HRB

Intuit Inc. INTU is set to report its fourth-quarter 2026 results on Aug. 25, after market close. The financial technology company expects fourth-quarter revenues to increase approximately 11-12% year over year. Management projects non-GAAP earnings of $3.56-$3.62 per share, while GAAP earnings are expected in the range of 73-79 cents per share. The sharp difference between GAAP and adjusted earnings primarily reflects restructuring and other non-GAAP adjustments. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $4.27 billion, indicating an increase of 11.5% from the year-ago quarter’s reported figure. The consensus mark for earnings is pinned at $3.59 per share and remains unchanged over the past two months. It indicates growth of 30.6% from the figure reported in the year-ago quarter. Image Source: Zacks Investment Research The company’s EPS surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 6.87%. The graph below depicts this surprising history: Image Source: Zacks Investment Research Our proprietary model does not conclusively predict an earnings beat for Intuit this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here. Intuit has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Intuit is set to report fourth-quarter results, with solid business momentum and continued progress across its consumer and small-business platforms. Growth is likely to have been supported by continued strength in QuickBooks and the broader Online Ecosystem. Higher customer engagement, increased adoption of payments and payroll services and expansion of Intuit’s money offerings are expected to have remained key drivers. Credit Karma and TurboTax Live are also likely to have contributed to the quarter. Strength in personal loans and insurance has supported Credit Karma, while greater adoption of assisted tax offerings continues to benefit the TurboTax franchise. However, softer tax-unit trends could have partly offset these positives. Intuit’s AI-driven strategy and ongoing expansion into mid-market solutions is expected to have provided an additional boost. Continued adoption of AI-powered tools across its platform, along with efforts to deepen customer relationships and improve operating efficiency, may have helped support durable growth over the longer term. For the fourth quarter of fiscal 2026, the Zacks Consensus Estimate for Intuit’s Global Business Solutions revenues is pegged at $3.39 billion, suggesting year-over-year growth of 12.4%. The consensus mark for Intuit’s Consumer revenues is pegged at $884.5 million, significantly up from the year-ago period. Intuit shares have gained 20.8% over the past month. The Zacks Computer Software Market industry has risen 22.6%, while the S&P 500 has gained 3.7% for the same period. Tax preparation and financial services provider like H&R Block (HRB) and fintech like Block (XYZ) continue to expand their tax-preparation, small-business and financial-service offerings, intensifying competition for Intuit across areas such as consumer tax, payments and broader financial management. HRB shares rallied 26.9%, while XYZ shares have gained 1.2% over the same timeframe. Image Source: Zacks Investment Research From a valuation standpoint, even after the stock’s recent rally, INTU shares are trading cheaply in terms of forward 12-month P/E. INTU stock is trading at 13.39X compared with the Zacks Computer Software Market industry’s 22.86X. Image Source: Zacks Investment Research Shares of HRB and XYZ are currently trading at P/E of 8.9X and 17.4X, respectively. Image Source: Zacks Investment Research Intuit continues to strengthen its position as a broad financial technology platform by integrating QuickBooks, TurboTax, Credit Karma and its expanding AI-powered services. Continued momentum in online accounting, payments, payroll, assisted tax offerings and consumer finance is likely to support long-term growth, while its AI-driven expert platform could deepen customer engagement across both consumer and small-business markets. However, competitive pressure, softer tax-unit trends, restructuring-related disruption and broader macroeconomic uncertainty remain key risks. Given these growth opportunities alongside near-term execution risks, the stock is best viewed as a hold at present. Long-term investors may prefer to wait for greater clarity on fiscal 2027 growth, margin improvement and the benefits of Intuit’s restructuring before adding to positions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intuit Inc. (INTU) : Free Stock Analysis Report H&R Block, Inc. (HRB) : Free Stock Analysis Report Block, Inc. (XYZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. H&R Block stock has delivered a strong 148.4% return over the past 5 years, yet its current valuation checks still suggest the shares lean toward being undervalued rather than stretched. Over 5 years, H&R Block has returned 148.4%, which indicates that long term holders have already seen substantial value created. Recent revenue growth and solid operating cash flow, together with ongoing cash returns to shareholders, may support confidence in the company, while expectations for higher adjusted earnings per share could be tested if operating conditions become less favourable. On Simply Wall St's broader valuation checks, H&R Block screens as undervalued in 5 of 6 areas. This points to a stock that still looks cheap across several key metrics even after its multi year run 5. The issue now is whether the recent gains already reflect this valuation support or if H&R Block still offers a margin of safety at today’s price. H&R Block delivered 7.8% returns over the last year. See how this stacks up to the rest of the Consumer Services industry. P/E suits H&R Block because earnings remain a key anchor for how investors value the stock. On this measure, H&R Block trades on a P/E of 8.9x. That sits below the Consumer Services industry average of about 13.5x and is also below the broader peer average of 20.8x. The tailored fair P/E ratio for H&R Block is 17.1x, which reflects what might be expected given its business profile, margins and risk factors. The current 8.9x level is therefore well under that fair ratio. Even with the recent fiscal 2026 update highlighting revenue growth and strong cash generation, the market earnings multiple still prices the stock at a discount to both industry and peer benchmarks. On the P/E multiple, H&R Block stock appears undervalued compared with what the model implies as a fair earnings-based ratio. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where the H&R Block valuation puzzle leaves off by spelling out which assumptions about future growth, margins and earnings would need to hold for the stock to be worth materially more or less than today’s price, and they sit on the company’s Community page. Each one treats H&R Block’s fair value as a thesis about the business that can be tracked over time, rather than a one off snapshot. One of the top community narratives on H&R Block: 61% overvalued Read one of the top narratives on H&R Block Do you think there's more to the story for H&R Block? Head over to our Community to see what others are saying! For H&R Block, the P/E based checks still lean toward an undervalued verdict relative to both its tailored fair ratio and industry peers. The core question now is whether that discount reflects lasting concerns about how assisted tax preparation will hold up as automation and artificial intelligence improve, or whether it offers a cushion if earnings remain resilient. The debate from here turns on that single assumption, since it will decide whether the current multiple tightens toward peers or stays low as a warning that the market sees a value trap forming. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include HRB. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

As Intuit Inc. INTU prepares to report fourth-quarter fiscal 2026 results, investors will closely watch performance across TurboTax, Credit Karma and Global Business Solutions, which remain key growth drivers for the financial technology company. In the third quarter, Consumer revenues increased 8% to $5.3 billion. TurboTax revenues rose 7% to $4.4 billion, supported by growing adoption of assisted tax solutions. Intuit expects TurboTax Live revenues to improve 36% to about $2.8 billion for fiscal 2026, while TurboTax Live customers are projected to grow 38%. The offering is expected to account for roughly 53% of total TurboTax revenues. Higher-value customers and increased use of assisted offerings are also expected to drive an approximately 11% increase in TurboTax Online ARPU. Credit Karma revenues advanced 15% to $631 million in the third quarter, benefiting from strength in personal loans, auto insurance and home loans. Management expects Credit Karma revenues to grow approximately 19% for fiscal 2026. Global Business Solutions also remains an important growth driver. Revenues increased 15% in the third quarter, while Online Ecosystem revenues grew 19%. QuickBooks Online Accounting revenues climbed 22%, and total online payment volume, including Bill Pay, surged 30%. For fiscal 2026, Intuit expects Global Business Solutions revenues to jump approximately 16%. For the fourth quarter, Intuit anticipates total revenue growth of 11%-12% and non-GAAP earnings of $3.56-$3.62 per share. The Zacks Consensus Estimate for revenues is pegged at $4.27 billion, and for earnings, estimates stand at $3.59 per share, making sustained momentum across Credit Karma, TurboTax and QuickBooks a key focus. H&R Block HRB reported fiscal 2026 results with revenues increasing 4.9% to $3.95 billion, while adjusted EPS rose 13.9% to $5.31. Growth was supported by higher pricing and volumes in U.S. assisted tax preparation, international growth, and higher Wave subscription revenues and payments volume. Paychex PAYX reported fourth-quarter fiscal 2026 results with quarterly revenues increasing 12% to $1.61 billion, while adjusted EPS grew 11% to $1.32. Management Solutions revenues rose 14%, aided by Paycor, higher product penetration and increased revenue per client. Shares of Intuit have rallied 18.1% over the past three months, outperforming the broader industry and the S&P 500 composite. Image Source: Zacks Investment Research In terms of forward 12-month Price/Sales (P/S), Intuit is currently trading at 4.14X, which is at a discount to the industry average of 6.11X. Image Source: Zacks Investment Research Intuit’s estimate revisions reflect a negative trend. The Zacks Consensus Estimate for fiscal 2026 EPS has been revised downward by a cent to $23.85 over the past month. The consensus estimate for 2026 calls for 18.4% growth year over year. Image Source: Zacks Investment Research Currently, Intuit carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intuit Inc. (INTU) : Free Stock Analysis Report Paychex, Inc. (PAYX) : Free Stock Analysis Report H&R Block, Inc. (HRB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

