H&R Block (HRB) Stock Forecast & Price Target

H&R Block Inc has demonstrated an encouraging financial performance, as operating income increased by 5.8% to $371.3 million, surpassing estimates. Additionally, the company reported a revenue growth of 4.6%, reaching $1.111 billion in the fourth quarter, which also exceeded both internal estimates and consensus expectations from FactSet. These positive metrics underscore H&R Block's robust position in the tax preparation industry, driven largely by strong revenues from its U.S. operations.

H&R Block Inc. is experiencing a negative outlook due primarily to an anticipated decrease in adjusted EPS, projected between $4.85 and $5.00 for FY/26, which falls short of the FactSet consensus estimate of $5.15. This shortfall is attributed to a higher-than-expected tax rate of approximately 25%, escalating from 22% in FY/25, which is expected to directly impact EPS by approximately $0.19. Additionally, the company's current price reflects a decline of 3% year-to-date, and it trades at a discount to its five-year average EV/EBITDA, further suggestive of underlying challenges in achieving growth and profitability.