Why H&R Block Stock Jumped This Week

Shares of H&R Block (HRB +1.09%) rose more than 16% this past week after the tax preparation leader boosted its cash payments to investors.

Image source: Getty Images.

Gobbling up its own shares

H&R Block’s revenue rose 4.9% year over year to $3.95 billion in its fiscal year ended June 30. The financial services purveyor’s adjusted net income from continuing operations, in turn, climbed 6.9% to $688 million.

“Research tells us that clients with more complex financial lives value assistance, expertise, and trusted advice,” CEO Curtis Campbell said during a conference call with analysts. “This is exactly where H&R Block stands apart.”

Today’s Change

(1.09%) $0.58

Current Price

$53.92

Key Data Points

Market Cap

$6.8BMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.

Day’s Range

$52.60 – $54.45

52wk Range

$28.16 – $58.67

Volume

3.3M

Avg Vol

2.4M

Gross Margin

57.47%

Dividend Yield

3.15%

Yet it’s H&R Block’s per-share profit metrics that perhaps best highlight the benefits of its excellent cash generation capabilities.

The tax and small-business solutions provider used its strong free cash flow to repurchase nearly 8% of its outstanding shares at an average price of $47.48 per share in fiscal 2026. Going back to 2016, H&R Block has bought back a whopping 48% of its shares.

All told, the company’s adjusted earnings per share from continuing operations jumped 13.9% to $5.31.

Investors can expect steadily growing cash payouts

Looking ahead to fiscal 2027, management guided for revenue of more than $4.1 billion and adjusted earnings per share of $6.04 to $6.24.

This healthy profitability enabled H&R Block to raise its quarterly dividend by 10% to $0.46 per share, marking its ninth straight annual increase. The income-paying stalwart has not missed a quarterly dividend payment since it became a public company way back in 1962.

“Entering fiscal 2027, we are well positioned to build on this momentum and continue delivering meaningful long-term value,” chief financial officer Tiffany Mason said.