H&R Block’s second quarter outperformed market expectations, led by improvements in both client retention and conversion rates. Management credited these results to a deliberate focus on higher-value, more complex clients and the expansion of technology-driven solutions across assisted and DIY tax preparation. CEO Curtis Campbell highlighted that automation and AI-powered enhancements reduced friction in the client journey, stating, “Conversion improved 200 basis points this season, which we believe is the largest single year improvement in our recorded history.” Enhanced retention, particularly for clients using the Second Look service, further strengthened the company’s competitive position in its core assisted business. Is now the time to buy HRB? Find out in our full research report (it’s free). Revenue: $1.14 billion vs analyst estimates of $1.12 billion (3% year-on-year growth, 2.5% beat) Adjusted EPS: $2.38 vs analyst estimates of $2.21 (7.7% beat) Adjusted EBITDA: $420.5 million vs analyst estimates of $394.6 million (36.7% margin, 6.6% beat) Adjusted EPS guidance for the upcoming financial year 2027 is $6.14 at the midpoint, beating analyst estimates by 4.8% EBITDA guidance for the upcoming financial year 2027 is $1.13 billion at the midpoint, above analyst estimates of $1.07 billion Operating Margin: 32.9%, in line with the same quarter last year Market Capitalization: $6.18 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Scott Schneeberger (Oppenheimer & Co.) asked about the sustainability of recent improvements in conversion and retention. CEO Curtis Campbell explained these were the result of moving toward a consultative, trust-based client approach and described ongoing phases to extend these gains. George Tong (Goldman Sachs) inquired about H&R Block’s outlook for the DIY category and investment priorities. Campbell emphasized focus on higher-value DIY clients rather than volume, while CFO Tiffany Mason highlighted investments in labor, training, and technology for both consultative models and small business services. Thomas Wendler (Stephens Inc.) sought details on utilization and impact of the Second Look service. Campbell described automation-driven expansion of Second Look, which improved retention for new clients and increased overall participation. Kartik Mehta (Northcoast Research) asked about pricing strategies and the number of experiments to be implemented next year. Mason noted plans for continued low single-digit price increases, and Campbell said the pace of real-world testing and scaling of successful pilots will accelerate. Alexander Paris (Barrington Research) questioned assumptions behind industry growth and margin guidance. Mason clarified that while industry growth is expected to moderate due to slower job creation, H&R Block’s strategic initiatives and franchise acquisitions underpin margin expansion and guidance assumptions. Our analyst team will be watching (1) the rollout and client adoption rates of advisory-focused service pilots in new markets, (2) the impact of further automation and AI integration on both client satisfaction and tax professional productivity, and (3) execution of small business growth initiatives, including integration of the Wave platform. Continued progress in shifting the client mix and maintaining pricing discipline will also be key markers of success. H&R Block currently trades at $50.55, up from $46.67 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

H&R Block, Inc. HRB reported impressive fourth-quarter fiscal 2026 results, with both earnings and revenues beating the Zacks Consensus Estimate. HRB’s adjusted earnings of $2.38 per share topped the Zacks Consensus Estimate of $2.23 by 6.7% and increased 4.8% year over year. H&R Block, Inc. price-consensus-eps-surprise-chart | H&R Block, Inc. Quote Revenues of $1.14 billion surpassed the consensus mark of $1.12 billion by 2.5% and rose 3% year over year. Assisted tax preparation and Wave contributed to growth. During fiscal 2026, client conversion improved 200 basis points, while retention increased 190 basis points. The better-than-expected results and strong fiscal 2027 guidance impressed investors, as the stock has gained 14.3% since the company released results on Aug. 11. HRB expects its fiscal 2027 revenues to be between $4.11 billion and $4.16 billion. The Zacks Consensus Estimate for the same is pegged at $4.03 billion. The company has guided its adjusted earnings in the range of $6.04 to $6.24 per share. The consensus estimate for the same is $5.81 per share. HRB’s shares have risen 6.4% over the past year against the industry’s 13.7% dip. The Zacks S&P 500 composite has risen 22.3% over the same time frame. U.S. tax preparation and related services revenues increased 2.8% year over year to $1 billion in the fiscal fourth quarter. Assisted tax preparation revenues rose 4.1% to $714.2 million, while Refund Transfer revenues advanced 6.4% to $23.7 million. Tax Identity Shield revenues increased 15.8% to $17.3 million. The company maintained Assisted category market share during the 2026 tax season after two consecutive years of improvement. Company-owned tax returns increased 2% for fiscal 2026, while net average charge at company-owned operations rose 4% to $282.89. Management attributed stronger performance to improved conversion, retention and a shift toward more complex clients. International revenues increased 5.6% year over year to $94.9 million in the quarter. Wave revenues climbed 12.3% to $33.2 million, continuing momentum in the company's small-business offering. For fiscal 2026, Wave posted its second consecutive year of double-digit revenue growth, supported by paid ProTier subscriptions and higher payments volume. Management continues to view small-business services as an important growth opportunity as it integrates expert advice, products and digital capabilities. Fiscal fourth-quarter operating expenses increased 3.8% year over year to $768.1 million. Compensation and benefits rose to $396.8 million from $383.1 million, while occupancy costs increased to $117.5 million from $112.8 million. Marketing and advertising expenses advanced to $69.1 million. EBITDA increased 1.8% to $420.5 million. Adjusted net income declined 1.6% to $304.2 million, but adjusted earnings per share rose as the weighted-average share count fell 6.3% to 127 million. The reduction reflects H&R Block's continued share repurchases. Management highlighted continued improvement in the quality of its client base. The share of clients within its targeted household adjusted gross income range of $50,000-$200,000 has increased from 38% to 50% over the past few years. H&R Block is serving more clients with investment income, small-business needs and more complex income streams. Technology remained central to the strategy. Artificial Intelligence Tax Assist handled 4.2 million client interactions during the season and generated nearly twice the engagement of the prior year. Client Experience Monitors contributed to a 550-basis-point increase in product attachment, while the company's Sidekick AI assistant supported tax professionals handling complex questions. H&R Block generated $838.7 million of operating cash flow in fiscal 2026 and $756.1 million of free cash flow. It returned $713.7 million to shareholders through dividends and share repurchases, including $500.3 million spent to repurchase about 10.5 million shares. The board raised the quarterly dividend by 10% to 46 cents per share. For fiscal 2027, adjusted EBITDA is projected in the range of $1.11 billion to $1.14 billion. The effective tax rate is forecasted at roughly 23%. HRB expects about $400 million of share repurchases in fiscal 2027 and has approximately $600 million remaining under its current $1.5 billion authorization. Management expects industry growth to remain below the historical norm but sees opportunities from Assisted market-share performance, small-business growth and selective franchise acquisitions. The company plans greater investment in automation and its consultative client experience while maintaining cost discipline. Currently, H&R Block carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Clean Harbors, Inc. CLH posted better-than-expected second-quarter 2026 results. CLH’s adjusted earnings of $3.22 per share beat the Zacks Consensus Estimate by 17.5% and rose 36.4% year over year. Total revenues of $1.74 billion surpassed the consensus estimate by 6.8% and increased 12% from the year-ago quarter. Rollins, Inc. ROL posted unimpressive second-quarter 2026 results. ROL’s adjusted earnings of 32 cents per share missed the Zacks Consensus Estimate by 5.9% but rose 6.7% year over year. Total revenues of $1.08 billion fell short of the consensus estimate by 1.7% but increased 7.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report H&R Block, Inc. (HRB) : Free Stock Analysis Report Clean Harbors, Inc. (CLH) : Free Stock Analysis Report Rollins, Inc. (ROL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

H&R Block (HRB) rose about 16% on Wednesday, Aug. 12, after reporting fiscal 2026 fourth-quarter results that beat Wall Street expectations. Adjusted EPS came in at $2.38, above the $2.21 consensus estimate, while revenue increased to $1.14 billion from $1.11 billion a year earlier. H&R Block also issued fiscal 2027 guidance that exceeded analysts’ expectations. The company raised its quarterly dividend by 10% to $0.46 per share, extending its streak of annual dividend increases to nine years. H&R Block previously declared a $0.42 quarterly dividend in February 2026. Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Since 2016, the company says it has raised its dividend by 110% and returned more than $5 billion to shareholders through dividends and stock buybacks. The rally also pushed H&R Block to a new 52-week high. H&R Block has long been seen as a seasonal tax-preparation stock. But with its latest earnings, stronger guidance, and higher dividend, could the stock offer more than just a tax-season trade? Let’s find out. H&R Block makes money through its company-owned and franchised tax offices, do-it-yourself tax software, and its Wave platform for small businesses. The stock is up 8% over the past 52 weeks and 23% so far this year. Despite that gain, H&R Block still trades at 8.12x forward earnings, about half the 16.22x average for the consumer discretionary sector. H&R Block also raised its quarterly dividend by 10% to $0.46 per share. The dividend will be paid on Oct. 6 to shareholders of record on Sept. 3. It is the company’s ninth straight annual dividend increase and brings the annual payout to $1.84 per share. Before the increase, H&R Block paid $0.42 each quarter, or $1.68 annually, for a 3.10% yield. That is above the sector average yield of 1.89%, while the forward payout ratio stands at 30.37%. H&R Block finished fiscal 2026 on a strong note. Adjusted EPS came in at $2.38, beating estimates by $0.17, while Q4 revenue rose 3.1% to $1.145 billion. Full-year revenue increased 4.9% to $3.95 billion, adjusted EBITDA rose 8.3% to $1.06 billion, and adjusted EPS grew 13.9% to $5.31. Operating expenses rose 3.6% to about $3.0 billion, helping EBITDA margin improve by 80 basis points. Net income from continuing operations climbed 20.8% to $736.3 million, though that included an $84.1 million one-time IRS tax benefit worth $0.65 per share. Adjusted net income, excluding that item, rose 6.9% to $688 million. H&R Block repurchased 10.5 million shares for $500.3 million and returned $713.7 million to shareholders. It still has about $600 million available for further buybacks. For fiscal 2027, H&R Block expects revenue of $4.11 billion to $4.16 billion, adjusted EBITDA of $1.11 billion to $1.14 billion, and adjusted EPS of $6.04 to $6.24. H&R Block is using AI tools to help its tax professionals work faster and support clients more easily. Its Sidekick assistant, built with OpenAI, gives tax pros answers based on H&R Block’s Tax Institute information in two to three seconds during appointments. Its AI Tax Assist tool has handled 6.45 million client messages since launching in 2023, with usage up 152%. During the 2026 tax season, clients sent 1.91 million messages, up 85% from a year earlier, and received answers in an average of 2.2 seconds. H&R Block also added the tool to its Desktop Software for the first time. CNET named the platform Best Overall Tax Service and Best Use of AI for 2026. H&R Block is also buying back more franchises and turning them into company-owned offices. It completed 160 franchise buybacks in fiscal 2026, up from 124 a year earlier, spending about $58 million versus $36 million. The company expects to complete another 100 to 125 franchise acquisitions in fiscal 2027. These deals often happen when franchise owners do not have succession plans, allowing H&R Block to take over the offices and keep more of the revenue. Management expects this strategy to add about 1 percentage point to annual growth. In Canada, H&R Block partnered with Affirm (AFRM) to let clients pay for professional tax services in interest-free installments. It is the first major Canadian tax-preparation provider to offer this option. H&R Block is set to report its September 2026-quarter results on Nov. 5. Analysts expect a loss of $1.28 per share, compared with a $1.20 loss in the same quarter last year. That would be a 6.67% year-over-year (YoY) decline. For the fiscal year ending in June 2027, analysts expect H&R Block to earn $6.14 per share. That would be 15.63% higher than its fiscal 2026 adjusted EPS of $5.31. It also falls right at the middle of management’s $6.04 to $6.24 guidance range. Wall Street remains divided on HRB stock. Barrington Research raised its price target to $60 from $50 and kept its “Outperform” rating, pointing to about 11.7% upside from the prior closing price. Goldman Sachs kept a “Sell” rating and a $33 target, while Stephens started coverage on July 28 with an “Equal Weight” rating and a $47 target. Overall, the six analysts covering HRB stock rate it a consensus “Hold.” Their average target price is $43.75, which is 17% below the current share price of $52.80. H&R Block’s earnings beat, stronger fiscal 2027 outlook, rising dividend, and continued buybacks make the investment case more compelling than it was before the report. The company is pairing steady tax-preparation demand with AI tools, franchise acquisitions, and disciplined capital returns, while its forward valuation remains modest. Still, the 16% post-earnings rally has pushed HRB above Wall Street’s average target, so near-term upside may be limited after the surge. Shares are most likely to consolidate near current levels, but sustained delivery on the $6.04 to $6.24 fiscal 2027 EPS outlook could support a further move higher over time. On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. H&R Block (HRB) has put in its strongest financial performance in five years, with higher revenue, EBITDA and adjusted EPS, record gains in client conversion and retention, and a higher dividend alongside continued share buybacks. See our latest analysis for H&R Block. H&R Block's latest results and buyback update have been met with a sharp repricing of the stock, with a 1 day share price return of 16.1% and a 30 day share price return of 32.6%. Over longer periods the 1 year total shareholder return of 13.3% and 5 year total shareholder return of 152.2% indicate that recent momentum has added to an already strong longer term record. If this kind of move has you thinking about what else is changing quickly, it can be useful to broaden your search and check out 19 top founder-led companies Bulls see H&R Block’s stronger results, buybacks and higher dividend as the start of a reset. Bears see a mature tax business that just had a great run. Which side does the current valuation lean toward? The most followed narrative for H&R Block pegs fair value at $42 per share, which sits well below the latest close at $54.18. That gap comes down to how much investors are willing to pay for future earnings that analysts expect to soften over time. Read the complete narrative. Want to see what is baked into that valuation gap? The narrative leans on modest growth, shifting margins and a future earnings multiple that looks very different from today. The full breakdown shows exactly how those ingredients combine into a single fair value line. Result: Fair Value of $42 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, H&R Block still faces pressure from digital first competitors and potential IRS backed free filing options, which could weigh on client growth and pricing power. Find out about the key risks to this H&R Block narrative. The DCF based fair value of $42 points to H&R Block looking 29% overvalued. Yet the stock trades on a P/E of 9.3x, which sits well below both the US Consumer Services industry at 13.1x and a peer average of 21.2x. Is the risk here in the price or in the narrative assumptions? See what the numbers say about this price — find out in our valuation breakdown. If the split views on H&R Block have you unsure, it can help to move quickly and review the numbers yourself. To compare the potential benefits with the concerns, check out the 3 key rewards and 2 important warning signs. If H&R Block has you rethinking your watchlist, do not stop here. Broaden your view with a few focused stock ideas that could reshape your next move. Target dependable cash generators by reviewing companies in the 49 high quality undervalued stocks that pair quality fundamentals with prices below what the market is currently paying. Strengthen the income side of your portfolio by assessing opportunities in the 9 dividend fortresses that combine higher yields with staying power. Prioritise resilience over excitement and see which companies make it into the 85 resilient stocks with low risk scores so you are not caught off guard when conditions change. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include HRB. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

H&R Block, Inc. HRB used its fourth-quarter fiscal 2026 earnings call to emphasize higher-value clients, stronger retention and a more technology-enabled expert model. President and CEO Curtis Campbell said that those gains support confidence entering fiscal 2027. Adjusted earnings of $2.38 topped the Zacks Consensus Estimate of $2.23, while revenues of $1.14 billion exceeded the consensus mark of $1.12 billion. H&R Block, Inc. price-consensus-eps-surprise-chart | H&R Block, Inc. Quote Campbell said that H&R Block is prioritizing complex, higher lifetime-value clients over volume alone. Its targeted $50,000-to-$200,000 household AGI group has risen from 38% to 50% of clients over the last few years. Campbell said that the mix now includes more clients with investment income, small-business needs and diverse income streams. He also mentioned that those relationships can strengthen retention and create more opportunities to provide assistance and advice over time. Campbell said that Assisted category share was maintained in 2026 as the client experience and customer mix improved. Campbell stated that conversion rose 200 basis points, a gain management believes was the largest single-year improvement in its recorded history. Retention improved 190 basis points. Campbell also highlighted Second Look. New clients receiving the service returned at a rate more than 600 basis points higher than those who did not. Campbell said that technology is extending tax-pro expertise. Sidekick was deployed across offices, while AI Tax Assist supported 4.2 million client interactions for paid DIY filers. Campbell said that AI Tax Assist engagement was nearly double the prior-year level. Client Experience Monitors contributed to a 550-basis-point increase in product attachment. After five pilot offices tested a more consultative experience, Campbell said that H&R Block will expand it to a full designated market area for tax season 2027. Automation is intended to reduce manual work and create more time for advice. CFO Tiffany Mason expects fiscal 2027 revenues at $4.11-$4.16 billion, with adjusted EBITDA of $1.11-$1.14 billion and adjusted earnings of $6.04-$6.24. Mason said that the low end assumes H&R Block maintains Assisted category market share, while the high end assumes share growth. Industry growth is expected to moderate from the historical norm of about 1% as job growth slows. Mason said that higher strategic investment will support the consultative client model and tax-workflow automation while the company maintains cost discipline. Mason said that fiscal 2026 free cash flow reached $756 million. H&R Block returned $714 million through dividends and share repurchases during the year. For fiscal 2027, Mason said that the outlook contemplates about $400 million of share repurchases, subject to market conditions. Roughly $600 million remains under the $1.5 billion authorization. Mason also noted a 10% increase in the quarterly dividend to $0.46 per share, alongside continued investment in the business. Campbell said that H&R Block ran more than 150 experiments during tax season and is using the results to decide where to scale investment. Campbell mentioned that the company is shifting from seasonal office leadership to a year-round model supported by Area Experience Leaders to improve coaching and execution. Mason said that the transition and related streamlining produced an approximately $8.3 million first-quarter fiscal 2027 severance charge that is excluded from the outlook. Campbell closed with an emphasis on stronger client outcomes, higher-quality relationships and faster scaling of ideas that perform well in testing. Mason’s outlook pairs those priorities with cost discipline, continued investment and capital returns as H&R Block enters fiscal 2027. HRB currently carries a Zacks Rank #3 (Hold). That places the stock outside the Zacks Rank #1 (Strong Buy) and 2 (Buy) that Zacks pairs most strongly with a favorable