Intuit’s (INTU) shares have fallen about 36% since the start of the year, as fears that artificial intelligence could render traditional software players obsolete have swept through the sector. Yet Wall Street’s consensus still points to more than 37% upside for the stock over the next 12 months, even as BMO Capital warns that AI-related concerns “may be difficult to fully overcome near term.”
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In response to the pressure on software companies, some analysts have greatly slashed their price targets on INTU stock. However, the Mountain View, California-based company’s shares remain a Strong Buy on Wall Street.
Analysts Weigh in on AI Worries
Recently, Freedom Capital Markets analyst Almas Almaganbetov cut his price target on INTU by 27%, from $820 to $600, implying about 42% upside. However, the analyst maintained his Buy rating on the company’s shares despite expecting pressure on the company’s long-term growth rates.
Almaganbetov said Intuit’s second-quarter fiscal 2026 results released in late February surpassed his expectations, with the rise in the software company’s operating margin to a record 33.3% showing that AI is helping to cut down on internal costs.
During the three-month period that ended on January 31, Intuit’s revenue jumped by 17% year-over-year to $4.7 billion, topping the Wall Street consensus of $4.53 billion. However, Almaganbetov pointed out that the company’s partnership with OpenAI and Anthropic has failed to assuage investor worries about losing paid product business or control over user traffic to AI disruptors over the long term.
In his assessment, BMO Capital’s Daniel Jester noted that despite worries about AI, the case for upside for Intuit against his team’s growth outlook has “become somewhat better appreciated” by investors following the latest earnings. Jester maintained both his Buy rating and his $550 price target, which implies about 30% upside.
Is INTU a Good Stock to Buy?
Across Wall Street, Intuit’s shares remain a Strong Buy based on analysts’ consensus rating. This breaks down into 19 Buys and four Holds issued over the last three months.
In addition, the average INTU price target of $579.67 implies about 37% upside.
