H&R Block generated $838.7 million of operating cash flow in fiscal 2026, up approximately 23% from $680.9 million a year earlier, giving the tax preparation company substantial capacity to return capital to shareholders while continuing to invest in its technology-enabled strategy.
The company returned $713.7 million to shareholders through dividends and share repurchases during the fiscal year. H&R Block repurchased and retired approximately 10.5 million shares, representing 7.9% of shares outstanding, for an aggregate $500.3 million, or an average price of $47.48 per share.
H&R Block still has approximately $600 million remaining under its $1.5 billion share repurchase authorization. The company has pursued an aggressive long-term capital return strategy, returning more than $5.2 billion through dividends and repurchases since 2016 while buying back more than 48% of its shares outstanding over that period.
The board also increased H&R Block’s quarterly dividend by 10% to $0.46 per share, marking the ninth consecutive annual dividend increase. H&R Block has paid quarterly dividends continuously since becoming a public company in 1962.
The capital returns were supported by stronger operating results. Fiscal 2026 revenue increased 4.9% to $3.95 billion from $3.76 billion. Growth was driven primarily by higher net average charges and company-owned volume in U.S. assisted tax preparation, increased international revenue, and growth in Wave subscriptions and payments volume.
U.S. assisted tax preparation revenue increased to approximately $2.56 billion from $2.41 billion, while total U.S. tax preparation and related services revenue increased to $3.46 billion from $3.30 billion. International revenue increased to $265.4 million from $247 million, and Wave revenue rose to $122.7 million from $109.2 million.
Net income from continuing operations increased 20.8% to $736.3 million, while diluted EPS from continuing operations increased 28.7% to $5.69. The reported results included an $84.1 million one-time non-cash tax benefit related to the resolution of an IRS examination, which contributed $0.65 to fiscal 2026 EPS.
Adjusted net income increased 6.9% to approximately $688 million, while adjusted diluted EPS increased 13.9% to $5.31. H&R Block said the stronger per-share growth reflected both higher adjusted net income and a lower share count resulting from repurchases.
EBITDA from continuing operations increased to approximately $1.057 billion from $976.3 million. H&R Block ended June with approximately $958.7 million of cash and cash equivalents.
For fiscal 2027, the company expects revenue of $4.11 billion to $4.16 billion, Adjusted EBITDA of $1.11 billion to $1.14 billion and adjusted diluted EPS of $6.04 to $6.24.
KEY QUOTES:
“Fiscal 2026 provided meaningful evidence that the strategic choices we are making are strengthening H&R Block. The results we delivered reflect continued progress in the quality of our business, improvements in the mix of our client base, and evidence that our testing and experimentation are accelerating our ability to learn, adapt, and scale what works.”
“Together, they reinforce the value of our expert-led, technology-enabled strategy and give us confidence in the opportunities ahead.”
Curtis Campbell, President And Chief Executive Officer Of H&R Block
“Fiscal 2026 was a year of meaningful progress for H&R Block. Strong execution drove accelerating revenue growth, margin expansion, and higher operating cash flow generation, while reinforcing our ability to strengthen client outcomes and deliver disciplined returns to shareholders.”
Tiffany Mason, Chief Financial Officer Of H&R Block
