Intuit has responded to growing concerns about artificial intelligence disrupting the software industry, arguing that its business operates in a unique category where customers prioritize confidence over tools. The company stated that users are not simply buying software but seeking reliable outcomes, especially given the high financial risks associated with incorrect decisions.
The comments come at a time when software stocks have faced significant pressure. Investors are increasingly worried that rapid advancements in AI could reshape the sector. The IGV software and services ETF has fallen around 20% this year, underperforming the broader S&P 500, which has declined just over 2% in 2026.
Several major technology companies have seen notable declines. Salesforce and ServiceNow are down roughly 25% year-to-date, Oracle has dropped about 20%, and Microsoft has fallen 17%. Intuit shares have also been impacted, declining by as much as 31.7% during the same period.
In response to market volatility, Intuit announced that its executive team and founder will cancel all pre-arranged stock sale plans under Rule 10b5-1. The company said it believes its current share price does not reflect its true value, and this move aligns with its long-term outlook.
Intuit also emphasized its strong performance and growth strategy. The company reported 18% revenue growth in the first half of fiscal year 2026, along with improving margins. Management highlighted its long-term focus on becoming an AI-driven expert platform supported by a large addressable market.
To reinforce its confidence, Intuit plans to accelerate share buybacks, with up to $3.5 billion remaining under its current authorization. This could significantly exceed the company’s repurchase activity in previous years and signals management’s belief in its underlying strength.
Analysts have viewed the announcement positively, particularly the decision to pause insider stock sales. The move is seen as a strong signal of confidence from leadership during a period of market uncertainty.
Addressing concerns about AI competition, Intuit explained that its business model differs from many other software companies. It operates in a space where customers value expert guidance and trust, rather than purely digital tools. According to the company, individuals and businesses spend significantly more on professional advice than on software when making important financial decisions.
Intuit also highlighted its early investment in artificial intelligence. Nearly a decade ago, the company committed to building an AI-driven platform that combines proprietary data, advanced technology, and human expertise. This integrated approach, it argues, provides a competitive advantage and positions the company well for long-term growth in an AI-driven environment.
