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

H&R Block (NYSE:HRB) posted its quarterly earnings results on Tuesday. The company reported $2.38 EPS 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 firm had revenue of $1.14 billion during the quarter, compared to analyst estimates of $1.12 billion. 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 Up 1.7%

H&R Block stock traded up $0.77 during trading hours on Tuesday, hitting $46.70. The stock had a trading volume of 4,554,956 shares, compared to its average volume of 2,399,617. The stock’s 50-day moving average price is $39.84 and its 200-day moving average price is $35.68. The stock has a market capitalization of $5.92 billion, a P/E ratio of 8.31, a price-to-earnings-growth ratio of 0.65 and a beta of 0.34. H&R Block has a 12-month low of $28.16 and a 12-month high of $54.42.

Institutional Investors Weigh In On H&R Block

Large investors have recently bought and sold shares of the business. Los Angeles Capital Management LLC bought a new position in shares of H&R Block during the 4th quarter valued at $28,000. Northwestern Mutual Wealth Management Co. lifted its stake in shares of H&R Block by 100.8% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 711 shares of the company’s stock worth $39,000 after purchasing an additional 357 shares during the period. Danske Bank A S bought a new stake in H&R Block during the third quarter valued at approximately $46,000. EverSource Wealth Advisors LLC increased its holdings in 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 raised its position in H&R Block by 71.9% in the second quarter. Smartleaf Asset Management LLC now owns 1,226 shares of the company’s stock worth $67,000 after acquiring an additional 513 shares during the period. 90.14% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several research analysts have commented on HRB shares. Zacks Research downgraded shares of H&R Block from a “strong-buy” rating to a “hold” rating in a report on Monday, July 27th. Weiss Ratings upgraded 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 reaffirmed an “outperform” rating and set a $50.00 price target on shares of H&R Block in a research note on Monday, April 27th. Finally, Stephens started coverage on H&R Block in a report on Tuesday, July 28th. They set an “equal weight” rating and a $47.00 price objective on the stock. One investment analyst has rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $43.00.

Key Stories Impacting H&R Block

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

• Positive Sentiment: Quarterly results beat estimates. H&R Block reported revenue of approximately $1.14 billion, up from $1.11 billion and above the $1.12 billion consensus. Reported EPS also exceeded expectations, with estimates ranging from $2.30 to $2.38 versus consensus forecasts near $2.21-$2.23. Net income attributable to common shareholders was $293.7 million. H&R Block Revenue Increases as It Raises Quarterly Dividend
• Positive Sentiment: Fiscal 2027 outlook topped analyst expectations. The company guided to EPS of $6.04-$6.24, compared with a consensus estimate of $5.82, and revenue of $4.1-$4.2 billion versus expectations of approximately $4.0 billion. The outlook suggests management expects continued earnings and revenue growth. H&R Block Reports Fiscal 2026 Results and Enters Fiscal 2027 with Confidence
• Positive Sentiment: Shareholder returns increased. H&R Block raised its quarterly dividend by 10% to $0.46 per share and said it returned $714 million to shareholders through dividends and share repurchases. Operating cash flow rose 23% to $252 million, supporting the company’s capital-return strategy. H&R Block Raises Quarterly Dividend
• Neutral Sentiment: Institutional positioning was mixed. Some investors, including BlackRock and Citadel, increased holdings, while Boston Partners, Jupiter Asset Management, and Wellington reduced or exited positions. These moves reflect differing institutional views rather than a clear market signal.
• Negative Sentiment: Balance-sheet leverage remains a consideration. H&R Block ended the period with $958.7 million in cash and total liabilities of approximately $3.1 billion. Operating profit was slightly negative in the reported quarter, although overall net income and cash generation remained solid.

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.