Pathward Holds Fiscal 2027 EPS Guidance at $9.50 to $10

Pathward Financial maintained its fiscal 2027 earnings-per-share outlook at $9.50 to $10 despite lower fiscal 2026 net income. CEO Brett Pharr also announced on the Oct. 21 earnings call that Pathward had renewed its contract with H&R Block.

Pathward’s fiscal 2027 forecast presumes rates stay unchanged during the year, an 18% to 22% effective tax rate, $5 million to $7 million in secondary-market revenue each quarter, and expected share repurchases. Pathward first set the $9.50-to-$10 range July 22; that outlook included the same tax-rate and secondary-market revenue assumptions.

For the year ended Sept. 30, 2026, Pathward recorded net income of $175.7 million and diluted earnings of $8.14 per share. Fiscal 2025 net income was $185.9 million, with diluted earnings of $7.87 per share.

In the September quarter, net income was $38.6 million, or $1.85 per diluted share, compared with $38.8 million and $1.69 per share in the same quarter a year earlier.

Nonperforming loans and leases totaled $289.3 million, equal to 5.61% of gross loans and leases, as of Sept. 30. At June 30, they were $275.1 million, or 5.28%. Net charge-offs reached $52 million in the September quarter, including $20.3 million in commercial finance. Pathward attributed the year-over-year increase in nonperforming commercial finance loans primarily to renewable-energy construction projects with a common developer. It said it continued working with other parties to complete those projects.

An October 2024 amendment between H&R Block subsidiary Emerald Financial Services and Pathward, N.A., set the then-current program management agreement term through June 30, 2027. Pathward is H&R Block’s bank provider for refund transfers, Emerald Advance term loans, Refund Advance loans, Emerald Cards and Spruce accounts.