Topline
Intuit’s shares plunged on Tuesday, becoming the S&P 500’s worst-performing stock so far this year after large-scale job cuts and an expected reduction in TurboTax revenue, as some analysts anticipate mounting AI-driven competitors.
Key Facts
Shares of Intuit dropped 8.9% on Tuesday, adding to a 51% decline so far this year, the worst performance among all stocks tracked by the S&P 500 ahead of real estate analytics firm CoStar Group (down 50%) and the medical device manufacturer Insulet (49%).
The latest slide in Intuit’s stock followed a downgrade from Goldman Sachs analysts on Tuesday, who now project shares falling 14% to $276, down from an earlier estimate of shares rising 61% to $519.
Goldman analysts cited concerns with Intuit’s TurboTax, which represents roughly 25% of the company’s revenue and operating income, as a new generation of AI-powered tax services becomes increasingly competitive, including Prime Meridian, Perplexity Tax and Chime Tax.
Intuit will likely be hit with lower average revenue and lower market share as competition increases over the next two years, Goldman analyst Gabriela Borges wrote.
Big Number
$131 billion. That’s how much Intuit’s market value has decreased over the last year, falling from an all-time high of just over $219 billion in July 2025 to $88.1 billion on Friday.
Why Are Intuit Shares Down?
Intuit is among the software firms whose shares plummeted during the “SaaS-pocalpyse,” or the fear that AI models could replace many traditional software subscriptions, like Intuit’s TurboTax. Shares of Intuit stumbled in February following the release of Anthropic’s latest Claude AI model, which Anthropic claimed could automate tasks for customer service, product management, marketing, legal and data analysis, among others. Shares plunged by more than 14% last month after Intuit lowered its full-year TurboTax revenue estimates and announced it would cut its full-time workforce by 17%, or roughly 3,000 roles globally. CEO Sasan Goodarzi cited an anticipated decline in IRS filings, but argued the firm would be bolstered by its “AI-driven expert platform strategy” as it relies more on the technology.