Intuit Cuts 17% Workforce Amid AI Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 20 2026
0mins
Source: CNBC
- Layoff Announcement: Intuit has announced a 17% workforce reduction affecting over 3,000 employees, based on its last reported headcount of 18,200, with restructuring charges expected to range from $300 million to $340 million, primarily impacting the current quarter, reflecting the company's strategic response to the challenges posed by AI.
- Earnings Report: In its latest earnings report, Intuit posted adjusted earnings per share of $12.80 on $8.56 billion in revenue for the fiscal third quarter, with a 10% year-over-year revenue growth marking the slowest expansion rate since 2024, indicating investor concerns about its future performance amid a broader software market downturn.
- Future Guidance: Intuit raised its fiscal 2026 earnings forecast, now expecting adjusted earnings per share between $23.80 and $23.85, with revenue projected at $21.34 billion to $21.37 billion, surpassing analyst expectations, which reflects the company's confidence in its growth trajectory despite current challenges.
- Organizational Restructuring: The company plans to streamline its management layers and close offices in Reno, Nevada, and Woodland Hills, California, to enhance team collaboration, while integrating TurboTax and Credit Karma to eliminate redundant roles, aiming to improve operational efficiency and strengthen its competitive position in the market.
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Analyst Views on GTM
Wall Street analysts forecast GTM stock price to rise
14 Analyst Rating
3 Buy
7 Hold
4 Sell
Hold
Current: 3.210
Low
8.00
Averages
12.13
High
15.00
Current: 3.210
Low
8.00
Averages
12.13
High
15.00
About GTM
ZoomInfo Technologies Inc. provides a go-to-market intelligence and engagement platform for sales, marketing, operations, and recruiting professionals. Its cloud-based platform provides workflow tools with integrated and comprehensive information on organizations and professionals to help users identify target customers and decision makers. Its cloud-based operating system for revenue professionals delivers comprehensive intelligence and analytics to provide sales, marketing, operations, and recruiting professionals accurate information and insights on the organizations and professionals they target. It delivers intelligence at scale by leveraging an AI and ML-powered engine that gathers data from millions of sources and standardizes, matches to entities, verifies, cleans, and applies the processed data to companies and people at scale. The Company aggregates and extracts distinct types of data, such as revenue, locations, technologies, keywords, contact information, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
ZoomInfo Under Investigation for Securities Fraud Claims
- Revenue Guidance Cut: ZoomInfo's Q1 2026 financial results revealed a significant reduction in full-year revenue guidance to between $1.185 billion and $1.205 billion, falling short of the consensus estimate of $1.26 billion, indicating a projected revenue decline of approximately 4% against previous growth expectations.
- Workforce Reduction: The company announced a restructuring plan that will eliminate around 600 positions, representing about 20% of its workforce, aimed at cost reduction in response to declining revenues, which may adversely affect employee morale and corporate culture.
- Stock Price Plunge: Following the earnings report, ZoomInfo's stock price dropped by $1.98, or 32.78%, closing at $4.06 per share on May 12, 2026, reflecting strong market concerns regarding the company's future prospects.
- Analyst Downgrades: Multiple analysts downgraded their ratings on ZoomInfo shortly after the negative earnings report, indicating a significant loss of investor confidence in the company's future performance, which could lead to further stock price pressure.
See More
ZoomInfo Under Investigation for Securities Fraud Claims
- Financial Warning: ZoomInfo's Q1 2026 report reveals a significant reduction in full-year revenue guidance to $1.185 billion to $1.205 billion, well below the consensus estimate of $1.26 billion, indicating a revenue decline of approximately 4% and highlighting the company's growth challenges.
- Layoff Announcement: The company plans to eliminate around 600 positions, which constitutes about 20% of its workforce, aiming to cut costs in response to declining revenues, a move that may negatively impact employee morale and operational efficiency.
- Stock Price Plunge: Following the announcement, ZoomInfo's stock price fell by $1.98, or 32.78%, closing at $4.06 per share on May 12, 2026, reflecting strong market concerns regarding the company's future prospects.
- Analyst Downgrades: Multiple analysts quickly downgraded their ratings on ZoomInfo after the earnings report, indicating a pessimistic outlook on its future performance, which could further erode investor confidence.
See More
Intuit Cuts 17% Workforce Amid AI Challenges
- Layoff Announcement: Intuit has announced a 17% workforce reduction affecting over 3,000 employees, based on its last reported headcount of 18,200, with restructuring charges expected to range from $300 million to $340 million, primarily impacting the current quarter, reflecting the company's strategic response to the challenges posed by AI.
- Earnings Report: In its latest earnings report, Intuit posted adjusted earnings per share of $12.80 on $8.56 billion in revenue for the fiscal third quarter, with a 10% year-over-year revenue growth marking the slowest expansion rate since 2024, indicating investor concerns about its future performance amid a broader software market downturn.
