Shares of Intuit cratered as much as 17% over two sessions after the TurboTax and QuickBooks parent paired a solid earnings beat with the largest workforce reduction in fintech this year — forcing investors to ask whether the company is streamlining for strength or bracing for disruption.
The Numbers Were Good, but Not Good Enough to Distract From the Cuts. Intuit posted $12.80 in adjusted earnings per share on $8.56 billion in revenue for fiscal Q3.
Analysts had expected $12.57 per share and $8.61 billion in revenue — a beat on profit but a slight miss on sales. Revenue grew 10% year over year, the slowest rate of expansion since 2024. That deceleration, landing alongside a massive layoff announcement, gave sellers the upper hand.
3,000 Jobs Gone, $340 Million in Charges — and Two Offices Closing. The restructuring will affect over 3,000 people, based on the company's last reported headcount of 18,200.
Intuit expects $300 million to $340 million of mostly cash restructuring charges, primarily in Q4.
CEO Sasan Goodarzi said the cuts are meant to reduce management layers, eliminate redundant roles from integrating TurboTax and Credit Karma, and resize Mailchimp investment.
At 17%, this is the largest percentage workforce cut by a major U.S. fintech software company in 2026.
The CEO Says This Isn't About AI — The Market Isn't So Sure. Goodarzi told CNBC the layoffs had nothing to do with AI, but the timing fueled concerns that software firms are accelerating cost cuts as AI changes competitive dynamics.
Intuit shares are now down more than 40% this year, while the S&P 500 has gained roughly 8% — a staggering gap that reflects Wall Street's fear that AI tools could replace, not just enhance, established software products.
Raised Guidance Points to Confidence, but Investors Want Proof. Intuit now expects full-year revenue of $21.34–$21.37 billion (13–14% growth) and non-GAAP EPS of $23.80–$23.85, both above prior forecasts. The board also approved a 15% dividend increase and a new $8 billion share buyback. Yet with the stock trading at roughly 14 times this year's raised earnings at $332, the market is pricing in real execution risk — betting that the transition pain could outweigh the cost savings for quarters to come.