Block raises 2026 outlook on strong quarter, says AI touches nearly all code
Block raised its full-year outlook after a strong second quarter fueled by Cash App and Square growth. Q2 gross profit rose 25% year over year to $3.17 billion, above prior guidance, while adjusted operating income reached $855 million and adjusted diluted EPS was $1.02, both ahead of expectations. The company now expects full-year gross profit of $12.51 billion, up from $12.33 billion, and adjusted operating income of $3.47 billion, up from $3.34 billion. Block said the stronger guidance reflects solid first-half execution and momentum into the second half of 2026. It also highlighted AI-driven productivity gains, saying agentic AI helped write and review nearly all production code changes in June and that code changes per engineer are up 150% since the start of the year.
