Why Intuit Stock Dropped Today

Intuit (INTU) dropped 4% after the company issued forward guidance that disappointed investors, despite beating fourth-quarter and fiscal 2026 earnings expectations with 14% revenue growth. The software company projected first-quarter 2027 sales growth of 11% and full-year 2027 revenue growth of just 9-10%, a marked deceleration from its recent pace.

The Motley Fool analyst covering the stock highlighted a valuation disconnect, noting INTU trades at a sub-1.0 price-to-earnings-growth ratio while the company expects earnings to expand 22-24%. That combination typically signals undervaluation, though the market appears more concerned with the top-line slowdown than bottom-line momentum.

The sell-off reflects investor sensitivity to guidance misses in high-multiple software names, where slowing revenue growth can trigger swift multiple compression even when profitability remains strong. INTU's double-digit earnings growth forecast suggests margin expansion is offsetting the revenue deceleration, but traders clearly prioritized the weaker sales outlook.