Block's Q2 Earnings & Revenues Beat on Cash App & Square Strength

Block, Inc. XYZ 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 Growth

Commerce 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 Momentum

Cash 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 Markets

Square’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 Record

GAAP 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 Costs

Operating 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 Outlook

For 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.

Block, Inc. Price, Consensus and EPS Surprise

Block, Inc. price-consensus-eps-surprise-chart | Block, Inc. Quote

Performance of Other Fintech Stock

PayPal Holdings, Inc. PYPL 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 Releases

We now look forward to the earnings release of other stocks in the Zacks Computer Software industry, Intuit, Inc. INTU. 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.

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