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

H&R Block (NYSE:HRB) released its quarterly earnings results on Wednesday. The company reported $6.02 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $5.77 by $0.25, Zacks reports. The business had revenue of $2.40 billion for 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%. The business’s revenue was up 5.3% on a year-over-year basis. During the same period in the previous year, the firm earned $5.38 EPS. 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 Price Performance

Shares of NYSE HRB traded up $0.58 during mid-day trading on Friday, hitting $36.87. The company had a trading volume of 4,135,124 shares, compared to its average volume of 2,518,428. The company has a market capitalization of $4.67 billion, a PE ratio of 6.56, a price-to-earnings-growth ratio of 0.56 and a beta of 0.29. The business’s 50-day simple moving average is $31.30 and its 200 day simple moving average is $38.34. H&R Block has a 1-year low of $28.16 and a 1-year high of $59.17.

H&R Block Dividend Announcement

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

Analysts Set New Price Targets

HRB has been the subject of several research analyst reports. Weiss Ratings upgraded H&R Block from a “sell (d+)” rating to a “hold (c)” rating in a research report on Tuesday, February 17th. Barrington Research reissued an “outperform” rating and set a $50.00 target price on shares of H&R Block in a research note on Monday, April 27th. Finally, The Goldman Sachs Group lowered their target price 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. One analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $41.00.

Key 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

Institutional Investors Weigh In On H&R Block

Hedge funds have recently bought and sold shares of the stock. Orion Porfolio Solutions LLC increased its stake in shares of H&R Block by 34.5% during the third quarter. Orion Porfolio Solutions LLC now owns 7,103 shares of the company’s stock worth $359,000 after buying an additional 1,820 shares during the period. PharVision Advisers LLC acquired a new stake in H&R Block in the third quarter valued at approximately $343,000. Scientech Research LLC purchased a new position in H&R Block in the third quarter worth approximately $312,000. Captrust Financial Advisors grew its holdings in H&R Block by 28.1% during the 2nd quarter. Captrust Financial Advisors now owns 5,140 shares of the company’s stock worth $282,000 after acquiring an additional 1,127 shares in the last quarter. Finally, Marex Group plc acquired a new position in H&R Block during the 4th quarter worth approximately $232,000. Institutional investors and hedge funds own 90.14% of the company’s stock.

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.