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    H&R Block (HRB) Is Up 5.4% After Raising FY26 Guidance - Has The Bull Case Changed?

    Simply Wall St·12/18/2025 07:17:04
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    • Earlier this week, H&R Block reported quarterly results that beat revenue expectations by 1.5%, delivered a strong EBITDA outperformance, and raised its full-year fiscal 2026 guidance.
    • Management also highlighted that this was the largest guidance increase among its peers, underscoring growing confidence in the company’s operating momentum and near-term outlook.
    • We’ll now examine how H&R Block’s stronger-than-expected start to fiscal 2026 could influence the existing investment narrative and future expectations.

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    H&R Block Investment Narrative Recap

    To own H&R Block, you need to believe its mix of assisted and digital tax services, plus small business offerings, can offset market share pressure and competitive threats. The latest revenue and EBITDA beat, alongside the raised fiscal 2026 guidance, supports the near term catalyst of improved operating momentum, but does not remove the key risk that digital first rivals and potential government backed free filing options could still weigh on long term growth.

    Among recent announcements, the reaffirmed and then increased fiscal 2026 guidance stands out as most relevant here, since it ties directly to expectations for EBITDA growth outpacing revenue. This updated outlook, coming after a quarter of higher than expected revenue and profitability, strengthens the case that cost control and efficiency efforts are contributing to earnings resilience, which matters for investors watching how H&R Block balances competition, a slow growing industry and its sizeable physical footprint.

    Yet behind the upgraded guidance, investors still need to consider the risk that government sponsored free filing could shrink H&R Block’s addressable market and...

    Read the full narrative on H&R Block (it's free!)

    H&R Block's narrative projects $4.1 billion revenue and $653.0 million earnings by 2028.

    Uncover how H&R Block's forecasts yield a $55.00 fair value, a 25% upside to its current price.

    Exploring Other Perspectives

    HRB 1-Year Stock Price Chart
    HRB 1-Year Stock Price Chart

    Eight members of the Simply Wall St Community now value H&R Block between US$37 and about US$75.70, underscoring how widely opinions can differ. Set against this spread, ongoing competition from digital first, lower cost tax solutions remains a central issue that could influence how sustainably the company converts today’s strong guidance into tomorrow’s operating performance, so it is worth exploring several of these viewpoints in detail.

    Explore 8 other fair value estimates on H&R Block - why the stock might be worth as much as 72% more than the current price!

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.