Block Raises Price Target to $89 After Q4 EPS Beat, 1M Cash App Adds
An analyst raised Block’s price target to $89 from $85 after reporting Q4 EPS of $0.65 and a 33% gross profit boost to $2.87 billion. Block cut over 40% of its workforce to fast-track AI automation and added 1 million new Cash App users.
1. Analyst Upgrade and Price Target Increase
An analyst raised Block’s price target to $89 from $85 and maintained an Outperform rating after robust Q4 results and a positive outlook for 2026.
2. Fourth-Quarter Results
Block delivered adjusted EPS of $0.65, gross profit of $2.87 billion (up 33% year-over-year), gross payment volume of $66.9 billion, operating expenses of $2.30 billion, and adjusted EBITDA of $930 million.
3. Organizational Restructuring
The company reduced its workforce by over 40% to streamline operations and accelerate deployment of AI-driven automation across its payment and financial services platforms.
4. Outlook for 2026
Following these measures and strengthened Cash App engagement—1 million new monthly transacting users in Q4—Block expects to exceed current consensus earnings estimates for 2026.