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Block shares slip after adjusted EPS beats and raised guidance
Adjusted EPS reached $1.02, above the $0.87 expectation, but Cash App monthly transacting actives growth slowed and 2026 actives guidance points to only low single digit growth.
Block Inc. posted a strong earnings quarter on August 5, with adjusted earnings per share of $1.02 versus Wall Street expectations of $0.87, and it raised full-year guidance across the board, yet the stock fell roughly 6% the following day, according to Yahoo Finance.
The company attributed much of the improvement to expense efficiencies tied to AI, saying engineers are now producing more output, with code changes per engineer up 150% since the start of the year. Block also reported that second quarter gross profit rose 25% year over year, while its adjusted operating income margin reached an all-time high of 27%.
Beyond the profitability metrics, Block pointed to growth drivers across its platforms, including Square US gross payment volume accelerating to its fastest pace since 2023, Cash App gross profit rising 31%, consumer lending originations increasing 59%, and commerce enablement volume up 17%. Management also highlighted new and expanding product features and said it plans to scale its Neighborhoods program more aggressively in the second half of the year.
The key figure investors focused on was Cash App monthly transacting actives, which grew just 3% year over year in June, down from the prior quarter's pace, and management guided for only low single digit actives growth for all of 2026. The outlet also noted CFO Amrita Ahuja sold 8,971 shares on the earnings day under a Rule 10b5-1 plan adopted in March.