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

H&R Block (NYSE:HRB) issued its earnings results on Tuesday. The company reported $2.38 earnings per share for the quarter, topping analysts’ consensus estimates of $2.21 by $0.17, Zacks reports. H&R Block had a negative return on equity of 211.62% and a net margin of 18.90%.The business had revenue of $1.14 billion during the quarter, compared to the consensus estimate of $1.12 billion. During the same period in the previous year, the company posted $2.27 earnings per share. The firm’s revenue for the quarter was up 255.5% on a year-over-year basis. 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 Price Performance

Shares of NYSE HRB traded up $6.70 during mid-day trading on Wednesday, reaching $53.37. 1,299,473 shares of the company’s stock traded hands, compared to its average volume of 2,386,731. The business has a 50-day simple moving average of $40.00 and a 200 day simple moving average of $35.72. The stock has a market cap of $6.76 billion, a P/E ratio of 9.58, a PEG ratio of 0.65 and a beta of 0.34. H&R Block has a 1-year low of $28.16 and a 1-year high of $58.67.

H&R Block Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 6th. Stockholders of record on Thursday, September 3rd will be issued 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 dividend on an annualized basis and a dividend yield of 3.4%. The ex-dividend date is Thursday, September 3rd. H&R Block’s dividend payout ratio is 29.89%.

Trending Headlines about H&R Block

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

• Positive Sentiment: H&R Block reported fiscal fourth-quarter adjusted EPS of $2.38, exceeding the $2.21 analyst consensus, while revenue reached $1.14 billion versus expectations of $1.12 billion. EPS also increased from $2.27 in the year-earlier period. H&R Block Q4 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management projected fiscal 2027 adjusted EPS of $6.04-$6.24, above the roughly $5.82 consensus, and revenue of approximately $4.11-$4.16 billion, also ahead of Wall Street expectations. The company plans to expand its consultative service model, supporting expectations for continued growth. H&R Block Fiscal 2027 Outlook
• Positive Sentiment: The board approved a 9.5%-to-10% increase in the quarterly dividend to $0.46 per share, or $1.84 annualized, implying a yield near 3.9%. The increase marks the company’s ninth consecutive annual dividend raise and reinforces its shareholder-return appeal. H&R Block Raises Quarterly Dividend
• Positive Sentiment: Fiscal 2026 results included 5% revenue growth, operating cash flow growth of 23%, and $714 million returned through dividends and share repurchases, adding to the bullish reaction to the earnings release. H&R Block Fiscal 2026 Results
• Neutral Sentiment: Despite the strong headline results, H&R Block reported a negative return on equity, and its tax-focused business remains seasonal. Investors will likely monitor client retention, digital-tax growth, cash conversion, and execution of the expanded consultative model.

Analysts Set New Price Targets

Several analysts have recently commented on the stock. Weiss Ratings raised shares of H&R Block from a “hold (c-)” rating to a “hold (c)” rating in a research report on Thursday, July 2nd. Barrington Research restated an “outperform” rating and issued a $50.00 price target on shares of H&R Block in a report on Monday, April 27th. Zacks Research lowered shares of H&R Block from a “strong-buy” rating to a “hold” rating in a report on Monday, July 27th. Stephens initiated coverage on shares of H&R Block in a research report on Tuesday, July 28th. They set an “equal weight” rating and a $47.00 price objective on the stock. Finally, The Goldman Sachs Group restated a “sell” rating and issued a $33.00 target price on shares of H&R Block in a research note on Wednesday. One analyst has rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $43.33.

Hedge Funds Weigh In On H&R Block

Large investors have recently added to or reduced their stakes in the business. Los Angeles Capital Management LLC bought a new stake in H&R Block during the 4th quarter worth approximately $28,000. Northwestern Mutual Wealth Management Co. lifted its holdings in shares of H&R Block by 100.8% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 711 shares of the company’s stock valued at $39,000 after purchasing an additional 357 shares in the last quarter. Danske Bank A S purchased a new position in shares of H&R Block during the third quarter valued at approximately $46,000. EverSource Wealth Advisors LLC boosted its position in shares of H&R Block by 119.2% during the second quarter. EverSource Wealth Advisors LLC now owns 914 shares of the company’s stock valued at $50,000 after buying an additional 497 shares during the last quarter. Finally, Smartleaf Asset Management LLC grew its holdings in H&R Block by 71.9% during the second quarter. Smartleaf Asset Management LLC now owns 1,226 shares of the company’s stock worth $67,000 after buying an additional 513 shares in the last quarter. Institutional investors own 90.14% of the company’s stock.

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.