H&R Block Analysts Lower Forecasts Following Q4 Results, Shares Fall 4.8%

H&R Block reported Q4 earnings of $2.27 per share, missing analyst estimates of $2.83 per share. The company expects FY26 adjusted EPS of $4.85-$5.00 per share, below market estimates of $5.25. H&R Block shares fell 4.8% to $49.03. Analysts have made changes to their price targets on H&R Block following the earnings announcement.

H&R Block, Inc. (NYSE: HRB) reported mixed results for the fourth quarter of fiscal 2025, with earnings per share (EPS) falling short of analyst estimates but revenues exceeding expectations. The company reported adjusted EPS of $2.27 per share, which missed the Zacks Consensus Estimate of $2.83 by 19.2% [1]. However, total revenues of $1.11 billion beat the Zacks Consensus Estimate by 3.7% and increased 4.6% year over year.

Revenues from U.S. tax preparation and related services rose 5% to $975.5 million, while international revenues increased 1.3% to $89.9 million. Financial services revenues, however, declined 14.6% to $16.1 million. Wave revenues, a new segment, jumped 14.4% to $29.54 million.

For fiscal 2026, H&R Block expects revenues in the range of $3.875-$3.895 billion, adjusted EPS of $4.85-$5.00 per share, and EBITDA of $1.015-$1.035 billion. The company carries a Zacks Rank #3 (Hold) [1].

H&R Block shares fell 4.8% to $49.03 following the earnings announcement, outperforming the 12.8% decline of the industry it belongs to [1]. Analysts have made changes to their price targets on H&R Block following the earnings report.

References:
[1] https://www.tradingview.com/news/zacks:fe94c44d2094b:0-h-r-block-s-q4-earnings-miss-estimates-improve-year-over-year/