Key Takeaways Block applied to establish Builders Bank, an uninsured national trust bank under OCC supervision.Builders Bank to provide custody and fiduciary services for bitcoin and stablecoins without taking deposits.XYZ is expanding regulated financial services as Square Financial Services brings more payments in-house. Block (XYZ - Free Report) has submitted an application to the Office of the Comptroller of the Currency (“OCC”) to establish Builders Bank & Trust, N.A., an uninsured national trust bank. The application remains subject to the OCC’s review and approval. Builders Bank would begin operations only after obtaining all necessary regulatory approvals.
If approved, it would operate as a federally regulated national trust bank under OCC supervision and provide custody and related fiduciary services for bitcoin and stablecoins. The charter would enable Block to conduct these activities through a consistent national framework as the business scales.
Builders Bank would be an uninsured, non-deposit-taking trust bank and would not accept deposits or make loans. The proposed charter would establish a federal supervisory framework for certain custody and related activities currently offered by Block.
The application follows Block’s broader expansion of regulated financial-services capabilities, including through its existing industrial bank, Square Financial Services. In the second quarter of 2026, eligible sellers maintaining at least $10,000 in Square Savings could earn 3.5% APY. Separately, Block noted in its second-quarter 2026 earnings that a larger deposit base could provide low-cost funding for future lending and reduce reliance on warehouse facilities and other funding sources.
Block has also been bringing payments infrastructure in-house. Square Financial Services processed its first Square acquiring transaction in June 2026 and plans to shift more Square and Cash App acquiring volume over time. In the second quarter, Cash App consumer-lending originations rose 59% year over year to $18.9 billion, highlighting the scale of Block’s financial-services operations.
Over the past three months, shares of this Zacks Rank #3 (Hold) company have rallied 18% compared with the industry's growth of 14.5%.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks from the internet-software sector are BILL Holdings, Inc. (BILL - Free Report) and MongoDB (MDB - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
The Zacks Consensus Estimate for BILL’s fiscal 2027 earnings per share (EPS) has moved 37 cents northward to $3.68 over the past month.
The consensus estimate for MDB’s fiscal 2027 EPS has moved up 17 cents to $6.37 over the past week.
The biggest debate around artificial intelligence has centered on whether it will create widespread unemployment. Amazon.com, Inc. (NASDAQ:AMZN) founder Jeff Bezos and Ark Invest CEO Cathie Wood argue the opposite: AI will increase demand for workers and create labor shortages.
Speaking at the VivaTech conference in Paris, Bezos once again dismissed concerns that AI will make humans redundant, arguing instead that the technology will expand what businesses can achieve.
“I totally disagree with this point of view. And I think, in fact, AI is going to create a labor shortage,” Bezos said at a tech conference in Paris in June.
As AI helps businesses automate routine work and lower the cost of creating new products and services, companies are likely to pursue opportunities that were previously uneconomical, he argues. That will increase—not reduce—the need for human workers.
Yet, Amazon — as well as Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT) and Block (NYSE:XYZ) — are restructuring and redirecting resources toward AI while also cutting thousands of jobs.
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Bezos maintains that AI will ultimately help people feel less constrained and remove barriers to success.
Wood, citing findings from payroll software provider Ramp, made a similar claim: Companies adopting AI are adding employees faster than their peers. Demographic trends—including retiring baby boomers and tighter immigration—are shrinking the available labor force, she added.
As a result, businesses will be competing for workers even as AI adoption accelerates, she said.
The AI Job Apocalypse Hasn’t Arrived—YetEntry-level roles face the greatest disruption, Woods said. Still, she advised younger workers to use AI as a tool to build businesses, solve problems and create new opportunities rather than compete with the technology.
So far, job losses due to AI adoption have fallen short of expectations, according to a McKinsey survey. Last week, the firm reported that 32% of survey respondents in 2025 anticipated headcount reductions due to AI, yet only 14 percent reported workforce reductions a year later.
Two-thirds of respondents in 2026 reported little or no AI-related change in their organizations’ total employment during the previous year. However, 39% said they expect AI to reduce headcount at their organizations over the next year.
DISTRIBUTED-WORK-MODEL/OAKLAND, Calif.--(BUSINESS WIRE)--Block, Inc. (NYSE: XYZ) today announced that it has submitted an application to the Office of the Comptroller of the Currency (“OCC”) to establish Builders Bank & Trust, N.A. (“Builders Bank”), an uninsured national trust bank. If approved, Builders Bank would operate as a federally regulated national trust bank under OCC supervision and would provide custody and related fiduciary services, including for bitcoin and stablecoins. The c.
Block aims to establish a national trust bank that would provide custody and related fiduciary services, including those for bitcoin and stablecoins, the company said in a Tuesday (Sept. 8) press release.
It has been about a month since the last earnings report for Block (XYZ - Free Report) . Shares have added about 5.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Block due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Block's Q2 Earnings & Revenues Beat on Cash App & Square StrengthBlock reported second-quarter 2026 adjusted EPS of $1.02, up 64.5% year over year and above the Zacks Consensus Estimate of 86 cents by 18.6%.
Revenues rose 9.3% to $6.62 billion, beating the consensus mark of $6.54 billion by 1.3%. Cash App lending, commerce activity and stronger Square payment volume supported the quarter’s results. Total Square GPV increased 13.4% to $72.85 billion.
Revenue Mix Benefits From Commerce Enablement GrowthCommerce Enablement revenues increased 15.3% year over year to $3.34 billion. Financial Solutions revenues advanced 40.4% to $1.38 billion, reflecting continued growth across lending and other financial products.
Bitcoin Ecosystem revenues declined 12.8% to $1.89 billion. Despite that pressure, total gross profit climbed 24.8% to $3.17 billion. Commerce Enablement gross profit rose 18% to $1.81 billion, while Financial Solutions gross profit increased 42.9% to $1.29 billion.
Cash App Monetization Gains MomentumCash App gross profit advanced 31.5% year over year to $1.97 billion. Cash App Commerce Enablement volume rose 17% to $56.5 billion, supported by Cash App Card and BNPL products. Commerce Enablement monetization rate improved 12 basis points to 1.65%, aided by higher Afterpay Post-Purchase attach rates.
Consumer Lending origination volume increased 58.8% to $18.9 billion, driven largely by Cash App Borrow. Cash App Primary Banking Actives grew 17% to 9.4 million, while monthly transacting actives reached 59 million in June. Inflows per transacting active rose 9.2% to $1,469.
Square Trends Strengthen Across MarketsSquare’s gross profit increased 13% year over year to $1.16 billion. Growth was driven by Commerce Enablement, reflecting stronger payment volumes, increased software adoption and continued momentum in Financial Solutions, particularly Square Loans. A one-time tariff reimbursement contributed roughly two percentage points to Square’s gross profit growth.
Square GPV reached $72.85 billion. U.S. GPV increased 9.8%, marking the strongest domestic growth rate since the second quarter of 2023. International GPV rose 28% on a reported basis and 25% at constant currency. Food and beverage GPV grew 20%, retail advanced 13% and services increased 7%.
Adjusted Profitability Reaches a RecordGAAP operating income was $447 million compared with $484 million a year earlier. General and administrative expenses increased sharply, primarily due to higher accrued legal contingencies.
Adjusted operating income rose 57.1% year over year to a record $864 million. The adjusted operating margin expanded to 27% of gross profit from 22%. Adjusted EBITDA increased 31.1% to $1.17 billion, while adjusted net income climbed to $620 million from $385 million.
Expenses Reflect Lending & Legal CostsOperating expenses totaled $2.72 billion, up from $2.05 billion in the prior-year quarter. Contingencies, restructuring and other charges were $365 million compared with $16 million in the prior-year quarter. Non-GAAP operating expenses increased to $2.32 billion from $2.00 billion.
Transaction, loan and consumer receivable losses increased 99% year over year, primarily because of higher loan volumes. Management noted that cohort-level Borrow risk-loss rates remained healthy as origination volume shifted toward the six-week loan product.
Block Raises Its 2026 Financial OutlookFor the third quarter of fiscal 2026, Block expects gross profit of $3.13 billion, representing 18% year-over-year growth. Adjusted operating income is projected at $875 million, with a 28% margin. Adjusted EPS is forecasted at $1.02, up 89%.
Management raised its full-year outlook to gross profit of $12.51 billion, implying 21% growth. Adjusted operating income is now anticipated to be $3.47 billion, representing a 28% margin and 67% year-over-year growth. Adjusted EPS is expected to increase 70% to $4.02.
How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 9.37% due to these changes.
VGM ScoresAt this time, Block has a great Growth Score of A, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Block has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerBlock is part of the Zacks Internet - Software industry. Over the past month, Paylocity (PCTY - Free Report) , a stock from the same industry, has gained 1.9%. The company reported its results for the quarter ended June 2026 more than a month ago.
Paylocity reported revenues of $444.73 million in the last reported quarter, representing a year-over-year change of +11%. EPS of $1.84 for the same period compares with $1.56 a year ago.
For the current quarter, Paylocity is expected to post earnings of $1.92 per share, indicating a change of +9.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +9.6% over the last 30 days.
Paylocity has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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The service also includes the Focus List, which is a long-term portfolio of top stocks that boast a winning, market-beating combination of growth and momentum qualities.
Breaking Down the Zacks Focus ListBuilding an investment portfolio from scratch can be difficult, so if you could, wouldn't you take a peek at a curated list of top stocks?
That's what the Zacks Focus List, a portfolio of 50 stocks, offers investors. Not only does it serve as a starting point for long-term investors, but all stocks included in the list are poised to outperform the market over the next 12 months.
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Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Earnings estimates are expectations of growth and profitability, and are determined by brokerage analysts. Together with company management, these analysts examine every aspect that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
Earnings estimate revisions are very important, since investors also need to take into consideration what a company will earn in the future.
When a stock receives upward earnings estimate revisions, it will likely get even more positive changes in the future. For instance, if an analyst raised their earnings outlook last month, they'll probably do so again this month, and other analysts will follow.
Harnessing the power of earnings estimate revisions is where the Zacks Rank comes in. The Zacks Rank, which is a unique, proprietary stock-rating model, employs earnings estimate revisions to make it easier to build a winning portfolio.
Four primary factors make up the Zacks Rank: Agreement, Magnitude, Upside, and Surprise. Each is given a raw score that's recalculated every night and compiled into the Rank, and with this data, stocks are then classified into five groups, ranging from "Strong Buy" to "Strong Sell."
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
Because stock prices react to revisions, buying stocks with rising earnings estimates can be very profitable. Focus List stocks offer investors a great opportunity to get into companies whose future earnings estimates will be raised, potentially leading to price momentum.
Focus List Spotlight: Block (XYZ - Free Report) Block was incorporated in San Francisco in 2009. The company does not designate a headquarters location, as it adopted a distributed work model in 2020. It has been an S&P 500 constituent since July 2025.
On March 28, 2017, XYZ was added to the Focus List at $17.25 per share. Shares have increased 383.3% to $83.37 since then, and the company is a #3 (Hold) on the Zacks Rank.
12 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.14 to $4.04. XYZ boasts an average earnings surprise of 7.3%.
Moreover, analysts are expecting XYZ's earnings to grow 70.5% for the current fiscal year.
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Cash App Score, the real-time credit signal at the center of how Block manages its consumer lending portfolio, will be distributed to lenders through Nova Credit’s Cash Flow Intelligence Platform, expanding responsible credit access without requiring consumers to link accounts or share new credentials
DISTRIBUTED-WORKFORCE/OAKLAND, Calif.--(BUSINESS WIRE)--Block, Inc. (NYSE: XYZ) today announced that it will open the Cash App Score to external lenders for the first time, with Nova Credit as a distribution partner. The partnership will make Cash App's proprietary, cash flow-based credit score available to lenders through Nova Credit's Cash Flow Intelligence Platform, embedding it directly into the underwriting workflows lenders already use, with no new consumer credentialing required.
Cash App Score, which has begun rolling out to customers, draws on millions of real-time, first-party signals from across the Cash App ecosystem, including spending, saving, repayment behavior, paycheck deposits, and peer-to-peer activity, to form a detailed, near real-time picture of a person's financial health. And, unlike traditional credit scores, Cash App Score doesn’t look back exclusively at credit history - instead it reflects a customer’s broader financial behavior including historical and current activities, reflecting changes in near real-time.
Within Cash App, customers can see their score on the Money Tab, understand what drives it, and take concrete steps to improve it. Early engagement is strong - within 30 days, 551 percent of customers return to check their score. Cash App customers will set their own preferences for whether and how their score will be shared with third-party lending partners, with Cash App managing notifications and consent directly and no third-party logins required.
"At Block, we believe people should be able to use their own financial history to unlock opportunity, on their terms," said Juan Hernandez, Head of Credit and Underwriting at Block. "We built Cash App Score to see the financial activity of millions of people the traditional credit system misses, and it's now the same technology at the center of how we manage credit across Block, where we use it to understand risk in near real-time. Partnering with Nova Credit lets us put that capability in the hands of lenders through infrastructure they already trust, so more of those consumers can be reached responsibly, while they stay informed and in control of their data."
The technology behind Cash App Score powers underwriting across all of Block's consumer lending products. In Cash App Borrow, where the technology has been running longest, it approves 38 percent more customers at the same loss rate compared with traditional credit scores1. Roughly 70 percent of active Borrow customers have FICO scores below 580, the population conventional models underserve, at a target repayment rate. Block's analysis across additional categories indicates the potential to approve 30 percent more auto loans and 28 percent more credit card applications at comparable loss rates versus traditional methods.
The technology does more than assess individual creditworthiness - it tracks consumer financial health in aggregate and in near real-time, giving Block a continuous read on how macroeconomic conditions are affecting its portfolio. This allows Block to model scenarios and adjust credit policy dynamically rather than relying on lagging indicators.
