H&R Block Price Target Lowered to $62 by Barrington Analyst

H&R Block's Q4 results were "generally below expectations," and initial FY26 guidance was "mixed." Barrington analyst Alexander Paris lowered the price target to $62 from $70 but maintained an Outperform rating. The firm cites the stock's valuation, increased dividend, and aggressive share repurchase program as reasons for the rating. The new target represents about 20% upside from current levels.

H&R Block, Inc. (HRB) reported mixed fourth-quarter financial results and issued fiscal year 2026 (FY26) adjusted EPS results below estimates on Tuesday. The company reported quarterly earnings of $2.27 per share, missing the analyst consensus estimate of $2.83 per share. However, quarterly sales of $1.111 billion beat the analyst consensus estimate of $1.075 billion.

H&R Block expects FY26 adjusted EPS of $4.85-$5.00 per share, versus market estimates of $5.25. The company also expects revenue of $3.875 billion to $3.895 billion, versus projections of $3.725 billion. These projections represent a 4-7% growth from FY25.

Jeff Jones, president and chief executive officer, stated, "Fiscal 2025 marked another year of meaningful progress in our transformation journey, with strong revenue growth, disciplined capital allocation, and continued innovation across our client offerings." He added that the company is intensifying efforts to engage clients with more complex needs, expanding its small business reach, and leveraging technology and AI to deliver greater business efficiencies and seamless, personalized experiences.

Following the earnings announcement, several analysts adjusted their price targets. Goldman Sachs analyst George Kelly maintained H&R Block with a Sell rating and lowered the price target from $54 to $48. Barrington Research analyst Alexander Paris maintained the stock with an Outperform rating and lowered the price target from $70 to $62. The new target represents about 20% upside from current levels.

H&R Block shares fell 4.8% to trade at $49.03 on Wednesday.

[1] https://www.benzinga.com/analyst-stock-ratings/price-target/25/08/47104150/hr-block-analysts-lower-their-forecasts-following-q4-results
[2] https://www.investing.com/news/company-news/hr-block-fy25-slides-reveal-68-eps-growth-projects-continued-momentum-for-fy26-93CH-4186443
[3] https://www.theglobeandmail.com/investing/markets/stocks/HRB-N/pressreleases/34087942/hr-block-reports-fiscal-2025-results-and-provides-fiscal-2026-outlook/