Style Score for potential near-term outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here. The stock has a Value Score of A, a Growth Score of A, a Momentum Score of C and a VGM Score of A. The A grades are more favorable within the A-to-F hierarchy, while the C Momentum Score is less favorable. The Zacks Rank can change as estimates are revised after the just-reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report H&R Block, Inc. (HRB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. H&R Block (NYSE:HRB) reported fiscal 2026 results that showed revenue and cash flow growth, along with strong shareholder returns. The company announced a substantial dividend increase and significant share repurchases for fiscal 2026. Management issued optimistic guidance for fiscal 2027, signaling confidence as H&R Block enters the new fiscal year. H&R Block is only one example of a company focusing on income and capital returns. It can be useful to compare its approach with other stocks that emphasize regular cash payouts through 8 dividend fortresses. H&R Block operates in consumer services as a provider of assisted and DIY tax preparation across the US, Canada, and Australia. The latest focus on revenue, cash flow, and shareholder distributions sits on top of a business tied directly to recurring annual tax filing activity. Is H&R Block's dividend sustainable? Check out what every dividend investor needs to know in our dividend analysis. For investors, the key signal in H&R Block’s update is management backing a higher dividend and large buyback with actual cash generation. The company reported full year revenue of US$3.95b and net income of US$733.6 million, while also returning US$714 million through dividends and repurchases. That level of cash return, together with a long record of regular dividends and a current yield previously assessed at 3.6%, suggests the payout ratio sits in a range management considers sustainable. It also aligns with the Narrative’s view that earnings and cash flow from tax services can support ongoing distributions, even with competitive and regulatory risks. If we take a look at the community Narrative for H&R Block, we can see how this news fits into the bigger investment story. The test for this interpretation comes with the next couple of tax seasons. If H&R Block can keep full year net income and operating cash flow broadly in line with the 2026 performance while holding or growing the new dividend level, that would reinforce the idea that today’s higher cash returns rest on durable cash generation rather than one strong year. For the full picture including more risks and rewards, check out the complete H&R Block analysis. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include HRB. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Tuesday, Aug. 11, 2026 at 4:30 p.m. ET Vice President, Investor Relations - Jessica Hazel President and Chief Executive Officer - Curtis A. Campbell Chief Financial Officer - Tiffany L. Mason Operator: Thank you for standing by, and welcome to H&R Block Fourth Quarter Fiscal Year 26 Earnings Conference Call. Currently, all participants are in a listen-only mode. After the speakers' presentation, there will be a Q&A session. To ask a question from the queue, you may press star 1, 1 again. I would now like to hand the call over to Jessica Hazel. Vice President, Investor Relations. Please go ahead. Jessica Hazel: Thank you. Good afternoon, and welcome to H&R Block's fiscal 2026 financial results conference call. Joining me today are Curtis A. Campbell, our president and chief executive officer and Tiffany L. Mason, our chief financial officer. Earlier today, we issued a press release and presentation which can be downloaded or viewed live on our website at investors.hrblock.com. Our call is being broadcast and webcast live and a replay of the webcast will be available for 90 days. Before we begin, I would like to remind listeners that comments made by management may include forward looking statements within the meaning of federal securities laws. These statements involve material risks and uncertainties, and actual results could differ from those projected in any forward looking due to numerous factors. For a description of these risks and uncertainties, please see H&R Block's annual report on Form 10-K and quarterly reports on Form 10-Q as updated periodically with our other SEC filings. Please note some metrics we will discuss today are presented on a non GAAP basis. We have reconciled the comparable GAAP and non GAAP figures in the appendix of our presentation. Finally, the content of this call contains time sensitive information accurate only as of today 08/11/2026. H&R Block undertakes no obligation to revise or otherwise update any statements to reflect events or circumstances after the date of this call. I will now turn it over to Curtis. Curtis A. Campbell: Good afternoon, everyone, and thank you for joining us. Fiscal 26 was a meaningful year for H and R Block. We delivered strong results, made significant progress against our strategic priorities and continued to strengthen the quality of the business. Revenue increased 4.9%, EBITDA increased 8.3% and adjusted EPS increased 13.9%. The growth we delivered this year was meaningfully stronger than what was achieved in recent years. We also generated strong cash flow, and returned $714 million to shareholders through dividends and share repurchases. What matters most is what drove those results. We converted more clients to completion, We retain more clients. We continue to improve the quality of our client base, and we made meaningful progress against the initiatives that matter most to the long term durability of the business. Taken together, fiscal 2026 strengthened our belief that the strategy is working and that H&R Block is on the right path. The results we delivered this year and the evidence behind them give us greater confidence that we can further accelerate long term shareholder value. Over the past several quarters, we have shared elements of the long term strategy we are executing across H&R Block. Fiscal 26 marked our first full year executing that strategy, And over the coming quarters, you will hear more about where we are headed, and the opportunities we have in front of us. We look back on the year, what stands out most is the evidence that our expert led technology enabled strategy is showing up in stronger client outcomes and stronger business performance. 1 of the clearest proof points we saw this year was in the assisted category. After 2 consecutive years of improving trends, we maintained share in the assisted category in 2026. That matters because it demonstrates that the actions we are taking to bolster the client experience are helping strengthen our competitive position in our largest business. We also saw clear evidence that clients are responding to the changes we made to improve the experience. Conversion improved 200 basis points this season, which we believe is the largest single year improvement in our recorded history. That improvement was a result of deliberate refinements across the customer journey supported by automation and product enhancements that help create a more personalized experience with fewer friction points. We saw the same pattern in retention. The rate at which clients return this season increased 190 basis points. And second look continues to be a strong proof point. New clients who received second look returned at a rate more than 600 basis points higher than those that did not. that is because second look delivers something clients value deeply. Expertise beyond current tax year preparation, confidence that H&R Block is working on their behalf to find every dollar they deserve, and a relationship with a trusted tax pro who has their interest in mind, not only in tax season, but throughout the year. We also continue to see evidence that technologies enhancing rather than replacing the expertise that differentiates H and R Block. This season, we expanded the use of AI and automation across the business to help tax pros focus more of their time on delivering advice, judgment, and client support. Sidekick, our AI tax pro assistant, launched across our offices and saw strong adoption throughout the season. While AI Tax Assist for Pay DIY filers, supported 4.2 million client interactions and drove nearly 2x the level of engagement we saw a year ago. We also automated and significantly expanded second look. Allowing us to bring those benefits to more clients while helping tax pros focus on the returns with the greatest opportunity. Together, these advances reinforce an important aspect of our strategy, using technology to scale expertise, and deliver better outcomes for clients. Taken together, these results reinforce our confidence that our strategy is working. We are seeing stronger client outcomes. Improving business quality, and growing evidence that are expert led technology enabled strategy is translating into better performance. That combination is strengthening the durability of the business today while creating a stronger foundation for future growth. A major part of our strategy is continuing to win with more complex, higher lifetime value clients. We are not focused on growth for the sake of volume alone. We are focused on attracting and retaining the type of clients that strengthen both the durability and economics of our business. We continue to see that shift in fiscal 26. More complex clients engaged with H&R Block at higher rates, and our client mix continues to move towards the segment we have been intentionally focused on. Over the last few years, the percent of clients falling within our target household AGI range of $50 thousand to $200 thousand has increased from 38% of our clients to 50%. Today, we are serving a higher percentage of clients with investment income small business and sole proprietor needs, and increasingly diverse income streams. that is important because it shows we are not only targeting these relationships, we are succeeding in attracting them. Research tells us that clients with more complex financial lives value assistance, expertise, and trusted advice. This is exactly where H&R Block stands apart. Our brand, tax expertise, omnichannel model, and growing technology capabilities allows us to serve these clients in ways that are increasingly relevant to their needs. We will continue to lean into these consumer groups rather than pursue lower lifetime value transaction oriented clients because volume alone does not create durable economic value. As a result, we will continue to improve the quality of the business. These relationships create more opportunities to serve clients over time, support stronger retention, improving the long-term economics of our client base. Our omnichannel model is becoming an even greater competitive advantage because it is built around a simple idea. Clients do not all need the same level of assistance. And their needs