- Future Guidance: Intuit raised its fiscal 2026 earnings forecast, now expecting adjusted earnings per share between $23.80 and $23.85, with revenue projected at $21.34 billion to $21.37 billion, surpassing analyst expectations, which reflects the company's confidence in its growth trajectory despite current challenges.
- Organizational Restructuring: The company plans to streamline its management layers and close offices in Reno, Nevada, and Woodland Hills, California, to enhance team collaboration, while integrating TurboTax and Credit Karma to eliminate redundant roles, aiming to improve operational efficiency and strengthen its competitive position in the market.
See More
Intuit Cuts 17% Workforce to Enhance Efficiency Amid AI Concerns
- Layoff Announcement: Intuit plans to cut 17% of its full-time workforce, affecting over 3,000 employees, aiming to enhance operational efficiency in response to market challenges posed by AI, with restructuring costs expected to range from $300 million to $340 million, primarily recognized in the current quarter.
- Earnings Report: In its latest earnings report, Intuit reported adjusted earnings per share of $12.80 and revenue of $8.56 billion, with a 10% year-over-year revenue growth, marking the slowest expansion rate since 2024, indicating increasing competitive pressures in the market.
- Stock Price Reaction: Following the layoff announcement, Intuit's stock fell 11% in after-hours trading, with shares down over 40% this year, contrasting sharply with the S&P 500's 8% gain, reflecting investor concerns about the company's future prospects.
- Future Guidance: Despite the challenges, Intuit raised its fiscal 2026 earnings forecast, expecting adjusted earnings per share between $23.80 and $23.85, with revenue projected between $21.34 billion and $21.37 billion, demonstrating the company's confidence in long-term growth.
See More
ZoomInfo Cuts 2026 Revenue Guidance, Stock Plummets
- Revenue Guidance Cut: ZoomInfo Technologies revised its 2026 revenue guidance down from $1.247-$1.267 billion to $1.185-$1.205 billion, a reduction of up to $62 million, causing the stock to plummet over 33% at market open, significantly impacting investor confidence.
- Quarterly Performance Beat: Although ZoomInfo reported Q1 2026 revenue of $310.2 million, exceeding its own estimates of $306-$309 million, the downward revision of full-year guidance overshadowed this performance, indicating growth challenges ahead for the company.
- Analyst Response: Following the guidance cut, several analysts quickly lowered their price targets for ZoomInfo and downgraded the stock from Buy to Hold within 24 hours, reflecting market concerns regarding the company's future outlook.
- Investor Legal Rights: Affected investors are encouraged to submit their information to discuss their legal rights, highlighting market skepticism about the company's transparency and management credibility, which may lead to further legal actions.
See More
Cramer Rosenthal McGlynn Sells 2.4M Shares of ZoomInfo Technologies
- Share Reduction Details: Cramer Rosenthal McGlynn sold 2,427,818 shares of ZoomInfo Technologies in Q1 2026, with an estimated trade value of $17.85 million, indicating a cautious outlook on the company's future prospects.
- Decline in Position Value: The fund's total position value in ZoomInfo dropped by $28.42 million by quarter-end, reflecting weakened market confidence as the stock price has plummeted over 60% in the past year.
- Financial Performance Review: ZoomInfo's latest quarterly revenue grew only 1.5% year-over-year to $310.2 million, and while operating cash flow reached $114.7 million, customer growth remains uneven with a decrease of 21 clients generating over $100,000 in annual contract value, leading to a net revenue retention rate of 90%.
- Future Growth Challenges: Although ZoomInfo remains integral to enterprise sales workflows, investors are concerned about whether AI-driven sales automation can reignite sustainable growth, as the market maintains a cautious stance towards the software sector.
See More
ZoomInfo Under Investigation for Securities Fraud Claims
- Revenue Guidance Cut: ZoomInfo's Q1 2026 financial results revealed a significant reduction in full-year revenue guidance to between $1.185 billion and $1.205 billion, falling short of the consensus estimate of $1.26 billion, indicating a projected revenue decline of approximately 4% against previous growth expectations.
- Workforce Reduction: The company announced a restructuring plan that will eliminate around 600 positions, representing about 20% of its workforce, aimed at cost reduction in response to declining revenues, which may adversely affect employee morale and corporate culture.
- Stock Price Plunge: Following the earnings report, ZoomInfo's stock price dropped by $1.98, or 32.78%, closing at $4.06 per share on May 12, 2026, reflecting strong market concerns regarding the company's future prospects.
- Analyst Downgrades: Multiple analysts downgraded their ratings on ZoomInfo shortly after the negative earnings report, indicating a significant loss of investor confidence in the company's future performance, which could lead to further stock price pressure.
See More
ZoomInfo Under Investigation for Securities Fraud Claims
- Financial Warning: ZoomInfo's Q1 2026 report reveals a significant reduction in full-year revenue guidance to $1.185 billion to $1.205 billion, well below the consensus estimate of $1.26 billion, indicating a revenue decline of approximately 4% and highlighting the company's growth challenges.
