Intuit (INTU) Doubles Down on Buybacks as CFO Calls Stock ‘Meaningfully Misaligned’

TLDR

• Intuit plans to deploy its entire remaining $3.5B buyback authorization during the second half of fiscal 2026
• This represents approximately double the $1.8B repurchase rate from the first half and nearly twice last year’s full-year total
• All senior executives have voluntarily terminated their pre-arranged 10b5-1 stock sale programs
• CFO Sandeep Aujla described the stock as “meaningfully misaligned with its fundamental value” and dismissed AI concerns as “a boogeyman that frankly doesn’t exist”
• Shares have declined approximately 33% year-to-date as investors worry about AI’s impact on software companies

Intuit (INTU) is taking aggressive action. The software giant revealed Monday that it will dramatically speed up share repurchases and suspend all executive-level pre-planned stock sales, including those of founder Scott Cook.

Intuit Inc., INTU

These decisions arrive as INTU shares have tumbled approximately 33% year-to-date, caught in a broader market sell-off of software companies driven by concerns that artificial intelligence will undermine traditional software business models.

Intuit entered the second half of fiscal 2026 with $3.5 billion available under its existing share repurchase authorization as of January 31. Management now intends to utilize the entire remaining balance before the fiscal year concludes.

This acceleration would roughly double the $1.8 billion repurchased during the first half — which itself represented a 40% increase versus the prior year — and push full fiscal 2026 buybacks to nearly twice the fiscal 2025 total.

Simultaneously, the entire executive leadership team terminated their existing 10b5-1 automatic stock sale arrangements. According to Aujla, the unanimous decision required approximately five seconds of deliberation.

Management positioned both actions as clear signals communicating their conviction in the company’s prospects.

Business Performance Remains Robust

Revenue has climbed 18% year-to-date through the second quarter. Aujla emphasized that core business momentum across TurboTax, QuickBooks, and Credit Karma continues unabated.

CEO Sasan Goodarzi reinforced this perspective, contending that Intuit is actually enlarging its total addressable market through AI-enabled platform capabilities. He noted that customers currently spend a minimum of seven times more on human tax and accounting professionals than on software — and Intuit’s strategy integrates both elements.

The 10b5-1 terminations affect only senior leadership positions, not the wider employee population. Aujla clarified that no modifications to cash compensation structures will result from this decision.

Shareholder Return Strategy

In recent years, Intuit has consistently returned over 60% of free cash flow to shareholders via buybacks and dividends. The H2 acceleration would elevate this percentage further.

The enhanced repurchase program was formally disclosed in Intuit’s Q2 10-Q regulatory filing submitted February 26.

INTU shares gained 1.11% on Monday following the disclosure.

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