Highlights

  • Block shares were trading at A$117.65 on 14 August 2026, up 5.98%, or A$6.64, on the day.
  • Second-quarter Gross Profit increased 25% year over year to US$3.17 billion, with Cash App gross profit rising 31% to US$1.97 billion.
  • Adjusted Operating Income reached a record US$864 million, while adjusted diluted EPS increased 65% year over year to US$1.02.
  • Block raised its full-year 2026 guidance to US$12.51 billion of gross profit and US$3.47 billion of adjusted operating income.

Block (ASX:XYZ) reported continued expansion across its Cash App and Square ecosystems in the second quarter of 2026, alongside increased operating profitability. The company's shares were trading at A$117.65 on 14 August 2026, up 5.98%, or A$6.64, during the session. Meanwhile, ASX technology index also recorded 1.89% rise (at 11:15 AEST).

The company reported second-quarter gross profit of US$3.17 billion, representing 25% year-over-year growth. Operating income reached US$447 million, equivalent to a 14% margin, while adjusted operating income increased to a record US$864 million, representing a 27% margin.

Adjusted Diluted Earnings per Share rose 65% year over year to US$1.02. GAAP diluted EPS was US$0.15, while Net Income attributable to common stockholders was US$89 million.

Cash App Growth Continues

Cash App remained the larger contributor to Block's gross profit during the quarter. Cash App gross profit increased 31% year over year to US$1.97 billion.

Cash App Commerce Enablement Volume reached US$56.5 billion, increasing 17% from the prior-year period. The company attributed the growth to Cash App Card and buy-now-pay-later activity.

Consumer lending origination volume increased 59% year over year to US$18.9 billion, driven by Cash App Borrow. Block stated that risk loss rates remained healthy during the quarter.

Cash App monthly transacting active customers reached 59 million in June, while primary banking activity increased 17% year over year.

Square Growth Accelerates in the US

Square generated US$1.16 billion in gross profit during the second quarter, an increase of 13% year over year.

Square's gross payment volume (GPV) also increased 13% year over year on both a reported and constant-currency basis. The US Business recorded 10% GPV growth, which Block described as its strongest US growth rate since the second quarter of 2023.

International Square GPV increased 28% year over year, or 25% on a constant-currency basis. The figures indicate that growth was distributed across both domestic and international operations during the quarter.

Hardware and AI Form Part of Product Strategy

Block's Shareholder letter highlighted hardware and artificial intelligence as two areas where the company is continuing to develop internal capabilities.

The company discussed Cash App Tags, which use NFC chips to connect physical objects with a customer's Cash App Card. Block described the product as an extension of its hardware strategy, following the development of Square's original card reader and other internally developed products.

On artificial intelligence, Block said Machine Learning has been used across its operations for more than 15 years, including seller onboarding, Fraud detection and lending decisions. The company stated that its approach to generative AI remains model agnostic as it develops applications across its platforms.

Full-Year Guidance Raised

Block's updated 2026 guidance calls for US$12.51 billion in gross profit, representing 21% year-over-year growth. Adjusted operating income is expected to reach US$3.47 billion, with an adjusted operating Margin of 28%.

The company expects adjusted diluted EPS of US$4.02 for the full year, representing projected growth of 70%. Its full-year Rule of X metric is expected to be 49%.

For the third quarter, Block expects gross profit of US$3.13 billion, representing 18% year-over-year growth. Adjusted operating income is forecast at US$875 million, with a 28% margin, while adjusted diluted EPS is expected to reach US$1.02.

Conclusion

Block's second-quarter results showed continued growth across both major operating ecosystems, with Cash App gross profit increasing 31% and Square GPV rising 13% year over year. The company also recorded its highest adjusted operating income of US$864 million and increased its full-year 2026 gross profit and profitability guidance. Alongside these financial developments, Block is continuing to expand its hardware products and artificial-intelligence capabilities, providing additional areas of product development as the company progresses through 2026.