Block Stock Earnings Reports

Block reported a strong Q1 2026 beat across gross profit, adjusted operating income and adjusted diluted EPS, and raised full-year guidance. Key financials: gross profit +27% YoY to $2.91B, adjusted operating income +56% YoY to $728M (25% margin), adjusted EBITDA $1B, adjusted diluted EPS $0.85 (+52% YoY). Management raised FY26 gross profit guidance to $12.33B (+19% YoY) and adjusted operating income to $3.34B, with adjusted diluted EPS of $3.85 (+62% YoY). Cash App showed accelerated gross profit growth (+38% YoY), modest active growth (+4% YoY), higher inflows per active (+10% YoY) and primary banking actives +18% YoY to 9.7M. Borrow and BNPL continue to scale (post-purchase Afterpay already strong; pre-purchase BNPL launched). Square GPV and gross profit accelerated (GPV +13% YoY, constant-currency +11.5%), with notable strength in food & beverage and mid-market sellers; international GPV +35% YoY. Product velocity and AI adoption are emphasized as transformational: Managerbot and Moneybot are rolling out (Managerbot to 1M+ sellers; Moneybot GA), Builderbot/Goose internal tooling is driving faster development and non-engineer contributions. Management expects to increase go-to-market spend in Q2 in high-ROI areas, to maintain low single-digit active growth for Cash App in 2026, and to exit 2026 at mid-teens gross profit growth. Key operational initiatives with early traction: Neighborhoods (now ~$320M annualized GPV and rapid seller additions), ISO partner ramp (140+ active ISOs), expanded field sales presence, and product launches across Square Register, BNPL integrations, Cash App Score, and managed accounts for kids. Risks: normalizing Borrow growth vs strong prior comps, FX and comparability effects on GPV, and execution on scaling AI-driven products and organizational changes.