Why Intuit says it is insulated from AI disruption

Investing.com -- Intuit (NASDAQ: INTU) pushed back against fears of AI-driven disruption, saying its business operates in a distinct category where users “buy confidence,” not software, given the high cost of getting financial decisions wrong, the company told Investing.com.

The financial software firm’s comments come as software stocks have come under pressure in recent months, with investors growing increasingly concerned that rapidly advancing artificial intelligence tools could disrupt the sector.

The IGV (BMV:IGV) software and services ETF has tumbled 20% this year, underperforming the broader S&P 500, which has slipped 2.1% in 2026 as of Monday’s close.

Among the most impacted names, Salesforce (NYSE: CRM) and ServiceNow (NYSE: NOW) have each fallen 25% year-to-date, Oracle (NYSE: ORCL) has dropped 20%, and Microsoft (NASDAQ: MSFT) has declined 17%.

Intuit shares, meanwhile, have fallen as much as 31.7% over the same period.

Citing external market volatility, the TurboTax maker said on Monday that its executive leadership team and founder are terminating all outstanding pre-scheduled stock sale plans established under Rule 10b5-1.

The company said it believes its current stock price is "meaningfully misaligned" with the company’s fundamental value and that the move aligns with that view.

"Our confidence is based on our durable strategy to be the AI-driven expert platform, our large total addressable market, and our long-term growth trajectory. This is underscored by our first half of FY26 performance - 18% revenue growth in the first half of the year and expanding margins," an Intuit spokesperson told Investing.com.

Intuit also announced that it intends to substantially accelerate share repurchases, utilizing up to the $3.5 billion remaining under its current authorization.

"To put the plan into perspective, Intuit repurchased $1.8bn in Intuit shares in FY 1H26, and if Intuit utilizes all $3.5bn remaining under the authorization, that would represent nearly double the buybacks done in FY25," Mizuho analyst Raimo Lenschow said in a note.

The analyst said he sees the announcement "as a positive move, especially the pausing of the management stock sales."

When asked about AI disruption fears and why the company believes it is positioned differently from peers in the current environment, the spokesperson said Intuit "operates in a category of one that is fundamentally different from the rest of the industry."

"In our category, people don’t buy software, they buy confidence as the risk of getting financial decisions wrong is too high and costly. The interface they demand is with humans. Consumers and businesses spend at least seven times more on experts/people than on software, when it comes to making financial decisions," the spokesperson said in the interview.

"We bet the entire company on data and AI nearly ten years ago, when we declared our strategy to be an AI-driven expert platform to deliver done-for-you experiences," the spokesperson added, highlighting that Intuit has built advantages through decades of proprietary data, deep domain expertise, and a platform that integrates AI and data with human intelligence.

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