Block shares jump 23.6% after Q4 beat, trims workforce, wins Cinnaholic deal
Block shares soared 23.6% after reporting Q4 net revenue of $6.25 billion, adjusted EPS of $0.65 and raising 2026 gross profit guidance to $12.20 billion. The company cut over 4,000 jobs to under 6,000 headcount for AI-driven efficiency and secured Cinnaholic’s redeployment of Square tools across 85 outlets.
1. Fourth-Quarter 2025 Results
Block reported net revenues of $6.25 billion, up 3.6% year-over-year, and adjusted EPS of $0.65, a 38.3% increase. Gross profit rose 24.3% to $2.87 billion, and the company repurchased $790 million of shares.
2. Workforce Reduction Strategy
The company reduced headcount from over 10,000 to under 6,000 by cutting more than 4,000 positions, aiming to leverage AI and intelligence tools for enhanced efficiency and productivity with smaller teams.
3. Raised Full-Year 2026 Guidance
Block increased its 2026 gross profit outlook to $12.20 billion (18% growth) and raised adjusted operating income guidance to $3.20 billion (26% margin), with adjusted EPS expected to reach $3.66, a 54% rise.
4. Cinnaholic Franchise Redeployment
Plant-based bakery Cinnaholic redeployed Square’s end-to-end commerce tools across 85 outlets, implementing Square for Franchises, Square Register, Square Stand, Square Loyalty and Square Marketing to centralize operations and improve checkout speed.