Block, Inc.

Block reported second-quarter gross profit growth of 25% year over year, adjusted diluted EPS growth of 65% year over year, and an all-time high adjusted operating income margin of 27%. Square gross profit and GPV each grew 13% year over year, with U.S. GPV growth at its fastest pace since Q2 2023; Cash App gross profit grew 31% year over year, monthly transacting actives were up 3% year over year in June, Cash App Commerce Enablement volume grew 17%, and Cash App Consumer Lending origination volume grew 59%. Management raised full-year 2026 guidance to gross profit of $12.51 billion, up 21% year over year, adjusted operating income of $3.47 billion at a 28% margin, and adjusted diluted EPS growth of 70% year over year. For Q3, Block expects gross profit growth of 18%, adjusted operating income margin of 28%, and adjusted diluted EPS growth of 89%; it also guided to interest expense of $50 million to $55 million in Q3, $200 million to $210 million for the full year, and a mid-20% non-GAAP effective tax rate in Q3 and for the full year.

Jack Dorsey said the company had a strong quarter and is raising guidance because execution is improving across the business. His strategic message centered on Block becoming an “intelligence” company, with AI tools improving shipping velocity, internal collaboration, and product development. He highlighted Buzz as foundational, said the company is well along in using these tools internally, and pointed to a broader opportunity to bring the same capabilities to sellers and Cash App customers.

Amrita Ahuja emphasized broad-based outperformance, record profitability, and margin expansion, citing 25% gross profit growth, 65% adjusted EPS growth, and a 27% adjusted operating income margin. She said Square GPV and gross profit grew 13%, Cash App gross profit grew 31%, and the company expects gross profit growth to continue roughly in line with GPV in the second half. She also noted third-quarter and full-year guidance, interest expense of $50 million to $55 million in Q3 and $200 million to $210 million for the year, and said the company plans to keep investing where it sees high returns, including go-to-market, Neighborhoods, and AI.

Analysts pressed management on whether recent guidance beats reflected conservatism, how to think about second-half segment growth, and whether Cash App can sustain momentum after lapping heavy Borrow growth. Amrita said Q2 strength was broad-based, Q3 trends were tracking in line with the guidance, Square should accelerate in the back half, and Cash App has room to deepen engagement even as Borrow normalizes. Questions also focused on hardware and memory costs, and Thomas Templeton said Block identified the constraint early, has been mitigating it for over a year, and expects costs to rise over time but believes the company has a good handle on supply dynamics.