Block Raises Outlook as Square Growth Accelerates
The company lifted its 2026 gross-profit growth forecast to 21% from 19%.
Block (XYZ), the payments and financial-services company, posted record adjusted operating income of $864 million as second-quarter gross profit climbed 25% to $3.17 billion.
The quarter marked a shift in Block’s growth mix. Square gross-profit growth accelerated for a second consecutive quarter, while Cash App growth moderated and customer activity remained largely flat.
Revenue rose 9.3% from a year earlier to $6.62 billion, reversing the sequential decline recorded in the first quarter. Adjusted diluted earnings reached a record $1.02 a share, up 65%, while GAAP earnings recovered to $0.15 a share from a $0.52 loss in the prior quarter.
Cash App gross profit increased 31% to $1.97 billion, slowing from 38% growth in the first quarter. Monthly transacting actives held at 59 million for a third consecutive quarter, while inflows and inflows per active declined sequentially. Cash App Commerce Enablement volume rose 17% to $56.5 billion, and its monetization rate expanded 12 basis points from a year earlier to 1.65%.
Square gross profit grew 13% to $1.16 billion, accelerating from 9% growth in the prior quarter. Gross payment volume rose 13% to $72.85 billion, led by 20% growth among food-and-beverage sellers. A tariff reimbursement contributed about two percentage points to Square’s gross-profit growth.
Consumer Lending originations rose 59% to $18.9 billion, though that growth slowed from 82% in the first quarter. Transaction, loan and consumer-receivable losses increased 99% as lending volume expanded. Bitcoin Ecosystem gross profit fell 31% from a year earlier as fees on certain Cash App transactions and trading dynamics weighed on the business.
Block’s revised 2026 outlook calls for gross profit of $12.51 billion and adjusted operating income of $3.47 billion, representing a 28% margin. The company now expects adjusted EPS of $4.02, or 70% growth, compared with its previous forecast for 62% growth.
Contingencies, restructuring and other charges declined to $365 million from $743 million in the first quarter, when Block announced a workforce reduction of more than 4,000 people. Moneybot exceeded 1 million weekly engaged accounts and sellers using Neighborhoods represented $1 billion of annualized payment volume, giving its newer products a broader role in the raised outlook.