H&R Block (NYSE:HRB) Announces Quarterly Earnings Results

H&R Block (NYSE:HRB) released its quarterly earnings results on Wednesday. The company reported $6.02 earnings per share for the quarter, topping the consensus estimate of $5.77 by $0.25, Zacks reports. H&R Block had a negative return on equity of 211.62% and a net margin of 18.90%.The company had revenue of $2.40 billion during the quarter, compared to the consensus estimate of $2.34 billion. During the same quarter last year, the business posted $5.38 earnings per share. H&R Block’s revenue was up 5.3% compared to the same quarter last year. 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 Stock Performance

NYSE HRB traded up $0.58 during trading hours on Friday, hitting $36.87. 4,135,124 shares of the company’s stock were exchanged, compared to its average volume of 2,518,428. The business’s 50 day moving average is $31.30 and its 200-day moving average is $38.34. H&R Block has a 12-month low of $28.16 and a 12-month high of $59.17. The firm has a market capitalization of $4.67 billion, a P/E ratio of 6.56, a price-to-earnings-growth ratio of 0.56 and a beta of 0.29.

H&R Block Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, July 7th. Investors of record on Wednesday, June 3rd will be paid a $0.42 dividend. This represents a $1.68 annualized dividend and a yield of 4.6%. The ex-dividend date is Wednesday, June 3rd. H&R Block’s dividend payout ratio is presently 38.80%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Los Angeles Capital Management LLC purchased a new position in shares of H&R Block during the 4th quarter worth about $28,000. Northwestern Mutual Wealth Management Co. raised its stake in 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 during the third quarter worth approximately $46,000. EverSource Wealth Advisors LLC boosted its holdings in shares of 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 purchasing an additional 497 shares during the last quarter. Finally, Smartleaf Asset Management LLC grew its stake in shares of H&R Block by 71.9% during 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. Institutional investors and hedge funds own 90.14% of the company’s stock.

More H&R Block News

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

• Positive Sentiment: Fiscal Q3 revenue rose 5.3% to about $2.4 billion, while earnings beat expectations, reinforcing that demand for tax-prep services held up well. H&R Block Reports Fiscal 2026 Third Quarter Results
• Positive Sentiment: The company raised fiscal 2026 guidance, now projecting revenue of $3.91 billion to $3.92 billion and boosting its outlook for adjusted EPS, which suggests management is seeing continued momentum into year-end. H&R Block projects $3.91B-$3.92B fiscal 2026 revenue as it raises outlook following tax season ’26
• Positive Sentiment: Management also highlighted stronger capital returns, including an incremental $100 million share repurchase authorization, which can support the stock by improving shareholder yield. H&R Block (HRB) jumps on Q3 results, raised FY2026 outlook, and stepped-up buyback plan
• Neutral Sentiment: Analysts and market commentary are focusing on valuation after the strong quarter, with the stock still trading below its 200-day average, suggesting room for continued re-rating if execution stays strong. A Look At H&R Block (HRB) Valuation After Strong Revenue And Net Income Results
• Neutral Sentiment: Coverage also noted improved growth and AI-related commentary from the earnings call, but these appear to be secondary to the core earnings beat and raised guidance. H&R Block Earnings Call Highlights Growth and AI

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on the stock. Barrington Research reissued an “outperform” rating and issued a $50.00 target price on shares of H&R Block in a research note on Monday, April 27th. The Goldman Sachs Group decreased their price target on shares of H&R Block from $48.00 to $32.00 and set a “sell” rating on the stock in a research note 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 report on Tuesday, February 17th. One investment analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus 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.