For lenders, this means the Cash App Score is not a static signal - it is built on infrastructure that continuously adapts to economic conditions, the same infrastructure Block relies on to manage its own portfolio.
A richer view for lenders, across verticals
Through Nova Credit's network, lenders will be able to incorporate the Cash App Score into their underwriting across verticals including credit cards, auto lending, device financing, personal lending and tenant screening, all areas where Cash App does not compete, delivered through the same Cash Flow Intelligence Platform they rely on today. The Cash App Score will provide lenders with a comprehensive, near real-time view of a consumer's ability to pay. Used alongside Nova Credit's Cash Atlas, lenders will gain an additional layer of cash flow context through a single integration.
Beyond distribution, Nova Credit brings deep experience deploying cash flow-based scores, along with the consumer-reporting infrastructure, FCRA-compliance framework, and established lender network that together turn a powerful score into a solution lenders can adopt with confidence.
"By bringing the Cash App Score into Nova Credit's Cash Flow Intelligence Platform, we're giving lenders a unique tool to develop a richer, near real-time view of tens of millions of credit-seeking Americans," said Misha Esipov, Co-founder and CEO of Nova Credit. "Our joint goal is to help Americans put their best financial foot forward, using the apps they already rely on every day."
Nova Credit and Block will share more about the partnership at the Cash Flow Intelligence Summit, the annual gathering of consumer lending leaders, in New York City on September 10, 2026. Apply to attend.
About Block
Block builds technology to increase access to the global economy. Each of our brands unlocks different aspects of the economy for more people. Square makes commerce and financial services accessible to sellers. Cash App is the easy way to spend, send, and store money. Afterpay is transforming the way customers manage their spending over time. TIDAL is a music platform that empowers artists to thrive as entrepreneurs. Bitkey is a simple self-custody wallet built for bitcoin. Proto is a suite of bitcoin mining products and services. Together, we're helping build a financial system that is open to everyone. Block.xyz
About Nova Credit
Nova Credit is the industry's leading cash flow intelligence platform, enabling businesses to unlock the power of cash flow data in how they operate. The company leverages its industry-leading data infrastructure, intelligence layer, and FCRA-compliance to boost underwriting approvals, fight fraud, drive responsible growth, and more. Nova Credit supports over 7,000 businesses including organizations such as Chase, HSBC, SoFi, AppFolio, and Yardi, with a growing suite of products. Learn more at www.novacredit.com.
Block says it is opening its Cash App score to external lenders for the first time. Using Nova Credit as a distribution partner, Block will make Cash App's proprietary, cash flow-based credit score available to lenders via Nova Credit's Cash Flow Intelligence Platform, the company announced Tuesday (Sept.
Block, Inc. (NYSE: XYZ) today announced that it will open the Cash App Score to external lenders for the first time, with Nova Credit as a distribution partner. The partnership will make Cash App's proprietary, cash flow-based credit score available to lenders through Nova Credit's Cash Flow Intelligence Platform, embedding it directly into the underwriting workflows lenders already use, with no new consumer credentialing required.
Cash App Score, which has begun rolling out to customers, draws on millions of real-time, first-party signals from across the Cash App ecosystem, including spending, saving, repayment behavior, paycheck deposits, and peer-to-peer activity, to form a detailed, near real-time picture of a person's financial health. And, unlike traditional credit scores, Cash App Score doesn’t look back exclusively at credit history - instead it reflects a customer’s broader financial behavior including historical and current activities, reflecting changes in near real-time.
Within Cash App, customers can see their score on the Money Tab, understand what drives it, and take concrete steps to improve it. Early engagement is strong - within 30 days, 551 percent of customers return to check their score. Cash App customers will set their own preferences for whether and how their score will be shared with third-party lending partners, with Cash App managing notifications and consent directly and no third-party logins required.
"At Block, we believe people should be able to use their own financial history to unlock opportunity, on their terms," said Juan Hernandez, Head of Credit and Underwriting at Block. "We built Cash App Score to see the financial activity of millions of people the traditional credit system misses, and it's now the same technology at the center of how we manage credit across Block, where we use it to understand risk in near real-time. Partnering with Nova Credit lets us put that capability in the hands of lenders through infrastructure they already trust, so more of those consumers can be reached responsibly, while they stay informed and in control of their data."
The technology behind Cash App Score powers underwriting across all of Block's consumer lending products. In Cash App Borrow, where the technology has been running longest, it approves 38 percent more customers at the same loss rate compared with traditional credit scores1. Roughly 70 percent of active Borrow customers have FICO scores below 580, the population conventional models underserve, at a target repayment rate. Block's analysis across additional categories indicates the potential to approve 30 percent more auto loans and 28 percent more credit card applications at comparable loss rates versus traditional methods.
The technology does more than assess individual creditworthiness - it tracks consumer financial health in aggregate and in near real-time, giving Block a continuous read on how macroeconomic conditions are affecting its portfolio. This allows Block to model scenarios and adjust credit policy dynamically rather than relying on lagging indicators.
For lenders, this means the Cash App Score is not a static signal - it is built on infrastructure that continuously adapts to economic conditions, the same infrastructure Block relies on to manage its own portfolio.
A richer view for lenders, across verticals
Through Nova Credit's network, lenders will be able to incorporate the Cash App Score into their underwriting across verticals including credit cards, auto lending, device financing, personal lending and tenant screening, all areas where Cash App does not compete, delivered through the same Cash Flow Intelligence Platform they rely on today. The Cash App Score will provide lenders with a comprehensive, near real-time view of a consumer's ability to pay. Used alongside Nova Credit's Cash Atlas, lenders will gain an additional layer of cash flow context through a single integration.
Beyond distribution, Nova Credit brings deep experience deploying cash flow-based scores, along with the consumer-reporting infrastructure, FCRA-compliance framework, and established lender network that together turn a powerful score into a solution lenders can adopt with confidence.
"By bringing the Cash App Score into Nova Credit's Cash Flow Intelligence Platform, we're giving lenders a unique tool to develop a richer, near real-time view of tens of millions of credit-seeking Americans," said Misha Esipov, Co-founder and CEO of Nova Credit. "Our joint goal is to help Americans put their best financial foot forward, using the apps they already rely on every day."
Nova Credit and Block will share more about the partnership at the Cash Flow Intelligence Summit, the annual gathering of consumer lending leaders, in New York City on September 10, 2026. Apply to attend.
About Block
Block builds technology to increase access to the global economy. Each of our brands unlocks different aspects of the economy for more people. Square makes commerce and financial services accessible to sellers. Cash App is the easy way to spend, send, and store money. Afterpay is transforming the way customers manage their spending over time. TIDAL is a music platform that empowers artists to thrive as entrepreneurs. Bitkey is a simple self-custody wallet built for bitcoin. Proto is a suite of bitcoin mining products and services. Together, we're helping build a financial system that is open to everyone. Block.xyz
About Nova Credit
Nova Credit is the industry's leading cash flow intelligence platform, enabling businesses to unlock the power of cash flow data in how they operate. The company leverages its industry-leading data infrastructure, intelligence layer, and FCRA-compliance to boost underwriting approvals, fight fraud, drive responsible growth, and more. Nova Credit supports over 7,000 businesses including organizations such as Chase, HSBC, SoFi, AppFolio, and Yardi, with a growing suite of products. Learn more at www.novacredit.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260901321398/en/
ARK shifted more than $50 million into Block and Rocket Lab while trimming several high-profile growth names. Summary
ARK bought $38.1 million of BlockARK added $12.8 million of Rocket Lab
Cathie Wood's ARK Invest announced another major portfolio rotation, pumping more than $50 million into Block and Rocket Lab while cutting Palantir and many other growth stocks.
The firm bought 456,059 shares of Block (XYZ, Financials) through certain exchange-traded funds, worth around $38.1 million. ARK also purchased 200,303 shares of Rocket Lab worth about $12.8 million.
The purchases are a sign that Wood is continuing to double down on fintech, online assets, and commercial space. The other side of the trade was equally amazing.
ARK liquidated roughly $26 million worth of Palantir shares, dumping 139,456 shares in a recent pullback in its position to the AI software business.
The company also sold around $4 million of Advanced Micro Devices, $12.3 million of Shopify and roughly $10.9 million of Tempus AI.
Rocket Lab reported record revenue of $234.1 million for the second quarter, up 62% year over year, but a loss of $0.08 per share that was more than projected.
The bigger message to investors is clear: Wood is shifting funds away from some of ARK's best performers and into fintech and space stocks where she seems to see more opportunity.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Cryptocurrencies and blockchain technology are moving deeper into the mainstream financial system. What began largely as an alternative asset class centered on bitcoin has broadened into an ecosystem encompassing stablecoins, tokenized real-world assets, digital payments, institutional investment products and blockchain-based capital markets.
Against this backdrop, Figure Technology Solutions, Inc. (FIGR - Free Report) , BlackRock, Inc. (BLK - Free Report) and Block, Inc. (XYZ - Free Report) stand out as companies positioned to benefit from participating in different parts of the growing cryptocurrency and blockchain ecosystem.
Institutional participation is becoming an increasingly important driver. A 2026 Coinbase and EY-Parthenon survey of 351 institutional investors found that nearly three-fourths planned to increase their digital-asset allocations. Two-thirds of respondents already had exposure through spot crypto ETFs or ETPs, while 81% preferred accessing spot crypto through a registered investment vehicle. Meanwhile, 64% of asset managers expressed interest in tokenizing assets, up from 40% a year earlier, and 63% of investors were interested in allocating to tokenized assets.
Stablecoins and tokenized assets are also expanding blockchain's usefulness beyond cryptocurrency trading. At the end of July 2026, the total stablecoin market capitalization stood at approximately $308 billion, while the value of tokenized assets jumped 11.5% during the month to a record $32.1 billion, according to CoinDesk Data’s latest Stablecoins & Tokenized Assets Report.
The convergence of digital assets with traditional finance could create opportunities across several layers of the ecosystem — from companies building blockchain-native capital markets to asset managers offering regulated crypto products, fintech providers expanding bitcoin payments and semiconductor companies supplying computing technology for advanced cryptography.
If you’re looking to tap into this fast-growing trend, our Cryptocurrencies & Blockchain Thematic Screen offers a simple way to spot promising stocks in the sector. Designed with advanced analytics, the screen is an invaluable source for identifying crypto and blockchain stocks with massive growth prospects.
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Figure Technology Solutions is emerging as a differentiated way to invest in blockchain adoption through real financial assets, not crypto speculation. Provenance Blockchain underpins its lending and digital-asset ecosystem, while Figure is steadily moving origination, funding, settlement and ownership records onto shared blockchain rails.
The growth engine is Democratized Prime, Figure’s on-chain lend-borrow marketplace. Matched offers reached $530 million by July 31, 2026, while third-party borrowing had risen to about $170 million by Aug. 6. Expansion into auto and SMB loans shows the model can extend beyond home equity.
$YLDS also strengthens Figure’s blockchain ecosystem. The SEC-registered yield-bearing digital asset security reached $628 million in circulation by July-end and can support settlement, collateral and liquidity across Figure’s marketplaces. Wider institutional use could make it an increasingly important funding tool.
This Zacks Rank #1 (Strong Buy) company is also widening the opportunity through OPEN, its blockchain network for issuing, trading, custody and lending of public equities. Partnerships and planned tokenized listings could broaden Provenance beyond private credit and give Figure exposure to public-market infrastructure.
The pending Kiavi acquisition could add another asset class to Figure’s blockchain rails. As more originators, investors and assets join, deeper liquidity and recurring marketplace fees could strengthen Figure’s long-term growth flywheel. You can see the complete list of today’s Zacks #1 Rank stocks here.
BlackRock is turning digital assets from a niche experiment into a scaled distribution channel. Its strategy combines crypto ETPs, tokenized funds and stablecoin reserve management, giving the company ways to earn fees as blockchain finance moves closer to mainstream portfolios.
IBIT remains the centerpiece. With about $60.3 billion in net assets on Aug. 28, it gives investors Bitcoin exposure through brokerage accounts, while ETHA held roughly $8.4 billion. Their scale strengthens BlackRock’s brand, liquidity advantage and institutional reach in crypto.
Tokenization adds a second growth engine. BUIDL, BlackRock’s tokenized Treasury fund, had roughly $2.8 billion and led the tokenized Treasury market by Aug. 31. BlackRock also launched two tokenized money-market products in August, extending regulated cash management onto public blockchains.
Stablecoins widen the opportunity. BlackRock managed $62.3 billion in Circle Reserve Fund assets on Aug. 28, while management sees stablecoins as a bridge between traditional finance and blockchain infrastructure. Rising adoption can deepen demand for reserve management and on-chain liquidity.
The investment thesis for this Zacks Rank #3 (Hold) company is broader than cryptocurrency prices. Management believes digital assets can reach a $500 million revenue business by 2030 and wants BlackRock products inside wallets. If tokenization expands across ETFs, cash and private assets, BlackRock can gain another distribution channel.
Block’s crypto thesis is no longer just about letting people trade bitcoin. The company is building an end-to-end bitcoin stack across Cash App, Square, Bitkey, Proto and Spiral, giving it exposure to payments, self-custody, mining hardware and open-source infrastructure.
Cash App remains the distribution engine. More than 24 million actives have bought bitcoin, while management has intentionally lowered trading fees to become a simpler, cheaper exchange and gain share. USDC transfers now extend Cash App onto open blockchain rails.
Square creates the bigger utility opportunity. Millions of sellers can accept bitcoin over Lightning, while Bitcoin Conversions lets merchants move part of sales into bitcoin. This turns Block from a trading venue into infrastructure connecting consumers, merchants and digital money.
Bitkey adds a self-custody layer without seed-phrase complexity, while Proto targets a concentrated mining-hardware market with modular rigs, replaceable hashboards and free fleet software. Core Scientific’s 2026 contract exit raises execution risk, but Proto’s recurring upgrade model still offers upside.
