H&R Block, Inc. (HRB) AI Stock Analysis

H&R Block, Inc., operating through its subsidiaries, provides tax preparation services and financial products to individuals in the United States, Canada, and Australia. Established in 1955 and based in Kansas City, Missouri, the company delivers assisted and DIY tax preparation solutions through retail offices operated directly or by franchisees. Its offerings include financial products such as Refund Transfers, the H&R Block Emerald Prepaid Mastercard, and refund advance loans. In addition, the firm provides Peace of Mind extended service plans, Tax Identity Shield protection, and specialized financial solutions for entrepreneurs and small businesses both online and in-person.

H&R Block grew revenue from $3.46B in FY2022 to $3.95B in FY2026, representing a 5-year revenue CAGR of 2.6%. Annual revenue growth reached 4.9% in FY2026, up from 4.2% in FY2025 and 4.0% in FY2024. Gross margin stood at 44.3% in FY2026, while operating margin was -32.7%. Net income expanded to $733.6M in FY2026, resulting in an 18.6% net margin and EPS of $5.36. For the trailing twelve months ended June 30, 2026, operating margin was 32.9% and EPS was $5.69. In the latest quarter ended June 30, 2026, quarterly revenue grew 3.0% year-over-year and quarterly earnings grew 4.5%.

As of June 30, 2026, H&R Block held $958.7M in cash and short-term investments against total debt of $2.10B, resulting in net debt of $1.14B. Total assets were $3.26B and shareholders' equity was $117.5M, yielding a current ratio of 1.13 and a debt-to-equity ratio of 17.89. In FY2026, operating cash flow reached $838.7M and free cash flow was $756.1M. Capital expenditures totaled $82.6M, while capital returns included $512.9M in share buybacks and $211.0M in dividends paid, contributing to a 5-year share count change of -26.8%.

H&R Block trades at a trailing P/E of 8.6x and a forward P/E of 6.8x, compared to medians of 18.0x and 14.1x, respectively, for the median of its US-listed Consumer Cyclical peers. Its EV to EBITDA multiple is 6.0x versus the peer median of 11.1x, while price-to-sales of 1.5x sits above the peer median of 0.7x. The company's PEG ratio is 0.54 and enterprise value is $6.39B. Over the past year, HRB delivered a return of -1.0%, trailing the S&P 500 (SPY) return of 16.8%, though its 5-year return of 132.1% outperformed the SPY return of 83.0%.

H&R Block pays a quarterly dividend with an annual forward payout of $1.84, delivering a dividend yield of 3.78%. The payout ratio is 32.1%, supported by 42 consecutive years of dividend payments. Over the past five years, its annualized dividend growth rate was 8.9%. The stock's most recent ex-dividend date was September 3, 2026.

Wall Street analysts coverage consists of 0 Strong Buy, 1 Buy, 3 Hold, 0 Sell, and 1 Strong Sell ratings. The mean price target is $51.67, which is 6.2% above the last close of $48.67. For the fiscal year ending June 30, 2027, consensus estimates project revenue of $4.14B and EPS of $6.15, implying EPS growth of 15.8%. The company beat EPS estimates in each of the last 4 quarters, with its next earnings release scheduled for November 5, 2026.

This page is an AI-written research summary of H&R Block, Inc. (HRB). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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