Block Shares Jump 23.6% After Raises 2026 EPS Outlook to $3.66
Block shares surged 23.6% after Q4 2025 net revenues rose 3.6% to $6.25 billion and EPS climbed 38.3% to $0.65 while it cut 4,000 jobs and raised 2026 EPS outlook to $3.66. It repurchased $790 million in Q4 and forecasts 18% gross profit growth to $12.2 billion in 2026.
1. Q4 Earnings Results
Block reported Q4 2025 net revenues of $6.25 billion, up 3.6% year-over-year, gross profit of $2.87 billion (+24.3%), and adjusted EPS of $0.65, a 38.3% increase, driving shares up 23.6%.
2. Workforce Reduction
The company cut over 4,000 roles, reducing its headcount from over 10,000 to under 6,000 to leverage AI tools and improve operational efficiency.
3. Guidance and Buyback
Block repurchased $790 million of shares in Q4, bringing 2025 total to $2.3 billion, and raised full-year 2026 EPS outlook to $3.66 alongside gross profit guidance of $12.2 billion (18% growth) and adjusted operating income of $3.20 billion (26% margin).
4. Growth Drivers and Risks
Cash App gross profit rose 33.1% to $1.83 billion on product diversification, while Square saw 7.5% gross profit growth; risks include intense digital payments competition, Bitcoin volatility, and U.S. market concentration.