Shares of Intuit sank 12.4% in pre-open trading after the financial software company released fiscal third-quarter results and simultaneously disclosed a substantial restructuring plan.
The firm said it will cut approximately 17% of its full-time workforce - more than 3,000 roles out of a total headcount of 18,200 - and anticipates restructuring charges in the range of $300 million to $340 million, primarily booked in the current quarter. Management described the move as a reorientation of resources.
"As we look ahead, we are further scaling our growth engines and architecting an organization that operates with greater velocity to deliver durable long-term growth," said CEO Sasan Goodarzi.
Financially, Intuit reported adjusted earnings per share of $12.80 on revenue of $8.56 billion for the fiscal third quarter, which ended April 30 - after the U.S. tax filing deadline. The company raised its fiscal 2026 outlook, now forecasting full-year revenue between $21.341 billion and $21.374 billion, representing growth of roughly 13% to 14%, and non-GAAP earnings per share of $23.80 to $23.85, about 18% higher year over year.
Despite those topline and profit beats, the Mailchimp unit recorded an approximately 21% revenue decline in the quarter. Management indicated that Mailchimp’s weakness is expected to weigh on overall revenue performance versus prior expectations.
On the analyst front, RBC Capital reaffirmed a Buy rating the evening before the announcement, but that endorsement did not prevent a sharp market reaction to the workforce reduction and associated costs.
Intuit, the company behind QuickBooks and TurboTax, has seen its shares under pressure this year amid a wider downturn in software stocks. The name is down more than 40% year to date while the S&P 500 has risen roughly 8% over the same period. Market breadth offered little help on the day of the announcement: the S&P 500 advanced 1.1%, the Dow Jones Industrial Average gained 1.3%, and the NASDAQ climbed 1.5% as markets rebounded from a prior multi-day selloff led by surging chip stocks ahead of an important earnings report from a major chipmaker.
Investor concern centered on Intuit’s ability to execute a shift toward an AI-driven platform, a theme highlighted by the rapid share selloff following the restructuring news. The 17% reduction in full-time staff is notable for its scale; within the 2026 cycle to date, it represents the largest percentage workforce reduction announced by a flagship U.S. fintech software-as-a-service company.
With the stock trading far below its 52-week high of $813.70, the combination of restructuring uncertainty, slower revenue dynamics in units such as Mailchimp, and an already-weakened share price converged to push INTU sharply lower in pre-market trading.
What this means
- Intuit delivered a better-than-expected quarter and raised full-year guidance, but a large restructuring and a steep decline at Mailchimp overshadowed those positives.
- The announced workforce reduction is one of the largest such moves among major U.S. fintech SaaS firms this year, and it will generate several hundred million dollars in one-time charges.
- Market reaction highlights investor apprehension about execution risk as Intuit attempts to pivot its business amid questions about an AI-driven transition.
Data points cited in this report
- Fiscal Q3 adjusted EPS: $12.80
- Fiscal Q3 revenue: $8.56 billion
- Full-time workforce before and after reduction: 18,200 total employees; more than 3,000 roles affected
- Restructuring charges expected: $300 million to $340 million
- Full-year revenue guidance: $21.341 billion to $21.374 billion (13%-14% growth)
- Full-year non-GAAP EPS guidance: $23.80 to $23.85 (~18% growth)
- Mailchimp revenue decline in the quarter: ~21%
- Year-to-date share performance: down more than 40%; S&P 500 up roughly 8%
- Relevant market moves on the day: S&P 500 +1.1%, Dow +1.3%, NASDAQ +1.5%
Bottom line
Intuit’s quarterly results and upgraded guidance highlight ongoing revenue and profitability strength at the corporate level, but the scale of the job cuts and a marked decline at Mailchimp introduced fresh uncertainty. Investors responded decisively in pre-market trading, reflecting concerns about near-term disruption from the company's restructuring and the strategic challenge of evolving toward AI-enabled offerings.