Block Stock Earnings Reports

Block reported a strong Q1 2026, beating guidance across gross profit, adjusted operating income and adjusted diluted EPS, and raised full-year guidance. Key financials: Q1 gross profit up 27% YoY to $2.91B; adjusted operating income up 56% to $728M (25% margin); adjusted EBITDA $1B; adjusted diluted EPS $0.85 (up 52% YoY). Management raised 2026 guidance to $12.33B gross profit (19% YoY growth), $3.34B adjusted operating income, and $3.85 adjusted diluted EPS. Cash App growth accelerated (gross profit +38% YoY), with monthly transacting actives +4% and primary banking actives +18% to 9.7M; strong product rollouts include Moneybot GA, Managerbot scaling to >1M sellers, Afterpay pre-purchase and Cash App Score. Square showed accelerating GPV (13% reported, ~11.5% constant currency) and gross profit growth (9% reported; 11% ex-hardware); strong segments included food & beverage and mid-market (both ~21–22% YoY). Product velocity and AI adoption are highlighted as transformational: production code changes per engineer up >2.5x since January and many non-engineers contributing code; management expects AI-driven automation to increase speed, quality and new product delivery. go-to-market: increased investments planned in high-ROI channels (field sales, ISOs—>140 active partners), Neighborhoods scaling rapidly ($320M annualized GPV with strong April adoption). Other notes: expect low single-digit actives growth for remainder of 2026, Q2 guide: gross profit $3.04B, adj. operating income $740M, adj. diluted EPS $0.86; interest expense guidance ~$200–210M for full year and mid-20% non-GAAP tax rate. Management reiterated risks around macro, seasonality (slight Q2 PBA decline), one-time items impacting gross profit comparisons, and the ongoing normalization of Borrow growth as it matures.