H&R Block Shares Gain 5% on Q4 Beat, Raises Dividend

• H&R Block (NYSE:HRB) receives a price target of $62 from Alexander Paris, indicating a potential upside of 25.9%.
• The company reported a fourth-quarter EPS of $2.27, missing the Zacks Consensus Estimate by 19.2%, but showing a year-over-year increase of 20.1%.
• H&R Block anticipates fiscal year 2026 revenues to be between $3.88 billion and $3.90 billion, with an EPS range of $4.85 to $5.00.

H&R Block (NYSE:HRB) is a renowned provider of tax preparation services, competing with giants like TurboTax and Jackson Hewitt. On August 13, 2025, Alexander Paris from Barrington set a bullish price target of $62 for HRB, suggesting a significant upside of 25.9% from its then trading price of $49.25.

The company's recent financial performance presents a mixed picture. H&R Block reported a fourth-quarter earnings per share (EPS) of $2.27, which was below the Zacks Consensus Estimate by 19.2%. Despite this miss, the EPS marked a 20.1% improvement from the year prior. Revenue growth was a bright spot, with a 4.6% increase to $1.11 billion, beating the consensus estimate by 3.7%.

This revenue uptick was primarily fueled by a 5% rise in U.S. tax preparation services, mitigating weaker performances in other financial services. Looking forward, H&R Block is optimistic, projecting fiscal year 2026 revenues to range between $3.88 billion and $3.90 billion, with an EPS forecast of $4.85 to $5.00. This outlook underscores the company's confidence in its core business operations amidst competitive pressures.

Despite a challenging market, H&R Block's stock has outperformed its industry peers over the past year, with a decline of 9.5%, compared to the industry's 12.8% drop. Currently, HRB's shares are trading at $49.05, down 4.76% or $2.45, with today's trading range between $47.00 and $50.98 and a market capitalization of around $6.57 billion.

H&R Block (NYSE:HRB) reported fourth-quarter earnings that missed analyst estimates despite slightly exceeding revenue forecasts, sending shares down 6% as investors reacted to weaker guidance for the upcoming fiscal year.

The company posted adjusted earnings of $2.27 per share for the quarter, well below the consensus estimate of $2.98. Revenue came in at $1.11 billion, just above the expected $1.10 billion. For fiscal 2025, total revenue reached $3.8 billion, a 4.2% increase year-over-year, supported by higher net average charges and increased company-owned return volumes.

Operating expenses climbed 4.6% to $2.9 billion, driven by higher costs for compensation, benefits, marketing, consulting, technology, and legal services. Net income from continuing operations rose 1.9% to $609.5 million, while adjusted earnings per share from continuing operations grew 5.7% to $4.66.

For fiscal 2026, H&R Block projected revenue between $3.875 billion and $3.895 billion, above the $3.83 billion analyst consensus. However, earnings guidance of $4.85 to $5.00 per share came in below the expected $5.14.

H&R Block (NYSE:HRB) released its fourth-quarter results today, surpassing the consensus expectations. Following the announcement, shares rose more than 5% after-hours.

The tax preparation firm disclosed that it achieved an adjusted EPS of $2.05, with revenue amounting to $1.03 billion. These figures exceeded the predictions of Wall Street analysts, who had anticipated earnings of $1.88 per share on revenue totaling $1.01 billion.

As it looks forward to the fiscal year 2024, the company anticipates an adjusted EPS falling within the range of $4.10 to $4.30, while revenue is projected to be between $3.53 billion and $3.59 billion. Wall Street analysts had predicted earnings of $4.01 per share on revenue of $3.57 billion.

Furthermore, the company also announced a 10% increase in its dividend.