change over time. Some clients want to prepare their return entirely on their own. Others want occasional guidance through tools like AI tax assist. Some want the assurance and accountability that comes from tax pro review, and others prefer more guided support from a tax pro via virtual, in office experiences. Our advantage is that we can meet clients where they are and provide the level of assistance they need when they need it. As their needs evolve, we are there every step of the way for them. We believe that flexibility is becoming increasingly important as technology changes how clients engage. Technology can simplify tasks and make assistance more accessible while human expertise provides the judgment, advice, and confidence that technology alone cannot We are not building separate digital and expert led experiences. We are strengthening an integrated omnichannel model that operates at scale. Where technology and human expertise work together to deliver the right level of assistance the way each client prefers. that is an important distinction. We are not trying to bulk technology onto a fragmented service model or bolt experts onto a digital model. We are building on a foundation that allows clients to live across DIY, virtual, and in person experiences while receiving the level of assistance that is right for them. We believe our ability to combine expertise and technology across the different needs clients have becoming an increasingly important differentiator and expanding our opportunity for long term growth. We saw additional evidence of this throughout the season. Clients engaged with technology enabled assistance at scale through AI Tax Assist. At the same time, Sidekick helped tax pros navigate complex tax questions more efficiently while client experience monitors allow clients to explore products and services independently. Contributing to a 550-basis point increase in product attachment. These are practical examples of our omnichannel model in action. Using technology to make assistance more accessible for clients while allowing our tax pros to focus on the expertise, judgment, and advice that matter most. The progress we have discussed so far has strengthened our confidence in our strategy and helped us identify where to move faster. The greatest change happening at H&R Block is not any single initiative. it is a different way of operating. Back in May, I shared that we ran more than 150 experiments during the season. Exponentially more than in prior years. As we continue executing our strategy, we are experimenting more. We are learning faster and using those learnings to make better decisions about where to scale. That matters because it increases the velocity at which we can improve the client experience. Strengthen execution, and focus resources behind the ideas that are showing the greatest potential. This is an important part of building a more durable growth engine and accelerating progress against our strategy. We are not guessing at what could happen. We are testing in real world conditions learning from the results, and scaling what works. That approach gives us greater confidence in the choices we are making, allows us to move faster when evidence supports it, and helps us advance our long term strategy with greater discipline. Just as importantly, we are still in the early stages of what this approach can unlock. The progress we saw this year has increased our confidence that there are meaningful opportunities ahead, and we expect the pace of learning experimentation, and innovation to continue accelerating. I would like to share 2 examples that show how this operating model is translating learning into meaningful progress. The first example is the work that we are doing to test the more consultative expert led, technology enabled client experience. In 5 pilot offices this past tax season, we delivered a client experience that felt less transactional and more advisory focused on strengthening the client relationship and creating incremental value both during and beyond the annual tax filing event. In these pilot offices, we saw higher client satisfaction. Stronger beliefs in our expertise and value, and increased engagement beyond tax season. These were not data points alone. We heard it directly from clients. 1 client told us, I did not know taxes could be this easy. Another said, this guidance will really make a difference for my business. Those comments matter because they reinforce a broader belief we have at H&R Block. As technology reduces the effort required to prepare a return, the value of expertise judgment, and trusted advice increases. They also reinforce our belief that clients value a trusted relationship that extends beyond the tax return itself. We can deliver this experience because behind the scenes, technology is handling more of the administrative work allowing our tax pros to spend less time collecting and entering information and more time providing guidance, planning, and advice. Based on what we learned last tax season, we are expanding this model to a full designated market area for tax season 2027. This will allow us to further test and refine the operating model, technology, talent, and workflows needed to deliver this experience consistently and at scale. To enable this experience, we are transforming how work gets done inside our offices, by automating away the mechanical aspects of tax prep. From using AI to eliminate manual data entry, to automating the initial review of prior year returns, we are creating more capacity for tax pros to focus on delivering a personalized, trusted assistance clients value most. The second example of how we are transforming is the evolution of our field leadership model. 1 of our clearest learnings was the critical role year round leadership plays in developing associates, reinforcing service standards, delivering a more consistent client experience. These learnings gave us confidence to move faster on changes that will support future phases of our strategy. As part of that effort, we are making an enterprise transition from a seasonal office leadership model to a year round office leadership model supported by area experienced leaders who manage a small number of offices focused on developing talent, coaching associates, driving greater consistency throughout the field. We believe in delivering more consistent and consultative client experiences across full-time leaders who are present not just during tax season, but throughout the year. These leaders will also help deepen our presence in local communities, helping us compete more effectively against independent providers. We are also streamlining supporting functions to better enable our field teams, increase consistency of execution, and accelerate our ability to scale what is working across the organization. These 2 examples although different in detail, reflect the same principle When testing gives us strong evidence, we act on it. That discipline allows us to accelerate progress against our strategy, reduce execution risk, and build a faster moving organization capable of compounding progress over time. Looking back at the year, what gives us confidence is not simply the results we achieved, but the evidence behind them. We are delivering stronger client outcomes, attracting higher lifetime value clients, building a more differentiated competitive position and seeing increasing proof that our strategy is working. Just as importantly, we are becoming a faster learning organization. Our ability to test, learn, adapt, and scale what works continues to improve. Giving us greater confidence where we invest where we accelerate, and how we create value. We are still early in the journey, but we believe H&R Block is better positioned today than it has been in many years. We have a clear strategy. compelling opportunities ahead, and significant runway to further strengthen the business deepen client relationships, and create long term shareholder value. And with that, I will turn the call over to Tiffany. Tiffany L. Mason: Thank you, Curtis, and good afternoon, everyone. In fiscal 2026, we delivered our strongest financial performance of the past 5 years. Revenue and EBITDA growth as well as margin expansion all accelerated. Which reflects a year of successful execution and progress against our strategy. For the fiscal year, we delivered revenue of $3.95 billion an increase of 4.9% over the prior year. This increase was primarily driven by higher net average charge or NAC and company owned volume in US assisted tax preparation. Growth in international revenue, and another year of small business momentum at Wave. As Curtis shared, we strengthened the quality of our business and, as a result, maintained share in our largest category. This was supported by higher conversion, better retention, and a mixed shift towards more complex clients who value confidence and expert judgment. We also continue to benefit from our ability to make low single-digit pricing adjustments. While offering a strong value proposition to our clients. In the assistant category overall, we were pleased by our progress this year toward a healthier balance of volume, price, and mix. Which remains a key element of our strategy. Wave, an important component of our small business strategy, had another very productive year. This marked Wave's second consecutive year of double digit revenue growth driven by our paid Pro-Tier subscriptions and higher payments volume. Taken together, we believe these top line results reflect a healthy and improving business. Total operating expenses for the fiscal year were $3.04 billion, an increase of 3.6% over the prior year. This increase was primarily due to higher tax professional wages, as a result of the better company owned return volumes and an increase in occupancy costs and technology related expenses. Fiscal 26 EBITDA was $1.06 billion, an increase of 8.3% over the prior year resulting in 80 basis points of EBITDA margin expansion. Our effective tax rate for the fiscal year was 14% compared to 22% in the prior year. As a reminder, during the third quarter, we recognized an $84.1 million 1-time noncash tax benefit related to the resolution of an IRS examination, which reduced income tax expense and provided a $0.65 benefit to earnings per share. Net income from continuing operations was $736 million and earnings per share from continuing operations $5.69. Adjusted net income was $688 million. Adjusted earnings per share were $5.31, an increase of 13.9% over the prior year. This increase was driven by fewer shares outstanding as a result of share repurchases, and higher adjusted net income. Turning to our capital structure and disciplined capital allocation practices. Our liquidity position remains strong, supported by the significant and stable free cash flow generation of our business. This year, we generated $756 million of free cash flow. Representing a meaningful increase year over year and reflecting the strength