Intuit (INTU) Lost Appeal on AI Disruption and Earnings Concerns
Jensen Investment Management, an asset management company based in the US, released its second-quarter 2026 investor letter for the “Jensen Quality Growth Equity Composite “. A copy of the letter is available to download here. The fund seeks long-term growth by investing in high-quality companies with durable competitive advantages. It returned 10.94% net of fees in Q2 2026, trailing the 15.20% return for the S&P 500 Index. US equities posted their strongest quarter in nearly six years as easing Iran-related tensions, improving financial conditions, resilient consumer spending, and continued AI infrastructure investment lifted markets. AI and memory-related semiconductor stocks led the rally, while lower-quality and momentum stocks outperformed the quality factors central to Jensen’s strategy. Quarterly performance benefited from favorable stock selection in Communication Services and no exposure to Energy and Utilities, while selection in Industrials and Information Technology hurt relative returns. The Portfolio remains balanced across quality compounders, AI beneficiaries, and defensive businesses. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its second-quarter 2026 investor letter, Jensen Quality Growth Equity Composite highlighted Intuit Inc. (NASDAQ:INTU). Intuit Inc. (NASDAQ:INTU) is a financial software company that provides financial management, payments and capital, compliance, and marketing solutions. On July 24, 2026, Intuit Inc. (NASDAQ:INTU) closed at $296.33 per share. One-month return of Intuit Inc. (NASDAQ:INTU) was 5.16% and its shares gained -64.18% over the past 52 weeks. Intuit Inc. (NASDAQ:INTU) has a market capitalization of o$81.06 billion with a 52-week trading range between $252.84 – $813.70.
Jensen Quality Growth Equity Composite stated the following regarding Intuit Inc. (NASDAQ:INTU) in its Q2 2026 investor letter:
“During the quarter, we exited our position in Intuit Inc. (NASDAQ:INTU), reflecting a meaningful decline in our confidence in two areas central to our process: the durability of the company’s competitive advantages and the stability of its earnings. Intuit’s moat has historically rested on customer entrenchment in TurboTax and QuickBooks, high switching costs, proprietary data, and pricing power — but the heart of that moat, guiding non-expert users through tax preparation and bookkeeping, is precisely the activity most exposed to generative and agentic AI. Intuit’s third quarter results and forecast also widened the range of plausible earnings outcomes: Intuit cut its full-year TurboTax outlook while raising total-company guidance on cost cuts, buybacks, and a lower share count rather than demand; non-GAAP operating margin fell 132 basis points as R&D rose 19%; and the company is leaning on a 17% workforce reduction to protect margins. We had already trimmed the position as our concerns built, and the May 2026 report moved us to exit fully.”
