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Reasons Why Investors Can Consider Buying H&R Block Stock Now
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Key Takeaways
HRB sees revenue growth from higher assisted tax preparation volumes and rising net average charge.
HRB's DIY platform and AI Tax Assist enhance user experience and attract more tax filers.
HRB boosts shareholder value with dividends and buybacks and maintains a strong liquidity position.
H&R Block, Inc. (HRB - Free Report) is benefiting from revenue growth driven by assisted tax preparation due to an increase in net average charge (NAC), coupled with higher company-owned tax return volumes. HRB’s Do It Yourself (DIY) software drives top-line growth by aiding the preparation of federal and state income tax returns, providing advice and tax-related news, offering access to tax tips, using calculators for tax planning, and performing error checking and electronic filing. Its unique Second Look offering, which reviews a new client’s past three years of tax returns to identify any missed refund opportunities, is boosting customer relationships.
HRB’s incorporation of AI Tax Assist, a generative AI-powered technology, into DIY tax preparation improves the customer experience by assisting clients who prepare a paid DIY online return without extra charges. Collaboration with OpenAI, an AI research organization, in April 2025, further improved AI Tax Assist and attracted more clients.
H&R Block consistently generates shareholder value through dividends and share buybacks. The company paid dividends of $177.9 million, $179.8 million and $197.3 million, while repurchasing shares worth $569 million, $379.6 million and $437.1 million in fiscal years 2023, 2024 and 2025, respectively.
HRB’s current ratio (a measure of liquidity) at the end of the second quarter of fiscal 2026 was 1.29, higher than the industry’s 1.05. A current ratio of more than 1 often indicates that a company will easily pay off its short-term obligations.
Other Factors That Make HRB an Attractive Pick
Solid Rank: HRB currently carries a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or #2 offer attractive investment opportunities for investors. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Over the past 60 days, two estimates for fiscal 2026 have moved northward, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for fiscal 2026 earnings has increased 1% during this period.
Positive Earnings Surprise History: HRB has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in three of the last four quarters and matched once, delivering an earnings surprise of 1.6% on average.
Strong Growth Prospects: The Zacks Consensus Estimate for H&R Block’s third-quarter fiscal 2026 revenues is pegged at $2.34 billion, indicating a 2.7% increase from the year-ago quarter. For fiscal 2026, the consensus estimate is $3.89 billion, indicating a 3.4% year-over-year rise.
The consensus estimate for third-quarter earnings is pegged at $5.69 per share, indicating 5.8% year-over-year growth. For the full year, the consensus mark is pegged at $4.98 per share, implying 6.9% growth from the prior year.
View the Zacks #1 Rank List
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Reasons Why Investors Can Consider Buying H&R Block Stock Now
Key Takeaways
H&R Block, Inc. (HRB - Free Report) is benefiting from revenue growth driven by assisted tax preparation due to an increase in net average charge (NAC), coupled with higher company-owned tax return volumes. HRB’s Do It Yourself (DIY) software drives top-line growth by aiding the preparation of federal and state income tax returns, providing advice and tax-related news, offering access to tax tips, using calculators for tax planning, and performing error checking and electronic filing. Its unique Second Look offering, which reviews a new client’s past three years of tax returns to identify any missed refund opportunities, is boosting customer relationships.
H&R Block, Inc. Revenue (TTM)
H&R Block, Inc. revenue-ttm | H&R Block, Inc. Quote
HRB’s incorporation of AI Tax Assist, a generative AI-powered technology, into DIY tax preparation improves the customer experience by assisting clients who prepare a paid DIY online return without extra charges. Collaboration with OpenAI, an AI research organization, in April 2025, further improved AI Tax Assist and attracted more clients.
H&R Block consistently generates shareholder value through dividends and share buybacks. The company paid dividends of $177.9 million, $179.8 million and $197.3 million, while repurchasing shares worth $569 million, $379.6 million and $437.1 million in fiscal years 2023, 2024 and 2025, respectively.
HRB’s current ratio (a measure of liquidity) at the end of the second quarter of fiscal 2026 was 1.29, higher than the industry’s 1.05. A current ratio of more than 1 often indicates that a company will easily pay off its short-term obligations.
Other Factors That Make HRB an Attractive Pick
Solid Rank: HRB currently carries a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or #2 offer attractive investment opportunities for investors. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Over the past 60 days, two estimates for fiscal 2026 have moved northward, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for fiscal 2026 earnings has increased 1% during this period.
Positive Earnings Surprise History: HRB has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in three of the last four quarters and matched once, delivering an earnings surprise of 1.6% on average.
Strong Growth Prospects: The Zacks Consensus Estimate for H&R Block’s third-quarter fiscal 2026 revenues is pegged at $2.34 billion, indicating a 2.7% increase from the year-ago quarter. For fiscal 2026, the consensus estimate is $3.89 billion, indicating a 3.4% year-over-year rise.
The consensus estimate for third-quarter earnings is pegged at $5.69 per share, indicating 5.8% year-over-year growth. For the full year, the consensus mark is pegged at $4.98 per share, implying 6.9% growth from the prior year.
Other Stocks to Consider
Some other top-ranked stocks are Deluxe (DLX - Free Report) and Coherent Corp. (COHR - Free Report) .
Deluxe carries a Zacks Rank #2 at present. It has a long-term earnings growth expectation of 12%.
DLX delivered a trailing four-quarter earnings surprise of 15.6%, on average.
Coherent Corp. also holds a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 38.1%.
COHR beat earnings estimates in each of the last four quarters, with the earnings surprise being 7.7%, on average.