Block rises more than 4% after earnings and revenue beat forecasts

Block (NYSE: XYZ) shares rose more than 4% in late trading after the payments company reported second-quarter results that topped Wall Street expectations. Adjusted earnings came in at $1.02 per share for the three months ended June 30, with revenue of $6.62 billion, above analysts’ estimates of about $6.49 billion.

Analysts tracked by London Stock Exchange Group (LSE: LSEG) had expected 87 cents per share. The beat came as investors continued to focus on how payment companies are balancing transaction growth, lending activity and profitability in a slower-growth consumer environment.

The company, led by Jack Dorsey, also lifted its full-year outlook. Block now expects 2026 gross profit of $12.51 billion, which would represent 21% growth from a year earlier. Its previous target was $12.33 billion, implying 19% growth. The update came near the end of a solid earnings season for U.S. payment companies.

Block separates bitcoin activity from the operating metrics it uses

Block said it evaluates performance using both GAAP and non-GAAP measures, with the greatest focus on gross profit, adjusted operating income and adjusted earnings per share.

“Bitcoin trading activity and changes in bitcoin prices have historically had modest impacts on Gross Profit, Adjusted Operating Income, and Adjusted Earnings Per Share, but can create significant variability in reported revenue and GAAP net income. To provide greater transparency into these dynamics, we are reporting Cash App’s Bitcoin Ecosystem revenue and the remeasurement of our bitcoin investment ahead of reported earnings,” said Block.

The company gave an early estimate of $1.8 billion for Cash App Bitcoin Ecosystem revenue in the second quarter. That figure primarily reflects the dollar value of bitcoin purchased by customers through Cash App.

Block also expected an $88.5 million accounting loss from revaluing its bitcoin investment using the asset’s June 30 closing price. The company records that item below operating income. It affects GAAP earnings only and does not change the adjusted operating figures Block uses to measure performance.

Block said both bitcoin figures were early and unaudited and were not a substitute for the full quarter. The company scheduled the complete report for August 5, 2026.

Cash App’s bitcoin revenue can fluctuate sharply because bitcoin prices and customer trading volumes are not steady. Gains or losses on Block’s own bitcoin holdings also move with the market price of the cryptocurrency.

Cash App drives the quarter as banking, lending and commerce grow

Cash App did most of the work in the quarter. Its gross profit increased 31% from the same period a year earlier. The Square seller business posted a 13% increase. Across Block overall, gross profit rose 25% year over year.

The company also reported a 27% adjusted operating income margin, its highest level to date. Adjusted diluted earnings per share climbed 65% from a year earlier to a record $1.02.

Activity inside Cash App also increased. Primary Banking Actives rose 17%, while Cash App Commerce Enablement volume also advanced 17%. Consumer lending originations jumped 59%, with Cash App Borrow accounting for most of the increase.

Square payment volume also expanded across its merchant network. Total Square gross payment volume increased 13% from a year earlier. U.S. GPV rose 10%, the fastest domestic pace since the second quarter of 2023, while international GPV increased 28%.

Block has also been reducing costs. In February, the company said it planned to eliminate more than 50% of its jobs as part of a broader overhaul that places artificial intelligence into more of its daily operations.

“Intelligence tools are the next major technology shift, but machine learning is not new to Block,” Jack wrote in a letter to shareholders.

For 2026, Block now expects gross profit to rise 21%, adjusted operating income to increase 67%, and adjusted diluted earnings per share to grow 70%.

The earnings materials direct readers to an appendix for Block’s definitions of transacting active, Square GPV, Primary Banking Actives, Cash App Commerce Enablement Volume and Cash App Consumer Lending Origination Volume. Block also included tables that reconcile each non-GAAP figure in the presentation with the closest GAAP measure.