Block (NYSE: XYZ) shares gained more than 4% in late trading after the payments company posted second-quarter numbers above Wall Street forecasts. Adjusted earnings reached $1.02 per share for the three months through June 30.
Analysts following London Stock Exchange Group (LSE: LSEG) were expecting 87 cents per share. The quarterly income came to $6.62 billion, exceeding the estimates of around $6.49 billion from analysts.
The company, led by Jack Dorsey, also raised its full-year target. Block now sees 2026 gross profit at $12.51 billion, which would mean 21% growth from a year earlier. Its old target was $12.33 billion, or 19% growth. The report came at the end of a solid earnings season for U.S. payment companies.
Block separates bitcoin activity from the business metrics it uses to judge operations
Block said it looks at both GAAP and non-GAAP results when reviewing its performance. The company gives the most attention to gross profit, adjusted operating income, and adjusted earnings per share.
“Bitcoin trading activity and changes in bitcoin prices have historically had modest impacts on Gross Profit, Adjusted Operating Income, and Adjusted Earnings per Share, but can create significant variability in reported revenue and GAAP net income. To provide greater transparency into these dynamics, we are reporting Cash App’s Bitcoin Ecosystem revenue and the remeasurement of our bitcoin investment ahead of reported earnings,” said Block.
For the second quarter, Block’s early estimate for Cash App Bitcoin Ecosystem revenue was $1.8 billion. That number mainly covers the dollar value of bitcoin bought by customers through Cash App.
The company also expected an $88.5 million accounting loss from revaluing its bitcoin investment using the asset’s June 30 closing price. Block records that item below operating income. It changes GAAP earnings only and does not alter the adjusted operating figures used to track the business.
Block said both bitcoin figures were early and unaudited and did not stand in for the complete quarter. The company scheduled the full report for August 5, 2026.
Cash App’s bitcoin revenue can change quickly because the price of bitcoin and the amount customers trade are never steady. The accounting gains or losses on Block’s own bitcoin position also rise or fall with bitcoin’s market price.
Cash App lifts Block’s quarter as banking, lending and shopping activity grow
Cash App did most of the heavy lifting. Its gross profit rose 31% from the same quarter last year. The Square seller business posted a 13% increase. Across Block as a whole, gross profit grew 25% year over year.
The company also reported a 27% adjusted operating income margin, the highest level it has posted. Adjusted diluted earnings per share increased 65% from a year earlier and reached a record $1.02.
User activity inside Cash App also grew. Primary Banking Actives increased 17%, while Cash App Commerce Enablement volume also rose 17%. Consumer lending originations climbed 59%, with Cash App Borrow supplying most of that growth.
Square’s payment volume rose across its merchant network. Total Square gross payment volume grew 13% from the prior year. U.S. GPV increased 10%, the fastest domestic pace since the second quarter of 2023. International GPV rose 28%.
Block has also been cutting expenses. In February, the company said it planned to eliminate over 50% of its jobs as part of a wider rebuild that puts artificial intelligence into more of its daily operations.
“Intelligence tools are the next major technology shift, but machine learning is not new to Block,” Jack wrote in a letter to shareholders.
For 2026, Block now expects gross profit to rise 21%, adjusted operating income to increase 67%, and adjusted diluted earnings per share to grow 70%.
The earnings materials direct readers to an appendix for the company’s definitions of transacting active, Square GPV, Primary Banking Actives, Cash App Commerce Enablement Volume, and Cash App Consumer Lending Origination Volume. Block also included tables that connect each non-GAAP figure in the presentation with the closest GAAP figure.
