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    Will Higher H-1B Visa Fees Force a Shift in H&R Block's (HRB) Workforce Strategy?

    Simply Wall St·09/21/2025 17:15:19
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    • On September 21, 2025, President Donald Trump enacted an executive order introducing an annual US$100,000 fee for each H-1B visa application or renewal, significantly raising costs for companies that depend on skilled foreign workers.
    • This sweeping immigration change is driving some firms to contemplate relocating operations overseas and is expected to reshape hiring strategies for major players in technology, finance, and related sectors.
    • We’ll examine how these heightened H-1B visa costs could influence H&R Block’s outlook, particularly given its technology workforce needs.

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    H&R Block Investment Narrative Recap

    To be a shareholder in H&R Block, you need to believe in the company’s ability to defend its market share, capitalize on ongoing tax code complexity, and expand digital offerings despite competitive threats and changing consumer preferences. The new US$100,000 H-1B visa fee may raise costs or disrupt technology staffing, but for now, the key short-term catalyst, growth in digital and hybrid tax solutions, remains largely unchanged, while persistent risk centers on losing share to digital-first competitors.

    The appointment of Jason Lenhart as Chief Technology Officer in August is particularly relevant as H&R Block continues to enhance its digital tax platforms and AI-powered features. This announcement signals an ongoing commitment to digital transformation, which is critical in the face of both industry competition and increased labor challenges brought on by recent visa policy changes.

    However, while these digital initiatives are promising, investors should be mindful that, unlike rising tech workforce investment, H&R Block’s fixed costs and brick-and-mortar model could limit flexibility if...

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

    H&R Block's outlook forecasts $4.1 billion in revenue and $653.0 million in earnings by 2028. This is based on an expected 3.0% annual revenue growth rate and a $46.3 million increase in earnings from the current $606.7 million.

    Uncover how H&R Block's forecasts yield a $55.00 fair value, a 9% upside to its current price.

    Exploring Other Perspectives

    HRB Community Fair Values as at Sep 2025
    HRB Community Fair Values as at Sep 2025

    Seven private investors in the Simply Wall St Community estimate H&R Block’s fair value from US$37.00 to US$87.17 per share. As competition from digital-first disruptors intensifies, you should compare these wide-ranging views to your own analysis of H&R Block’s resilience and future prospects.

    Explore 7 other fair value estimates on H&R Block - why the stock might be worth 26% less than the current price!

    Build Your Own H&R Block Narrative

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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.