Block raises 2026 profit guidance after Q2 earnings beat, driven by Cash App and Square growth despite Bitcoin profit decline

Block delivered a strong Q2 2026 earnings beat, reporting adjusted EPS of $1.02 on $6.62 billion in revenue, driven by robust growth in Cash App and Square. Consequently, the Jack Dorsey-led firm raised its full-year gross profit guidance to $12.51 billion. Block achieved a record 27% adjusted operating margin, even as Bitcoin gross profit fell 31% to $72 million due to Cash App fee cuts. Despite these strong operational results and an AI-driven product acceleration, Block's stock fell in after-hours trading, remaining near its 52-week lows.

Q2 2026 earnings beat

• ▪Block reported second-quarter 2026 revenue of $6.62 billion, surpassing analyst expectations of approximately $6.49 billion to $6.50 billion.
• ▪Block raised its full-year 2026 adjusted operating income guidance to $3.47 billion, up from its previous forecast of $3.34 billion.
• ▪Block raised its full-year 2026 gross profit guidance to $12.51 billion, up from its previous forecast of $12.33 billion.
• ▪Block reported second-quarter 2026 adjusted earnings of $1.02 per share, beating the Wall Street consensus estimate of $0.87 per share.
• ▪Block raised its full-year 2026 adjusted diluted earnings per share guidance to $4.02.

Cash App primary banking

• ▪Cash App Primary Banking Actives grew 17% year-over-year to reach 9.4 million in June 2026.
• ▪Cash App monthly transacting active accounts grew 3% year-over-year to reach 59 million in June 2026.
• ▪Cash App consumer lending originations increased 59% year-over-year to $18.9 billion in the second quarter of 2026, driven primarily by Cash App Borrow.

Square ecosystem acceleration

• ▪Total Square gross payment volume rose 13% year-over-year to $72.8 billion in the second quarter of 2026.
• ▪Square gross profit increased 13% year-over-year to $1.16 billion in the second quarter of 2026.
• ▪Square domestic gross payment volume in the United States grew 10% year-over-year, marking its fastest growth rate since the second quarter of 2023.

Record profitability margins

• ▪Block's Bitcoin Ecosystem revenue fell 13% year-over-year to $1.89 billion in the second quarter of 2026, down from $2.17 billion.
• ▪Block's second-quarter 2026 adjusted operating income grew 57% year-over-year to reach $864 million.
• ▪Block's Bitcoin Ecosystem gross profit fell 31% year-over-year to $72 million in the second quarter of 2026.
• ▪Block achieved a record adjusted operating income margin of 27% of gross profit in the second quarter of 2026.

AI-driven product velocity

• ▪Block shipped 130 features in the first half of 2026, more than three times the 40 features shipped in the first half of 2025.
• ▪Block reported that agentic artificial intelligence helped write and review nearly all production code changes in June 2026.
• ▪Block's loyalty and discovery product, Neighborhoods, scaled to sellers representing $1 billion in annualized gross payment volume in June 2026.

Stock decline near lows

• ▪Despite beating earnings expectations and raising guidance, Block shares fell in after-hours trading on August 5, 2026.
• ▪Block shares traded near their 52-week low of $0.17 on August 5, 2026, down approximately 75% from their 52-week high of $0.74.