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Albertsons ( ACI ) reported Q3 comparable sales growth of 2.4% with adjusted EPS of $0.72 beating consensus by $0.04, driven by pharmacy expansion and 21% digital sales growth that reached 49.8 million loyalty members. H&R Block ( HRB ) posted Q2 revenue of $198.87M up 11.1% year over year, with first aid tax revenue jumping 15.6% and DIY software up 22.3%, while generating $598.85M in free cash flow last year with an asset light model.
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Albertsons and H&R Block are both using technology and AI to protect against margin pressure and competitive threats: Albertsons is investing in personalization and efficiency to mitigate Medicare drug price storms, while H&R Block’s human-plus-AI model is outperforming competitors’ AI-native tax prep during high tax season.
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A recent study identified one trend that doubled Americans’ retirement savings and moved retirement from a dream, to a reality. Read more here.
Albertsons (NYSE:ACI) recently reported Q3 FY2026 earnings showing like-for-like sales growth of 2.4% driven almost entirely by pharmacy. H&R Block (NYSE:HRB) posted Q2 FY2026 results with revenue of $198.87 million, up 11.1% year over year. Two different businesses, both flying under the radar, both relying on technology to secure their position.
Albertsons beat the bottom line, posting adjusted EPS of $0.72 versus the consensus of $0.68. Pharmacy is doing a great job at same-store sales while squeezing margins. Gross profit decreased to 27.4% from 27.9% in the previous year because the pharmacy has a lower profit than the grocery store. Digital sales grew 21% year over year, and loyalty membership reached 49.8 million members, up 12%. CEO Susan Morris outlined the strategy: “Our investments in technology and AI are fundamentally reshaping the way we work and serve our customers; we’re driving smarter decisions, greater efficiency, and a more personalized experience.”
H&R Block’s Q2 has always been a losing quarter — tax season hasn’t peaked yet. But the offseason results were solid. Assisted tax preparation revenue jumped 15.6% year over year, DIY software increased 22.3%, and Wave, a small business platform, grew 12.1%. New CEO Curtis Campbell set the tone: “In a year of growing uncertainty for many filings, our client-first strategy and focused execution keeps us focused on sustainable growth and long-term value.”
Read: Data Shows One Habit Doubles America’s Savings and Boosts Retirement
Most Americans underestimate how much they need for retirement and overestimate how much they are prepared for. But the data shows that people with one habit have more than twice as much income as those who do not.
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Business Driver |
Albertsons (ACI) |
H&R Block (HRB) |
|---|---|---|
|
The Main Growth Engine |
Pharmacy + digital trust |
Assisted tax preparation + Wave |
|
AI Focus |
Personalization, efficiency |
Expert-led tax experience |
|
Key Headwind |
Medicare Prescription Drug Insurance (IRA) |
AI competitors |
Albertsons is spending $1.8 billion to $1.9 billion in capital expenditures this fiscal year on store remodeling and digital infrastructure. H&R Block generated $598.85 billion in free cash flow in FY2025 for the Albertsons revenue segment. That asset-light model supports an aggressive buyback program — 47% of outstanding shares have been repurchased since 2016. Albertsons extended its repurchase program to $2.75 billion, but carries a net debt ratio of 2.29x, up from 1.88x last year. H&R Block holds negative shareholders’ equity of $823 million — a result of returning more cash than it retains, not a sign of distress.
Consumer sentiment at 56.4 on the University of Michigan index, well below the neutral threshold of 80, supports both businesses. Distressed shoppers don’t stop buying groceries or filing taxes.
At Albertsons, the Medicare Drug Price Negotiation Program is a number to watch. Management flagged a 65- to 70-point drag on Q4 comparable sales from this program alone — a structural blowout, not a one-quarter blowout. For H&R Block, the question is whether native AI competitors are taking away customers or just generating headlines. The 15.6% growth in assisted tax preparation revenue suggests that the human-plus-AI model is here to stay.
H&R Block is down 29% year to date while growing revenue by double digits. Key metrics to track include free cash flow trends and the dilution of H&R Block’s stock, as well as whether the digital loyalty network and pharmacy network at Albertsons are developing into sustainable competitive advantages.
Most Americans underestimate how much they need for retirement and overestimate how much they are prepared for. But the data shows that people with one habit have more than that twice the savings of those who do not.
And no, it has nothing to do with increasing your income, saving, cutting coupons, or even reducing your lifestyle. It’s more direct (and powerful) than any of that. In fact, it’s shocking how many people don’t take this practice for granted.
