Highlights

  • Fiscal 2026 revenue was $3.95 billion, an increase of $184.4 million, or 4.9%, with net income from continuing operations of $736.3 million.
  • Diluted EPS from continuing operations was $5.69, compared with $4.42, and adjusted diluted EPS, a non-GAAP measure, was $5.31.
  • Cash provided by operating activities was $838.7 million, and the company repurchased 10.5 million shares and declared dividends of $1.68 per share.
  • Management's fiscal 2027 outlook is revenue of $4.11 billion to $4.16 billion and adjusted diluted EPS of $6.14 to $6.24.

H&R Block, Inc. (NYSE: HRB) shares were trading at USD 47.85 on October 27, 2026, down 4.41%, with a relative volume at time of 2.09. The tax preparation company issued $350.0 million of 5.375% senior notes in August 2025, closed fiscal 2026 on June 30, 2026, and filed its annual report on Form 10-K on August 14, 2026, followed by fiscal 2027 outlook figures from management.

H&R Block was organized in 1955 under Missouri law and is headquartered at One H&R Block Way in Kansas City, Missouri. It provides assisted and do-it-yourself tax preparation through company-owned and franchise offices, online and mobile applications, along with financial products and small business solutions through Block Advisors and Wave. It operates primarily in the United States, Canada and Australia and reports a single segment. Its fiscal year ends June 30, and it had approximately 4,600 regular full-time associates as of June 30, 2026.

Fiscal 2026 Results

H&R Block reported revenue of $3.95 billion for the fiscal year ended June 30, 2026, up $184.4 million, or 4.9%, which it attributed largely to increases in U.S. company-owned net average charge and tax return volume. U.S. assisted tax preparation revenues increased $147.7 million, or 6.1%. U.S. royalties revenue decreased $7.4 million, or 3.9%, due to lower franchise tax return volumes.

Operating expenses increased $104.7 million, or 3.6%, due to higher compensation and benefits, occupancy and technology costs. Income tax expense was $117.6 million, compared with $172.0 million, and the effective tax rate was 13.8%, compared with 22.0%. The company said the decrease was primarily attributable to the settlement of an IRS examination of its 2020 U.S. federal income tax return and related carryback claims, which resulted in a discrete income tax benefit of $84.1 million.

Net income from continuing operations was $736.3 million, an increase of 20.8% from $609,450 thousand. Diluted EPS from continuing operations was $5.69, compared with $4.42. Adjusted net income from continuing operations, a non-GAAP measure, was $687,956 thousand, and adjusted diluted EPS from continuing operations was $5.31, compared with $4.66. EBITDA from continuing operations, also non-GAAP, was $1.06 billion.

Cash Flow, Capital and Litigation

Cash provided by operating activities was $838.7 million, compared with $680.9 million. Dividends paid were $211.0 million. The company repurchased $500.3 million of common stock at an average price of $47.48 per share, and $600.0 million remained under its $1.5 billion repurchase authorization.

Cash and cash equivalents, excluding restricted amounts, were $958.7 million at June 30, 2026. The company had no balance outstanding under its $1.5 billion credit facility, and said it was in compliance with its covenants.

H&R Block disclosed that it has received and is responding to governmental inquiries, class actions and mass arbitrations relating to the IRS Free File Program and other aspects of its DIY tax preparation services, including the use of pixels. Total accrued liabilities for litigation and related contingencies were $18.4 million at June 30, 2026, compared with $6.2 million a year earlier. The company said there can be no assurance as to the outcomes and that adverse outcomes could have a material adverse impact.

Fiscal 2027 Outlook

On its fiscal fourth quarter call, management said its fiscal 2027 outlook is revenue of $4.11 billion to $4.16 billion, adjusted EBITDA of $1.11 billion to $1.14 billion, an effective tax rate of approximately 23% and adjusted diluted EPS of $6.14 to $6.24. The outlook contemplates approximately $400 million of share repurchases. Management said the board approved a 10% increase in the quarterly dividend to $0.46 per share, and that an approximately $8.3 million severance charge in the first quarter of fiscal 2027 is excluded from the outlook.