Block, Inc. (XYZ), the fintech company formerly known as Square and led by co-founder Jack Dorsey, raised its full-year 2026 financial outlook after reporting second-quarter results that exceeded both internal guidance and Wall Street expectations, driven by sustained growth across its Cash App and Square business lines.

The company posted gross profit of $3.17 billion for the second quarter, representing a 25% increase year over year and coming in ahead of Block's prior guidance. Adjusted operating income for the quarter reached $855 million, also surpassing guidance, according to a results filing made on Wednesday.

Adjusted diluted earnings per share came in at $1.02, comfortably beating the Wall Street consensus estimate of $0.87 per share.

Buoyed by the stronger-than-expected performance, Block revised its full-year gross profit guidance upward to $12.51 billion, up from a previous target of $12.33 billion. The company also raised its full-year adjusted operating income outlook to $3.47 billion, compared with the earlier forecast of $3.34 billion.

"Our increased guidance reflects the strength of our first-half execution and the momentum we're carrying into the second half of 2026," said Block Chief Financial Officer Amrita Ahuja during the company's earnings call.

On the technology front, Block disclosed in its Q2 2026 shareholder letter that agentic AI was used to write and review nearly all production code changes during the month of June. The disclosure comes several months after the company eliminated approximately 4,000 positions in February as part of a broader AI-driven restructuring effort. Block is among a growing group of major technology companies — including Google and Amazon — that have publicly highlighted AI's expanding role in software engineering, though Block's claim that AI now touches nearly all production code sets it apart from peers who have reported more incremental adoption.

Owen Jennings, Block's business lead, told analysts on the earnings call that the number of code changes per engineer has risen 150% compared with the start of the year, underscoring the productivity gains the company attributes to its AI integration. The workforce reduction and productivity gains together point to a significant shift in how Block structures its engineering operations, with fewer engineers producing substantially more output.

Block's results filing detailed the financial metrics underlying the raised outlook.

Related: Dorsey's Block says new AI tool handles 15% of code work