Block Q1 2026 Earnings Lift Outlook
Block Q1 2026 earnings beat and management raised full-year gross profit guidance to $12.33 billion, boosting the 2026 profitability trade.
KEY TAKEAWAYS
- Block topped Q1 expectations with adjusted profit of $513 million and $0.85 EPS following the filing.
- Management raised full-year gross profit guidance to $12.33 billion, tightening the 2026 profitability outlook.
- Cash App drove growth with 38% gross-profit rise and $17.6 billion consumer-lending originations.
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Block, Inc. (NYSE: XYZ) reported Q1 2026 earnings on May 7, posting adjusted profit of $513 million and earnings per share of $0.85. The company raised its full-year gross-profit outlook to $12.33 billion after stronger-than-expected results from Cash App and Square.
Results and Outlook
Block’s adjusted profit and EPS rose year over year and exceeded consensus estimates, with gross profit increasing 27%. The company raised its full-year gross-profit guidance to $12.33 billion from $12.20 billion and set second-quarter gross profit guidance at $3.04 billion, a 20% increase year over year.
Business Drivers and Costs
Cash App was the primary driver of growth, with gross profit rising 38% year over year. Consumer-lending originations reached $17.6 billion, up 82%, while primary banking actives grew 18% to 9.7 million. Square contributed with 9% gross-profit growth and a 13% increase in gross payment volume.
The quarter included $852 million in restructuring charges related to more than 4,000 job cuts earlier in 2026 as Block reallocates resources toward artificial intelligence integration. The consumer environment remained resilient, supported by a stable labor market, wage growth, and larger tax refunds, partially offset by higher gasoline prices linked to the U.S.-Israeli conflict with Iran.
Chief Financial Officer Amrita Ahuja said the company is in the early stages of expanding buy-now-pay-later functionality across Cash App. The strong Cash App performance and raised guidance suggest a clearer path to improved profitability this year despite near-term restructuring costs.
