Highlights

• Block generated US$3.17 billion in Q2 gross profit, reflecting strong annual growth.
• Cash App gross profit increased 31% as customer engagement continued to improve.
• The company lifted its 2026 financial outlook following stronger-than-expected momentum.

Block Reports Strong Second Quarter Growth

Block, Inc. (ASX: XYZ) released its second-quarter 2026 results on 5 August 2026, reporting improved financial performance, stronger business momentum and upgraded full-year expectations. The company continued to expand its payments and financial services ecosystem, supported by growth across Cash App, Square and technology-driven initiatives. The company delivered a solid quarterly outcome, with total gross profit reaching US$3.17 billion, representing a 25% increase compared with the previous year. Performance was supported by broad-based growth, including a 31% rise in Cash App gross profit to US$1.97 billion and a 13% increase in Square gross profit to US$1.16 billion.

Profit Growth Reflects Improved Operating Efficiency

Block continued to improve its earnings profile during the quarter, generating US$447 million in operating income. Adjusted operating income increased significantly to US$864 million, supported by higher gross profit generation and ongoing cost discipline.

The company’s adjusted diluted earnings per share reached US$1.02, marking a 65% increase from the prior year period. The improvement reflected stronger operating leverage as Block expanded profitability across its major business platforms.

Cash App and Square Maintain Business Momentum

Cash App remained a key contributor to Block’s quarterly performance. The increase in gross profit was driven by stronger performance across Block’s commerce solutions and financial service offerings, supported by higher customer engagement and business activity. Commerce Enablement volume expanded 17% year-over-year to US$56.5 billion, while monthly transacting active customers stood at 59 million in June 2026.

Square also maintained positive momentum, with gross payment volume rising 13% year-over-year to US$72.8 billion. Growth was supported by stronger seller activity, particularly among food and beverage businesses, retail operators and mid-market customers.

2026 Guidance Raised After Strong Quarter

Following the improved quarterly performance, Block increased its expectations for the full year. The company now anticipates 2026 gross profit of US$12.51 billion, representing 21% annual growth, alongside adjusted operating income of US$3.47 billion and a 28% margin. Adjusted diluted EPS is expected to reach US$4.02, reflecting projected growth of 70% year-over-year.

Block’s continued investment in payments infrastructure, financial products and artificial intelligence capabilities remains central to its strategy as the company focuses on expanding its ecosystem and strengthening long-term growth opportunities.

Note- All data presented is based on information available at the time of writing.

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