| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 93 | 7.9x | 17.8x | Top tier | |
Growth | 48 | 4.9% | 7.1% | Around median | |
Quality | 89 | 38.5% | 4.5% | Top tier | |
Safety | 69 | 1.0x | 2.6x | Top tier | |
Capital Return | 82 | 3.75% | 2.12% | Top tier | |
Momentum | 69 | -10.5% | 2.9% | Top tier | |
Sentiment | 68 | 4 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
H&R Block provides tax preparation services through an omnichannel model that combines direct assistance from professionals, digital self-preparation, and virtual and in-office services. Revenue also comes from international operations and Wave, a platform aimed at small businesses, which achieved double-digit revenue growth for the second consecutive year, driven by paid Pro subscriptions and increased payment volume. The company is increasingly targeting clients with more complex tax needs; the share of clients with adjusted household income between $50 thousand and $200 thousand increased from 38% to 50%.
In the fourth quarter of fiscal year 2026, revenue reached $1.14 billion versus $1.11 billion in the comparable period, gross profit was $594.3 million, and net income was $293.7 million, representing a gross margin of approximately 52.1% and a net margin of approximately 25.8%. The outperformance relative to revenue and earnings estimates was driven by tax services performance and Wave's growth, while assisted tax preparation remained the company's largest business. For fiscal year 2026, H&R Block recorded revenue of $3.95 billion, net income from continuing operations of $736 million, and EBITDA of $1.06 billion, with its margin expanding by 80 basis points.
Fiscal year 2026 revenue increased by 4.9%, EBITDA by 8.3%, and adjusted earnings per share by 13.9% to $5.31. The company generated free cash flow of $756 million and returned $714 million to shareholders through dividends and share repurchases, including the repurchase of 10.5 million shares representing 7.9% of outstanding shares at a cost of $500 million. Reported net income also benefited from a one-time non-cash tax benefit of $84.1 million, which added $0.65 to earnings per share.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $46.5, within a wide range of $33 to $60, with a consensus Hold rating rather than a consensus Buy rating. The average target is approximately 20.7% below the 52-week range high of $58.67, while the highest target is slightly above the previous high and the lowest target remains closer to the low of $28.16. This dispersion reflects the market's balancing of earnings and cash flow growth on one hand against business seasonality, slowing industry growth, and technology execution risks on the other.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Fourth-quarter fiscal year 2026 revenue reached approximately $1.14 billion versus $1.11 billion in the comparable period. The company recorded gross profit of $594.3 million and net income of $293.7 million. The outperformance relative to expectations came from growth in tax services and Wave, along with improved customer conversion and retention.
The company expects fiscal year 2027 revenue of between $4.11 billion and $4.16 billion. Adjusted EBITDA is expected to range between $1.11 billion and $1.14 billion, and adjusted diluted earnings per share between $6.14 and $6.24. The low end assumes the assisted services market share is maintained, while the high end assumes growth in that share.
The company launched Sidekick to help tax professionals handle complex questions more efficiently. AI Tax Assist recorded approximately 4.2 million interactions during the fiscal year 2026 season, with engagement nearly twice the prior year's level. H&R Block also used automation in Second Look to review up to three years of new customers' returns and focus on cases with the greatest opportunities.
In fiscal year 2026, Wave achieved its second consecutive year of double-digit revenue growth. Growth came from paid Pro subscriptions and higher payment volume. H&R Block intends to increase investment in technology and integrate Wave into a unified strategy for serving small businesses during fiscal year 2027.
The company generated free cash flow of $756 million in fiscal year 2026. It returned $714 million through dividends and share repurchases, including $500 million to purchase 10.5 million shares representing 7.9% of outstanding shares. On August 11, 2026, it increased the quarterly dividend by 10% to $0.46 per share, while the fiscal year 2027 plan includes approximately $400 million in repurchases.
Management expects tax preparation industry growth to moderate from its historical average of approximately 1% due to slower job growth. The company is increasing its investments in training, labor, and technology after operating expenses increased by 3.6% to $3.04 billion in fiscal year 2026. It also faces free and low-priced self-preparation offerings and artificial intelligence-powered tax capabilities, while Canada showed a negative impact from CRA regulatory changes.
