Shares of Intuit, Qfin Holdings, and Zoom Communications declined significantly in trading on August 26. The sell-off followed the release of quarterly financial results that missed market expectations or showed year-over-year declines.

Intuit

Intuit (INTU) shares fell 12% after the company reported fourth-quarter financial results. The decline was driven by fiscal year 2027 guidance that came in below analyst estimates.

Qfin Holdings

Qfin Holdings (QFIN) shares dropped 15% following the release of its second-quarter financial results. The stock fell after reporting a year-over-year decrease in performance for the period.

Zoom Communications

Zoom Communications (ZM) shares declined 7% after reporting second-quarter financial results. The drop was exacerbated by third-quarter guidance, with the midpoint falling below estimates.

Market Reaction

The simultaneous weakness across these technology names highlighted investor sensitivity to guidance misses and revenue deceleration. All three stocks traded lower as markets digested the updated outlooks.

Intuit Inc. disclosed that its fiscal year 2027 non-GAAP diluted earnings per share guidance of $22.88 to $23.12 includes a $5.81 impact from share-based compensation expense.

The software company guided for fiscal year 2027 GAAP diluted earnings per share of $20.12 to $20.36, beating the consensus analyst estimate of $19.94. Non-GAAP operating income guidance for the year includes $2,020 million from share-based compensation expense.

Intuit reported full fiscal year 2026 total revenue of $21.4 billion, a 14 percent increase year-over-year, crossing the $20 billion milestone for the first time. Fourth-quarter revenue also grew 14 percent to $4.4 billion, with the fiscal year ending July 31, 2026.

Full-Year Financial Highlights

The following table summarises key financial metrics for fiscal year 2026 versus fiscal year 2025.

"We surpassed $20 billion in revenue for the full year with growth fueled by our Big Bets which collectively grew 34 percent and represented 30 percent of full-year revenue," said Sasan Goodarzi, Intuit's chairman and chief executive officer.

Fourth-Quarter Business Segment Results

For the fourth quarter ended July 31, 2026, Global Business Solutions revenue increased 14 percent to $3.4 billion. Excluding Mailchimp, Global Business Solutions revenue increased 15 percent. Online Ecosystem revenue increased 17 percent to $2.6 billion; excluding Mailchimp, that figure rose 20 percent.

Key fourth-quarter drivers within Global Business Solutions included:

• QuickBooks Online Accounting revenue increased 20 percent, driven by higher effective prices, customer growth, and mix shift
• Online Services revenue increased 15 percent, driven by money and payroll; excluding Mailchimp, Online Services revenue increased 21 percent
• Total international online revenue increased 10 percent on a constant currency basis

Consumer segment revenue increased 14 percent to $930 million in the fourth quarter, with the following product breakdown:

Credit Karma's fourth-quarter growth was driven by strength in personal loans, auto insurance, and credit cards.

Full-Year Segment Performance

For the full fiscal year, TurboTax revenue increased 7 percent to $5.3 billion. TurboTax Live revenue increased 37 percent, representing 53 percent of total TurboTax revenue. Credit Karma revenue increased 20 percent to $2.6 billion, and ProTax revenue increased 4 percent to $647 million.

TurboTax Federal Unit Data

The table below shows U.S. TurboTax unit volumes for fiscal years 2026 and 2025.

Capital Allocation

As of July 31, 2026, total cash and investments balance was $7.2 billion and total debt was $7.7 billion. In June, Intuit issued $1.75 billion in senior notes to strengthen liquidity ahead of debt maturing in fiscal 2027.

Intuit repurchased $5.5 billion of stock during fiscal year 2026, up 96 percent versus the prior year. These repurchases drove a 2 percent reduction in weighted-average diluted shares outstanding. The company has a total remaining authorization of $7.9 billion to repurchase shares.

Intuit's Board approved a quarterly dividend of $1.38 per share, payable on October 16, 2026, representing a 15 percent increase versus the prior year.

Reporting Changes and Fiscal 2027 Guidance

Effective August 1, 2026, Mailchimp will be managed as a separate operating segment from Global Business Solutions and will be a separate reportable segment beginning in fiscal 2027. Additionally, share-based compensation expense will no longer be excluded from Intuit's non-GAAP financial measures starting fiscal 2027.

The following table summarises full-year fiscal 2027 guidance.

Intuit's FY27 GAAP EPS guidance of $20.12 to $20.36 exceeds the analyst estimate of $19.94.

For the first quarter of fiscal 2027, Intuit expects GAAP total revenue of $4,294 to $4,313 million, representing 11 percent growth. GAAP operating income is guided at $716 to $729 million, and GAAP diluted EPS at $1.71 to $1.75.

"Fiscal 2026 demonstrated the strength of our platform and the growing contribution of our Big Bets," said Sandeep Aujla, Intuit's chief financial officer. "We remain committed to delivering durable revenue growth, operating margin expansion, and growing capital returns to shareholders over the long term."

What the Numbers Show

The inclusion of $5.81 per share in share-based compensation within the non-GAAP EPS guidance highlights the significant cost structure shift effective in FY27. With non-GAAP operating income guidance including $2,020 million from this expense, investors should note that future non-GAAP metrics will reflect a lower margin profile compared to prior periods where these costs were excluded.