H&R Block (NYSE:HRB) Stock Price Up 22% Following Earnings Beat

Key Points

• H&R Block shares surged 22% after beating expectations, reporting quarterly EPS of $6.02 (vs. $5.77 expected) and revenue of $2.40B (vs. $2.34B), and setting FY2026 guidance at $5.10–$5.20 per share.
• The company announced a quarterly dividend of $0.42 per share (annualized $1.68), a 4.7% yield, with an ex-dividend date of June 3 and payment on July 7.
• Analyst coverage is mixed with a MarketBeat consensus rating of "Hold" and a $41 price target; the stock trades at a modest valuation (market cap $4.55B, P/E 8.33).

H&R Block, Inc. (NYSE:HRB - Get Free Report) rose 22% during trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $35.94 and last traded at $35.7630. Approximately 1,066,661 shares traded hands during mid-day trading, a decline of 55% from the average daily volume of 2,391,526 shares. The stock had previously closed at $29.32.

The company reported $6.02 EPS for the quarter, beating the consensus estimate of $5.77 by $0.25. The firm had revenue of $2.40 billion during the quarter, compared to analysts' expectations of $2.34 billion. H&R Block had a negative return on equity of 176.02% and a net margin of 16.19%.The business's revenue for the quarter was up 5.3% on a year-over-year basis. During the same quarter last year, the firm earned $5.38 earnings per share. H&R Block has set its FY 2026 guidance at 5.100-5.20 EPS.

H&R Block Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, July 7th. Shareholders of record on Wednesday, June 3rd will be paid a dividend of $0.42 per share. The ex-dividend date of this dividend is Wednesday, June 3rd. This represents a $1.68 annualized dividend and a yield of 4.7%. H&R Block's dividend payout ratio (DPR) is 38.80%.

Analyst Upgrades and Downgrades

HRB has been the subject of a number of research reports. Weiss Ratings raised H&R Block from a "sell (d+)" rating to a "hold (c)" rating in a research note on Tuesday, February 17th. The Goldman Sachs Group decreased their price target 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, 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. One investment analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, H&R Block has an average rating of "Hold" and a consensus price target of $41.00.

Institutional Trading of H&R Block

Large investors have recently made changes to their positions in the stock. Versant Capital Management Inc raised its position in shares of H&R Block by 26.9% in the 3rd quarter. Versant Capital Management Inc now owns 1,042 shares of the company's stock worth $53,000 after buying an additional 221 shares during the period. Cahill Financial Advisors Inc. lifted its stake in shares of H&R Block by 5.7% during the third quarter. Cahill Financial Advisors Inc. now owns 4,075 shares of the company's stock worth $206,000 after purchasing an additional 221 shares in the last quarter. Xponance Inc. lifted its stake in shares of H&R Block by 1.3% during the third quarter. Xponance Inc. now owns 17,403 shares of the company's stock worth $880,000 after purchasing an additional 223 shares in the last quarter. US Bancorp DE increased its position in shares of H&R Block by 2.1% during the third quarter. US Bancorp DE now owns 12,601 shares of the company's stock worth $637,000 after acquiring an additional 261 shares during the last quarter. Finally, Covestor Ltd increased its position in shares of H&R Block by 25.7% during the third quarter. Covestor Ltd now owns 1,399 shares of the company's stock worth $71,000 after acquiring an additional 286 shares during the last quarter. Institutional investors and hedge funds own 90.14% of the company's stock.

H&R Block Price Performance

The firm has a market capitalization of $4.55 billion, a PE ratio of 8.33, a price-to-earnings-growth ratio of 0.48 and a beta of 0.29. The stock has a 50-day moving average price of $31.17 and a 200-day moving average price of $38.45.

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.

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