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 growth in Cash App and Square. 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, topping Wall Street expectations. In response, Block lifted 2026 guidance for gross profit to $12.51 billion from $12.33 billion and adjusted operating income to $3.47 billion from $3.34 billion. Management said the upgraded forecast reflects strong first-half execution and momentum into the second half of 2026. Block also highlighted AI-driven efficiency gains, saying agentic AI helped write and review nearly all production code changes in June, and code changes per engineer are up 150% since the start of the year.
