We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
H&R Block Stock Declines 3.5% Since Reporting Fiscal Q1 Loss
Read MoreHide Full Article
Key Takeaways
HRB's adjusted Q1 loss of $1.20 per share beat estimates and improved y//y.
Revenues grew 5% to $203.6 million, topping the consensus estimate by 2.1%.
Fiscal 2026 revenue is expected to be between $3.875 billion and $3.895 billion.
H&R Block, Inc. (HRB - Free Report) reported an adjusted loss (adjusting for 6 cents from non-recurring items) of $1.20 per share in the first quarter of fiscal 2026 compared with the Zacks Consensus Estimate of a loss of $1.40 per share and a year-ago loss of $1.17 per share. Total revenues of $203.6 million beat the Zacks Consensus Estimate by 2.1% and increased 5.03% year over year.
Bottom-line weakness in the quarter and weak fiscal 2026 guidance caused the company’s shares to decline 3.5% since the release of results on Nov. 6.
HRB expects fiscal 2026 adjusted earnings per share (EPS) in the range of $4.85-$5.00. The mid-point ($4.925) of the guided range is below the Zacks Consensus Estimate of $4.94.
Revenues from U.S. tax preparation and related services were $100.19 million, up 6.9% year over year. Revenues from Financial services totaled $7.85 million, marking a year-over-year decline of 11.04%. International revenues of $65.7 million increased 1.2%. Wave revenues registered a jump of 13% to $29.85 million.
H&R Block exited the quarter with cash and cash equivalents of $376.4 million. Long-term debt was $1.73 billion, compared with $1.14 billion at the June-end quarter of fiscal 2025. The company used $356.8 million of cash in operating activities, while capex was $13.19 million.
HRB’s FY26 Outlook
For fiscal 2026, H&R Block expects revenues in the band of $3.875-$3.895 billion. The mid-point of the guided range ($3.885 billion) is just above the Zacks Consensus Estimate of $3.88 billion.
HRB expects EBITDA between $1.015 million and $1.035 billion. The effective tax rate is expected to be approximately 25%.
Omnicom Group Inc. (OMC - Free Report) reported impressive third-quarter 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate.
Earnings of $2.15 per share beat the consensus estimate by 4.2% and increased 10.3% year over year. Total revenues of $4.04 billion surpassed the consensus estimate by 0.4% and rose 4% year over year. The increase in the top line was led by a 2.6% jump in revenues from organic growth.
ManpowerGroup, Inc. (MAN - Free Report) posted impressive third-quarter 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate.
Quarterly adjusted EPS came in at 83 cents, which beat the Zacks Consensus Estimate by 1.2% but decreased 35.7% year over year. Total revenues of $4.63 billion surpassed the consensus estimate by 0.6% and rose 2.3% year over year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
H&R Block Stock Declines 3.5% Since Reporting Fiscal Q1 Loss
Key Takeaways
H&R Block, Inc. (HRB - Free Report) reported an adjusted loss (adjusting for 6 cents from non-recurring items) of $1.20 per share in the first quarter of fiscal 2026 compared with the Zacks Consensus Estimate of a loss of $1.40 per share and a year-ago loss of $1.17 per share. Total revenues of $203.6 million beat the Zacks Consensus Estimate by 2.1% and increased 5.03% year over year.
Bottom-line weakness in the quarter and weak fiscal 2026 guidance caused the company’s shares to decline 3.5% since the release of results on Nov. 6.
HRB expects fiscal 2026 adjusted earnings per share (EPS) in the range of $4.85-$5.00. The mid-point ($4.925) of the guided range is below the Zacks Consensus Estimate of $4.94.
H&R Block, Inc. Price, Consensus and EPS Surprise
H&R Block, Inc. price-consensus-eps-surprise-chart | H&R Block, Inc. Quote
HRB’s Quarterly Numbers
Revenues from U.S. tax preparation and related services were $100.19 million, up 6.9% year over year. Revenues from Financial services totaled $7.85 million, marking a year-over-year decline of 11.04%. International revenues of $65.7 million increased 1.2%. Wave revenues registered a jump of 13% to $29.85 million.
H&R Block exited the quarter with cash and cash equivalents of $376.4 million. Long-term debt was $1.73 billion, compared with $1.14 billion at the June-end quarter of fiscal 2025. The company used $356.8 million of cash in operating activities, while capex was $13.19 million.
HRB’s FY26 Outlook
For fiscal 2026, H&R Block expects revenues in the band of $3.875-$3.895 billion. The mid-point of the guided range ($3.885 billion) is just above the Zacks Consensus Estimate of $3.88 billion.
HRB expects EBITDA between $1.015 million and $1.035 billion. The effective tax rate is expected to be approximately 25%.
H&R Block currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Omnicom Group Inc. (OMC - Free Report) reported impressive third-quarter 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate.
Earnings of $2.15 per share beat the consensus estimate by 4.2% and increased 10.3% year over year. Total revenues of $4.04 billion surpassed the consensus estimate by 0.4% and rose 4% year over year. The increase in the top line was led by a 2.6% jump in revenues from organic growth.
ManpowerGroup, Inc. (MAN - Free Report) posted impressive third-quarter 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate.
Quarterly adjusted EPS came in at 83 cents, which beat the Zacks Consensus Estimate by 1.2% but decreased 35.7% year over year. Total revenues of $4.63 billion surpassed the consensus estimate by 0.6% and rose 2.3% year over year.