Block also held 9,117 bitcoins for long-term investment as of June 30, 2026, aligning capital with strategy. With Spiral strengthening Bitcoin’s developer stack and regulation moving toward clearer digital-asset rules, this Zacks Rank #3 company has several paths to monetize adoption, making its blockchain platform increasingly valuable.
DISTRIBUTED-WORKFORCE/OAKLAND, Calif.--(BUSINESS WIRE)--Block, Inc. (NYSE: XYZ) today announced that Neighborhoods, the experience that connects Square sellers with Cash App customers to drive discovery, repeat visits, and local growth, has added 30,000 more sellers to the network, up nearly 10x from June. The expansion marks a new phase for Neighborhoods as Square and Cash App scale a local commerce network for both sellers and customers. Built into their existing Square Point of Sale, Neighbo.
Block's Neighborhoods Adds 30,000 More Sellers as Square and Cash App Help Build Local Commerce Network Block, Inc. (NYSE: XYZ) today announced that Neighborhoods, the experience that connects Square sellers with Cash App customers to drive discovery, repeat visits, and local growth, has added 30,000 more sellers to the network, up nearly 10x from June. The expansion marks a new phase for Neighborhoods as Square and Cash App scale a local commerce network for both sellers and customers.
Built into their existing Square Point of Sale, Neighborhoods gives local businesses a new way to earn repeat visits. Customers can earn Local Cash2 equal to 10% of their order subtotal, up to $10 per order, on qualifying purchases with participating Neighborhoods sellers, then redeem it on a future visit. Cash App funds Local Cash during an initial period,3 giving sellers a no-cost way to reward customers and encourage repeat visits. Participating sellers appear on the map in the Neighborhoods tab in Cash App, where customers can discover and follow the businesses they love.
"Neighborhoods helps local businesses get discovered by new customers and then turn that first visit into a lasting relationship,” said Owen Jennings, Executive Officer and Head of Business, Block. “We're seeing a business's most loyal customers come back more often and spend more, which creates the repeat behavior that helps local businesses grow and thrive.”
Once a customer follows a business on Neighborhoods, the seller can reach them directly with marketing campaigns in Cash App, designed to bring followers back. New customers who follow a participating business and make a qualifying purchase may also receive a Cash App-funded first-time $5 Local Cash bonus.4
A model built to scale
Square has made Neighborhoods available to more eligible sellers through their existing Square Point of Sale. As of June 2026, Neighborhoods had scaled to sellers that represent a total of $1 billion in annualized gross payment volume (GPV), up more than 220% from March 2026.5
In June 2026, Neighborhoods became available on additional Square hardware, including Square Terminal, more than doubling the number of eligible sellers. Spend from followers reached 10% of seller GPV on average after three quarters on Neighborhoods, making them among the highest-value customers a seller can build.⁵
"We want to sell more coffee, build more regulars, and give people more reasons to come back – and Neighborhoods helps us do just that. Because it’s integrated with Square and Cash App, the experience feels seamless for our team and our customers, from updating menu availability in real time to letting customers order ahead and redeem Local Cash in store. We’ve seen it become part of people’s daily routines, including a longtime customer and dad on the go who uses it almost every day to order ahead before work,” said Hayden Swiderski, Applications Order Manager at Night Swim Coffee in Charlotte, North Carolina.
"Our vision at Keva Juice has always been to create an uplifting experience that gives customers a reason to return. Neighborhoods builds on that by connecting local businesses through one experience, instead of asking customers to keep up with another standalone app or isolated loyalty program. With Square and Cash App built in together, the technology does more of the work for us, so our team can stay focused on serving customers and creating the experience that keeps them coming back," said Gary Thomas, owner and CEO of Keva Juice with locations across Nevada and Colorado.
What's next
Block is ramping auto-enablement across the country and testing new ways to build density in local markets, including pairing seller activation with dedicated account management. The company is also focused on increasing awareness of Neighborhoods among Square sellers' employees.
To learn more about Neighborhoods, visit squareup.com/us/en/neighborhoods.
About Block
Block, Inc. (NYSE: XYZ) builds technology to increase access to the global economy. Each of our brands unlocks different aspects of the economy for more people. Square makes commerce and financial services accessible to sellers. Cash App is the easy way to spend, send, and store money. Afterpay is transforming the way customers manage their spending over time. Tidal is a music platform that empowers artists to thrive as entrepreneurs. Bitkey is a simple self-custody wallet built for bitcoin. Proto is a suite of bitcoin mining products and services. Together, we’re helping build a financial system that is open to everyone. Block.xyz.
Cash App is a financial services platform, not a bank. Banking services provided by Cash App's bank partner(s). See cash.app for more details.
1 Based on 26,260 enrolled customer–seller pairs and 162,404 comparison pairs at the 44 highest-adoption Neighborhoods sellers based on the top 10%, measured since 1/28/26 with at least 90 days of history per customer. Sellers were selected by share of transactions involving Local Cash. Enrollment is customer-initiated; differences reflect observed behavior, not a measured effect of the program.
2 Local Cash is for promotional purposes only and has no cash value. Terms and restrictions apply.
3 Cash App currently funds the cost of Local Cash rewards for the first 12 months. Not transferable or redeemable for cash. Offers and program terms subject to change. Additional terms apply.
4 Local Cash welcome bonus limited to one per customer, available for a limited time, when a customer makes a qualifying purchase and follows their first Neighborhoods seller. Valid Cash App account required. Local Cash offers may vary and are subject to change.
5 Block, Inc. Q2 2026 results
View source version on businesswire.com: https://www.businesswire.com/news/home/20260825494603/en/
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Key Takeaways Square is expanding its restaurant footprint with Cascadia Pizza Co. and other restaurant-focused deals.Food-and-beverage GPV rose 20% in Q2 2026 as Square targets larger, more complex sellers.Block expects $12.51 billion in 2026 gross profit as wider Square adoption is watched for faster growth. Block’s (XYZ - Free Report) Square is expanding its restaurant footprint with Cascadia Pizza Co., which returned to Square in 2026 after reassessing its restaurant and franchise tools. Cascadia has grown from a single Washington food truck into 17 corporate restaurants, franchise locations, food trucks and catering operations across five states. It now uses Square for Restaurants, Square Franchise Suite and Square hardware.
Cascadia relies on Square for centralized reporting, menu control and offline payments, while individual franchisees maintain separate Square accounts. This aligns with Square’s push toward larger, more complex sellers.
Other deals reinforce that expansion. Square expanded its partnership with OpenTable, bringing reservations, payments and guest data into a more connected view for restaurants. Before that, The Baked Bear said it plans to add at least five new stores beyond its 36-location footprint. Square’s earlier Google expansion also brought U.S. food sellers into AI-powered Ask Maps discovery and ordering.
These moves support Square’s broader momentum. Block has expanded field sales and ISO partnerships, with more than 200 active ISO partners helping accelerate new seller additions. In the second quarter of 2026, Square’s Gross Payment Volume (GPV) rose 13% to $72.8 billion, food-and-beverage GPV grew 20% and Square gross profit increased 13% to $1.16 billion.
Block is pairing its wider Square reach with stronger profitability and increased investment in growth. The company’s second-quarter 2026 gross profit rose 25% to $3.17 billion, adjusted operating income reached $864 million at a 27% margin, while adjusted earnings per share (EPS) hit $1.02. Block expects $12.51 billion of gross profit and $3.47 billion of adjusted operating income in 2026, leaving investors to watch whether wider Square adoption can drive faster growth.
How Are Block’s Competitors Faring?PayPal Holdings (PYPL - Free Report) expanded its partnership with Rainforest in February 2026, launching embedded-payments integration for vertical software platforms. The integration embeds PayPal, Venmo and PayPal Pay Later into software-platform checkouts while simplifying merchant onboarding, reporting, reconciliation and digital payment acceptance. The integration is designed to help software platforms shift more payment volume away from offline methods.
Adyen (ADYEY - Free Report) expanded its partnership with Toast into the United States in August 2026, adding Adyen to Toast’s U.S. payments ecosystem. The partnership is intended to support faster settlement, broader payment choice and international scaling. Toast processed GPV exceeding $215 billion across approximately 180,000 locations worldwide in the 12 months ended June 30, 2026.
XYZ’s Price Performance, Valuation & EstimatesShares of Block have risen 15.6% over the past three months, which outperformed the broader industry and the S&P 500 Index.
Image Source: Zacks Investment Research
In terms of forward 12-month P/E, XYZ stock is trading at 24.84X, which is at a discount to the Zacks Internet Software industry’s 27.93X.
Image Source: Zacks Investment Research
Block’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised upward over the past month. It indicates 70.4% increase year over year.
Image Source: Zacks Investment Research
Block currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Freestone Grove Partners LP bought a new position in Block, Inc. (NYSE:XYZ – Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the SEC. The firm bought 34,107 shares of the technology company’s stock, valued at approximately $1,299,000.
Several other hedge funds have also recently modified their holdings of XYZ. BlackRock Inc. purchased a new stake in shares of Block during the second quarter valued at $621,703,000. Ameriprise Financial Inc. bought a new position in Block during the 2nd quarter valued at about $535,305,000. Norges Bank bought a new position in Block during the 4th quarter valued at about $484,387,000. Viking Global Investors LP purchased a new stake in shares of Block during the 2nd quarter valued at about $368,213,000. Finally, Capital World Investors boosted its holdings in shares of Block by 41.8% during the 4th quarter. Capital World Investors now owns 16,023,441 shares of the technology company’s stock valued at $1,042,966,000 after acquiring an additional 4,727,217 shares during the last quarter. Hedge funds and other institutional investors own 70.44% of the company’s stock.
Analyst Upgrades and Downgrades A number of analysts have recently commented on the stock. Truist Financial lifted their price target on shares of Block from $82.00 to $93.00 and gave the stock a “buy” rating in a research note on Friday, July 24th. Piper Sandler increased their price objective on shares of Block from $100.00 to $105.00 and gave the company an “overweight” rating in a research report on Thursday, August 6th. Barclays assumed coverage on shares of Block in a report on Tuesday, July 7th. They issued an “overweight” rating and a $100.00 target price on the stock. BTIG Research lifted their target price on shares of Block from $90.00 to $100.00 and gave the stock a “buy” rating in a research report on Thursday, August 6th. Finally, Oppenheimer reiterated an “outperform” rating and set a $97.00 target price on shares of Block in a research note on Thursday, August 6th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and eight have assigned a Hold rating to the stock. Based on data from MarketBeat, Block presently has an average rating of “Moderate Buy” and an average target price of $95.84.
View Our Latest Analysis on XYZ Block Trading Down 1.5% Block stock opened at $83.58 on Friday. The business has a 50-day simple moving average of $79.64 and a two-hundred day simple moving average of $70.09. The company has a market cap of $50.21 billion, a P/E ratio of 149.25, a P/E/G ratio of 0.93 and a beta of 2.53. Block, Inc. has a 52-week low of $48.21 and a 52-week high of $86.92. The company has a quick ratio of 2.21, a current ratio of 2.21 and a debt-to-equity ratio of 0.26.
Block (NYSE:XYZ – Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The technology company reported $1.02 EPS for the quarter, beating the consensus estimate of $0.48 by $0.54. Block had a net margin of 1.43% and a return on equity of 8.10%. The firm had revenue of $6.62 billion during the quarter. During the same period in the previous year, the company earned $0.62 EPS. Block’s revenue for the quarter was up 9.3% compared to the same quarter last year. Block has set its FY 2026 guidance at 4.020-4.020 EPS and its Q3 2026 guidance at 1.020-1.020 EPS. Analysts predict that Block, Inc. will post 2.72 EPS for the current year.
Insider Buying and Selling at Block In other Block news, CFO Amrita Ahuja sold 9,511 shares of the stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $82.43, for a total value of $783,991.73. Following the transaction, the chief financial officer directly owned 423,262 shares in the company, valued at approximately $34,889,486.66. This trade represents a 2.20% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Brian Grassadonia sold 8,173 shares of Block stock in a transaction on Monday, August 24th. The stock was sold at an average price of $82.42, for a total transaction of $673,618.66. Following the transaction, the insider owned 513,981 shares in the company, valued at $42,362,314.02. This represents a 1.57% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 501,756 shares of company stock valued at $39,582,259. 11.37% of the stock is owned by corporate insiders.
About Block (Free Report)
Block (NYSE:XYZ) is a financial technology company that builds products and services to facilitate electronic payments, commerce, and consumer finance. Its principal business lines include a seller-focused ecosystem that provides point-of-sale hardware and software, payment processing, invoicing, payroll and lending services, and a consumer-facing platform that offers peer-to-peer payments, banking-like features, and investing. Block’s portfolio also encompasses music streaming and buy-now-pay-later capabilities through businesses acquired to broaden its reach beyond core payments.
The company was founded as Square in 2009 by Jack Dorsey and Jim McKelvey and later rebranded to Block to reflect a diversified set of businesses across payments, consumer finance, and emerging technologies.
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Amrita Ahuja, the CFO and COO of Block, Inc. (XYZ -0.95%), disclosed the disposition of 31,013 shares on August 20 and August 21, as detailed in a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$2.5 millionShares sold31,013Post-transaction shares (directly held)423,262Post-transaction value$34.45 millionTransaction value based on SEC Form 4 weighted average sale price ($80.80); post-transaction value based on the August 24 market close ($81.38).
Key questionsWhat were the mechanics behind the reported share disposition?
The transaction was comprised of two distinct components: 18,401 shares were withheld by the company to satisfy income tax obligations linked to the settlement of restricted stock units, and 12,612 shares were sold via a Rule 10b5-1 trading plan adopted on March 2.How does the current market price compare to the execution levels?
The shares were disposed of at a weighted average price of $80.80, while the stock was priced at $82.16 as of the August 21 market close.What is the scale of the insider's remaining direct equity interest?
Following these transactions, the CFO and COO retains direct ownership of 423,262 shares, representing 0.07% of the company's total shares outstanding.What is the company's recent performance profile?
