What's behind the move in Intuit's stock

Summary

Seema Mody reports on the divergence in software stocks: Intuit plummeted 20% after earnings due to TurboTax revenue slowdown and layoffs, while Workday and Zoom are seeing AI adoption alleviate competition concerns. An analyst channel check indicates near-term disruption risk for Workday from AI labs is low.

• Intuit fell 20% after earnings despite raising guidance, as TurboTax revenue decelerated.
• Intuit announced 3,000 job cuts as part of efficiency measures.
• Workday's AI agent usage more than doubled quarter-over-quarter, with over 4,000 clients using at least one agent.
• Zoom reported increased adoption of AI workflows, including customized summaries and CRM uses by wealth advisors.
• BTIG analyst Alan Borkowski said customers are not building payroll or HR software with AI labs, reducing disruption risk for Workday.
• OpenAI and Anthropic are aggressively poaching sales executives from software incumbents, keeping the long-term competitive threat live.
• The software sector shows a clear divergence between legacy names like Intuit and AI-enabled platforms like Workday and Zoom.