H&R Block combines stabilized assisted-market share, AI-enabled operating leverage, exceptional buybacks, and a 7.6x forward P/E into an undervalued defensive cash-return story.
Overview
H&R Block is a tax-preparation, financial-services, and small-business software company serving a mandatory U.S. compliance market expected to produce approximately 164 million individual returns in the 2026 season. Its dual-channel model combines roughly 9,000 company-owned and franchised offices with DIY software, while Wave, Spruce, Emerald, and Refund Transfer products broaden monetization. **The FY2026 third-quarter result validated a potential inflection point:** revenue rose 5.3% year over year to $2.398 billion, EBITDA increased 5.9% to $1.072 billion, and adjusted diluted EPS rose 11.9% to $6.02, beating the $5.75 consensus estimate. Management raised FY2026 revenue guidance to $3.910 billion–$3.920 billion and adjusted EPS guidance to $5.10–$5.20, while the effective tax-rate outlook fell to approximately 14.0% after resolution of an IRS examination. Assisted market share has stabilized after years of pressure, and AI tools support conversion and productivity. At $39.23 on July 10, 2026, HRB trades at approximately 7.6x forward P/E and 5.9x EV/EBITDA, with a durable 4.2% dividend yield and substantial buybacks. Near-term catalysts include the August 11 fiscal year-end release, continued NAC growth, franchise acquisitions, and execution of the AI strategy.