H & R Block Inc

XMUN:HRB

Strong year: H&R Block said fiscal 2026 was its strongest financial performance in five years, with revenue up 4.9%, EBITDA up 8.3%, and adjusted EPS up 13.9%.

Client gains: Management highlighted record conversion improvement of 200 basis points and retention improvement of 190 basis points, saying the business is gaining higher-quality, more complex clients.

AI and automation: The company said AI is helping tax pros spend more time on advice and less on manual work, with Sidekick seeing strong adoption and AI Tax Assist handling 4.2 million client interactions.

2027 outlook: Guidance calls for revenue of $4.11 billion to $4.16 billion, adjusted EBITDA of $1.11 billion to $1.14 billion, and adjusted EPS of $6.04 to $6.24, with higher investment planned in the year ahead.

Capital returns: H&R Block generated $756 million of free cash flow in fiscal 2026, returned $714 million to shareholders, raised the quarterly dividend 10% to $0.46, and plans about $400 million of buybacks in fiscal 2027.

Strategy focus: Management said it is shifting from transactional tax prep toward a more consultative model, with more experiments, more year-round leadership, and a broader rollout of tested client experience changes.