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

H&R Block (NYSE:HRB) released its earnings results on Monday. The company reported ($1.40) earnings per share for the quarter, beating the consensus estimate of ($1.43) by $0.03, FiscalAI reports. H&R Block had a negative return on equity of 214.84% and a net margin of 18.59%. The firm had revenue of $224.34 million for the quarter, compared to analyst estimates of $212.28 million. During the same quarter in the prior year, the firm posted ($1.20) earnings per share. The company’s quarterly revenue was up 10.2% on a year-over-year basis.

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 Stock Performance

HRB stock opened at $51.21 on Tuesday. The business’s 50-day moving average price is $46.76 and its two-hundred day moving average price is $39.60. The company has a current ratio of 1.13, a quick ratio of 1.13 and a debt-to-equity ratio of 12.69. The firm has a market cap of $6.27 billion, a PE ratio of 8.95, a P/E/G ratio of 0.73 and a beta of 0.40. H&R Block has a 1-year low of $28.16 and a 1-year high of $58.67.

H&R Block Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 6th. Investors of record on Thursday, December 3rd will be paid a dividend of $0.46 per share. This represents a $1.84 annualized dividend and a yield of 3.6%. The ex-dividend date of this dividend is Thursday, December 3rd. H&R Block’s dividend payout ratio (DPR) is presently 32.17%.

Insider Transactions at H&R Block

In other H&R Block news, insider Mark J. Darling sold 2,700 shares of the stock in a transaction dated Wednesday, September 30th. The stock was sold at an average price of $40.69, for a total value of $109,863.00. Following the completion of the sale, the insider directly owned 21,588 shares in the company, valued at $878,415.72. This represents a 11.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 0.67% of the company’s stock.

More H&R Block News

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

• Positive Sentiment: H&R Block reported fiscal Q1 revenue of $224.3 million, up 10.2% year over year and ahead of analysts’ expectations. Its loss of $1.40 per share was also slightly better than the $1.43 consensus estimate. H&R Block Q1 results
• Positive Sentiment: The company declared a quarterly dividend of $0.46 per share, equivalent to $1.84 annually and a yield of about 3.6%. It also said it repurchased $100 million of shares during the quarter. Fiscal 2027 first-quarter results and outlook
• Neutral Sentiment: H&R Block reaffirmed its fiscal 2027 outlook, offering continuity but no new forecast boost to counter concerns about the quarterly loss. Fiscal 2027 outlook
• Negative Sentiment: The quarter’s loss widened from $1.20 per share a year earlier to $1.40, a likely concern despite the modest beat versus estimates. This may help explain the stock’s decline as investors weigh weak seasonal profitability against revenue growth. H&R Block posts higher revenue and wider loss

Analysts Set New Price Targets

Several equities analysts have recently issued reports on the company. Weiss Ratings upgraded H&R Block from a “hold (c)” rating to a “hold (c+)” rating in a research report on Wednesday, October 14th. Barrington Research increased their price target on shares of H&R Block from $50.00 to $60.00 and gave the company an “outperform” rating in a research report on Wednesday, August 12th. The Goldman Sachs Group lifted their price objective on shares of H&R Block from $36.00 to $40.00 and gave the stock a “sell” rating in a research note on Tuesday. Zacks Research lowered shares of H&R Block from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, November 3rd. Finally, Stephens started coverage on shares of H&R Block in a report on Tuesday, July 28th. They set an “equal weight” rating and a $47.00 price objective for the company. One investment analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $49.00.

About H&R Block

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.