**Intuit Experiences Significant Decline Amid Sector-Wide Software Selloff**
Intuit Inc. (INTU) saw its shares plunge approximately 20% on May 18, 2026, following the announcement of its fiscal Q3 earnings, which showed a 10% year-over-year revenue growth to $8.56 billion. Despite beating earnings estimates and raising full-year revenue guidance, the stock has fallen roughly 63% from its all-time high of $813.70. This marks Intuit’s second-worst decline ever, surpassed only by a 72% drop during the Dot-Com bust.
The broader software sector, including significant players like Salesforce (CRM), Adobe (ADBE), and ServiceNow (NOW), is also in a downward trend, with the iShares Expanded Tech-Software Sector ETF (IGV) experiencing a 24% decline in Q1 2026. As a result, the sector’s price-to-earnings multiple has dropped below that of the S&P 500, and short interest is at record levels. Investor fears are predominantly driven by the potential of AI agents to disrupt traditional software platforms, sparking a selloff market-wide.
In response to ongoing concerns, financial analysts are divided; some claim the current valuations present a rare buying opportunity for leading enterprises amid fears of AI disruption, while others warn that significant shifts in technology adoption may threaten established business models within a few years. Key firms like Salesforce are reporting substantial revenue growth, yet the market sentiment is heavily bearish, raising questions about the future landscape of the software industry.
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