H&R Block (NYSE:HRB) Issues Earnings Results

H&R Block (NYSE:HRB) posted its quarterly earnings data on Monday. The company reported ($1.40) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($1.43) by $0.03, FiscalAI reports. The firm had revenue of $224.34 million during the quarter, compared to analysts’ expectations of $212.28 million. H&R Block had a negative return on equity of 276.60% and a net margin of 17.92%. The company’s revenue for the quarter was up 10.2% compared to the same quarter last year. During the same period in the prior year, the business earned ($1.20) EPS.

Here are the key takeaways from H&R Block’s conference call:

• First-quarter revenue rose 10.2% to $224.3 million, led by international services, tax protection and identity services, small business services, and U.S. tax preparation. The seasonally typical quarterly loss widened: adjusted loss per share was $1.40 versus $1.20 a year earlier, while operating expenses increased 11.1%, including severance and strategic investments.
• H&R Block reaffirmed its fiscal 2027 outlook: revenue of $4.11 billion to $4.16 billion, adjusted EBITDA of $1.11 billion to $1.14 billion, and adjusted diluted EPS of $6.04 to $6.24. Management said the outlook includes planned investments and remains appropriate after the first quarter.
• The company is expanding its consultative tax-service test from five offices to about 650 for the upcoming season, after its initial pilot showed stronger client satisfaction and perceptions of expertise. Second Look reached nearly three times as many clients as the prior season, and clients who received it in 2025 returned at a rate more than 600 basis points higher; management said it is too early to assess the expanded program’s impact or unit economics.
• H&R Block returned capital through $100 million in first-quarter share repurchases and declared a $0.46-per-share quarterly dividend. Its fiscal 2027 plan anticipates about $400 million in share repurchases, subject to market conditions.

H&R Block Trading Down 3.0%

Shares of NYSE HRB traded down $1.55 during midday trading on Wednesday, reaching $49.44. The company had a trading volume of 188,378 shares, compared to its average volume of 2,275,624. The stock has a market cap of $6.06 billion, a PE ratio of 9.07, a price-to-earnings-growth ratio of 0.67 and a beta of 0.40. H&R Block has a one year low of $28.16 and a one year high of $58.67. The firm’s fifty day moving average price is $46.75 and its 200-day moving average price is $39.65. The company has a quick ratio of 1.13, a current ratio of 1.13 and a debt-to-equity ratio of 12.69.

H&R Block Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, January 6th. Stockholders of record on Thursday, December 3rd will be paid a $0.46 dividend. This represents a $1.84 dividend on an annualized basis and a dividend yield of 3.7%. The ex-dividend date of this dividend is Thursday, December 3rd. H&R Block’s payout ratio is 32.17%.

Top H&R Block Stories

These are some of the HRB stories that stood out recently:

• Positive Sentiment: Revenue rose 10.2% year over year to $224.3 million, topping analyst expectations, and the $1.40-per-share loss was slightly narrower than the $1.43 loss forecast. Growth was supported by international services, Wave and tax demand. H&R Block Q1 Earnings Meet Estimates
• Positive Sentiment: The company reaffirmed its fiscal 2027 outlook and said it repurchased $100 million of shares as part of its capital-return plan. It also declared a $0.46 quarterly dividend, equivalent to $1.84 annually. Fiscal 2027 results and outlook Dividend announcement
• Neutral Sentiment: HRB plans to expand its consultative-service model test to about 650 offices. Its fiscal 2027 revenue outlook is roughly $4.1 billion to $4.2 billion, while EPS guidance of $6.04–$6.24 brackets the $6.14 consensus estimate. Outlook and consultative-model test

Analyst Ratings Changes

Several brokerages have issued reports on HRB. The Goldman Sachs Group upped their target price on H&R Block from $36.00 to $40.00 and gave the stock a “sell” rating in a research note on Tuesday. Zacks Research downgraded shares of H&R Block from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, November 3rd. Barrington Research lifted their price target on shares of H&R Block from $50.00 to $60.00 and gave the stock an “outperform” rating in a research note on Wednesday, August 12th. Weiss Ratings lowered shares of H&R Block from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday. Finally, Stephens began coverage on shares of H&R Block in a research note on Tuesday, July 28th. They issued an “equal weight” rating and a $47.00 price objective for the company. One equities research analyst has rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $49.00.

Insider Transactions at H&R Block

In related news, insider Mark J. Darling sold 2,700 shares of the firm’s stock in a transaction that occurred on Wednesday, September 30th. The stock was sold at an average price of $40.69, for a total transaction of $109,863.00. Following the transaction, the insider directly owned 21,588 shares in the company, valued at $878,415.72. This trade represents a 11.12% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.67% of the stock is currently owned by insiders.

H&R Block Company Profile

H&R Block, Inc. provides tax preparation and related financial services to individuals and small businesses. Its offerings include in-person tax preparation, online do-it-yourself filing, virtual tax assistance, and tax software, along with bookkeeping and other small-business services through its Block Advisors and Wave brands. Founded in 1955 in Kansas City, Missouri, by brothers Henry and Richard Bloch, the company grew from a local tax preparation business into a provider of tax services through offices and digital channels.