Block Cuts 4,000 Jobs, Raises 2026 EPS to $3.66, Shares Surge 17%
Block cut 4,000 jobs, halving headcount to under 6,000 as it shifts toward AI-driven operations under Jack Dorsey. The company reported Q4 gross profit growth of 24%, raised 2026 guidance to $3.66 adjusted EPS and $3.2 billion operating income, and shares jumped 17% premarket.
1. Workforce Reduction
Block announced the elimination of more than 4,000 roles, reducing its headcount from over 10,000 to under 6,000 as CEO Jack Dorsey accelerates an AI-driven strategy.
2. Q4 Profit Growth and Earnings
The company reported Q4 gross profit growth of 24% with adjusted EPS matching estimates, reflecting operational efficiencies and cost reductions from the workforce overhaul.
3. Upgraded 2026 Guidance and Stock Jump
Block raised its 2026 outlook to $3.66 in adjusted EPS and $3.2 billion in operating income, fueling a 17% premarket share surge as investors price in improved profitability.