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H&R Block Gears Up to Report Q4 Earnings: What's in the Cards?

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Key Takeaways

  • H&R Block is set to report fiscal Q4 results on Aug. 11, with revenues estimated to rise 0.6% y/y to $1.12B.
  • Assisted tax preparation revenues expected to rise 2.3% y/y, supported by expert-led, tech-enabled services.
  • H&R Block's EPS is estimated to fall 1.8% y/y to $2.23 amid higher AI investments and operational expenses.

H&R Block, Inc. (HRB - Free Report) is set to report its fourth-quarter fiscal 2026 results on Aug. 11, after the closing bell.

The company has an impressive earnings surprise history. HRB’s earnings surpassed the Zacks Consensus Estimate in three of the last four reported quarters and missed once, delivering an average surprise of 1.8%.

H&R Block, Inc. Price, Consensus and EPS Surprise

H&R Block, Inc. Price, Consensus and EPS Surprise

H&R Block, Inc. price-consensus-eps-surprise-chart | H&R Block, Inc. Quote

Shares of HRB have had a decent run over the past month. The stock has risen 17.4% compared with the industry’s 10.1% gain and the Zacks S&P 500 composite’s 2.8% growth.

Q4 Expectations From HRB

The Zacks Consensus Estimate for revenues is pinned at $1.12 billion, suggesting a 0.6% rise from fourth-quarter fiscal 2025 actuals.

Multiple factors such as strong client retention, increased investments in artificial intelligence (AI) and robust assisted tax preparation demand are collectively expected to have boosted the company’s top line in the June-end quarter of fiscal 2026.

The Zacks Consensus Estimate for revenues from U.S. assisted tax preparation is pegged at $702 million, suggesting a 2.3% year-over-year increase. The consensus estimate for Service revenues is pegged at $1.08 billion, indicating a 3.8% year-over-year rise. High demand for expert-led, technology-enabled tax preparation and operational improvements is likely to have driven the expected growth.

HRB’s consistent expansion of its AI capabilities is likely to have positively impacted the top line. The recent expansion of HRB’s AI assistants designed for tax professionals, such as SideKick and AI Tax Assist, is anticipated to have boosted client engagements. The usage of AI to automate the company’s Second Look program, which helps tax professionals review prior-year returns more efficiently, is expected to have improved customer retention.

The Zacks Consensus Estimate for earnings in the to-be-reported quarter is pegged at $2.23 per share, indicating a 1.8% year-over-year decline. We expect increasing investments in AI and rising operational expenses to have impacted the bottom line in the quarter.

What Our Model Says About HRB

Our proven model does not conclusively predict an earnings beat for H&R Block this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

H&R Block has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are a few stocks, which, according to our model, have the right combination of elements to beat on earnings this season.

Analog Devices, Inc. (ADI - Free Report) has an Earnings ESP of +2.37% and a Zacks Rank of 2. The company is scheduled to report its third-quarter fiscal 2026 results on Aug. 19.

The Zacks Consensus Estimate for ADI’s third-quarter fiscal 2026 revenues is pegged at $3.92 billion, indicating year-over-year growth of 36.3%. For earnings, the consensus mark is pegged at $3.33 per share, implying a 62.4% increase from the year-ago quarter’s actual. ADI beat the consensus estimate in each of the trailing four quarters, with the average earnings surprise being 5.5%.

Coherent Corp. (COHR - Free Report) has an Earnings ESP of +2.65% and a Zacks Rank of 3. The company is scheduled to announce its fourth-quarter fiscal 2026 results on Aug. 12.

The Zacks Consensus Estimate for COHR’s fourth-quarter fiscal 2026 revenues is pegged at $1.99 billion, indicating 30.1% year-over-year growth. The consensus estimate for earnings is pegged at $1.62 per share, implying a year-over-year increase of 62%. COHR beat the consensus estimate in each of the trailing four quarters, delivering an average earnings surprise of 6.2%.

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