H&R Block (NYSE:HRB) Posts Quarterly Earnings Results, Beats Expectations By $0.25 EPS

H&R Block (NYSE:HRB) issued its earnings results on Wednesday. The company reported $6.02 earnings per share for the quarter, beating the consensus estimate of $5.77 by $0.25, Zacks reports. H&R Block had a net margin of 18.90% and a negative return on equity of 211.62%. The business had revenue of $2.40 billion for the quarter, compared to the consensus estimate of $2.34 billion. During the same quarter in the previous year, the firm earned $5.38 earnings per share. The business’s quarterly revenue was up 5.3% compared to the same quarter last year. H&R Block updated its FY 2026 guidance to 5.100-5.20 EPS.

Here are the key takeaways from H&R Block’s conference call:

• H&R Block beat expectations in Q3 and raised full-year guidance — revenue $2.4B (+5.3%), EBITDA +5.9%, adjusted EPS +11.9%; updated FY revenue $3.91–3.92B, EBITDA $1.025–1.035B, adj. EPS $5.10–$5.20.
• The assisted channel stabilized market share this season and mix shifted toward higher-complexity clients, driving better conversion and retention (new clients who received Second Look returned ~600 bps higher).
• Company accelerated AI and automation (150+ experiments), scaling tools like Sidekick and AI Tax Assist (4.1M client messages, +88% YoY) to reduce manual work and amplify tax-pro judgment.
• Strong shareholder returns — $586.7M operating cash flow YTD, $560.9M returned via dividends/repurchases, board approved an incremental $100M buyback for Q4 with ~ $700M remaining under the $1.5B program.
• Q3 effective tax rate benefited from a one-time non-cash IRS examination resolution ($84.1M), which reduced tax expense and contributed ~$0.65 to EPS, a non-recurring boost investors should adjust for.

H&R Block Stock Up 1.6%

Shares of NYSE HRB traded up $0.58 during midday trading on Friday, hitting $36.87. The company had a trading volume of 4,135,124 shares, compared to its average volume of 2,518,428. H&R Block has a twelve month low of $28.16 and a twelve month high of $59.17. The business has a 50-day simple moving average of $31.30 and a two-hundred day simple moving average of $38.34. The firm has a market capitalization of $4.67 billion, a price-to-earnings ratio of 6.56, a price-to-earnings-growth ratio of 0.56 and a beta of 0.29.

H&R Block Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, July 7th. Stockholders of record on Wednesday, June 3rd will be issued a $0.42 dividend. This represents a $1.68 dividend on an annualized basis and a dividend yield of 4.6%. The ex-dividend date is Wednesday, June 3rd. H&R Block’s dividend payout ratio (DPR) is currently 38.80%.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Fuller & Thaler Asset Management Inc. lifted its position in shares of H&R Block by 4.7% during the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 4,285,516 shares of the company’s stock valued at $186,763,000 after acquiring an additional 191,608 shares during the period. Boston Partners grew its holdings in shares of H&R Block by 20.2% in the 3rd quarter. Boston Partners now owns 3,886,544 shares of the company’s stock worth $196,542,000 after acquiring an additional 652,690 shares during the period. AQR Capital Management LLC increased its stake in H&R Block by 31.2% in the 4th quarter. AQR Capital Management LLC now owns 3,402,728 shares of the company’s stock valued at $146,998,000 after purchasing an additional 809,438 shares in the last quarter. Lazard Asset Management LLC increased its stake in H&R Block by 0.8% in the 3rd quarter. Lazard Asset Management LLC now owns 3,213,177 shares of the company’s stock valued at $162,490,000 after purchasing an additional 26,708 shares in the last quarter. Finally, Northern Trust Corp raised its holdings in H&R Block by 10.9% during the third quarter. Northern Trust Corp now owns 2,750,413 shares of the company’s stock worth $139,088,000 after purchasing an additional 269,581 shares during the last quarter. 90.14% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

HRB has been the subject of a number of recent analyst reports. Barrington Research restated an “outperform” rating and issued a $50.00 price objective on shares of H&R Block in a research report on Monday, April 27th. The Goldman Sachs Group cut their target price on H&R Block from $48.00 to $32.00 and set a “sell” rating for the company in a research note on Friday, February 6th. Finally, Weiss Ratings raised H&R Block from a “sell (d+)” rating to a “hold (c)” rating in a report on Tuesday, February 17th. One equities research analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $41.00.

H&R Block Company Profile

H&R Block (NYSE: HRB) is a leading provider of tax preparation services and software solutions, serving individual and small-business clients through a combination of retail offices, online platforms and mobile applications. The company offers assisted tax preparation at its network of retail offices, where clients work with trained tax professionals, as well as do-it-yourself (DIY) software and online filing services designed to guide users through the complexities of federal and state tax returns.

Founded in 1955 by brothers Henry W.