Intuit Shares Plunge 40% as Valuation Multiples Contract Amid Rate Pressures

Key Facts

Intuit (INTU) witnessed a significant market correction, with its stock price tumbling between 35% and 40% from late November 2025 through late February 2026. This sharp decline was primarily driven by a massive contraction in the company's valuation, as its price-to-earnings (P/E) ratio shrank from over 50x to approximately 27x. Investors have been recalibrating their expectations for the software giant in light of a "higher-for-longer" interest rate environment. Additionally, a cooling growth outlook has prompted a reassessment of high-multiple tech stocks across the sector. This correction highlights the ongoing vulnerability of growth-oriented companies to macroeconomic shifts and tightening monetary conditions. The substantial loss in market value reflects a broader trend of disciplined valuation in the technology space.