Block, Inc. Q1 2026 Earnings Recap

Shares rose 5.7% as the company delivered solid execution and raised full-year guidance, driven primarily by accelerating growth in key business segments and expanding AI-driven initiatives.

Key Takeaways

• Gross profit increased 27% year-over-year to $2.91 billion, led by Cash App and Square growth acceleration.
• Adjusted operating income grew 56% year-over-year to $728 million, with margins expanding to 25%.
• Cash App gross profit grew 38% year-over-year, supported by Commerce Enablement and Financial Solutions, while monthly transacting actives rose 4%.
• Square’s gross payment volume (GPV) grew 13% year-over-year (11.5% constant currency), with strong gains from food and beverage (+21%) and mid-market sellers (+22%).
• The company raised full-year guidance for gross profit, adjusted operating income, and adjusted EPS, citing increased confidence based on Q1 momentum and AI-powered productivity improvements.