Block stock jumps 8% after hours; raises 2026 guidance

Block Inc. shares rose about 8% in after-hours trading after the company reported first-quarter adjusted diluted earnings of $0.85 per share, above the $0.68 analyst estimate. The stock closed regular trading at $70.14 on the New York Stock Exchange and traded as high as $75.70 after hours. The EPS beat represented roughly a 26% earnings surprise and a 52% year-over-year increase in adjusted diluted EPS.

Block reported first-quarter gross profit of $2.91 billion, up 27% from a year earlier. Cash App gross profit rose 38% to $1.91 billion, and Square gross profit increased 9% to $982 million as gross payment volume accelerated 13%. Adjusted operating income reached $728 million and operating margin expanded to 25%.

The company recorded a net loss attributable to common stockholders of $309 million for the quarter. The loss included a $172.8 million remeasurement loss on its Bitcoin investment. Excluding that and other adjustments, management said the company reported stronger adjusted results for the period.

Following the quarter, Block raised its full-year 2026 outlook. Management now expects gross profit of about $12.33 billion, roughly 19% growth from the prior year, and projects adjusted diluted EPS of $3.85, about a 62% increase versus the prior year.

For the second quarter, Block guided to gross profit of $3.04 billion and adjusted diluted EPS of $0.86, representing year-over-year growth of about 20% and 39%, respectively. The company said it will report second-quarter results on Aug. 5.

In the shareholder letter, Jack Dorsey wrote that the company exceeded its guidance across gross profit, adjusted operating income and adjusted EPS, and noted that artificial intelligence is becoming more central to how Block operates and what it builds for customers.