of our operating model and the quality of our earnings. This cash flow provided flexibility to execute against our capital allocation priorities. During the year, we repurchased and retired approximately 10.5 million shares representing 7.9% of shares outstanding at an aggregate cost of $500 million In fiscal 26, we returned a total of $714 million to shareholders in the form of dividends and share repurchases. We remain committed to investing in the business growing the dividend, and returning excess capital to shareholders through share repurchases. We believe this disciplined approach to capital allocation continues to drive meaningful long term shareholder value. Now turning to our fiscal 27 outlook. I will begin with the key assumptions underlying our expectations for the year. We expect industry growth to moderate relative to the historical norm of approximately 1%. While unemployment rates remain stable, job growth has slowed. Historically, industry growth has correlated with job growth. So our outlook reflects that backdrop. Despite this softer industry backdrop, the meaningful progress we delivered in fiscal 26 and the continued progress against our strategy gives us confidence in our market position heading into 2027. We remain focused on achieving a healthier balance of volume, price, and mix supported by ongoing enhancements to the client experience, and serving clients with increasingly complex needs. At the low end of our revenue outlook, we assume we will maintain a assisted category market share while at the high end, we assume assisted category market share growth. We will also continue to acquire franchise locations when opportunities arise at attractive EBITDA multiples. And we expect growth in small business services as we continue to enhance how we bring together our expert advice, product suite, and digital capabilities to comprehensively serve small business owners. With regard to expenses, our outlook assumes continued discipline in managing our cost structure. At the same time, we expect to increase our level of investment in fiscal 27 to support our strategic priorities. As Curtis discussed, we are scaling initiatives that have demonstrated promising results through testing. And accelerating efforts where evidence has strengthened our confidence in the opportunity ahead. These investments support the next phase of our strategy, and include efforts such as the expansion of our consultative client experience and technologies that enable greater automation of tax preparation and related workflows. Our continued focus on disciplined cost management allows us to make these investments and still maintain our long term financial algorithm. As a result of these and other assumptions, our outlook for fiscal 2027 is revenue in the range of $4.11 to $4.16 billion adjusted EBITDA in the range of $1.11 to $1.14 billion, an effective tax rate of approximately 23%, and adjusted diluted earnings per share in the range of $6.14 to $6.24. 1 additional expense item to note as you review the outlook we provided today in our earnings release. The transition that Curtis discussed from a seasonal office leadership model to a year round model, and the streamlining of support functions, all to better enable our field teams has resulted in an approximately $8.3 million severance charge in the first quarter of fiscal 27. This amount has been excluded from our outlook. Durable cash flows remain 1 of the defining strengths of our business. And we expect fiscal 27 to be another strong year of free cash flow generation We will continue to use this cash flow to invest in the business, grow the dividend, and return excess capital to shareholders through share repurchases. Consistent with that commitment, today, the board approved a 10% increase in our quarterly dividend to $0.46 per share. We are proud that H&R Block has paid quarterly dividends consecutively since becoming public in 1.96 thousand. Additionally, our fiscal 27 outlook contemplates approximately $400 million of share repurchases. With a plan to execute throughout the entire year subject to market conditions. We have approximately $600 million remaining under our current $1.5 billion share repurchase authorization. Taken together, these inputs underpin our fiscal 27 outlook and reinforce our focus on disciplined execution of our strategy. We entered the new fiscal year with momentum, confidence in our strategy, and a compelling financial profile that enables us to invest in strategic priorities grow profitability, and continue to deliver value to shareholders. With that, I will turn it back over to Curtis for closing remarks. Curtis A. Campbell: Thank you, Tiffany. Results this year reflect the progress we have made executing our strategy. We exceeded financial expectations, further elevated the client experience, and continued to strengthen the durability of our business. The evidence we saw throughout the year from stronger conversion and retention to continued improvement in the quality of our client base reinforces our confidence that the strategy is working and that H&R Block is well positioned for the future. We have an exciting year ahead, and I look forward to sharing our Q1 results in November and providing a deeper look at our strategy, execution priorities and longer term value creation framework at our Investor Day in December. Thank you for your time and your support. And with that, operator, we will open the line for questions. Operator: Thank you. As a reminder, to ask a question, you will need to press 1, 1 on your telephone. To remove yourself from the queue, you may press 1, 1 again. Our first question comes from the line of Scott Schneeberger of Oppenheimer and Company. Please go ahead, Scott. Scott Schneeberger: Thanks very much, and congratulations. Really good looking tax year. Curtis, could we talk about obviously, conversion, retention, complexity, very good for you. Can we talk about where those can go? I mean, mentioned conversion of record. What is the opportunity in front of you? I guess we will hear more at investor Day in these categories, but you had a nice year. The kind of guide that we are looking at this year, which is similar to what you delivered financially. This year just ended on what you have coming up, can that persist at that level or farther on these drivers? Thanks. Curtis A. Campbell: Thank you for the question. Hope to see you in December. I know that we have talked in the past about our Blocknext strategy. that is important to us. We talked quite a bit in the prepared remarks. About our transition from a transactional experience that we deliver to a consultative experience that we deliver. To give everybody that is listening a little bit of history. I think this is important as we think about the H&R Block journey. When you think about the journey, it is important for us to think about as a company what business are we actually in? And H&R Block has been around for 70 years doing tax preparation. If you dig underneath that and spend enough time with our clients, Scott, and folks, really quickly discover that what clients are looking for is trust and confidence. that is the key currency in the space that we operate in. As a part of that, we stepped back as an organization and we define what we would then call our ideal state. So what is the future look like for H and R Block? We are this level of trust and confidence for every customer that engages with us. And that future is different than what it has been historically for H and R Block. As a part of that, we identify what that would look like And then we sat down as an organization and we identified what the critical assumptions would be that would be required for us to deliver against that. And that allowed us to create a strategic roadmap that takes us from today to tomorrow. That strategic road map, as we will talk about in Investor Day, cuts across multiple phases. 1 of the early phases of that journey is us focused on transforming the work that our tax pros do. So you heard me talk a lot about in the last earnings call and in the prepared remarks about transforming the work that our tax pros do and shifting that from transactional tax preparation, consists of data collection and data entry to more consultative engagement. And that is really in our sweet spot when you think about the fact that we have been around for 70 years We do almost 20 million tax returns a year. there is really no other player in the US that has the access to the data that we do, that is got the footprint that we do, that is got the relationship in all the communities across America. So phase 1 is that tech is that technical transformation. The other thing that I talked about in the prepared remarks was the transformation of our field leadership. In order for us to deliver this consultative experience, we need to make sure that we have the system support system around our tax pros to enable that. So we are shifting from having seasonal field leadership to having full time field leadership. And by doing that, we have more hands on the ground, more focus in every office we can ensure that our tax pros are delivering the experience that we want. So all those things give us confidence this is just the beginning of the journey. So we are really excited about the fact that we saw record results this year. But once again, this is the first phase in this transformation for H and R Block, really focused on delivering that trust and confidence that is important to our clients. Hope to see you this summer. Scott Schneeberger: Appreciate that, Curtis. Yeah. For my follow-up, up, I am curious. The big beautiful bill can you speak now that we are in the look-back period? What type of impact did that have on this past year? And tax season? And what do you anticipate in year 2 of in 2027? Curtis A. Campbell: Yeah. it is a great question. And once again, everybody listening, I will just share some data points here. When you look at the tax law changes from last tax season, really 3 major things resulted in from those changes. Number 1, increase in the number of taxpayers receiving a refund. That went up by 6%. that is a really big number in our industry. If you also take a look at the average refund amount, that also went up almost 12%. that is a really big number as well. And then if you combine that with the fact that the bal-dues, so the balance due to the IRS decreased, That gave taxpayers more confidence that they could do tax on their own. Typically, when we see that in the tax industry, DIY gets a little bit of a tailwind. What I will just remind everybody of is if you look at the assisted space, that represents over 55% of the market. And it has for many years. So at H&R Block, we remain incredibly confident in assisted and we believe that is going to continue to maintain and strengthen the industry both this year and moving forward. Scott Schneeberger: Great. Thanks. I will turn it over. Operator: Thank you. Thank you. Our next question