Block Inc Forecasts 18.2% Q4 Gross Profit Growth and Cuts Up to 10% Staff
Morgan Stanley kept Equalweight and $72 target on Block Inc, forecasting Q4 2025 total gross profit growth of 18.2% and Seller GPV growth of 10.3% (7% U.S., 26% international). Block introduced a second-generation Square Register POS system 40% faster and plans to reduce its workforce by up to 10%.
1. Morgan Stanley Maintains Equalweight Rating
Morgan Stanley kept an Equalweight rating on Block Inc with a $72 price target, projecting Q4 2025 Seller GPV growth of 10.3% (7% in the U.S., 26% internationally) and total gross profit growth of 18.2%, reflecting 8% growth in Square and 25% in Cash App.
2. 2026 Outlook
The firm expects Block’s 2026 gross profit to rise 16.9%, driven by 12% growth in Square and 20% in Cash App, which should support adjusted operating income of $2.7 billion and EPS of $3.19.
3. Square Register Upgrade
Block’s Square division rolled out a second-generation Register POS system that delivers a 40% boost in processing speed, aiming to expedite checkout during peak periods and improve merchant transaction efficiency.
4. Efficiency Drive and Coverage
Block plans to cut up to 10% of its workforce as part of an ongoing efficiency initiative, while Cantor Fitzgerald initiated coverage with an Overweight rating and an $87 price target, pointing to early turnaround gains and new product efforts.