H&R Block (NYSE:HRB) Releases Earnings Results, Beats Expectations By $0.17 EPS

H&R Block (NYSE:HRB) released its quarterly earnings data on Tuesday. The company reported $2.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.21 by $0.17, Zacks reports. H&R Block had a net margin of 18.59% and a negative return on equity of 147.59%. The firm had revenue of $1.14 billion during the quarter, compared to analysts’ expectations of $1.12 billion. During the same period last year, the business earned $2.27 earnings per share. H&R Block’s revenue was up 255.5% compared to the same quarter last year. H&R Block updated its FY 2027 guidance to 6.040-6.240 EPS.

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

• Positive Sentiment: H&R Block reported strong fiscal 2026 results, with revenue up 4.9%, EBITDA up 8.3% and adjusted EPS up 13.9%; EBITDA margin expanded 80 basis points.
• Positive Sentiment: Core client metrics improved, including a 200-basis-point increase in assisted-client conversion and a 190-basis-point improvement in retention, while the company maintained share in the assisted tax-preparation category.
• Positive Sentiment: Management highlighted progress in its expert-led, technology-enabled strategy, including broad adoption of AI tools, expanded automated “Second Look” reviews and pilots of a more consultative client experience that will expand to a full market area in fiscal 2027.
• Neutral Sentiment: Fiscal 2027 guidance calls for revenue of $4.11 billion-$4.16 billion, adjusted EBITDA of $1.11 billion-$1.14 billion and adjusted EPS of $6.04-$6.24, assuming moderating industry growth but continued low-single-digit pricing and strategic execution.
• Positive Sentiment: Strong cash generation supported $714 million of fiscal 2026 shareholder returns; the board approved a 10% dividend increase to $0.46 per share, and the company expects approximately $400 million of share repurchases in fiscal 2027.

H&R Block Stock Performance

Shares of NYSE HRB traded down $1.66 during trading on Thursday, reaching $52.52. The stock had a trading volume of 846,184 shares, compared to its average volume of 2,429,109. H&R Block has a fifty-two week low of $28.16 and a fifty-two week high of $58.67. The business’s 50-day moving average price is $40.33 and its 200-day moving average price is $35.82. The company has a market cap of $6.66 billion, a P/E ratio of 9.16, a PEG ratio of 0.66 and a beta of 0.34.

H&R Block Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, October 6th. Stockholders of record on Thursday, September 3rd will be given a dividend of $0.46 per share. This is an increase from H&R Block’s previous quarterly dividend of $0.42. This represents a $1.84 annualized dividend and a dividend yield of 3.5%. The ex-dividend date is Thursday, September 3rd. H&R Block’s dividend payout ratio (DPR) is 29.37%.

Hedge Funds Weigh In On H&R Block

Hedge funds have recently bought and sold shares of the company. Advisory Services Network LLC acquired a new stake in shares of H&R Block during the third quarter worth about $180,000. Quarry LP grew its holdings in shares of H&R Block by 513.4% in the third quarter. Quarry LP now owns 2,883 shares of the company’s stock valued at $146,000 after purchasing an additional 2,413 shares in the last quarter. New Vernon Capital Holdings II LLC purchased a new stake in H&R Block during the 3rd quarter worth approximately $190,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in H&R Block by 38.2% during the 3rd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 3,793 shares of the company’s stock worth $192,000 after buying an additional 1,048 shares during the period. Finally, State of Wyoming lifted its holdings in H&R Block by 13,962.5% during the 2nd quarter. State of Wyoming now owns 2,250 shares of the company’s stock worth $124,000 after buying an additional 2,234 shares in the last quarter. Institutional investors and hedge funds own 90.14% of the company’s stock.

Analysts Set New Price Targets

Several analysts have recently weighed in on HRB shares. Stephens initiated coverage on shares of H&R Block in a research note on Tuesday, July 28th. They issued an “equal weight” rating and a $47.00 price target for the company. The Goldman Sachs Group upped their price objective on H&R Block from $29.00 to $33.00 and gave the company a “sell” rating in a report on Wednesday. Barrington Research raised their target price on H&R Block from $50.00 to $60.00 and gave the stock an “outperform” rating in a research note on Wednesday. Weiss Ratings upgraded H&R Block from a “hold (c-)” rating to a “hold (c)” rating in a research report on Thursday, July 2nd. Finally, Zacks Research lowered H&R Block from a “strong-buy” rating to a “hold” rating in a research note on Monday, July 27th. One analyst has rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $46.67.

Key H&R Block News

Here are the key news stories impacting H&R Block this week:

• Positive Sentiment: Quarterly results exceeded expectations: H&R Block reported fiscal fourth-quarter EPS of $2.38, above the roughly $2.21–$2.23 consensus, while revenue of $1.14 billion also topped estimates. EPS increased from $2.27 a year earlier. H&R Block Q4 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Above-consensus outlook: Management forecast fiscal 2027 adjusted EPS of $6.04–$6.24 and revenue of approximately $4.11–$4.16 billion, ahead of analyst expectations. Growth priorities include higher-value clients, improved retention and an AI-enabled expert model. H&R Block fiscal 2027 outlook
• Positive Sentiment: Shareholder returns improved: The board raised the quarterly dividend roughly 10%, to $0.46 per share, marking the ninth consecutive annual increase. The indicated yield is about 3.4%. H&R Block fiscal 2026 results
• Positive Sentiment: Analyst and options-market support: Barrington Research raised its price target from $50 to $60 and reiterated an “outperform” rating. Call-option purchases were also unusually elevated, signaling increased bullish interest, although options activity is not a guarantee of future performance.
• Neutral Sentiment: Momentum versus valuation: HRB is at or near a 52-week high, with a reported P/E near 9.4 and PEG ratio around 0.66. Those metrics may appear attractive, but the sharp run-up could make the stock more sensitive to any guidance or execution disappointment. H&R Block 52-week high analysis
• Negative Sentiment: Execution risks remain: H&R Block plans to increase investment in its consultative and AI-enabled service model. The strategy could support retention and revenue growth, but higher spending and the need to convert clients to higher-value services could pressure near-term margins if adoption falls short.

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.