Block reported trailing 12-month revenue of $25.0 billion and net income of $357.1 million, with the stock delivering a one-year total return of 3% as of the August 24 transaction date.Company OverviewMetricValueShare Price (as of market close 2026-08-21)$82.16Market Capitalization$48.9 billionRevenue (TTM)$25.0 billionNet Income (TTM)$357.1 millionCompany SnapshotBlock, Inc. develops comprehensive payment processing solutions and hardware devices, including Magstripe readers and Contactless and chip readers supporting EMV and Near Field Communication technologies, generating revenue through transaction processing, hardware sales, and value-added services.The company operates a merchant-centric business model that generates revenue from payment processing fees, hardware sales, and analytics services, while providing next-day settlement capabilities to enhance merchants' cash flow management.Block serves a diverse customer base of merchants across multiple verticals seeking integrated payment solutions, reporting analytics, and efficient settlement mechanisms to streamline their payment operations and financial management.Block, Inc. is a substantial technology infrastructure provider with a market capitalization of $48.9 billion and TTM revenue of $25.0 billion, positioning it as a significant player in the global payments ecosystem. The company's integrated platform approach--combining hardware, payment processing, and analytics--creates a defensible competitive moat while enabling merchants to consolidate their payment infrastructure across a single provider. Block maintains strategic positioning to capture growth opportunities in both traditional card-based payments and emerging payment technologies.
What this transaction means for investorsAhuja had 18,401 shares withheld when restricted stock settled and sold 12,612 more under a plan she adopted on March 2, months before the quarter that moved the stock. It's not her only disposition to surface this month; there was an 8,971-share sale for roughly $770,000 in early August.
Meanwhile, Block reported gross profit up 25% to $3.17 billion on August 5, adjusted earnings of $1.02 a share, up 65%, and a record 27% operating margin for the latest quarter, resulting in a third straight raise to full-year guidance. However, shares still fell about 6% the next day, as investors scrutinized third-quarter gross profit growth falling to 18% and then slowing further in the fourth quarter to the mid-teens. "Our budgets obviously are going up," CFO Amrita Ahuja said on the call about AI, though she argued the company routes work to cheaper and open-source models to hold the bill down. Legal costs are climbing, too. Block's second-quarter 10-Q lifted the accrued loss on an open Justice Department investigation, tied to a 2023 short-seller report on Cash App, to $526 million from $240 million three months earlier, and the company has said the eventual figure could run higher.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Block. The Motley Fool has a disclosure policy.
Esperanza Chrysty, the chief legal officer of Block, Inc. (XYZ -0.95%), disposed of 8,376 shares on August 20 to satisfy tax obligations associated with the settlement of equity awards, according to an SEC Form 4 filing.
Transaction summaryMetricValueShares sold8,376Transaction value~$670,750Post-transaction shares (directly held)252,964Post-transaction value~$20.26 millionTransaction value based on SEC Form 4 weighted average sale price ($80.08); post-transaction value based on the August 20 market close ($80.08).
Key questionsWas this a discretionary market trade?
The disposition was a non-discretionary transaction executed to cover income tax and withholding obligations connected to the net settlement of restricted stock units and does not represent a shift in the executive's investment outlook.What is the executive's remaining exposure to the company?
Chrysty retains a direct stake of 252,964 shares, representing approximately 0.04% of the company's outstanding equity, and the executive also holds derivative securities.What were the mechanics of the share disposition?
The shares were withheld by the issuer rather than sold on the open market, specifically to satisfy remittance obligations arising from the vesting of restricted stock units.Company OverviewMetricValueShare Price (as of market close 2026-08-21)$82.16Market Capitalization$48.9 billionRevenue (TTM)$25.0 billionNet Income (TTM)$357.1 millionCompany SnapshotBlock, Inc. develops and operates a comprehensive payment processing platform that enables merchants to accept card payments through hardware solutions, including Magstripe readers and EMV-compatible contactless and chip readers, and provides advanced reporting, analytics, and next-day fund settlement capabilities.The company generates revenue through transaction processing fees, hardware sales, software subscriptions, and value-added services that support merchant operations across payment acceptance and financial management.Block serves a diverse merchant base ranging from small independent retailers to enterprise-level organizations seeking integrated payment processing solutions and business intelligence tools.Block, Inc. operates as a leading infrastructure software provider in the financial technology sector with a market capitalization of $48.9 billion and TTM revenue of $25.0 billion. The company has established a competitive advantage through its integrated ecosystem of hardware, software, and financial services that streamline merchant payment operations. With 10,205 employees and its headquarters in Oakland, Block continues to expand its market presence through innovation in payment-processing technology and merchant enablement solutions.
What this transaction means for investorsChrysty had 8,376 shares withheld when equity awards settled, a small piece of a stake that includes 250,000 shares. More importantly for long-term investors, however, the move comes amid a shaky time for Block and its stock. The company paid $45 million on July 8 to settle claims from 46 state attorneys general that it oversold Cash App's fraud protections, plus $20 million the same day to Washington over pandemic unemployment transfers.
Those obligations can run straight into the growth plan. Cash App consumer lending originated $18.9 billion in the second quarter, up 59% from a year earlier, and Square Financial Services, Block's industrial bank, began taking seller deposits at 3.5% APY and processed its first acquiring transactions in June. Owning the bank means owning the compliance, and CFO Amrita Ahuja pitched that on the August 5 call as something that gives Block "a direct connection to our regulators." That connection has been expensive lately. The state settlement also requires live customer support and faster handling of unauthorized-transaction claims, which shows up as an ongoing operating cost rather than a one-time charge, right as Block guides third-quarter gross profit growth down to 18% from the 25% it just delivered.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Block. The Motley Fool has a disclosure policy.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of XYZ, PYPL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Brian Grassadonia, ecosystem lead at Block, Inc. (XYZ -0.95%), reported a disposal of 17,765 shares this past week in an SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$1.4 millionShares sold17,765Post-transaction shares (directly held)513,981Post-transaction value$41.83 millionTransaction value based on SEC Form 4 weighted average sale price ($81.16); post-transaction value based on the August 24 market close ($81.38).
Key questionsWhat governed the timing and execution of these dispositions?
The transactions were executed pursuant to a Rule 10b5-1 trading plan adopted on June 2, 2025, and included shares withheld to satisfy income tax obligations arising from the settlement of restricted stock units.How does this sale impact the insider's total equity stake?
Grassadonia reduced his direct ownership by 3% in this filing while retaining a direct position of 513,981 shares and additional equity through derivative securities.What is the current market context for the stock?
Shares were priced at $82.16 as of the August 21 market close, and the company has delivered a one-year total return of 3% as of the transaction date.Company OverviewMetricValueShare Price (as of market close 2026-08-21)$82.16Market Capitalization$48.9 billionRevenue (TTM)$25.0 billionNet Income (TTM)$357.1 millionCompany SnapshotBlock, Inc. develops comprehensive payment processing solutions that enable merchants to accept card transactions via proprietary hardware readers, including Magstripe and EMV-compliant contactless and chip readers, and generates revenue from transaction processing fees and hardware sales.The company operates a transaction-based business model whereby it derives revenue from payment processing fees, merchant services, and the sale of point-of-sale hardware and software solutions that facilitate card acceptance and fund settlement.Block serves a diverse merchant base ranging from small independent retailers to mid-market enterprises seeking integrated payment processing, analytics, and working capital solutions in the financial technology infrastructure sector.Block, Inc. is a leading financial technology infrastructure provider with a market capitalization of $48.9 billion and TTM revenues of $25.0 billion, positioning the company as a significant player in the global payments ecosystem. The company's competitive advantage derives from its integrated suite of hardware and software solutions that streamlines payment acceptance, provides actionable merchant analytics, and accelerates fund settlement with next-day availability. With a strategic focus on merchant empowerment through technology, Block maintains a robust platform designed to address the evolving needs of payment processing in an increasingly digital commerce environment.
What this transaction means for investorsGrassadonia sold 17,765 shares under a trading plan adopted on June 2, 2025, with part of the total withheld for taxes on settled stock, leaving 513,981 shares in his direct name. Fourteen months between adoption and execution takes the timing question off the table here. The company's growth story is much more important for investors, especially now: Cash App monthly transacting actives reached 59 million in June, up just 3%, and that slowing growth rattled investors and sent the stock down about 6% the day after the company's latest earnings report, despite a record 27% operating margin and a guidance raise. Cash App gross profit still grew 31% to $1.97 billion with inflows per active user up 9%, so Block is earning more from a base that has stopped widening.
For now, Block's answer is Neighborhoods, the program that steers Cash App users to Square sellers. Annualized seller GPV on it crossed $1 billion in June and grew 220% year over year, and on the company earnings call this month, Business Lead Owen Jennings said that spend from followers reaches about 10% of a seller's GPV within three quarters, and management plans to spend harder on it in the back half, which makes the next report an important signal as to whether linking the two ecosystems adds users or just deepens the ones already there.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Block. The Motley Fool has a disclosure policy.
Anthony Mathew Eisen, a director at the firm, reported a sale of 18,000 shares of Block, Inc. (XYZ -0.95%) in a SEC Form 4 filing disclosed on August 24.
Transaction summaryMetricValueShares sold18,000Transaction value$1.5 millionPost-transaction shares (directly held)1,488,672Post-transaction value$121.15 millionTransaction value based on SEC Form 4 weighted average sale price ($80.80); post-transaction value based on the August 24 market close ($81.38).
Key questionsWhat was the primary driver of this transaction?
The sale was executed automatically under a Rule 10b5-1 trading plan adopted by the insider on March 2, which allows insiders to set up a pre-scheduled plan for selling stock to avoid concerns about trading on non-public information.How does this sale affect Eisen's total exposure to the company?
Following this 1% liquidation, the insider continues to hold about 1.5 million shares directly, maintaining a significant equity position valued at $121.15 million as of the August 24 market close.What is the company's current financial profile at the time of this disclosure?
Block maintains a market capitalization of $48.9 billion and reported trailing twelve-month revenue of $25.0 billion and net income of $357.1 million as of the latest reporting period.How has the stock performed leading up to this filing?
Shares of the technology company were priced at $82.16 as of the August 21 market close, contributing to a one-year total return of 3% as of the transaction date.Company OverviewMetricValueShare Price (as of market close 2026-08-21)$82.16Market Capitalization$48.9 billionRevenue (TTM)$25.0 billionNet Income (TTM)$357.1 millionCompany SnapshotBlock, Inc. develops comprehensive payment processing solutions and hardware platforms that enable merchants to accept card payments, access advanced reporting and analytics, and receive expedited settlement with next-day funding.The company generates revenue through transaction processing fees, hardware sales, software subscriptions, and value-added services, leveraging a diversified ecosystem that serves merchants across multiple verticals and geographies.Block's primary customer base comprises small to mid-sized merchants, retailers, and service providers who require accessible, integrated payment infrastructure and business intelligence tools to optimize their operations.Block, Inc. operates as a leading financial technology company with a $48.9 billion market capitalization and $25.0 billion in TTM revenue. The company's competitive advantage derives from its integrated hardware-software ecosystem, which simplifies payment acceptance while providing merchants with real-time insights and accelerated capital access. Block's strategic positioning in the fintech infrastructure space positions it to capture secular growth in digital payments adoption and merchant digitalization trends.
What this transaction means for investorsEisen co-founded Afterpay in 2014 and ran it as co-CEO until Block bought it in 2022. He then joined the board in February 2025, so his stake is essentially the buy now, pay later business converted into Block stock.
More importantly for long-term investors, Afterpay Pre-Purchase, which lets a Cash App Card user pick installments instead of a debit charge at checkout, reached general availability in the quarter, and Cash App commerce enablement volume grew 17%. CEO Jack Dorsey built the growth case on the August 5 earnings call around what he calls modern earners, saying "we see over 100 million modern earners in the U.S."
Still, one pressure point is credit. Consumer lending originations grew 59%, and CFO Amrita Ahuja said she expects that pace to normalize into the back half as borrower cohorts season, which is where consumer strain would surface before it reaches gross profit. Despite surging 66% from lows earlier this year, Block stock is still only up about 3% this past year, highlighting just how shaky the ride has been.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Block. The Motley Fool has a disclosure policy.
Key Takeaways Cash App gross profit rose 31%, led by 43% growth in Financial Solutions.Block's Cash App Borrow origination volume surged 59% to $18.9 billion.Cash App's monetization rate improved to 1.65% as inflows per active rose 9%. Block (XYZ - Free Report) delivered a strong performance in the second quarter of 2026, with Cash App generating $1.97 billion in gross profit, up 31% year over year. The growth was driven mainly by Financial Solutions, up 43%, while Commerce Enablement increased 18%. Monthly transacting actives grew only 3%, indicating that Cash App's performance is driven by deeper customer engagement rather than rapid user growth. Primary Banking Actives rose 17%, while inflows per active increased 9%, highlighting engagement.
A major contributor was Cash App Borrow, with Consumer Lending origination volume increasing 59% year over year to $18.9 billion. Commerce Enablement volume also rose 17% to $56.5 billion, supported by Cash App Card and Afterpay BNPL. The monetization rate improved from 1.53% to 1.65%, demonstrating that Cash App is generating more value from its existing customer base.
However, sustaining growth will not be without challenges. Management expects Borrow growth to normalize as Block faces tougher comparisons, while loan-related losses have increased with higher lending volumes. Bitcoin Ecosystem gross profit declined, and Cash App sales and marketing expenses increased 28%. These factors highlight the need for Block to diversify its growth drivers while maintaining profitability.
The long-term outlook remains positive as Block continues to build a diversified Cash App ecosystem across Card, BNPL, primary banking, Cash App Pay, Neighborhoods, families and teens products, Tags and Cash App Mobile. With avenues to deepen engagement, increase product adoption and expand monetization, Block has the potential to sustain healthy growth. The key will be converting customer relationships into financial activity.
