Key Highlights

● Fiscal 2026 revenue rose 4.9 per cent year over year to $3,945.4 million.

● Net income from continuing operations rose 20.8 per cent to $736.3 million.

● Adjusted diluted earnings per share, excluding a one-time IRS benefit, rose 13.9 per cent.

● The board raised the quarterly dividend 10 per cent to $0.46 per share.

H&R Block (NYSE:HRB) provides tax preparation services, software and related financial products, mainly in the United States but also in Canada and Australia. Its largest segment is U.S. tax preparation and related services, which generated $3,457.8 million of fiscal 2026 revenue, of which assisted tax preparation contributed $2,560.9 million. Smaller segments are financial services, an international business and Wave, a small-business software and payments unit. The company's fiscal year ends on 30 June and earnings are heavily concentrated in the third and fourth quarters, which cover the tax filing season. For readers comparing it with the S&P MidCap 400, used here as a benchmark rather than a claim of membership, that concentration means the fourth quarter and full-year numbers carry most of the information. Wave and the international business are comparatively small but growing: international revenue reached $265.4 million and Wave $122.7 million for the year.

Fiscal 2026 results

H&R Block reported fiscal 2026 results on 11 August 2026. Full-year revenue was $3,945.4 million, up 4.9% from $3,761.0 million. Net income from continuing operations rose 20.8% to $736.3 million, and diluted earnings per share from continuing operations were $5.69, against $4.42. The result included a one-time $84.1 million benefit, or $0.65 per share, from an Internal Revenue Service examination in the third quarter; adjusted diluted earnings per share, which exclude such items, were $5.31 against $4.66, an increase of 13.9%. In the fourth quarter, revenue was $1,144.9 million, up 3.0%, while net income from continuing operations eased to $294.5 million from $300.4 million. The company said net average charge and company-owned volume rose in assisted preparation, but it did not publish detailed client counts in the release. Total operating expenses rose 3.6% to $3,037.7 million, slower than revenue, which helped margins.

Outlook, dividend and capital returns

For fiscal 2027, management guided to revenue of $4.11 billion to $4.16 billion, adjusted EBITDA of $1.11 billion to $1.14 billion and adjusted diluted earnings per share of $6.04 to $6.24, with an effective tax rate of about 23%. Those are projections. The quarterly dividend was raised 10% to $0.46 per share, payable on 6 October 2026 to holders of record on 3 September 2026, the ninth consecutive annual increase. During fiscal 2026 the company repurchased and retired about 10.5 million shares, 7.9% of those outstanding, for $500.3 million, leaving roughly $600 million of its $1.5 billion programme, and returned $713.7 million in total. At 30 June 2026 it held $958.7 million of cash against long-term debt of $1,491.5 million. Interest expense on borrowings was $80.6 million for the year, and capital expenditure was $82.6 million. Net of cash, borrowings were roughly $533 million (derived here, not reported), against EBITDA from continuing operations of $1,056.9 million.

Buybacks Are Doing Real Work on the Per-Share Numbers

H&R Block's full-year results benefited from an $84.1 million one-time IRS examination benefit, so the 13.9 per cent rise in adjusted diluted earnings per share, which excludes that item, is the more durable gauge of the year's performance. Share repurchases retired about 10.5 million shares, nearly 8 per cent of those outstanding, cutting the diluted count to 128.9 million from 137.3 million, and with earnings still concentrated almost entirely in the tax-filing season, fiscal 2027 guidance of $6.04-$6.24 adjusted earnings per share rests on that seasonal pattern holding.