Intuit (INTU -3.49%) stock fell 4% through 10:50 a.m. ET Wednesday despite reporting strong Q4 and full-year fiscal 2026 earnings last night.
Analysts expected Intuit to earn $3.59 per share for fiscal Q4 on sales under $4.3 billion. In fact, Intuit earned $4.03 per share (adjusted for one-time items) on sales over $4.3 billion. Guidance, however, was weaker than expected -- sparking a sell-off.
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Intuit Q4 earnings
Intuit finished fiscal 2026 with a bang, growing revenue 14% in both Q4 and the full year. Fiscal 2026 revenue ended up at $21.4 billion, with GAAP earnings of $16.46 per share -- up 20% year over year. (Non-GAAP profits were $24.27 per share.)
Problem was, Intuit then shifted from reporting its strong 2026 results, to telling investors how it expects 2027 to play out. In the first quarter of the new fiscal year, Intuit is looking for sales growth to slow to 11% (about $4.3 billion in revenue), with GAAP earnings between $1.71 and $1.75 per share.
Worse, growth will continue slowing as the year progresses. By the time 2027 wraps up, Intuit forecasts sales growth of only 9% or 10% (about $23.4 billion), with GAAP earnings ranging from $20.12 to $20.36 per share.
NASDAQ: INTU
Key Data Points
What's next for Intuit stock?
But are these numbers really bad enough to justify today's sell-off? I don't think so.
Valued on trailing earnings, Intuit today trades for a price-to-earnings ratio of less than 22x. Granted, the slowing sales growth next year sounds concerning, but Intuit is still promising earnings growth of 22% to 24%. That's a PEG ratio of less than 1.0, which should be good enough for most value investors.
As soon as investors realize this, I expect Intuit's stock to resume rising again.