comes from the line of George Tong of Goldman Sachs. Please go ahead, George. George: Hi. Thanks. Good afternoon. You mentioned your goal of maintaining mark share for assisted at the low end of the guide and out at the midpoint and at the higher end of the guide. Can you share your thoughts on how you expect to perform in the DIY category? For the upcoming tax season? Curtis A. Campbell: Yeah. Hey, George Tong. Nice to see you. And, hopefully, everything is going well in the West Coast. A couple of things that I do want to emphasize to answer your question. Not all DIY market share is created equal. And at H&R Block, our focus is on attracting and retaining more complex clients with higher lifetime value rather than pursuing transactional volume. A couple additional data points around that. When you look at our DIY mix between paid and free that improved 140 basis points. We also delivered DIY growth in AGI bands of $100 thousand or more which is important. All these things connect back to our focus on more complex filers. Now when you take a look at that and you also take a look at the things that are very unique to H and R Block, With our focus on our omnichannel engagement model, also saw a favorable migration from clients from DIY into assisted as their need for more assistance evolved. That reflects the strength of our omnichannel model. Now, I will also share that DIY remains an important entry point within that model We do not manage the business to optimize for DIY volume in isolation. And I think if you were to also step back and look at the DIY industry, in the DIY space, at its very low end,. Customers often focus on the lowest price or free offerings. And these customers are typically the most transient with the lowest retention and the lowest lifetime value who often move to a new provider the moment a lower price shows up. So when you think about our focus as we emphasized on my prepared remarks, it is on the clients who value assistance, trust, and guidance. Those are the clients for us that have the longest and strongest lifetime value. George: Got it. that is very helpful. And you mentioned the need to increase investments in the upcoming year as you position the business to be less transactional, more advisory. Can you talk about the specific buckets where you intend to spend and invest and perhaps quantify how much is going into each of those buckets. For example, compensation, platform, technology, etcetera. Tiffany L. Mason: Hey, George Tong. Thanks for the question. So just to give you a few examples, and some of these were woven throughout Curtis's and in my prepared remarks. We talked about our consultative client experience and some of the testing that we did in tax season 2026. And those proof of concept offices and our ability to roll those to a DMA in tax season 2027. So that is 1 area of investment. that is primarily an investment in labor and training. So that is part of what we are looking to invest in fiscal 27. We are also investing in technology. That technology allows us to do more automation of tax preparation as well as related workflows. So that is entirely a technology investment. Then the last example I would give you is around our small business strategy. And we have been hard at work integrating our Wave platform into our broader small business initiative and working to make sure that we have a unified small business strategy that supports our small business customers. We know that is a great growth opportunity for us. And so that is, again, investment in technology and making sure that we have that unified approach. I am not going to quantify each of those buckets of investment. I know something you are looking for, but that is something that we will spend more time talking about over the next quarters. Thanks for the question, though. And I think, obviously, we are very proud of the fact that we can maintain our long term algorithm and, at the same time, make the investments. I think a testament to the work that we are doing internally to drive cost out in other parts of the business and still be able to invest where we need to accelerate our strategy. George: Got it. Thanks very much. Thanks, George Tong. Operator: Thank you. Our next question comes from the line of Thomas Wendler of Stephens Inc. Please go ahead, Thomas. Thomas: Hey, good afternoon, everyone. Great quarter. Happy to see it. Just wanted to kick things off with a question on second look. It has higher retention. You maybe give us a little bit of color on the utilization of second look during this quarter? Curtis A. Campbell: Thomas, welcome. We are happy to have you. I hope I see you in December. Great question. So let me give you a little bit of background on second look. Second Look has been around for many years. But, historically, we have struggled because second look was very, very manual. It required tax pros to do quite a bit of work. And because it required tax pros to do a lot of work, tax pros were not very eager to offer second look to new clients. Now for everybody listening, let me just explain once again what Second Look is. So Second Look is a service that we offer at H&R Block. it is unique. To new clients. And for new clients, we can take a look at their last 3 years of tax returns. To look for any untapped missed opportunities. And when we find those untapped missed opportunities, our retention rate for those clients goes up significantly. For those clients, it feels like sound money. that is a great service for new clients moving in. Over the last 18 months, we spent quite a bit of time automating second look, leveraging some of the newer AI capabilities that we have access to now. So instead of having, you know, a small population of our new assisted clients opt into Second Look, we have a much higher percentage of people opting in with the goal of every 1 of our assisted clients that are new getting second look. We are not quite there yet, but we are getting fairly close without me sharing the specific numbers. Does that help, Thomas? Thomas: Yep. Does that help? Happy to address it. Okay. I appreciate the color there. And then for my second question here, could you maybe just speak to the success you saw on the international front this quarter? Tiffany L. Mason: It looks a little bit better than expectations. Thomas, I would be happy to do that. I will tell you, keep in mind that the tax seasons for Canada and Australia are different. So Australia's tax season runs July through October. Canada's tax season looks more akin to the US, not exactly the same, but more akin to the US. So keep in mind there is different tax seasons. Canada had a good tax season. Though, you know, not as strong as would have liked just given some of the changes in regulation with the CRA. So I would say most of the benefit that we saw in fiscal 2026 actually was a benefit from favorable FX rates. Though the Canadian tax season was good. Relative to our expectation, not great, and Australia had a very nice tax season, very nice end to their tax season overall, but that was earlier in the year. So a little bit of color there on international performance. Thomas: Perfect. Thank you for all the color. And, yeah, looking forward to seeing everyone during the Investor Day. Thanks, Thomas. Thanks for having me. See you there. Operator: Thank you. Kartik Mehta: Our next question comes from the line of Kartik Mehta of Northcoast Research. Hey. Good evening. Curtis, maybe if you could provide some thoughts on pricing as we go into next season. I think you said you wanted a little bit more balance on obviously, the price and volume. Metrics. So I am wondering if you think you would be able to achieve the same level of price, or do you think that mix will be a little bit different? Tiffany L. Mason: Hey, Kartik. Great to hear from you. So let me start by just saying we were really pleased with our price volume and mix performance in fiscal 2026. I said that in my prepared remarks, maybe just to give you a little bit more color. If I think about the assisted, channel for just a minute, Volume in the assisted channel was up 2%. NAC was up 4.1% in fiscal 26. And NAC, you will know you will remember, is a mix of price and mix. Price was up about 3%, and mix was up 1%. So when we think about price volume and mix for assisted, it was that nice healthy balance. that is what we have been striving to with our team for the last couple of years, and we struck that nice balance. that is a concerted effort of ours, and we continue to strike that balance and have that plan going forward. We continue to have pricing power in the, in the industry. We continue to plan for low single digit price increases as we think about fiscal 27, and that is what certainly baked into and inherent in our guidance that we gave today for this next upcoming year. Curtis A. Campbell: Kartik. And then, Curtis, just a follow-up. You talked about maybe 150-plus tests. As you look into next fiscal year, how many of those tests do you think you will actually implement? How many do you think you will repeat? And I am assuming there will be new ones as well. Yep. Thank you, Kartik, and go Browns as you get prepared for the NFL season. Thank you. Yes, sir. When you think about our velocity of tests, as I mentioned to you, quite a bit, it was fairly low before I joined H and R Block. And 1 of our biggest currencies is business leaders. is learnings. And what helps us is we have got a clear vision of what the future looks like. We have got a very clear vision of what we think the ideal state client experience looks like. And earlier on the call, described these critical assumptions. These are the big, big questions that we have to answer as an organization to be able to deliver that ideal state client experience. that is going to focus us on running as many or more experiments in the next fiscal year. And just like I shared in my prepared remarks, not every experiment we run is gonna prove to be successful. every experiment we run will 100% deliver learnings. And we leverage those learnings to refine and improve experiences. I will give you 1 example. So this past tax season, we ran in 5 pilot offices, across the network an experience that was much different than our typical experience at H&R Block. I talked quite a bit about the importance of a shifting from transactional experiences to consultative experiences. And in those 5 offices, the focus of the engagement with clients was purely around a relational consultative experience. And we leverage improvements in workflow and capabilities and technology to remove the manual effort from our tax folks. So think about the data entry and data collection and then leverage other technology insights and data that allows our tax pros to show up as experts and the guide for clients and provide guidance and advice. I visited most of these offices, Kartik. I will tell you, you know, a lot of folks that are typically fairly well off they spend thousands of dollars every