Shares of Intuit (INTU -4.94%) are falling today, down 4.1% as of 1:35 p.m. ET. The drop came as the S&P 500 jumped 1.5% and the Nasdaq Composite jumped 1.8%.

Intuit reported relatively strong earnings, topping Wall Street forecasts for both revenue and profit, but guidance for its upcoming quarter disappointed investors.

Intuit reported a strong quarter but weak guidance

The company behind TurboTax and Credit Karma posted its fiscal fourth-quarter earnings of $2.75 per share on $3.83 billion in sales for the period ended July 31, above Wall Street's expectations. Intuit credited artificial intelligence (AI) for much of the momentum, highlighting how AI tools like Intuit Assist are driving adoption and higher customer spending across its platforms.

Looking ahead, Intuit guided for fiscal 2026 earnings of roughly $23 per share, paired with revenue of roughly $21 billion. The company stressed that its guidance style is intentionally conservative to preserve credibility with investors.

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This is being driven primarily by slowing sales from its Mailchimp product, but Intuit's CFO assured investors it was transitory. The company has been reworking how it packages its products, leading to some businesses finding it "a bit harder to use." That should change as users grow accustomed to the new paradigm.

Nonetheless, the weak guidance is sending Intuit shares lower

Intuit's stock was still hit, despite the CFO's comments on the dip being temporary. I think Intuit is in a good position to sustain long-term growth. Its products have a solid moat; the switching costs for a company to change aren't negligible. The stock isn't cheap, but I think it is still a solid pick.