Intuit's Low-Cost Customer Push May Pressure Growth, BofA Says

10:46 AM EDT, 08/26/2026 (MT Newswires) -- Intuit (INTU) is planning to improve its underlying trends by focusing on customer acquisition actions through more free and low-cost offerings, which may pressure near-term growth and profitability, BofA Securities said Wednesday. Intuit's weak fiscal 2027 guidance reflects trends that appear misaligned with investor expectations. Rather than higher-value Assisted offerings driving growth, TurboTax is losing share to lower-cost AI-based alternatives, according to the note. Fiscal Q4 had several bright spots, as Assisted Tax, Money, and Mid-Market grew 34% collectively, accounting for 30% of revenue. The brokerage believes Intuit's value lies in its proprietary data, domain expertise, and human-assisted offerings, the note added. Management expects TurboTax growth of just 2.2%, compared with Street estimates of 6.8%, reflecting share loss to lower-cost AI alternatives and the impact of 2026 new customer weakness on 2027 upgrades, the brokerage said. Management also lowered its long-term growth target for Global Business Solutions to 10% to 15% from 15% to 20%, the brokerage added. BofA downgraded Intuit to Neutral from Buy and lowered its price target to $360 from $400. Price: 344.20, Change: -13.26, Percent Change: -3.71