How Are Block’s Competitors Faring?PayPal’s (PYPL - Free Report) revenues increased 5% to $8.7 billion in the second quarter of 2026, while total payment volume (TPV) grew 10% to $486.4 billion. Venmo TPV was particularly strong, increasing 14% year over year, while transactions per active account rose 3%. PayPal also raised its full-year 2026 outlook, reflecting improving momentum across Venmo, Braintree and financial services.
SoFi (SOFI - Free Report) also delivered strong growth in second-quarter 2026, reporting record net revenues of approximately $1.2 billion and net income of $157 million. The company continued to benefit from strong member and product growth, supported by its integrated digital-financial-services platform.
XYZ’s Price Performance, Valuation & EstimatesShares of Block have risen 17.6% over the past three months, which outperformed the broader industry and the S&P 500 Index.
Image Source: Zacks Investment Research
In terms of forward 12-month P/E, XYZ stock is trading at 17.02X, which is at a discount to the Zacks Internet Software industry’s 27.33X.
Image Source: Zacks Investment Research
Block’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised upward over the past week. It indicates a significant increase year over year.
Image Source: Zacks Investment Research
Block currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Block (XYZ - Free Report) Block, Inc. was incorporated in San Francisco in 2009. The company does not designate a headquarters location as it adopted a distributed work model in 2021. It has been an S&P 500 constituent since July 2025.
XYZ is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Computer and Technology stock. XYZ has a Momentum Style Score of A, and shares are up 4.5% over the past four weeks.
12 analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.15 to $4.03 per share. XYZ also boasts an average earnings surprise of +7.3%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, XYZ should be on investors' short list.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Block (XYZ - Free Report) Block, Inc. was incorporated in San Francisco in 2009. The company does not designate a headquarters location as it adopted a distributed work model in 2021. It has been an S&P 500 constituent since July 2025.
XYZ is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 19.72; value investors should take notice.
12 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.15 to $4.03 per share. XYZ boasts an average earnings surprise of +7.3%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, XYZ should be on investors' short list.
Key Takeaways Block is expanding Square and OpenTable's integration to connect reservations, payments and guest data.The integration can aid restaurants identify high-value guests and improve loyalty and personalized marketing.Deeper integration could drive Square adoption, broader product use and higher payment volumes. Block’s (XYZ - Free Report) Square and OpenTable are expanding their preferred partnership to more closely connect reservation, guest, payment and transaction data across their platforms. The enhanced integration will combine OpenTable’s reservation history, booking behavior, dining preferences and guest information with Square’s order, payment, spending and operational data, giving restaurant operators a more complete view of the customer journey from booking through payment and repeat visits.
For restaurants, the integration could make it easier to link reservations with actual revenues, identify high-value and frequent guests, track spending patterns and use those insights to improve loyalty programs, personalized marketing and customer engagement. It could also help restaurants deliver more tailored service by giving staff better visibility into guest preferences and past behavior.
The partnership could also support growing adoption of Square among restaurants by making its platform more attractive to operators seeking integrated payments, point-of-sale (POS), guest insights and customer engagement tools. Deeper integration with OpenTable could help Square win new restaurant customers while encouraging existing merchants to adopt more of its software, payments and hardware products, strengthening its position as a broader restaurant technology platform. Greater merchant engagement and broader product adoption could, in turn, support higher payment volumes and additional revenue opportunities for Block.
The expanded partnership builds on the companies’ POS relationship launched in 2022. The new capabilities are opt-in, with future enhancements expected to include faster onboarding, smarter reservation workflows, richer guest insights, deeper loyalty integration, and expanded ordering and payment functionality.
How Are Block’s Competitors Fairing?Toast (TOST - Free Report) is a key Square competitor, with integrations across Resy, SevenRooms and Tock connecting reservations, guest profiles and POS data. TOST ended second-quarter 2026 with approximately 180,000 locations, up 22% year over year, after adding a record 9,500 net locations.
Lightspeed Commerce (LSPD - Free Report) , which integrates its restaurant POS with SevenRooms, reported fiscal first-quarter 2027 revenues of $322.7 million, up 17% organically. Gross payment volume reached $11.3 billion. The company ended June 2026 with about 146,000 customer locations, underscoring its scale in restaurant and retail technology across global markets.
XYZ’s Price Performance, Valuation & EstimatesShares of Block have risen 12.1% over the past three months, which outperformed the broader industry and the S&P 500 Index.
Image Source: Zacks Investment Research
In terms of forward 12-month P/E, XYZ stock is trading at 16.9X, which is at a discount to the Zacks Internet Software industry’s 27.76X.
Image Source: Zacks Investment Research
Block’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised upward over the past week. It indicates a significant increase year over year.
Image Source: Zacks Investment Research
Block currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
There are growth investors, and then there's Cathie Wood. The Ark Invest founder, CEO, and chief investment officer delivered wealth-altering results in 2020. After a few challenging years of market lagging, she's rolling again in 2025. Ark publishes its transactions at the end of every trading day, so we know exactly what's she buying.
What's she buying? Well, she kicked off the new trading week by buying shares in Nvidia (NVDA -2.26%), Block (XYZ +1.22%), and Nu Holdings (NU -2.00%) on Monday. In all three cases, she was adding to existing positions. Let's take a closer look at all three moves.
Image source: Getty Images.
1. Nvidia For a company whose moniker loosely translates to "envy" in Spanish, it's easy to see why others are envious of the artificial intelligence (AI) bellwether's market cap crown. The top provider of AI and data center chips sits alone at the table of companies with market caps exceeding $5 trillion, but it's not exactly eating alone these days.
Many smaller makers of AI accelerators and related components are outperforming Nvidia over the past year. The stock is an 11-bagger over the past five years, but its 25% jump over the past 12 months is barely ahead of the general market's return. With its business accelerating over the past year, Nvidia stock can be considered a bargain despite closing in on its May all-time high.
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Despite supply chain constraints and trade restrictions into China, Nvidia's business is booming. Revenue soared 85% in its fiscal first quarter with adjusted earnings rising 139%. Investors won't have to wait long for fresh financials. Nvidia will announce its fiscal second-quarter results next week.
Analysts see revenue climbing 97% when it delivers its quarterly results after the market close next Wednesday. Adjusted net income is expected to clock in with a 98% year-over-year increase.
You can buy Nvidia for a reasonable 25 times this fiscal year's earnings and less than 18 times next year's target. With Nvidia consistently landing just ahead of analyst profit targets in recent years, the default setting would be another beat, with Wall Street pros scrambling to revise their forecasts higher. This would naturally drive forward earnings multiples lower. It's a game that Nvidia investors -- including Wood's Ark Invest -- have been benefiting from for years.
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2. Block Block stock hit a fresh 52-week high earlier this month, but with the shares retreating 3% on Monday, it may have been a good time to take advantage of the minor pullback. The fintech pioneer behind point-of-sale processor Square, digital wallet app Cash App, and its Afterpay buy now, pay later platform had a rough 2025. Revenue was flat for all of 2025, but business has begun to accelerate since the second half of last year.
Revenue has risen by 2%, 4%, 5%, and 9% over the four quarters since the midpoint of last year. Like many stocks that remain nowhere near their 2021 highs, Block is trading 72% below its peak set five summers ago.
Despite soaring 66% since bottoming out in February, the shares are still reasonably cheap. You can buy Square at a year-ahead earnings multiple in the high teens. If it can continue to deliver accelerating revenue growth -- something admittedly Block investors are not used to seeing -- Wood could have another bargain here.
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3. Nu Holdings This may not be the first company that investors think about when it comes to fintech in Latin America, but Nu Holdings has built an impressive empire in a short time. It launched Nubank in Brazil just a dozen years ago, and now more than 62% of the country's population has an account. It has since rolled out in Mexico and Colombia. It's getting ready to enter the U.S. market.
Its latest quarter was impressive. Revenue rose 39% to $5.9 billion, fueled in part by a 13% increase in accounts. Nubank was serving 138.9 million accounts at the end of June. Revenue is tripling its audience, and that's a good thing. Its customers are going all in on Nu's broader product offerings. Customer deposits are up 18%. Its credit and loan portfolio has risen 37%.
With a low fixed cost structure, seeing the monthly average revenue per active user soar 22% over the past year stacks nicely on top of its customer growth. Earnings growth jumped 49% for the second quarter that it reported late last week. If Block seems cheap, what does that mean for Nu? It's growing faster than Block, and at 13 times next year's profit target, it's the cheapest of the three names on this list.
Square's refresh of its Square Credit Card, which was announced last week, is part of parent company Block's broader strategy to more closely integrate payments, banking, credit and bill management within its platform, American Banker reported Monday (Aug. 17), citing its interview with Andrea Raj, head of product for Square Money.
Block (XYZ -0.25%) (formerly Square) delivered its second-quarter earnings after the close of trading on Aug. 5, and shares fell by about 6% the next day. Even with a 65% year-over-year jump in adjusted earnings per share, investors focused on weakening growth in the number of Cash App's monthly transacting actives. But the stock's discount may still present an opportunity for patient investors.
Image source: Block.
AI is driving strong earnings growth The biggest story of the quarter was the impact of Block's AI-centered strategy on profits. Adjusted earnings came in at $1.02 per share, well above the $0.87 per share consensus estimate. The market may dismiss this as a one-time beat, but the earnings call points to a structural shift in costs that could support higher earnings over time.
In February, Block announced a 40% reduction in its workforce, citing AI tools that are making software engineers more productive, and leading the company to need fewer of them. The number of code changes per engineer is up 150% since the start of the year.
Investors may see this as a temporary margin lift, but management doesn't.
"That way of working ultimately drives improved efficiency over time and greater leverage to our business over time," CFO Amrita Ahuja said. Management expects full-year earnings to grow by 70%.
Those higher profits can be reinvested in developing new products that could help drive long-term revenue growth -- an opportunity that may not be reflected in the stock price.
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Why the stock could be undervalued One reason the stock fell was the weakening growth in Cash App's monthly transacting activities. The number of those active users grew just 3% year over year -- a deceleration from the 4% increase in the previous quarter. Growth has cooled as mobile payments have become more competitive, and management is guiding for low-single-digit percentage growth for the full year.
Still, this is partly by design, as management is prioritizing a strategy of getting more value per user. The earnings power it's seeing from AI-driven efficiency should support that push.
At the same time, other metrics show momentum in key areas of the business. Square's gross payment volume (GPV) growth in the U.S. market accelerated to 10% year over year, with international GPV up 28%. Cash App consumer lending originations rose 59%, and commerce enablement volume grew 17%.
Management also expects its Neighborhoods program, which connects Square sellers with Cash App customers, to have a "massive impact" on Cash App's performance over time.
The stock is still down by more than 75% from its 2021 peak, reflecting slower growth and intensifying competition in fintech. Block still has to keep innovating, but the earnings jump tied to AI productivity could be a real game changer.
At $79 per share, Block trades at about 20 times forward earnings, while analysts expect roughly 25% annualized earnings growth in the next several years. This could be a sleeper growth stock worth buying.
Key Takeaways XYZ is strengthening customer engagement as Square supports The Baked Bear's growing franchise network.Square's tools help The Baked Bear standardize operations across 36 U.S. locations and new stores.Expanding franchise relationships could deepen Square's ecosystem adoption and support commerce growth. Block’s (XYZ - Free Report) Square is strengthening its presence in the food and beverage industry as The Baked Bear, a handcrafted cookie ice cream sandwich brand, expands its national footprint. The dessert chain currently operates 36 U.S. locations and plans to add at least five more over the coming year.
The Baked Bear has relied exclusively on Square since opening its first store in Pacific Beach, CA, in 2013. Square Register and Square Point of Sale are now deployed across all 36 locations, providing a standardized technology platform across its growing franchise network.
Square’s simple and scalable tools are particularly valuable as The Baked Bear expands across multiple states. Consistent POS technology can simplify employee training, streamline transactions and help franchisees maintain a uniform customer experience. This is especially useful for a growing brand with employees having varying levels of experience and operational needs.
For Square, the relationship highlights its ability to support restaurant operators beyond individual locations. Its integrated commerce solutions help multi-location and franchise businesses manage transactions while providing a technology foundation that can scale as new stores are added. This can strengthen Square’s role in customers’ daily operations and potentially encourage adoption of additional tools.
As restaurant operators increasingly seek unified platforms to simplify operations, manage payments and support expansion, Square’s growing presence among franchise brands could deepen customer relationships, increase ecosystem adoption and support growth in its commerce business.
How Are Block’s Competitors Faring?Toast (TOST - Free Report) continues to strengthen its restaurant technology business through new customer engagements. In 2026, BWH Hotels selected Toast as a preferred POS provider for properties across the United States and Canada, expanding Toast’s reach across a large hospitality network. Toast also added 9,500 net locations in the second quarter, underscoring strong customer adoption.
Lightspeed Commerce (LSPD - Free Report) continued to expand its restaurant customer base in first quarter 2027, adding Vlaamsch Broodhuys, a 19-location Dutch restaurant chain, and Afrikana Peri Kitchen and Grill, which operates 17 U.K. locations. Blanc, a Michelin-starred Paris restaurant, also selected Lightspeed, highlighting its growing presence across diverse hospitality businesses.
XYZ’s Price Performance, Valuation & EstimatesShares of Block have risen 18.1% over the past three months, which outperformed the broader industry and the S&P 500 Index.
Image Source: Zacks Investment Research
In terms of forward 12-month P/E, XYZ stock is trading at 18.08X, which is at a discount to the Zacks Internet Software industry’s 29.23X.
Image Source: Zacks Investment Research
Block’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised marginally northward over the past week. It indicates a significant increase year over year.