- Layoff Announcement: The company plans to eliminate around 600 positions, which constitutes about 20% of its workforce, aiming to cut costs in response to declining revenues, a move that may negatively impact employee morale and operational efficiency.
- Stock Price Plunge: Following the announcement, ZoomInfo's stock price fell by $1.98, or 32.78%, closing at $4.06 per share on May 12, 2026, reflecting strong market concerns regarding the company's future prospects.
- Analyst Downgrades: Multiple analysts quickly downgraded their ratings on ZoomInfo after the earnings report, indicating a pessimistic outlook on its future performance, which could further erode investor confidence.
See More
Intuit Cuts 17% Workforce Amid AI Challenges
- Layoff Announcement: Intuit has announced a 17% workforce reduction affecting over 3,000 employees, based on its last reported headcount of 18,200, with restructuring charges expected to range from $300 million to $340 million, primarily impacting the current quarter, reflecting the company's strategic response to the challenges posed by AI.
- Earnings Report: In its latest earnings report, Intuit posted adjusted earnings per share of $12.80 on $8.56 billion in revenue for the fiscal third quarter, with a 10% year-over-year revenue growth marking the slowest expansion rate since 2024, indicating investor concerns about its future performance amid a broader software market downturn.
- Future Guidance: Intuit raised its fiscal 2026 earnings forecast, now expecting adjusted earnings per share between $23.80 and $23.85, with revenue projected at $21.34 billion to $21.37 billion, surpassing analyst expectations, which reflects the company's confidence in its growth trajectory despite current challenges.
- Organizational Restructuring: The company plans to streamline its management layers and close offices in Reno, Nevada, and Woodland Hills, California, to enhance team collaboration, while integrating TurboTax and Credit Karma to eliminate redundant roles, aiming to improve operational efficiency and strengthen its competitive position in the market.
See More
Intuit Cuts 17% Workforce to Enhance Efficiency Amid AI Concerns
- Layoff Announcement: Intuit plans to cut 17% of its full-time workforce, affecting over 3,000 employees, aiming to enhance operational efficiency in response to market challenges posed by AI, with restructuring costs expected to range from $300 million to $340 million, primarily recognized in the current quarter.
- Earnings Report: In its latest earnings report, Intuit reported adjusted earnings per share of $12.80 and revenue of $8.56 billion, with a 10% year-over-year revenue growth, marking the slowest expansion rate since 2024, indicating increasing competitive pressures in the market.
- Stock Price Reaction: Following the layoff announcement, Intuit's stock fell 11% in after-hours trading, with shares down over 40% this year, contrasting sharply with the S&P 500's 8% gain, reflecting investor concerns about the company's future prospects.
- Future Guidance: Despite the challenges, Intuit raised its fiscal 2026 earnings forecast, expecting adjusted earnings per share between $23.80 and $23.85, with revenue projected between $21.34 billion and $21.37 billion, demonstrating the company's confidence in long-term growth.
See More
ZoomInfo Cuts 2026 Revenue Guidance, Stock Plummets
- Revenue Guidance Cut: ZoomInfo Technologies revised its 2026 revenue guidance down from $1.247-$1.267 billion to $1.185-$1.205 billion, a reduction of up to $62 million, causing the stock to plummet over 33% at market open, significantly impacting investor confidence.
- Quarterly Performance Beat: Although ZoomInfo reported Q1 2026 revenue of $310.2 million, exceeding its own estimates of $306-$309 million, the downward revision of full-year guidance overshadowed this performance, indicating growth challenges ahead for the company.
- Analyst Response: Following the guidance cut, several analysts quickly lowered their price targets for ZoomInfo and downgraded the stock from Buy to Hold within 24 hours, reflecting market concerns regarding the company's future outlook.
- Investor Legal Rights: Affected investors are encouraged to submit their information to discuss their legal rights, highlighting market skepticism about the company's transparency and management credibility, which may lead to further legal actions.
See More
Cramer Rosenthal McGlynn Sells 2.4M Shares of ZoomInfo Technologies
- Share Reduction Details: Cramer Rosenthal McGlynn sold 2,427,818 shares of ZoomInfo Technologies in Q1 2026, with an estimated trade value of $17.85 million, indicating a cautious outlook on the company's future prospects.
- Decline in Position Value: The fund's total position value in ZoomInfo dropped by $28.42 million by quarter-end, reflecting weakened market confidence as the stock price has plummeted over 60% in the past year.
- Financial Performance Review: ZoomInfo's latest quarterly revenue grew only 1.5% year-over-year to $310.2 million, and while operating cash flow reached $114.7 million, customer growth remains uneven with a decrease of 21 clients generating over $100,000 in annual contract value, leading to a net revenue retention rate of 90%.
- Future Growth Challenges: Although ZoomInfo remains integral to enterprise sales workflows, investors are concerned about whether AI-driven sales automation can reignite sustainable growth, as the market maintains a cautious stance towards the software sector.
See More
