Image Credit: Shutterstock
Jack Dorsey’s payments company Block raised its 2026 profit outlook after stronger growth at Cash App and Square supported its second-quarter results. Revenue reached $6.62 billion, above analysts’ estimate of about $6.49 billion, while adjusted earnings of $1.02 per share beat the expected 87 cents.
Block now expects full-year gross profit of $12.51 billion, up from its previous forecast of $12.33 billion. It also raised its adjusted earnings outlook to $4.02 per share, compared with an earlier target of $3.85.
Cash App Gross Profit Jumps 31%
Cash App generated about $1.97 billion in gross profit, 31% higher than a year earlier. Block attributed the increase to consumer lending, commerce products and greater use of additional Cash App services.
Monthly transacting users increased 3% to about 59 million in June. Consumer lending volume rose 59%, while commerce activity grew 17% as Block expanded products beyond peer-to-peer payments. Block Chief Financial Officer Amrita Ahuja said:
“We outperformed our guidance and achieved record profitability in the second quarter.”
Square Payments and Margins Improve
Square’s gross profit and payment volume both increased 13% from a year earlier. U.S. payment volume recorded its strongest growth since the second quarter of 2023, helped by larger merchants, food and beverage businesses and new sales partnerships.
Block’s adjusted operating margin rose to a record 27%, compared with 22% a year earlier. Adjusted operating income reached about $856 million, while adjusted EBITDA increased 31% to roughly $1.17 billion.
Product Output Rises After Workforce Revamp
Block’s workforce fell from more than 10,000 employees to just under 6,000 earlier in 2026 following layoffs, attrition and a wider restructuring. The company also reorganized around smaller teams, shared operations and greater use of artificial intelligence.
The company released 130 product features during the first half of 2026, compared with 40 during the same period last year. Block said AI tools are now involved in nearly every production code change and review.
Block expects third-quarter gross profit to rise 18% and its adjusted operating margin to reach 28%. The updated outlook will help investors assess whether Block can maintain its recent growth while operating with a lower cost base and releasing products more quickly.
