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

Key Points

• H&R Block beat Wall Street expectations with quarterly EPS of $6.02 versus the $5.77 consensus and revenue of $2.40 billion versus $2.34 billion expected. Revenue rose 5.3% year over year from the same quarter last year.
• The company raised its full-year FY 2026 guidance, now calling for EPS of $5.10 to $5.20, along with updated revenue guidance of $3.91 billion to $3.92 billion and EBITDA of $1.025 billion to $1.035 billion.
• Management highlighted stronger assisted-channel performance and growing use of AI and automation tools like Sidekick and AI Tax Assist, while also returning cash to shareholders through dividends and buybacks.

H&R Block (NYSE:HRB - Get Free Report) released its quarterly earnings data on Wednesday. The company reported $6.02 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.77 by $0.25, Zacks reports. The company had revenue of $2.40 billion during the quarter, compared to the consensus estimate of $2.34 billion. H&R Block had a net margin of 18.90% and a negative return on equity of 211.62%. H&R Block's revenue for the quarter was up 5.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $5.38 earnings per share. 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 Trading Up 1.6%

Shares of NYSE HRB traded up $0.58 during midday trading on Friday, reaching $36.87. 4,135,124 shares of the company were exchanged, compared to its average volume of 2,518,428. The stock has a market cap of $4.67 billion, a P/E ratio of 6.56, a PEG ratio of 0.56 and a beta of 0.29. H&R Block has a 1 year low of $28.16 and a 1 year high of $59.17. The stock has a fifty day simple moving average of $31.30 and a 200 day simple moving average of $38.34.

H&R Block Dividend Announcement

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

Institutional Trading of H&R Block

A number of hedge funds have recently added to or reduced their stakes in the stock. Los Angeles Capital Management LLC acquired a new position in shares of H&R Block in the fourth quarter valued at approximately $28,000. Northwestern Mutual Wealth Management Co. lifted its holdings in shares of H&R Block by 100.8% during the second 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 purchased a new position in H&R Block in the 3rd quarter valued at $46,000. EverSource Wealth Advisors LLC grew its position in H&R Block by 119.2% in the 2nd 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 increased its stake in H&R Block by 71.9% in the 2nd quarter. Smartleaf Asset Management LLC now owns 1,226 shares of the company's stock valued at $67,000 after buying an additional 513 shares during the period. 90.14% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several analysts have recently weighed in on HRB shares. Barrington Research reissued an "outperform" rating and issued a $50.00 target price on shares of H&R Block in a report on Monday, April 27th. The Goldman Sachs Group decreased their price objective on H&R Block from $48.00 to $32.00 and set a "sell" rating for the company in a report on Friday, February 6th. Finally, Weiss Ratings upgraded shares of H&R Block from a "sell (d+)" rating to a "hold (c)" rating in a research report on Tuesday, February 17th. One equities research analyst has rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, H&R Block presently has an average rating of "Hold" and an average target price of $41.00.

About H&R Block

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.

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