Block lifts 2026 profit forecast on Cash App growth, resilient spending

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August 5, 2026 4:13 PM EDT

Block logo is seen in this illustration taken, August 3, 2026. REUTERS/Dado Ruvic/Illustration

Aug 5 (Reuters) - Block raised ‌its full-year gross ​profit ​forecast on Wednesday after the payments firm posted market-beating results, driven by resilient consumer spending and strong growth at its Cash ‌App business.

Shares of the Jack Dorsey-led company rose more than ⁠4% in extended trading.

Cash App has largely fended off competition by evolving beyond peer-to-peer ‌transfers into a broader consumer ‌financial services platform offering banking, investing and lending products.

The second half of the year also typically brings major shopping events, including Cyber Monday and ​the holiday season, when retailers offer deep discounts that encourage spending even among budget-conscious consumers, providing a seasonal boost to payment volumes.

Block ⁠now expects gross profit of $12.51 billion, representing a 21% growth in 2026, compared with its prior forecast ​of $12.33 billion, or 19% growth.

The results also cap a strong earnings season for the U.S. payments industry and underscore ​resilience in the face of inflationary pressures ‌fueled by the Middle East conflict and elevated borrowing costs.

Payments firms have continued to process healthy transaction volumes even ⁠as consumers rein in discretionary spending and prioritize everyday essentials, since both transactions flow through the same networks.

Gross profit at Cash App surged 31% in the second ⁠quarter while it rose 13% at its Square merchant business.

Block has also stepped up ​its cost-cutting efforts. In February, it announced plans to cut more than half its workforce as part of a broader overhaul to embed AI across its operations.

"Intelligence tools ‌are the next major technology shift, but machine learning is not new to Block," Dorsey said in a letter ‌to shareholders.

Adjusted profit of $1.02 per share in the three months ended June 30 ⁠comfortably beat Wall Street expectations ‌of 87 cents, according ​to estimates compiled by LSEG.

Revenue at $6.62 billion also topped expectations of about $6.49 billion.

(Reporting by Manya Saini in Bengaluru; Editing by ‌Sriraj Kalluvila)


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