Cash App and Square Lift Block Q2 Earnings Above Forecast

Block raised its 2026 earnings forecast after Cash App and Square delivered stronger second-quarter growth, while AI tools increased development output following a major workforce reduction.

Good to Know

• Q2 gross profit rose 25% to $3.17 billion.
• Cash App gross profit increased 31% to $1.97 billion.
• Code changes per engineer rose 150% from January.

AI Restructuring Starts to Show in Block Results

Block said agentic AI helped write or review nearly every production code change made during June. Owen Jennings also told analysts that engineers now complete 150% more code changes than at the start of 2026.

The update came five months after Block cut more than 4,000 jobs, reducing its workforce by roughly 40%. Jack Dorsey linked that restructuring to smaller teams and wider AI use across product development and operations.

Block reported adjusted operating income of $864 million and adjusted diluted earnings of $1.02 per share, above the Wall Street estimate of $0.87. Total revenue rose 9% to $6.62 billion.

Cash App led the quarter with gross profit of $1.97 billion, up 31%. Square added $1.16 billion, a 13% increase, while merchant gross payment volume rose 10% to $74.73 billion.

Block now expects full-year gross profit of $12.51 billion, up from $12.33 billion. Adjusted operating income guidance increased from $3.34 billion to $3.47 billion.

“Our increased guidance reflects the strength of our first-half execution and the momentum we’re carrying into the second half of 2026,” Chief Financial Officer Amrita Ahuja said.

The stronger forecast gives Block early evidence that its smaller operating structure can support faster product development. However, the company still faces the longer-term test of maintaining growth after removing thousands of roles.