Block Lifts 2026 Forecast to $12.51B as Cash App Powers Beat

Block has raised its full-year 2026 gross profit forecast to $12.51 billion, representing 21% growth, after second-quarter results topped Wall Street expectations. The payments company now expects a stronger second half than previously guided, with its prior outlook calling for $12.33 billion and 19% growth.

The upgrade follows an earnings beat for the three months ended June 30. Block posted adjusted earnings of $1.02 per share, well above the 87 cents analysts had penciled in. Revenue reached $6.62 billion, also ahead of the roughly $6.49 billion consensus estimate. Shares climbed more than 4% in extended trading as investors welcomed the resilience of consumer payment activity.

Cash App Leads the Way

Cash App continued to serve as Block's primary growth driver, posting gross profit growth of 31% during the quarter. That compares with 13% growth at Square, the company's merchant business. The widening gap underscores how Block's consumer platform — now offering banking, investing and lending alongside peer-to-peer transfers — is increasingly determining overall performance.

Block's raised forecast signals that management views the quarterly momentum as sustainable rather than temporary. The company's ability to keep growing while consumers face elevated borrowing costs and household budget pressures was a key concern entering the quarter. Seasonal factors such as Cyber Monday and holiday shopping may provide additional tailwinds, as payment networks typically benefit from overall transaction volumes even when discretionary spending softens.

Cost-Cutting and AI Focus

Block is also in the middle of a major operational overhaul. In February, the company announced plans to eliminate more than half of its workforce as part of an effort to embed artificial intelligence across its operations. CEO Jack Dorsey told shareholders that "intelligence tools are the next major technology shift, but machine learning is not new to Block."

The restructuring could improve profitability if automation lowers costs in customer service, compliance, fraud detection and software development. But it carries execution risk, including the potential for weaker support quality or disruption to merchant relationships.

For now, the earnings beat gives management more room to execute the overhaul while both core segments grow. The key question for investors is whether Block can sustain Cash App's rapid expansion and Square's steady growth while translating cost cuts into lasting margin gains.