Block beats Q1 profit estimates, raises FY forecast

Block

07/05/2026 21:17

Overview

U.S. fintech platform's Q1 adjusted EPS and EBITDA beat analyst expectations

Company reported strong gross profit growth, driven by AI integration and product innovation

Cash App and Square gross profit saw double-digit yr/yr growth

Outlook

Block raises full-year outlook, now expects gross profit growth of 19% in 2026

Company sees full-year adj diluted EPS growth of 62%

Block says AI integration expected to improve operational efficiency and customer value

Result Drivers

AI INTEGRATION - Co said AI tools improved engineering velocity and customer engagement, contributing to Q1 results

PRODUCT INNOVATION - Launch and adoption of Moneybot and Managerbot drove engagement and proactive customer actions

CASH APP AND SQUARE GROWTH - Double-digit yr/yr gross profit growth in Cash App and Square supported overall results

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Adjusted EPS
Beat
$0.85
$0.68 (28 Analysts)
Q1 EPS
-$0.52
Q1 Adjusted EBITDA
Beat
$1 bln
$947.10 mln (24 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 37 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the business support services peer group is "buy"

Wall Street's median 12-month price target for Block Inc is $87.00, about 22.8% above its May 6 closing price of $70.83

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 18 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)