It has been about a month since the last earnings report for H&R Block (HRB). Shares have added about 3.3% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is H&R Block due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for H&R Block, Inc. before we dive into how investors and analysts have reacted as of late.
H&R Block Reports Q3 Earnings Beat
H&R Block reported impressive third-quarter fiscal 2026 results, with both earnings and revenues beating the Zacks Consensus Estimate.
HRB’s adjusted earnings of $6.02 per share beat the Zacks Consensus Estimate by 5.8% and increased 11.9% year over year. Revenues of $2.4 billion topped the Zacks Consensus Estimate by 2.5% and rose 5.3% year over year.
HRB’s Quarterly Numbers
Revenues from U.S. tax preparation and related services were $2.2 billion, up 5.1% year over year. Revenues from Financial services totaled $54.8 million, marking a marginal year-over-year rise. International revenues of $70 million rose 16%, while Wave revenues jumped 11.8% to $29.9 million.
Key Balance Sheet & Cash Flow Figures
H&R Block exited the quarter with cash and cash equivalents of $867 million. Long-term debt was $1.5 billion compared with $2.4 billion at the end of the second quarter of fiscal 2026. The company generated $1.5 billion of cash in operating activities, while capital expenditures totaled $18.4 million.
HRB’s FY26 Outlook
HRB guided adjusted earnings in the range of $5.10-$5.20 per share for fiscal 2026. Revenues are expected to be between $3.910 billion and $3.920 billion.
The company guided EBITDA between $1.025 billion and $1.035 billion and an effective tax rate of 14%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -6.43% due to these changes.
VGM Scores
Currently, H&R Block has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, H&R Block has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
H&R Block belongs to the Zacks Consumer Services - Miscellaneous industry. Another stock from the same industry, Cimpress (CMPR), has gained 5.4% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Cimpress reported revenues of $886.21 million in the last reported quarter, representing a year-over-year change of +12.3%. EPS of $0.55 for the same period compares with -$0.33 a year ago.
Cimpress is expected to post earnings of $1.00 per share for the current quarter, representing a year-over-year change of +198%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.5%.
Cimpress has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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H&R Block, Inc. (HRB): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).