Block lifts 2026 profit forecast on Cash App growth, resilient spending
SQ•Cost cuts and earnings beat
Block has also stepped up its cost-cutting efforts. In February, it announced plans to cut more than half its workforce as part of a broader overhaul to embed AI across its operations.
“Intelligence tools are the next major technology shift, but machine learning is not new to Block,” Dorsey said in a letter to shareholders.
Adjusted profit of $1.02 per share in the three months ended June 30 comfortably beat Wall Street expectations of 87 cents, according to estimates compiled by LSEG.
Revenue at $6.62 billion also topped expectations of about $6.49 billion.
Cash App and Square drive growth as spending holds up
Cash App has largely fended off competition by evolving beyond peer-to-peer transfers into a broader consumer financial services platform offering banking, investing and lending products.
The second half of the year also typically brings major shopping events, including Cyber Monday and the holiday season, when retailers offer deep discounts that encourage spending even among budget-conscious consumers, providing a seasonal boost to payment volumes.
The results also cap a strong earnings season for the U.S. payments industry and underscore resilience in the face of inflationary pressures fueled by the Middle East conflict and elevated borrowing costs.
Payments firms have continued to process healthy transaction volumes even as consumers rein in discretionary spending and prioritize everyday essentials, since both transactions flow through the same networks.
Gross profit at Cash App surged 31% in the second quarter while it rose 13% at its Square merchant business.
