Intuit (INTU) Layoffs Signal AI-Driven Efficiency, Says Mizuho

Intuit Inc. (NASDAQ:INTU) ranks among the best cloud stocks to buy according to Wall Street analysts. On July 2, Mizuho reaffirmed its $875 price target and Outperform rating for Intuit Inc. (NASDAQ:INTU) in response to reports that the company intends to lay off about 600 workers in California.

If completely implemented, the cut would amount to roughly 3-4% of Intuit’s total workforce and might result in an additional 60–70 basis points of operating margin increase for Mizuho’s fiscal year 2026 estimate.

According to Mizuho, the market still undervalues AI-driven margin expansion in software companies, and the layoffs are a result of Intuit’s internal use of AI, which appears to have boosted effectiveness and productivity. Similar to fiscal year 2025, the firm expects that Intuit Inc. (NASDAQ:INTU) will release its first fiscal year 2026 forecast in August. This guidance is expected to include a conservative estimate of an operating margin raise of about 60 basis points.

Intuit Inc. (NASDAQ:INTU) is a global financial technology platform that enables both individuals and organizations to achieve their financial goals. Its products include Mailchimp for email marketing, QuickBooks for company accounting, Credit Karma for financial management, and TurboTax for tax preparation.

While we acknowledge the potential of INTU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.