Block Inc. shares rallied after the company disclosed first-quarter 2026 results that impressed investors and analysts alike. The stock jumped nearly 9% in afternoon trading following an earnings report that exceeded Wall Street forecasts across several profit measures and prompted management to lift its forecasts for the full year.
The company reported adjusted diluted earnings per share of $0.85 for the quarter, versus the analyst consensus of $0.68 - a 25% beat. In a letter to shareholders, CEO Jack Dorsey said the company continued to deliver strong financial performance in the first quarter as artificial intelligence became more integral to operations and product development. "We continued to deliver strong financial performance in the first quarter as AI became more central to how Block operates and what we build for customers. We exceeded our guidance across gross profit, Adjusted Operating Income, and Adjusted EPS," he wrote.
Operational details in the quarter were highlighted by outsized growth across the Cash App and Square businesses. Cash App gross profit rose 38% year-over-year to $1.91 billion, driven by strength in Cash App Borrow and commerce enablement products. Consumer lending origination volume for the period surged 82% year-over-year to $17.6 billion. Primary Banking Actives reached 9.7 million in March, an 18% increase from the prior year.
Square also contributed to the performance, with Square gross profit increasing 9% year-over-year to $982 million. At the operating level, Adjusted Operating Income climbed 56% year-over-year to $728 million, yielding a record adjusted operating margin of 25%. Adjusted diluted EPS increased 52% to the reported $0.85.
Despite the positive profitability metrics, revenue for the quarter came in slightly below expectations. The company also experienced a decline in Bitcoin-related revenue amid market headwinds, a factor the market noted alongside the stronger-than-expected adjusted results.
Following the report, several analysts adjusted their valuations and maintained bullish ratings. Citi raised its price target to $100 from $85 and kept a 'Buy' rating. Keefe Bruyette lifted its target to $90 from $85 and maintained an 'Outperform' stance. Bank of America Securities, which began coverage of Block in late April 2026, has emphasized the company’s AI-driven efficiency initiatives and new product developments such as Square's Managerbot, as well as expanded merchant partnerships.
Management raised its full-year outlook, now expecting gross profit growth of 19% in 2026, along with margin expansion and adjusted diluted EPS growth of 62%. The raised guidance surpassed consensus expectations and formed a central rationale investors cited for the stronger share price reaction.
The wider market environment was supportive on the day of the report. The NASDAQ rose +1.54% and the S&P 500 gained +0.83%, which contributed to overall risk appetite in technology and fintech stocks. In trading following the release, Block shares climbed toward their 52-week high, reaching $76.42 on the move toward a 52-week peak of $82.50.
In summary, the stock’s advance reflected a combination of an earnings outperformance on key adjusted metrics, a more bullish full-year outlook, several analyst target increases and a favorable market backdrop. At the same time, investors noted the slight revenue shortfall and the drop in Bitcoin-related revenue as items to monitor going forward.
Contextual notes - The company highlighted AI as increasingly central to its operations and product roadmap, reflected in management commentary and third-party coverage. The report combined record adjusted profitability and a raised full-year guidance, which together supported the strong intraday and after-hours moves in the equity.