On August 6, Intuit fell 3.02% in after-hours trading, trading at $318.52/share, with turnover of $102 million. The decline came amid broad-based weakness across the application software sector, compounded by sustained pressure from multiple investment bank downgrades.

Within the Application Software sector, peers AppLovin plunged 17.96%, Salesforce dropped 4.49%, Palantir fell 0.92%, and Datadog declined 1.56%, reflecting significant sector-wide selling pressure. On the news front, Morgan Stanley previously downgraded Intuit from Overweight to Equal Weight and slashed its price target from $580 to $335, while TD Cowen cut its target to $304 and downgraded to Hold. Stifel also downgraded to Hold with a $275 target. The core debate centers on AI disruption risk to the TurboTax business, with Morgan Stanley noting that investor concerns are unlikely to be dispelled until fiscal Q3 results in May next year.

Intuit is scheduled to report fiscal Q4 and full-year results on August 25, with consensus EPS expectations at $2.14. Morgan Stanley flagged risk around the upcoming guidance, suggesting that even in-line TurboTax guidance may be viewed as aggressive given perceived structural AI headwinds.

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