Intuit Stock Plummets Amid AI Competition and Layoffs

American software giant Intuit has become the worst-performing stock in the S&P 500 this year, as investors worry that a new wave of AI-powered tax services could challenge the company's flagship TurboTax business. The company’s stock has fallen about 51% so far in 2026, even as CEO Sasan Goodarzi continues to defend the company's AI-focused strategy, saying during Intuit's third-quarter 2026 earnings call that the company had made a major bet on artificial intelligence. "When it comes down to running a business, that’s why we bet the entire company on data AI and one of the largest network of AI-powered expertise, which is our accountants, to really fuel the success of businesses. I think a really important proof point around that is our growth engines," Goodarzi said.

Goldman Sachs downgrades Intuit stock

Shares of Intuit dropped nearly 9% on June 2 after Goldman Sachs downgraded the stock and warned that TurboTax could face increasing competition from AI-driven tax preparation platforms. As quoted in a Fortune report, Goldman Sachs analyst Gabriela Borges said Intuit could lose market share and see lower revenue growth over the next two years as more consumers turn to newer AI-powered tax services. The investment bank highlighted competitors such as Prime Meridian, Perplexity Tax and Chime Tax, which are using artificial intelligence to simplify tax filing and financial advice. As per the report, Goldman Sachs sharply cut its outlook for the stock, lowering its price target to $276 from a previous estimate of $519.

Intuit doubles down on AI

Despite concerns from Wall Street, Intuit says AI remains central to its future plans. During the earnings call, Goodarzi highlighted the company's platform strategy and the role of accountants within its ecosystem. "We have created a platform, a true control tower, that not only helps businesses grow and run their business, but we’re actually, with our launch of our Intuit Accountant Suite, have created a network effect where these same accountants are not only able to grow their firm, grow their practices, and manage their clients, but also be able to now provide expert services," he said. According to the CEO, Intuit's combination of AI tools and professional expertise will help businesses manage finances, inventory and other key decisions.

Intuit cuts nearly 17% of its workforce

Last month, Intuit announced plans to cut around 3,000 jobs, representing about 17% of its global workforce. According to the internal memo seen by Reuters, CEO Sasan Goodarzi then told employees that reducing organisational complexity would help the company improve execution and product delivery. In the memo, Goodarzi said, “Simplifying the structure will help us deliver better products,” adding that the layoffs would sharpen Intuit’s focus on its “big bets,” including integrating AI across services.