H&R Block Stock Declines 7.1% Since Reporting Fiscal Q2 Loss

H&R Block Inc.'s HRB second-quarter fiscal 2026 earnings and revenues beat the Zacks Consensus Estimate. 

The stock has declined 7.1% since the release of results on Feb. 3, reflecting its loss and weak earnings guidance for fiscal 2026.

HRB guided adjusted earnings in the range of $4.85-$5.00 per share for fiscal 2026, the midpoint of which ($4.92 per share) is lower than the current Zacks Consensus Estimate of $4.94.

The company reported second-quarter loss of $1.84 per share, which was 6.1% narrower than the consensus estimate but 6.4% wider year over year. Revenues of $198.9 million beat the consensus mark by 6.8% and increased 11.1% from the year-ago quarter.

HRB’s Quarterly Numbers

Revenues from U.S. tax preparation and related services were $111.8 million, up 13.8% year over year. Revenues from Financial services totaled $22.6 million, marking a marginal year-over-year rise. International revenues of $34.7 million rose 9.1%. Wave revenues registered a jump of 12.1% to $29.8 million.

Key Balance Sheet & Cash Flow Figures

H&R Block exited the quarter with cash and cash equivalents of $349.2 million. Long-term debt was $2.5 billion, compared with $1.7 billion at the end of the first quarter of fiscal 2026. The company used $614 million of cash in operating activities, while capital expenditures were $35.6 million.

Fiscal 2026 Guidance

Revenues are expected to be between $3.875 billion and $3.895 billion. The midpoint ($3.885 billion) of the guided range is slightly above the consensus earnings estimate of $3.88 billion, signaling no earnings improvement and static demand.

The company guided EBITDA between $1.015 billion and $1.035 billion and an effective tax rate of 43% for fiscal 2026. HRB currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Earnings Snapshots

Trane Technologies TT reported impressive fourth-quarter 2025 results.TT’s quarterly earnings of $2.86 per share beat the Zacks Consensus Estimate by 1.4% and increased 9.6% from the year-ago quarter.

TT’s total revenues of $5.1 billion surpassed the consensus estimate by 1.3% and increased 5.5% from the year-ago quarter.

Booz Allen Hamilton BAH registered mixed results for the third-quarter fiscal 2026. BAH’s earnings per share of $1.77 beat the consensus mark by 40.5% and increased 14.2% from the year-ago quarter.

BAH’s revenues of $2.6 billion missed the Zacks Consensus Estimate by 3.9% and declined 10.2% from the year-ago quarter.

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This article originally published on Zacks Investment Research (zacks.com).

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