Block Projects $12.2 Billion 2026 Gross Profit and Cuts 40% Workforce
Block projected 2026 gross profit of $12.2 billion and adjusted EPS of $3.66, and forecast Q1 gross profit of $2.8 billion with EPS of $0.67. Q4 gross profit rose 24% to $2.87 billion and plans call for cutting over 4,000 roles, slashing headcount by 40% to below 6,000.
1. Bold 2026 Financial Outlook
Block projected 2026 gross profit of $12.2 billion and adjusted EPS of $3.66, and forecast Q1 gross profit of $2.8 billion with EPS of $0.67, reflecting stronger-than-expected guidance.
2. Strong Q4 Performance
Block reported Q4 gross profit of $2.87 billion, up 24% year-over-year, driven by 59 million Cash App monthly active users and a 10% increase in seller payment volume, underpinning its revenue backlog.
3. Workforce Reduction Plan
The company will eliminate over 4,000 roles, reducing headcount by 40% to under 6,000 employees to streamline operations and bolster margins, though execution risks in the restructuring may test leadership.