H&R Block (NYSE:HRB) Sets New 12-Month High on Better-Than-Expected Earnings

H&R Block, Inc. (NYSE:HRB)’s share price hit a new 52-week high on Wednesday following a stronger than expected earnings report. The stock traded as high as $53.00 and last traded at $53.9660, with a volume of 56613 shares changing hands. The stock had previously closed at $46.67.

The company reported $2.38 EPS for the quarter, beating analysts’ consensus estimates of $2.21 by $0.17. H&R Block had a net margin of 18.90% and a negative return on equity of 211.62%. The company had revenue of $1.14 billion for the quarter, compared to analyst estimates of $1.12 billion. During the same period in the prior year, the firm posted $2.27 EPS. The company’s quarterly revenue was up 255.5% on a year-over-year basis. H&R Block has set its FY 2027 guidance at 6.040-6.240 EPS.

H&R Block Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, October 6th. Shareholders of record on Thursday, September 3rd will be issued a dividend of $0.46 per share. This represents a $1.84 dividend on an annualized basis and a yield of 3.2%. The ex-dividend date is Thursday, September 3rd. This is an increase from H&R Block’s previous quarterly dividend of $0.42. H&R Block’s dividend payout ratio (DPR) is 29.89%.

More H&R Block News

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

• Positive Sentiment: H&R Block reported fiscal fourth-quarter adjusted EPS of $2.38, exceeding the $2.21 analyst consensus, while revenue reached $1.14 billion versus expectations of $1.12 billion. EPS also increased from $2.27 in the year-earlier period. H&R Block Q4 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management projected fiscal 2027 adjusted EPS of $6.04-$6.24, above the roughly $5.82 consensus, and revenue of approximately $4.11-$4.16 billion, also ahead of Wall Street expectations. The company plans to expand its consultative service model, supporting expectations for continued growth. H&R Block Fiscal 2027 Outlook
• Positive Sentiment: The board approved a 9.5%-to-10% increase in the quarterly dividend to $0.46 per share, or $1.84 annualized, implying a yield near 3.9%. The increase marks the company’s ninth consecutive annual dividend raise and reinforces its shareholder-return appeal. H&R Block Raises Quarterly Dividend
• Positive Sentiment: Fiscal 2026 results included 5% revenue growth, operating cash flow growth of 23%, and $714 million returned through dividends and share repurchases, adding to the bullish reaction to the earnings release. H&R Block Fiscal 2026 Results
• Neutral Sentiment: Despite the strong headline results, H&R Block reported a negative return on equity, and its tax-focused business remains seasonal. Investors will likely monitor client retention, digital-tax growth, cash conversion, and execution of the expanded consultative model.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on HRB shares. The Goldman Sachs Group restated a “sell” rating and set a $33.00 target price on shares of H&R Block in a research report on Wednesday. Barrington Research reiterated an “outperform” rating and issued a $50.00 target price on shares of H&R Block in a report on Monday, April 27th. Weiss Ratings raised H&R Block from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday, July 2nd. Stephens initiated coverage on H&R Block in a report on Tuesday, July 28th. They set an “equal weight” rating and a $47.00 price target on the stock. Finally, Zacks Research downgraded shares of H&R Block from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 27th. One investment analyst has rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $43.33.

Institutional Trading of H&R Block

Several hedge funds have recently bought and sold shares of the business. Plato Investment Management Ltd bought a new stake in H&R Block during the 2nd quarter valued at $61,000. Bank of New York Mellon Corp bought a new position in shares of H&R Block in the second quarter valued at $56,220,000. Handelsbanken Fonder AB lifted its stake in shares of H&R Block by 8.1% in the second quarter. Handelsbanken Fonder AB now owns 37,500 shares of the company’s stock valued at $1,428,000 after buying an additional 2,800 shares in the last quarter. Carolina Wealth Advisors LLC grew its holdings in shares of H&R Block by 14.3% during the second quarter. Carolina Wealth Advisors LLC now owns 58,629 shares of the company’s stock valued at $2,233,000 after buying an additional 7,326 shares during the last quarter. Finally, Affinity Capital Advisors LLC grew its holdings in shares of H&R Block by 62.8% during the second quarter. Affinity Capital Advisors LLC now owns 12,094 shares of the company’s stock valued at $474,000 after buying an additional 4,666 shares during the last quarter. Institutional investors and hedge funds own 90.14% of the company’s stock.

H&R Block Stock Up 24.4%

The company has a market capitalization of $7.36 billion, a P/E ratio of 9.81, a P/E/G ratio of 0.65 and a beta of 0.34. The firm’s 50-day moving average price is $40.00 and its 200 day moving average price is $35.72.

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.