Key Highlights

  • Block Inc. (ASX: XYZ) reported Q2 2026 gross profit of $3.17 billion, representing 25% year-over-year growth.
  • Cash App gross profit increased 31% year over year to $1.97 billion, while Square gross profit rose 13% to $1.16 billion.
  • The company reported operating income of $447 million and adjusted operating income of $864 million during the quarter.
  • Block updated its 2026 guidance, including expected gross profit of $12.51 billion and adjusted operating income of $3.47 billion.

Block Inc. (ASX:XYZ) announced its financial results for the second quarter ended 30 June 2026, reporting growth across its Cash App and Square businesses, higher gross profit and increased operating income. The company also provided updated financial guidance for the third quarter and full year 2026.

Q2 2026 Financial Results

Block reported second-quarter gross profit of $3.17 billion, representing a 25% increase year over year.

Cash App gross profit reached $1.97 billion, increasing 31% compared with the prior-year period. Square gross profit was $1.16 billion, representing 13% year-over-year growth.

The company reported operating income of $447 million, representing a 14% operating margin.

Adjusted operating income reached $864 million, representing a 27% margin.

Block reported net income attributable to common stockholders of $89 million during the quarter. Adjusted EBITDA reached a record $1.2 billion.

GAAP diluted earnings per share were $0.15, while adjusted diluted earnings per share increased 65% year over year to $1.02.

Cash App Performance

During Q2 2026, Cash App Commerce Enablement volume increased 17% year over year to $56.5 billion.

The company said growth was driven by Cash App Card and Buy Now, Pay Later (BNPL) activity.

Consumer Lending origination volume increased 59% year over year to $18.9 billion, supported by Cash App Borrow. Block reported that risk loss rates remained healthy during the period.

Primary bank account (PBA) adoption increased 17% year over year, while Cash App monthly transacting actives reached 59 million in June 2026.

Square Business Update

Square gross payment volume (GPV) increased 13% year over year during the second quarter on both reported and constant currency bases.

Square’s United States GPV growth increased 10% year over year, representing the company’s highest U.S. growth rate since Q2 2023.

International GPV increased 28% year over year, or 25% on a constant currency basis.

Profitability Update

Block reported that gross profit growth contributed to higher profitability during Q2 2026.

The company exceeded its adjusted operating income guidance for the quarter, reporting adjusted operating income of $864 million.

Adjusted EBITDA reached $1.2 billion, while adjusted diluted EPS increased to $1.02 compared with the prior-year period.

Q3 and Full Year 2026 Guidance

For the third quarter of 2026, Block expects gross profit of $3.13 billion, representing 18% year-over-year growth.

The company expects adjusted operating income of $875 million, representing a 28% margin, and adjusted diluted EPS of $1.02, representing 89% year-over-year growth.

For full-year 2026, Block expects gross profit of $12.51 billion, representing 21% year-over-year growth.

The company expects adjusted operating income of $3.47 billion, representing a 28% margin, and adjusted diluted EPS of $4.02, representing 70% year-over-year growth.

Block also reported a Rule of X metric of 46% for Q3 2026 guidance and 49% for full-year 2026 guidance.

Business Operations

Block operates through its two primary ecosystems, Cash App and Square. Cash App provides consumer financial services, payments and lending products, while Square provides payment processing, business software and financial tools for merchants.

During Q2 2026, the company reported operational updates across both ecosystems, including transaction growth, customer activity metrics and financial performance indicators.

Conclusion

Block Inc. (ASX: XYZ) reported Q2 2026 gross profit of $3.17 billion, growth across Cash App and Square, operating income of $447 million and adjusted operating income of $864 million. The company also reported higher transaction activity, increased consumer lending volume and provided third-quarter and full-year 2026 financial guidance.