NEW YORK, August 11, 2026, 16:36 EDT — H&R Block (HRB) stock surged 11% after the company’s profit forecast for 2027 surpassed analyst expectations.
Shares of H&R Block NYSE:HRB surged 11% in late Tuesday trade after the tax preparation company projected fiscal 2027 adjusted earnings ahead of previous Wall Street estimates.
The stock traded at $51.80 at 16:21 EDT, following a close of $46.67 in the regular session, which ended prior to the release of results. Only 25,330 shares changed hands after hours, indicating the move may be tentative.
Management projected adjusted earnings per share in the range of $6.04 to $6.24. The midpoint, $6.14, is 4.8% higher than the previous consensus estimate of $5.86. This difference is the main driver behind Tuesday’s market revaluation.
The main investor focus is the falling share count. Adjusted net income increased by 6.9%, with adjusted EPS up 13.9%. The 6.2% decrease in diluted shares accounted for much of the gap.
| Fiscal-year measure | FY2025 | FY2026 | Change |
|---|---|---|---|
| Revenue | $3.761 billion | $3.945 billion | +4.9% |
| EBITDA (non-GAAP) | $976.3 million | $1.057 billion | +8.3% |
| EBITDA margin | 26.0% | 26.8% | up 80 basis points |
| Adjusted diluted EPS | $4.66 | $5.31 | +13.9% |
Operating cash flow for fiscal 2026 rose by 23% to $838.7 million. Non-GAAP free cash flow totaled $756.1 million. The improvement enabled management to continue repurchasing shares.
Chief Executive Curtis Campbell stated, “Fiscal 2026 provided meaningful evidence that the strategic choices we are making are strengthening H&R Block.” The firm increased its quarterly dividend by 10% to $0.46. company release
| Outlook measure | FY2026 actual | FY2027 company range | Midpoint read-through | Pre-release consensus |
|---|---|---|---|---|
| Revenue | $3.945 billion | $4.11-$4.16 billion | $4.135 billion; up 4.8% | Approximately $4.05 billion |
| Adjusted EBITDA | $1.057 billion | $1.11-$1.14 billion | $1.125 billion; up 6.4% | Not reported |
| Adjusted EBITDA margin | 26.8% | No separate guidance | Roughly 27.2%; up 42 basis points | Not reported |
| Adjusted diluted EPS | $5.31 | $6.04-$6.24 | $6.14; up 15.6% | $5.86 |
The midpoint suggests a forward earnings multiple of 8.4 at $51.80. It further indicates that EPS growth is set to outpace sales again this year. These midpoint calculations are based on reported FY2026 figures, with the estimates preceding Tuesday’s announcement.
| Capital-return measure | Reported value | Investor comparison |
|---|---|---|
| FY2026 share buybacks | 10.5 million | 7.9% of total shares |
| Total spent on buybacks | $500.3 million | $47.48 was average purchase price |
| Aggregate cash to shareholders | $713.7 million | Combined dividends and buybacks |
| Buyback authorization left | $600 million | Exceeds repurchase spend for FY2026 |
| Updated annual dividend | $1.84 per share | 3.55% yield based on $51.80 |
Gains in pricing outpaced growth in filer numbers. Revenue from assisted tax preparation climbed 6.1%, despite a 2.5% drop in total U.S. returns. DIY revenue was up 0.2%, while DIY volumes were down 5.6%.
Management announced its AI Tax Assist product handled 4.2 million interactions. The company stated that conversion increased by 200 basis points, while retention advanced 190 points. These numbers are company-reported operating metrics and are not audited financial data.
Analysts were cautious ahead of the release, assigning one Buy, three Hold, and one Sell rating. The highest target of $50 remained under the latest share price.
| Analyst recommendation measure | Pre-release reading | Comparison with $51.80 |
|---|---|---|
| Consensus recommendation | Hold | 1 Buy, 3 Hold, 1 Sell |
| High price target | $50 | 3.5% lower |
| Median price target | $47 | 9.3% down |
| Average price target | $42 | 18.9% down |
| Low price target | $29 | 44.0% lower |
The shares finished at $46.07 one week ago, on August 4. By Tuesday’s regular close, that price had risen just 1.3%. If the late quote stands, the seven-day climb would reach 12.4%.
The gains were in sharp contrast to Tuesday’s overall market finish. The S&P 500 declined roughly 0.3% and the Nasdaq dropped 0.6%. H&R Block rose 1.6% ahead of its earnings report.
Investors are set to evaluate the move under typical trading volumes next week. Adjustments to analyst estimates will indicate if $6.14 establishes a new baseline. The current target range from analysts appears outdated.
Risks: U.S. tax preparation accounted for 87.6% of fiscal 2026 revenue. Reduced filing volumes, free filing options, and AI-driven competition may impact pricing. The forecast is preliminary and based on non-GAAP metrics.