Image Source: Zacks Investment Research
Block currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Block posted 25% gross-profit growth and a record 27% adjusted operating margin in Q2.Cash App gross profit rose 31%, while Square gross profit and GPV both increased 13%.Block raised its 2026 outlook as it invests more in go-to-market efforts, Neighborhoods and AI. Block, Inc. (XYZ - Free Report) has entered the second half of 2026 with stronger operating momentum, improving profitability and several growth initiatives across Cash App and Square. The fintech company is also putting more focus on connecting its consumer and merchant ecosystems, while investments in artificial intelligence are aimed at improving product development and efficiency. This gives investors more to consider than a simple earnings beat.
XYZ shares had considerably advanced in 2026 heading into second-quarter earnings, reflecting renewed confidence in Block's execution. The stock fell more than 6% on Aug. 6 after the results as investors weighed higher planned investments against stronger earnings and guidance. Through Aug. 12, XYZ remained below its pre-results level. Over the broader period, Block's performance has compared favorably with PayPal Holdings (PYPL - Free Report) , while Toast (TOST - Free Report) has also seen notable swings as investors reassessed growth expectations across fintech and payments.
The key question now is whether Block can maintain stronger growth and margins while stepping up spending on sales, product development and AI. Its second-quarter results provided encouraging evidence, but the balance between growth investment and operating discipline remains important.
Image Source: Zacks Investment Research
Block’s Q2 Results Shows Better Growth and ProfitabilityBlock delivered second-quarter adjusted EPS of $1.02, while revenues rose 9% year over year to $6.62 billion. Gross profit increased 25% from the prior-year period. More important for the longer-term earnings story, adjusted operating income reached $864 million, and the adjusted operating margin hit a record 27%.
Cash App remained the stronger growth engine, with gross profit rising 31% year over year. Monthly transacting actives increased 3% in June, while Cash App Commerce Enablement volume climbed 17%, and consumer lending origination volume increased 59%. Block is seeking to deepen engagement rather than relying only on user additions, an approach that could support monetization even if active-user growth remains modest.
Square also showed better momentum. Gross profit and gross payment volume both increased 13%, while U.S. GPV growth accelerated to its strongest pace since the second quarter of 2023. Management said new seller additions through independent sales organization partners increased more than 150% sequentially as Block continued expanding its distribution channels.
XYZ’s Raised Guidance Adds SupportManagement increased its 2026 outlook following the stronger first half. Block now expects gross profit of $12.51 billion, representing 21% year-over-year growth, along with adjusted operating income of $3.47 billion and a 28% margin. Adjusted EPS is expected to grow 70% for the full year. For the third quarter, management expects gross profit growth of 18% and another 28% adjusted operating margin.
The raised outlook is encouraging because it reflects more than the second-quarter beat. Management said performance heading into the third quarter remained healthy, with Square GPV growth in July consistent with second-quarter strength and Cash App inflows and monetization trends remaining solid.
New Products Could Broaden Growth of BlockBlock is also trying to create stronger links between Square and Cash App. Neighborhoods is an important part of that effort. Annualized seller GPV on the platform crossed $1 billion in June, up 220% year over year, while seller onboarding accelerated sharply into July.
Product development has accelerated as well. Block said code changes per engineer increased 150% since the start of 2026, while Square shipped 130 features during the first half, more than three times the number delivered in the comparable 2025 period.
The opportunity comes with added costs. Management plans to increase investment in go-to-market efforts, Neighborhoods and AI when it sees attractive returns. This strategy could support longer-term growth, but investors will want evidence that higher spending does not interrupt recent margin progress.
XYZ’s Earnings Estimate Revision Trends UpwardThe Zacks Consensus Estimate for Block’s 2026 sales calls for a year-over-year rise of 7.50%, while that for earnings per share (EPS) suggests a 65.40% increase year over year. EPS estimates for both 2026 and 2027 have been trending upward over the past month.
Image Source: Zacks Investment Research
XYZ's Valuation Remains ReasonableBlock's valuation looks more balanced after its earnings and profit growth improved, although it should be viewed alongside expectations for continued execution. In terms of forward 12-month Price/Earnings (P/E), Block is trading at 17.05X, which is at a discount to Toast’s 21.32X, but at a premium to PayPal’s 10.50X.
Block's premium to PayPal can be supported if gross-profit growth remains strong and margins continue expanding. At the same time, comparisons with Toast show that investors are already willing to pay more for faster payments and merchant-technology growth, leaving Block with less room for execution setbacks.
Valuation
Image Source: Zacks Investment Research
What Should Investors Do With XYZ Stock?Block's second-quarter report strengthened the investment case without removing the reasons for caution. Gross profit growth accelerated, profitability reached record levels, and management raised its full-year outlook. Square's improving GPV trends and deeper Cash App engagement also provide several ways to sustain growth into 2027.
Still, the post-earnings share-price decline shows that investors are watching spending closely. Cash App active growth remains modest, lending growth should normalize, and increased AI and sales investments could limit additional margin expansion if returns take time to emerge. For existing investors, the improving fundamentals support staying with the position while waiting for clearer evidence that Block can sustain stronger growth and disciplined spending together.
At present, Block carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Square is integrating its Credit Card with Bill Pay to help sellers manage expenses and preserve cash flow.Sellers earn 3% cash back on Bill Pay and 1.5% on other purchases, with multiple reward redemption options.Square pays vendors via ACH or checks, while dynamic credit lines support business growth. Block Inc.’s (XYZ - Free Report) Square is expanding its financial ecosystem to help small businesses manage cash flow, payments and financing in one place. The refreshed Square Credit Card and upgraded Square Bill Pay could make it easier for sellers to pay vendors, earn rewards and preserve working capital.
The refreshed card, operating on the American Express network, offers unlimited 3% cash back on Square Bill Pay transactions and 1.5% on other purchases. Rewards can be deposited into Square Savings, applied as statement credits or used toward Square payment processing costs.
The bigger change is the integration of the credit card with Bill Pay. Sellers can now use their Square Credit Card to pay expenses such as rent, insurance, marketing and inventory, even when vendors do not accept credit cards. Square sends vendors funds through ACH or mailed checks, while businesses can preserve cash for longer.
The card also carries no annual, late or foreign transaction fees and does not require a personal guarantee. Its dynamic credit line can increase as a business grows, while sellers can use Square sales to help automatically repay balances.
Earlier this year, Square expanded Square Loans eligibility using improved underwriting models and partnered with Homegrown to offer up to $1 million in expansion financing for eligible multi-location businesses. Overall, the Credit Card and Bill Pay combination could help sellers manage cash flow while making Square more deeply embedded in daily business operations.
How Are Block’s Competitors Faring?PayPal (PYPL - Free Report) has a significant small-business financing operation. In the second quarter of 2026, PayPal processed $486.4 billion in total payment volume, up 10% year over year, while revenues rose 5% to $8.7 billion, highlighting PayPal’s broad payments ecosystem and growing financial-services capabilities.
Toast (TOST - Free Report) delivered another strong quarter, with ARR rising 25% year over year to $2.4 billion and approximately 9,500 net new locations added in the second quarter. The performance highlights continued demand for its integrated payments, software and financial technology platform, making Toast a notable competitor to Square in the small-business market.
XYZ’s Price Performance, Valuation & EstimatesShares of Block have gained 13.3% over the past three months, underperforming the broader industry but outperforming the S&P 500 composite.
Image Source: Zacks Investment Research
In terms of forward 12-month P/E, XYZ stock is trading at 17.23X, which is at a discount to the Zacks Internet Software industry’s 28.85X.
Image Source: Zacks Investment Research
Block’s earnings estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised northward marginally. The figure indicates a significant increase year over year.
Image Source: Zacks Investment Research
Block currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DISTRIBUTED-WORKFORCE/OAKLAND, Calif.--(BUSINESS WIRE)--Square today announced a significant expansion of its Square Credit Card program and a new Square Bill Pay capability that enables sellers to fund vendor payments with their Square Credit Card, regardless of whether the vendor accepts cards. Together, the updates give sellers a more powerful way to manage cash flow, business expenses, and vendor payments from a single platform.
Businesses can now use their Square Credit Card to pay vendors that don’t accept cards, as well as those that do, Square said in a Tuesday (Aug. 11) press release.
This enhanced Bill Pay feature lets sellers pay rent, insurance, marketing expenses and other vendor expenses, regardless of whether the vendors accept cards. Square routes the money to the vendor’s choice of a direct deposit into their bank account (ACH) or a check in the mail, according to the release.
Square Bill Pay provides an alternative to solutions that come with additional costs or require small business owners to spend their cash on hand, Andrea Raj, head of product for Square Banking, said in the release.
“We built the opposite,” Raj said. “Pay vendors on time, keep cash longer, and earn the right rewards for it, all in one place and while saving on fees. That’s only possible because it’s built into the platform sellers already run their business on.”
Square also announced Tuesday that the refreshed Square Credit Card now offers unlimited 3% cash back on Square Bill Pay transactions and 1.5% cash back on all other purchases. Sellers can redeem the rewards as cash deposits into their Square Savings account, statement credit or free processing, according to the release.
The new features join the existing benefits of the Square Credit Card, which include a dynamic credit line, no personal guarantee, no annual fees, no late fees and no foreign transaction fees, per the release.
Square and parent company Block have launched several other solutions for businesses in recent months.
In June, Square Financial Services launched a deposit tier that pays a higher APY to Square sellers who maintain a daily balance of $10,000 or more in their Square Savings account.
In May, Square and Homegrown announced that they partnered on a pilot program designed to offer expansion capital through flexible financing for Square sellers that have two or more locations and are ready to open another one.
In March, Square said it had begun extending credit to more sellers after improving its underwriting models to assess the creditworthiness of those with non-standard revenue patterns, including project-based earners, seasonal operators and businesses that are new to Square.
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Block, Inc. (NYSE:XYZ – Get Free Report) CFO Amrita Ahuja sold 8,971 shares of the business’s stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $85.85, for a total value of $770,160.35. Following the sale, the chief financial officer owned 454,275 shares in the company, valued at approximately $38,999,508.75. The trade was a 1.94% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Amrita Ahuja also recently made the following trade(s):
On Tuesday, June 16th, Amrita Ahuja sold 8,093 shares of Block stock. The shares were sold at an average price of $75.00, for a total value of $606,975.00. Block Trading Up 0.1% NYSE:XYZ opened at $79.05 on Monday. The company has a market capitalization of $47.05 billion, a PE ratio of 141.16, a price-to-earnings-growth ratio of 0.97 and a beta of 2.53. The company has a quick ratio of 2.21, a current ratio of 2.21 and a debt-to-equity ratio of 0.26. Block, Inc. has a 52-week low of $48.21 and a 52-week high of $86.75. The stock has a fifty day simple moving average of $76.71 and a 200-day simple moving average of $68.04.
Block (NYSE:XYZ – Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The technology company reported $1.02 EPS for the quarter, beating analysts’ consensus estimates of $0.48 by $0.54. Block had a net margin of 1.43% and a return on equity of 8.10%. The firm had revenue of $6.62 billion for the quarter. During the same period in the previous year, the company posted $0.62 earnings per share. Block’s revenue was up 9.3% on a year-over-year basis. Block has set its FY 2026 guidance at 4.020-4.020 EPS and its Q3 2026 guidance at 1.020-1.020 EPS. On average, equities research analysts expect that Block, Inc. will post 2.48 earnings per share for the current fiscal year.
Hedge Funds Weigh In On Block Several institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. acquired a new position in shares of Block in the 2nd quarter valued at $621,703,000. Ameriprise Financial Inc. acquired a new stake in shares of Block during the 2nd quarter worth $535,305,000. Norges Bank purchased a new position in shares of Block in the 4th quarter worth $484,387,000. Viking Global Investors LP acquired a new position in Block in the second quarter valued at $368,213,000. Finally, Capital World Investors boosted its holdings in Block by 41.8% in the fourth quarter. Capital World Investors now owns 16,023,441 shares of the technology company’s stock valued at $1,042,966,000 after acquiring an additional 4,727,217 shares during the last quarter. 70.44% of the stock is currently owned by institutional investors and hedge funds.
More Block News Here are the key news stories impacting Block this week:
Positive Sentiment: Quarterly results exceeded expectations. Block reported second-quarter EPS of $1.02, well above estimates of $0.48–$0.86 and up from $0.62 a year earlier. Revenue increased 9.3% year over year to $6.62 billion, with Cash App and Square contributing to the performance. Block Q2 Earnings and Revenues Beat Estimates Positive Sentiment: Management raised its outlook. Block guided to third-quarter EPS of $1.02 versus the $0.93 consensus and fiscal 2026 EPS of $4.02 versus expectations of $3.62. Management also cited 25% gross-profit growth, record margins and improving momentum from AI-focused products. Block Q2 Earnings Call Highlights Positive Sentiment: Analysts became more bullish. Monness Crespi & Hardt raised its price target from $115 to $125 and initiated a “buy” rating. TD Cowen raised its target to $105, while RBC, Keefe, Bruyette & Woods, Susquehanna and Needham also increased targets, generally maintaining positive ratings. Positive Sentiment: Options activity suggested increased bullish interest. Investors bought 42,107 call options, approximately 55% above average daily call volume. This indicates heightened speculative interest, though it does not guarantee continued gains. Neutral Sentiment: Block’s AI and cost-reduction strategy is gaining investor attention. The company’s workforce reductions and greater emphasis on artificial intelligence appear to be supporting efficiency and profitability, but investors will want evidence that growth remains durable. Negative Sentiment: Insiders sold shares. Director Anthony Mathew Eisen sold 47,000 shares for approximately $4.0 million across two transactions, and Brian Grassadonia sold 25,908 shares for about $2.1 million. The sales were executed under pre-arranged Rule 10b5-1 plans, reducing their significance, but repeated insider selling may weigh on sentiment. Negative Sentiment: Valuation leaves limited room for disappointment. With Block trading near its 52-week high and at an elevated earnings multiple, the stock may remain sensitive to any slowdown in Cash App, Square or AI-related profitability. Analyst Upgrades and Downgrades A number of equities research analysts recently issued reports on XYZ shares. Susquehanna upped their target price on Block from $90.00 to $100.00 and gave the company a “positive” rating in a research note on Thursday. Craig Hallum initiated coverage on Block in a research report on Tuesday, June 30th. They set a “buy” rating for the company. Deutsche Bank Aktiengesellschaft raised Block to a “buy” rating in a report on Tuesday, June 30th. Barclays began coverage on Block in a research note on Tuesday, July 7th. They set an “overweight” rating and a $100.00 price objective on the stock. Finally, Robert W. Baird set a $105.00 price objective on Block in a research report on Thursday. Three analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and nine have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $93.88.
