H&R Block Q1 2027: International Growth Lifts a Seasonally Weak Quarter

H&R Block's fiscal first quarter is structurally unprofitable (almost no one files taxes in September), so the September period is judged almost entirely on how close the company gets to estimates. This time it came in better than expected on both lines, posting an adjusted loss of $1.40 per share against a consensus estimate of $1.445, while revenue of $224.34 million beat the $212.28 million estimate.

The standout contributor was international, where revenue rose to $74.81 million from $66.49 million in the year-ago period. Growth also showed up in tax protection and identity services and in small business services, giving the beat a reasonably broad base.

On the cost side, total operating expenses grew 11.1%, running modestly ahead of the 10.2% revenue gain. Part of that was an $8.0 million severance charge tied to a seasonal office leadership transition, though that item was excluded from the adjusted EPS figure. The GAAP diluted loss from continuing operations was $1.53 per share, wider than the adjusted number.

The company kept its full-year guidance unchanged, projecting revenue of $4.11 to $4.16 billion and adjusted diluted EPS of $6.04 to $6.24. Management also declared a quarterly cash dividend of $0.46 per share, payable January 6, 2027, to shareholders of record as of December 3, 2026.

This result marks four consecutive quarters beating EPS expectations, a streak that includes the prior Q1 (fiscal 2026), when H&R Block reported an adjusted loss of $1.20 against an estimate of $1.35. The next event investors are likely to focus on is an Investor Day scheduled for December in New York City, where management will address its longer-term strategy.