Intuit’s decision to lower its 2027 revenue growth guidance to 9%-10%, down from 14% in 2026, reflects strategic short-term pain for long-term AI-driven growth. CFO Sandeep Aujla explained the tough choice was necessary to avoid over-optimism or validating skepticism, emphasizing the need to set aside near-term noise and focus on sustainable wins. The guidance cut follows earlier announcements of a 17% workforce reduction to fund “big bets,” including AI integration across TurboTax and Mailchimp.

Declines in desktop software and ongoing challenges in Mailchimp further pressured the outlook. Intuit aims to attract new TurboTax users with a potential free offering, betting on AI to redefine its product ecosystem. Meanwhile, Canada retaliated against U.S. tariffs with new duties of 15%-50% on roughly $20 billion of goods, impacting about 7% of total U.S. imports. U.S. steel and aluminum tariffs will double from 25% to 50%, effective Sept. 8.

The move responds to a prior 50% U.S. tariff on $20 billion of Canadian goods. Canada, the U.S.’s second-largest trading partner, targets nearly 700 products in the escalating trade dispute. The tit-for-tat measures heighten concerns over consumer costs amid broader inflation pressures.