View Our Latest Research Report on XYZ
Block Company Profile (Get Free Report)
Block (NYSE:XYZ) is a financial technology company that builds products and services to facilitate electronic payments, commerce, and consumer finance. Its principal business lines include a seller-focused ecosystem that provides point-of-sale hardware and software, payment processing, invoicing, payroll and lending services, and a consumer-facing platform that offers peer-to-peer payments, banking-like features, and investing. Block’s portfolio also encompasses music streaming and buy-now-pay-later capabilities through businesses acquired to broaden its reach beyond core payments.
The company was founded as Square in 2009 by Jack Dorsey and Jim McKelvey and later rebranded to Block to reflect a diversified set of businesses across payments, consumer finance, and emerging technologies.
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Assenagon Asset Management S.A. boosted its holdings in Block, Inc. (NYSE:XYZ – Free Report) by 372.8% during the second quarter, according to the company in its most recent disclosure with the SEC. The firm owned 937,540 shares of the technology company’s stock after purchasing an additional 739,264 shares during the quarter. Assenagon Asset Management S.A. owned about 0.16% of Block worth $71,253,000 at the end of the most recent quarter.
Other institutional investors and hedge funds have also made changes to their positions in the company. Sound Income Strategies LLC grew its stake in shares of Block by 57.1% in the 4th quarter. Sound Income Strategies LLC now owns 443 shares of the technology company’s stock worth $29,000 after buying an additional 161 shares during the last quarter. Rachor Investment Advisory Services LLC purchased a new position in Block during the fourth quarter valued at $32,000. Global Assets Advisory LLC purchased a new position in Block during the first quarter valued at $31,000. Cary Street Partners Investment Advisory LLC boosted its holdings in Block by 57.6% in the fourth quarter. Cary Street Partners Investment Advisory LLC now owns 610 shares of the technology company’s stock worth $40,000 after acquiring an additional 223 shares in the last quarter. Finally, Darwin Wealth Management LLC bought a new stake in Block in the second quarter worth $43,000. Institutional investors own 70.44% of the company’s stock.
Analyst Ratings Changes Several brokerages have recently weighed in on XYZ. Susquehanna raised their price target on Block from $90.00 to $100.00 and gave the company a “positive” rating in a report on Thursday. Cantor Fitzgerald reiterated an “overweight” rating and issued a $95.00 price target on shares of Block in a research note on Thursday. Canaccord Genuity Group increased their price objective on shares of Block from $80.00 to $85.00 and gave the company a “buy” rating in a research report on Monday, May 18th. BMO Capital Markets raised their price objective on shares of Block from $78.00 to $85.00 and gave the company a “market perform” rating in a research note on Wednesday, July 22nd. Finally, Oppenheimer restated an “outperform” rating and set a $97.00 price objective on shares of Block in a research note on Thursday. Three analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and nine have issued a Hold rating to the company. According to MarketBeat.com, Block currently has a consensus rating of “Moderate Buy” and a consensus target price of $93.88.
Read Our Latest Report on Block
Key Block News Here are the key news stories impacting Block this week:
Positive Sentiment: Quarterly results exceeded expectations. Block reported second-quarter EPS of $1.02, well above estimates of $0.48–$0.86 and up from $0.62 a year earlier. Revenue increased 9.3% year over year to $6.62 billion, with Cash App and Square contributing to the performance. Block Q2 Earnings and Revenues Beat Estimates Positive Sentiment: Management raised its outlook. Block guided to third-quarter EPS of $1.02 versus the $0.93 consensus and fiscal 2026 EPS of $4.02 versus expectations of $3.62. Management also cited 25% gross-profit growth, record margins and improving momentum from AI-focused products. Block Q2 Earnings Call Highlights Positive Sentiment: Analysts became more bullish. Monness Crespi & Hardt raised its price target from $115 to $125 and initiated a “buy” rating. TD Cowen raised its target to $105, while RBC, Keefe, Bruyette & Woods, Susquehanna and Needham also increased targets, generally maintaining positive ratings. Positive Sentiment: Options activity suggested increased bullish interest. Investors bought 42,107 call options, approximately 55% above average daily call volume. This indicates heightened speculative interest, though it does not guarantee continued gains. Neutral Sentiment: Block’s AI and cost-reduction strategy is gaining investor attention. The company’s workforce reductions and greater emphasis on artificial intelligence appear to be supporting efficiency and profitability, but investors will want evidence that growth remains durable. Negative Sentiment: Insiders sold shares. Director Anthony Mathew Eisen sold 47,000 shares for approximately $4.0 million across two transactions, and Brian Grassadonia sold 25,908 shares for about $2.1 million. The sales were executed under pre-arranged Rule 10b5-1 plans, reducing their significance, but repeated insider selling may weigh on sentiment. Negative Sentiment: Valuation leaves limited room for disappointment. With Block trading near its 52-week high and at an elevated earnings multiple, the stock may remain sensitive to any slowdown in Cash App, Square or AI-related profitability. Block Stock Up 0.0% Shares of XYZ opened at $79.05 on Friday. The business’s 50 day moving average is $76.71 and its 200 day moving average is $68.03. The company has a current ratio of 2.21, a quick ratio of 1.99 and a debt-to-equity ratio of 0.26. Block, Inc. has a 12-month low of $48.21 and a 12-month high of $86.75. The company has a market capitalization of $47.05 billion, a PE ratio of 141.16, a price-to-earnings-growth ratio of 0.95 and a beta of 2.53.
Block (NYSE:XYZ – Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The technology company reported $1.02 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.48 by $0.54. Block had a net margin of 1.43% and a return on equity of 8.10%. The firm had revenue of $6.62 billion for the quarter. During the same quarter in the previous year, the business earned $0.62 EPS. The company’s quarterly revenue was up 9.3% on a year-over-year basis. Block has set its FY 2026 guidance at 4.020-4.020 EPS and its Q3 2026 guidance at 1.020-1.020 EPS. Research analysts expect that Block, Inc. will post 2.61 earnings per share for the current fiscal year.
Insider Activity In related news, insider Brian Grassadonia sold 43,348 shares of the stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $80.00, for a total transaction of $3,467,840.00. Following the completion of the transaction, the insider directly owned 557,654 shares of the company’s stock, valued at approximately $44,612,320. This represents a 7.21% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Amrita Ahuja sold 8,971 shares of the firm’s stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $85.85, for a total value of $770,160.35. Following the transaction, the chief financial officer owned 454,275 shares of the company’s stock, valued at $38,999,508.75. This represents a 1.94% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 441,179 shares of company stock worth $34,543,835 over the last 90 days. Corporate insiders own 11.37% of the company’s stock.
Block Profile (Free Report)
Block (NYSE:XYZ) is a financial technology company that builds products and services to facilitate electronic payments, commerce, and consumer finance. Its principal business lines include a seller-focused ecosystem that provides point-of-sale hardware and software, payment processing, invoicing, payroll and lending services, and a consumer-facing platform that offers peer-to-peer payments, banking-like features, and investing. Block’s portfolio also encompasses music streaming and buy-now-pay-later capabilities through businesses acquired to broaden its reach beyond core payments.
The company was founded as Square in 2009 by Jack Dorsey and Jim McKelvey and later rebranded to Block to reflect a diversified set of businesses across payments, consumer finance, and emerging technologies.
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Profitability on CashApp is one contributing reason behind Block's (XYZ) latest earnings move, says Tony Zipparo. Shares of XYZ touched a new 52-week high after reporting a top-and-bottom line beat.
Key Takeaways XYZ's Q2 results beat estimates, driven by Cash App lending and stronger Square payment volume.Cash App gross profit jumped 31.4%, with lending volume up 58.8% and PBAs reaching 9.4 million.Square GPV rose 13.4%, while adjusted operating income hit a record and Block raised its 2026 outlook. Block, Inc. (XYZ - Free Report) reported second-quarter 2026 adjusted earnings per share (EPS) of $1.02, up 64.5% year over year and above the Zacks Consensus Estimate of 86 cents by 18.6%.
Revenues rose 9.3% to $6.62 billion, beating the consensus mark of $6.54 billion by 1.3%. Cash App lending, commerce activity and stronger Square payment volume supported the quarter’s results. Total Square gross payment volume (GPV) increased 13.4% to $72.85 billion.
XYZ’s Revenue Mix Benefits From Commerce Enablement GrowthCommerce Enablement revenues increased 15.3% year over year to $3.34 billion. Financial Solutions revenues advanced 40.3% to $1.38 billion, reflecting continued growth across lending and other financial products.
Bitcoin Ecosystem revenues declined 12.8% to $1.89 billion. Despite that pressure, total gross profit climbed 24.8% to $3.17 billion. The Commerce Enablement gross profit rose 18% to $1.81 billion, while Financial Solutions gross profit increased 42.9% to $1.29 billion.
XYZ’s Cash App Monetization Gains MomentumCash App gross profit advanced 31.4% year over year to $1.97 billion. Cash App Commerce Enablement volume rose 17% to $56.5 billion, supported by Cash App Card and buy now, pay later (BNPL) products. Commerce Enablement monetization rate improved 12 basis points to 1.65%, aided by higher Afterpay Post-Purchase attach rates.
Consumer Lending origination volume increased 58.8% to $18.9 billion, driven largely by Cash App Borrow. Cash App Primary Banking Actives (PBAs) grew 17% to 9.4 million, while monthly transacting actives reached 59 million in June. Inflows per transacting active rose 9.2% to $1,469.
XYZ’s Square Trends Strengthen Across MarketsSquare’s gross profit increased 12.9% year over year to $1.16 billion. Growth was driven by Commerce Enablement, reflecting stronger payment volumes, increased software adoption and continued momentum in Financial Solutions, particularly Square Loans. A one-time tariff reimbursement contributed roughly two percentage points to Square’s gross profit growth.
Square GPV reached $72.85 billion. U.S. GPV increased 9.8%, marking the strongest domestic growth rate since the second quarter of 2023. International GPV rose 28% on a reported basis and 25% at constant currency. Food and beverage GPV grew 20%, retail advanced 13% and services increased 7%.
XYZ’s Adjusted Profitability Reaches a RecordGAAP operating income was $447 million compared with $484 million a year earlier. General and administrative expenses increased sharply, primarily due to higher accrued legal contingencies.
Adjusted operating income rose 57.1% year over year to a record $864 million. The adjusted operating margin expanded to 27% of gross profit from 22%. Adjusted EBITDA increased 31.2% to $1.17 billion, while adjusted net income climbed to $620 million from $385 million.
XYZ’s Expenses Reflect Lending & Legal CostsOperating expenses totaled $2.72 billion, up from $2.05 billion in the prior-year quarter. Contingencies, restructuring and other charges were $365 million compared with $16 million in the prior-year quarter. Non-GAAP operating expenses increased to $2.32 billion from $2.00 billion.
Transaction, loan and consumer receivable losses increased 99% year over year, primarily because of higher loan volumes. Management noted that cohort-level Borrow risk-loss rates remained healthy as origination volume shifted toward the six-week loan product.
Block Raises Its 2026 Financial OutlookFor the third quarter of fiscal 2026, Block expects gross profit of $3.13 billion, representing 18% year-over-year growth. Adjusted operating income is projected at $875 million, with a 28% margin. Adjusted EPS is forecasted at $1.02, up 89%.
Management raised its full-year outlook to gross profit of $12.51 billion, implying 21% growth. Adjusted operating income is now anticipated to be $3.47 billion, representing a 28% margin and 67% year-over-year growth. Adjusted EPS are expected to increase 70% to $4.02. The Zacks Consensus Estimate for earnings is pinned at $3.90.
Currently, Block carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Fintech StockPayPal Holdings, Inc. (PYPL - Free Report) reported second-quarter 2026 non-GAAP EPS of $1.38, which beat the Zacks Consensus Estimate of $1.28 by 7.81%. The metric declined 1% year over year. Revenues of $8.68 billion surpassed the consensus mark of $8.51 billion by 2.02% and increased 5% year over year.
The quarter benefited from solid growth in total payment volume (TPV), along with continued momentum in Venmo and Braintree. TPV increased 10% to $486.45 billion or 9% on a currency-neutral basis.
Upcoming Earnings ReleasesWe now look forward to the earnings release of other stocks in the Zacks Computer Software industry, Intuit, Inc. (INTU - Free Report) . Intuit is scheduled to report on Aug. 25, 2026.
The Zacks Consensus Estimate for Intuit’s fourth-quarter fiscal 2026 EPS is pinned at $3.59, indicating a 30.55% increase year over year.
CNBC's MacKenzie Sigalos and Block CFO Amrita Ahuja joins 'Squawk on the Street' to discuss sliding 5% despite earnings beat, job cuts from AI, putting AI at the center of workflow, and more.
