Update shared on05 Sep 2025
Despite Q4 results falling short of expectations and mixed FY26 guidance, analysts highlight H&R Block's attractive valuation, higher 3.3% dividend yield, and ongoing share buybacks as supportive of shareholder returns, leaving the consensus price target unchanged at $55.00.
Analyst Commentary
- Q4 results were generally below expectations.
- Initial guidance for FY26 was mixed.
- Current stock valuation remains attractive.
- Increased dividend yield to 3.3%.
- Aggressive share repurchase program supports shareholder returns.
What's in the News
- H&R Block increased its quarterly dividend by 12% to $0.42 per share, marking eight consecutive annual increases.
- The company expects fiscal year 2026 revenue in the range of $3.875 billion to $3.895 billion.
- No shares were repurchased from April 1, 2025 to June 30, 2025, with the company having completed a prior buyback of 6,549,000 shares for $399.89 million.
- CEO Jeffrey J. Jones II announced plans to retire effective December 31, 2025, with Curtis A. Campbell, current President and Chief Product Officer, named as his successor.
Valuation Changes
Summary of Valuation Changes for H&R Block
- The Consensus Analyst Price Target remained effectively unchanged, at $55.00.
- The Discount Rate for H&R Block remained effectively unchanged, at 7.65%.
- The Future P/E for H&R Block remained effectively unchanged, at 13.13x.
Disclaimer
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