maintaining a Buy rating but highlighting investor apprehension about artificial intelligence's potential disruption to subscription revenue models. In contrast, Jefferies held firm with an $850 target, calling prevailing AI fears "too harsh" and arguing that established software firms integrating AI will ultimately capture value.
The software sector has underperformed the S&P 500 by nearly 24 percentage points over the last three months, with the IGV software ETF showing 30-day implied volatility around 41%. This reflects ongoing market uncertainty as major tech companies reportedly plan combined AI investments approaching $650 billion.
Earnings and Guidance in Focus
Investor attention now turns to Intuit's fiscal second-quarter 2026 results, scheduled for release on February 26, followed by a conference call at 1:30 p.m. Pacific Time. Market participants will scrutinize TurboTax filing metrics, QuickBooks adoption trends, and any revisions to full-year forecasts.
Management commentary regarding AI integration costs, margin implications, and partnership developments with model providers will be particularly significant. The company's portfolio—including TurboTax, QuickBooks, Credit Karma, and Mailchimp—faces dual scrutiny from traditional tax season performance and evolving AI automation pressures.