SummaryI'm maintaining my buy on Block, Inc. The selloff came from Square's monetization, and CashApp is the part of this business that actually matters.EPS came in at $1.02 against $0.85 consensus, and 2026 guidance is $4.02, up 70%. Adjusted operating income grew 57% YoY.CashApp gross profit rose 31%, and lending originations hit $18.9B, up 59%. Square's gross profit rose 13%, matching its user growth exactly.Square's financial solutions monetization fell to 0.41% from 0.45%. Per-user take is falling, the cross-sell layer isn't working, and restructuring costs still bite.I own Block from last quarter's upgrade, and I'm holding another quarter. Forward P/E is 19.65, near the richest it has been all year. Robert Way/iStock Editorial via Getty Images
The last time I covered Block, Inc. (XYZ) was back at their last earnings report, in Q1, where I declared that “I Believe Dorsey,” in reference to the moves that CEO Jack Dorsey was making in
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of XYZ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Key Takeaways Block raised 2026 gross profit guidance to $12.51 billion and adjusted operating income to $3.47 billion.Square payment volume rose 13% to $72.8 billion, led by stronger U.S. and international growth.AI lifted code changes per engineer 150%, while Square shipped 130 features in the first half. Block, Inc. (XYZ - Free Report) raised its 2026 outlook after second-quarter gross profit grew 25% and the adjusted operating income margin reached a record 27%. Management focused on stronger Square trends, deeper Cash App engagement and faster product development.
Adjusted earnings of $1.02 per share beat the Zacks Consensus Estimate of $0.86. Revenues of $6.62 billion topped the consensus estimate of $6.54 billion.
XYZ Raises 2026 Profit OutlookFoundational Lead, COO and CFO Amrita Ahuja said that Block now expects 2026 gross profit of $12.51 billion, up 21%, and adjusted operating income of $3.47 billion at a 28% margin. Full-year 2026 adjusted earnings are projected to be $4.02 per share, up 70%.
A Wells Fargo analyst asked whether conservatism remained in the outlook. Ahuja said that July Square payment-volume growth matched second-quarter strength, while Cash App inflows, monetization and risk trends remained healthy.
Block Sees Square Momentum BuildingAhuja said that Square gross payment volume grew 13% to $72.8 billion. U.S. growth accelerated to roughly 10%, its strongest rate since the second quarter of 2023.
Food-and-beverage volume rose 20%, while mid-market sellers remained Square’s fastest-growing segment. International payment volume increased 25% on a constant-currency basis.
During questioning from Wolfe Research, Ahuja credited faster product releases and expanding distribution. Block had more than 200 active independent sales organization partners, while self-onboarded new volume grew at its fastest pace since the second quarter of 2021.
XYZ Leans on Cash App EngagementAhuja said that Cash App gross profit rose 31% to $1.97 billion. Monthly transacting actives increased 3% to 59 million, while inflows per active grew 9%.
Cash App commerce volume rose 17% to $56.5 billion, and consumer-lending originations increased 59% to $18.9 billion. Management still expects low-single-digit active growth for 2026.
An Evercore analyst questioned growth after Cash App Borrow’s rapid expansion. Co-Founder, head and chairman Jack Dorsey emphasized banking, commerce, Neighborhoods, families and Cash App Tags. Ahuja said that Borrow loss rates remained healthy and loss growth should moderate.
Block Puts AI at the CenterDorsey said that the intelligence-focused reorganization remains on track. Code changes per engineer have risen 150% since the start of 2026, and Square shipped 130 features in the first half, more than triple the prior-year pace.
A Barclays analyst asked about AI costs and monetization. Ahuja said that budgets are increasing, but Block’s model-agnostic architecture, workload routing and open-source models provide flexibility on quality and cost.
Business lead Owen Jennings said that Managerbot could enter software tiers, sell directly or use usage-based pricing. Management is prioritizing product quality, usefulness and distribution before selecting a monetization model.
XYZ Scales Neighborhoods and BankingJennings said that Neighborhoods crossed $1 billion in annualized seller payment volume in June. New sellers joining in July were eight times the March level, while follower spending reached about 10% of seller volume after three quarters.
Ahuja said that Square Financial Services is expanding deposit-taking and acquiring capabilities. The bank processed its first Square acquiring transaction in June, creating a path toward funding efficiency and processing resilience.
Hardware lead Thomas Templeton said that initial Cash App Tags releases sold out, with more than 3 million people requesting notifications for future drops without paid marketing. Production and additional form factors are expanding.
Block Balances Growth and DisciplineAhuja said that Block will invest more in Square distribution, Neighborhoods and AI when expected returns justify deploying profit upside. Management paired that stance with margin expansion and higher full-year profitability targets.
Dorsey framed owned hardware, banking infrastructure, proprietary data and model-agnostic AI as core advantages. The focus remained on converting those capabilities into faster product releases and broader network engagement.
XYZ’s Zacks Signals Remain BalancedXYZ carries a Zacks Rank #3 (Hold). Its Growth Score of A, Momentum Score of B and VGM Score of A indicate favorable characteristics in those styles, while the Value Score of C is less compelling. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Style Scores complement the Zacks Rank, with the strongest historical combinations centered on Zacks Rank #1 or 2 (Buy) stocks carrying A or B scores. XYZ’s signals are constructive but mixed, and the Zacks Rank can change as estimates are revised after the reported results.
Block Inc. (NYSE:XYZ) on Wednesday posted better-than-expected second-quarter results.
Block reported quarterly earnings of $1.02 per share, which beat the consensus estimate of 87 cents by 17.24%. Quarterly revenue came in at $6.62 billion, which beat the analyst consensus estimate of $6.49 billion.
"AI will make software creation abundant. Judgment, trust, depth of understanding, and capability will become scarce. Our advantage is that we understand which things matter for the customers we serve, we own the hard capabilities behind them, and we’ve connected them into a network that compounds with every seller and every customer who joins," said CEO Jack Dorsey.
Block raised its FY2026 adjusted EPS guidance from $3.85 to $4.02.
Block shares fell 0.6% to $83.68 in pre-market trading.
These analysts made changes to their price targets on Block following earnings announcement.
BTIG analyst Andrew Harte maintained Block with a Buy and raised the price target from $90 to $100. Needham analyst Mayank Tandon maintained the stock with a Buy and raised the price target from $95 to $100. Considering buying XYZ stock? Here’s what analysts think:
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Gross Profit: Grew 25% year over year in the second quarter.Adjusted Operating Income Margin: Reached an all-time high of 27%.Adjusted Diluted EPS: Grew 65% yea
DISTRIBUTED-WORK-MODEL/OAKLAND, Calif.--(BUSINESS WIRE)--Block, Inc. (NYSE: XYZ) has posted its results for the second quarter of 2026 on the Financials section of its Investor Relations website at investors.block.xyz. Block will host a conference call and earnings webcast at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time today to discuss these financial results. To register to participate in the conference call, please visit the Events & Presentations section of Block's Investor Relations.
For the quarter ended June 2026, Block (XYZ - Free Report) reported revenue of $6.62 billion, up 9.3% over the same period last year. EPS came in at $1.02, compared to $0.62 in the year-ago quarter.
The reported revenue represents a surprise of +1.25% over the Zacks Consensus Estimate of $6.54 billion. With the consensus EPS estimate being $0.86, the EPS surprise was +18.61%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Block performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Cash App Monthly Transacting Actives: 59 million compared to the 59.17 million average estimate based on three analysts.Inflows Per Transacting Active: $1,469.00 versus the three-analyst average estimate of $1,481.42.Gross Payment Volume (GPV) - Square: $72.85 billion versus $72.16 billion estimated by three analysts on average.Total Cash App Inflows: $87.00 billion versus the two-analyst average estimate of $87.42 billion.Financial solutions revenue: $1.38 billion versus $1.32 billion estimated by four analysts on average.Commerce enablement revenue: $3.34 billion versus $3.3 billion estimated by four analysts on average.Revenue- Square- Total: $2.5 billion versus the four-analyst average estimate of $2.46 billion. The reported number represents a year-over-year change of +15.6%.Revenue- Cash App- Total: $4.02 billion compared to the $4.02 billion average estimate based on three analysts. The reported number represents a change of +4.6% year over year.Revenue- Square - Bitcoin ecosystem revenue: $37 million versus $25 million estimated by two analysts on average.Revenue- Square - Financial solutions revenue: $305 million compared to the $300.04 million average estimate based on two analysts.Revenue- Square - Commerce enablement revenue: $2.16 billion compared to the $2.16 billion average estimate based on two analysts.Revenue- Cash App - Financial solutions revenue: $1.08 billion versus the two-analyst average estimate of $1.05 billion.View all Key Company Metrics for Block here>>>
Shares of Block have returned +9.1% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Block drew plenty of attention earlier this year when CEO Jack Dorsey announced plans to cut roughly 40% of the company’s workforce and put artificial intelligence at the center of its operations. The move made Block one of the most closely watched tests of a question confronting corporate America: Can AI allow a large company to operate with far fewer people without sacrificing growth?
Nearly six months into the reorganization, Dorsey says the answer is beginning to emerge.
“The biggest proof point is our shipping velocity,” Dorsey told analysts during Block’s second-quarter earnings call. He pointed to Buzz, the company’s new platform where AI agents and employees can collaborate on software development and other work. “We have a very small team on a product like Buzz,” he said, adding that Block uses it internally to develop products and coordinate projects.
The company says the changes are allowing smaller teams to move faster. AI is now involved in nearly every change to Block’s production code, while the number of code changes per engineer has risen 150% since the beginning of the year. Square shipped 130 features during the first half, more than three times as many as it shipped during the same period last year.
Block also says the overhaul is lowering personnel costs. Product development expenses declined 17% year over year on a GAAP basis during the quarter, reflecting reduced employee-related costs following the February reorganization. The company has continued spending in areas where it sees growth opportunities, however, including sales, Cash App and AI infrastructure.
The next step is taking those internal AI capabilities to customers. Block launched Buzz publicly in July and plans to offer hosted versions for companies that don’t want to manage their own infrastructure. Dorsey said Block intends to make money from Buzz but hasn’t settled on a single pricing model.
Other AI agents are already moving into Block’s consumer and merchant products. Moneybot, Cash App’s financial assistant, has more than 1 million weekly engaged accounts. Managerbot is automating marketing, profit-margin analysis and operational fixes for Square sellers. Dorsey also identified agents that can make transactions as a “natural place” for Block to explore.
That AI push arrived alongside accelerating growth in the company’s main businesses:
Cash App: Gross profit increased 31% year over year to $1.97 billion. Commerce volume rose 17% to $56.5 billion, while consumer lending originations jumped 59% to $18.9 billion. Cash App had 59 million monthly transacting accounts in June, up 3%, while primary banking accounts increased 17% to 9.4 million. Square: Gross profit rose 13% to $1.16 billion and payment volume increased 13% to $72.8 billion. U.S. payment volume grew 10%, its strongest pace since the second quarter of 2023. International payment volume climbed 28%, or 25% after accounting for currency movements. Financial services: Gross profit from Block’s financial solutions business surged 43%, led by Cash App’s consumer lending products. Square’s credit card reached more than $1 billion in annualized spending. Square Financial Services also began offering eligible sellers a 3.5% annual percentage yield on savings and processed its first Square acquiring transaction in June. Block expects deposits eventually to provide a lower-cost source of funding for loans. Across the company, second-quarter revenue increased 9% to $6.62 billion. Gross profit rose 25% to $3.17 billion. Block reported operating income of $447 million and net income attributable to common shareholders of $89 million, or 15 cents per diluted share. Adjusted operating income reached a record $864 million and adjusted earnings rose 65% to $1.02 per diluted share.
Block raised its full-year outlook following the quarter. It now expects gross profit of $12.51 billion, up 21%, and adjusted operating income of $3.47 billion. Adjusted earnings are projected to rise 70% to $4.02 per share. Those figures don’t settle the broader debate over AI and jobs, but they give Block something concrete to show for an overhaul that was impossible to ignore.
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Pinterest Earnings And Revenue Beat But Stock Slides Late Square-parent Block (XYZ) on Wednesday reported second-quarter earnings and revenue that topped consensus estimates while key financial metrics came in slightly above Wall Street targets. Profit guidance met expectations. Block stock fell on the news. Released after the market close, Square earnings for the period ended June 30 were $1.02 per share on an adjusted basis, up 64% from the…
XYZ stock is moving. Watch the price action here. Block Q2 Details Block reported quarterly earnings of $1.02 per share, which beat the consensus estimate of 87 cents by 17.24%
Quarterly revenue came in at $6.62 billion, which beat the analyst consensus estimate of $6.49 billion.
Cash App: Cash App Commerce Enablement volume grew 17% year over year to $56.5 billion, driven by Cash App Card and BNPL. Consumer Lending origination volume grew 59% year over year to $18.9 billion, driven by Cash App Borrow, while risk loss rates remained healthy. PBAs grew 17% year over year while Cash App monthly transacting actives were 59 million in June.
Square: Square GPV grew 13% year over year. Square’s U.S. GPV growth accelerated to 10% year over year, reflecting the strongest U.S. growth rate since the second quarter of 2023, while International GPV growth sustained strong performance, growing 28% year over year (25% in constant currency).
“AI will make software creation abundant. Judgment, trust, depth of understanding, and capability will become scarce. Our advantage is that we understand which things matter for the customers we serve, we own the hard capabilities behind them, and we’ve connected them into a network that compounds with every seller and every customer who joins,” said CEO Jack Dorsey.
XYZ Stock Price Activity: According to data from Benzinga Pro, Block stock was down 4.39% to $80.50 in Wednesday’s extended trading.
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HomeIndustriesBusiness/Consumer ServicesEarnings ResultsEarnings Results‘We can ship higher-quality products much, much more quickly,’ an executive said in the wake of the company’s better-than-expected earnings reportAug. 5, 2026, 6:19 p.m. ET
Less than six months after the surprise announcement that it would be laying off more than 40% of its staff as part of a deep embrace of artificial intelligence, Block said its leaner structure is yielding results.
“We can ship higher-quality products much, much more quickly, and that’s because of all the innovation that we’ve been pushing on as it relates to AI,” Owen Jennings, the company’s business lead, told MarketWatch. He noted that Block XYZ, which houses Square and Cash App, shipped more features in the first half of 2026 than it did in the same period of 2025.
