H&R Block Closed Its Year With a Beat, a 10% Dividend Raise, and Guidance for More

H&R Block, the tax-preparation company, closed its fiscal year on August 11 with a fourth quarter that beat on both lines: earnings per share of $2.38 against the $2.21 estimate on our tape, and revenue of $1.15 billion versus $1.12 billion expected. The stock rose 4.27% in the fifteen minutes after the release. Because the June-ending fourth quarter contains the tail of US tax season, it is the quarter that decides H&R Block's year — and this one sealed a strong one.

The full-year numbers show a business squeezing meaningfully more profit out of modest growth. Revenue rose 4.9% to $3.945 billion, but GAAP earnings per share from continuing operations jumped 28.7% to $5.69 — net income of $736.3 million, up 20.8% — helped by the share count shrinking underneath: the company repurchased 10.5 million shares during the year at an average price of $47.48. Adjusted EPS, which strips one-time items, rose a more modest but still healthy 13.9% to $5.31.

The capital-return record is the quiet story for long-term holders. The 10% dividend increase to $0.46 per share is the ninth consecutive annual raise from a company that has paid quarterly dividends without interruption since 1962. Between dividends and buybacks, $713.7 million went back to shareholders in fiscal 2026, and $600 million remains on the current $1.5 billion repurchase authorization.

Guidance carries the growth story into the new year: fiscal 2027 revenue of $4.11 billion to $4.16 billion, adjusted EBITDA of $1.11 billion to $1.14 billion, and adjusted EPS of $6.04 to $6.24 — double-digit percentage earnings growth on top of the year just closed, at an expected tax rate of about 23%. For a business often described as mature, management is guiding to an acceleration, not a plateau.