year with CPAs. And they spent thousands of dollars with CPAs with the hope of getting some level of trusted advice, consultation, and guidance on what the future looks like. And once again, at H&R Block, we do not think that should reside just with wealthy people. As you think about our future, especially when it comes to our ideal state, we are looking to democratize those experiences and make them available to Main Street America. And the amount of positive feedback that we got at those 5 offices was just it was incredible. That gave us confidence to scale from those 5 offices into a full DMA for 2027. Now when we scale into a full DMA, Kartik, I expect for us to get more learning because what we are trying to learn there is what it is going to take for us to do with that broader scale with the goal of this eventually becoming how we do, what we do at H&R Block, and how we deliver the experience to every customer that engages with us. So I expect the rate of experimentation, not to slow down. it is probably gonna increase moving forward. But all of it is in service to our ideal state. And block next. Kartik Mehta: Okay. Thank you so much. Appreciate it. Yes, sir. Operator: Thank you. Alexander Paris: Our next question comes from the line of Alexander Paris of Barrington Research. Hi, guys. Thanks for taking my questions, and I will add my congratulations to a nice finish to the fiscal year. Thanks, Alexander. I have a couple of questions about the underlying assumptions for fiscal 27 guidance. And I appreciate all the color that you give in the press release and on the prepared comments. But it looks like at the midpoint, if I did my math right, revenue of about 4.8% growth EBITDA, 6.4%, and adjusted EPS, 15.6%. Can you remind us all and me specifically the long term growth algorithm has there been any change to the long term growth algorithm over the last few years? Tiffany L. Mason: Sure, Alexander. I would be happy to So you are you are in the ballpark in terms of the midpoint of our outlook. The long term growth algorithm suggests that revenue can grow 3% to 6%. That EBITDA will grow at 1.5x the rate of revenue growth, and that EPS will grow double digit. That long term algorithm is predicated on an industry that is low growth. So operating in that low growth industry. Upside from strategic programs that allow us to grow higher into the range that 3% to 6% revenue range, that we can continue to take low single-digit pricing and that we can continue to get about 1% from franchise acquisitions. So as you think about our guide for this fiscal year, and even what we were able to accomplish, frankly, in fiscal 26, Obviously, you know, we are we are seeing the low the impact of an industry that is slow growing, and we are seeing the fruits from our strategic initiatives start to pay dividends. I answered in 1 of the earlier questions around opportunities for margin expansion. We are balancing taking cost out of our cost base, and doing the hard work of making that a reality, while at the same time investing in strategic initiatives that help us further our road map relative to Blocknext, the strategy that we are deploying. And, you know, we are just at the beginning innings of that, but we are making good progress. So the fact that we were able to deliver 80 basis points of margin expansion in fiscal 26 and that we are guiding to an additional, at the midpoint, call it, 50 basis points of margin expansion in fiscal 2027 is I think, those are really good examples of us being on our way to delivering that algorithm over the next few years. So, hopefully, that helps, but happy to provide any additional color should you need it. Alexander Paris: No. that is great. And then going back to the assumptions, you said industry growth to moderate from the typical 1% growth rate. Do you still expect growth in the industry in fiscal 27? Given the dynamics of the employment market? Tiffany L. Mason: Yes. We do. And so maybe just to maybe just to double click on that for a minute. So, yes, we still expect growth in the industry. Moderate is the operative word for sure. And the reason we say moderate is simply because unemployment rates are stable. You know, the unemployment rate, most recent news headline is 4.1% for the current calendar year. But job growth has slowed, and we have seen, you know, non farm payroll slow. Last year, the prediction is it will slow again this year. And so if you think about that, obviously, we have a base level of filing volume because it seems the unemployment rate is stable, folks are working, they are they are filing their taxes. But if jobs growth is slowing, then the growth in the industry, growth of new filings, is where the lack of growth is stemming from. So we just expect moderation. We do not expect a decline or stagnation, and that is what underpins our outlook. So we start with that, and then we build on top of that expectation for industry growth what think we can achieve with our own execution obviously, we had great execution last year, we think that continues as we get deeper into our strategy. And start to achieve some of the things that Curtis talked about in his prepared remarks today. Alexander Paris: that is great. And I am not looking at my spreadsheet, but what about what are your expectations about the breakdown in industry growth between assisted and DIY? Same as it usually is, a little slower on assisted, a little faster on DIY, and then what would be your expectation at H&R Block for your own assisted versus DIY? Tiffany L. Mason: Yeah. it is a it is a great question. I think of circle back to Curtis's earlier comment, and that is that we believe assisted is going to continue to maintain its strength as the leading category within the tax prep industry. Fair enough. Alexander Paris: And then lastly, an opportunistic franchise acquisitions, which is 1 of the assumptions. You there was an outlay of about $58 million for those acquisitions in fiscal 26, and that was up from $36 million. $58 million versus $36 million. Do you expect a similar level of franchise acquisition activity in fiscal 27? Tiffany L. Mason: Yeah. So as you know, that is a that is core part of our long term algorithm. In fiscal 26, we did 160 franchise buybacks That compares to about 124 franchise buybacks in the previous year. Those are opportunistic. We do those when we have franchisees who do not have a generational succession plan. So they ebb and flow as those opportunities arise. We will do somewhere probably in the range of 100 or so, 100 to 1 and 25. But again, opportunistically, and that is certainly embedded in our guide that we that we provided today. Alexander Paris: Great. Think I have 1 more question, but I am I am forgetting it right now. I will just get it on our follow-up conversation. Thank you very much for taking my questions. I appreciate the additional color. Okay. Thanks, Alexander. Operator: Thank you. Our next question comes from the line of Scott Schneeberger of Oppenheimer and Company. Your line is open, Scott. Scott Schneeberger: Thanks very much. Just 1 follow-up. Curtis, I think it is a good time Could you please speak earlier in this year, we had an issue with an AI trade that went against the tax preparation companies. Could you please outline why this should not be impacting H and R Block? And some of what you are doing internally but also, just some of why it is it is an overdone, an overdone viewpoint. Thank you. Curtis A. Campbell: Yeah. Happy to definitely spend some time on that. I will give you H&R Block's perspective. Believe that we are uniquely positioned to win an AI driven tax industry. And our belief is that we can seamlessly blend AI capabilities with our 70 years of human expertise and accountability in ways that frankly, others cannot. We believe that we proved that in our 5 office tests. We will expand that as we move into a DMA. And I hope everybody listening knows this, but I will just emphasize this. When you think about tax preparation, tax preparation is incredibly high stakes. Most Americans, this is their biggest paycheck of the year. So if you were to talk to most Americans and ask them, like, what are the 3 things that you would want nothing to do with? My guess would be those 3 answers would be, number 1, going to the dentist. I had to do that the other week. And getting a cavity drilled out. that is not fun. If you live in California or Texas, going to the DMV is never fun, folks. And the last thing is getting audited by the IRS. Nobody wants those things. So when you think about the stakes, they are super, super high. And when stakes are super high, especially with more complex clients, and once again, we are focused on more complex clients, They are typically seeking confidence, judgment, accountability. And in those cases, AI alone, they cannot fulfill the task because the risk is too high. So AI alone is not sufficient. Now I know that we mentioned this a couple of times. I will just reiterate this. When you look historically at the industry that we operate in, 55% or more of taxpayers continue to seek assistance and not because tax preparation is a calculation. it is because the stakes are high. it is because they are seeking judgment, confidence, and trust. As we think about AI, we think about AI at H&R Block as being a tailwind. It enables us to deliver more of that trust and confidence. As I look back on the work that we have done in this first phase of our Blocknext strategy, a lot of it was focused on automating the manual tax preparation task. So think about data collection and data entry. For us, that is step 1. We have to automate that. For tax pros to spend enough time to focus on a consultative engagement. As we think about the future, it is our belief that H&R Block is structurally advantaged, especially in the environment that we exist in today. Again, we go back to the 70 years that we built on trust, judgment, and accountability. And we lean into the fact that at H&R Block, we use AI to amplify expertise, not replace it. that is our position around AI. We have proved that we could leverage it multiple times during this tax season. it is going to be a core part of what we do. We are not leveraging to replace people. We are using it to amplify trust and confidence through our people. Is that helpful? Scott Schneeberger: that is great. Thanks, Curtis. Appreciate it. Operator: Thank you. Good question. I would now like to turn the conference back to Jessica Hazel for closing remarks. Madam? Jessica Hazel: Thank you, everyone, for joining us today. We appreciate your support, and we look forward to reconnecting with you again soon. Operator: This concludes today's conference call. Thank you for participating. You may now disconnect. Before you buy stock in H&R Block, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and H&R Block wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. H&R Block (HRB) Q4 2026 Earnings Call Transcript was originally published by The Motley Fool