Block Raises 2026 Outlook on $3.17B Q2 Gross Profit, AI Touches All Code

Fintech company Block raised its full-year 2026 outlook after reporting second-quarter gross profit of $3.17 billion, up 25% year over year, according to a results filing on Wednesday. The strong quarter was driven by growth in Cash App and Square, with adjusted operating income reaching $855 million and adjusted diluted earnings per share of $1.02, beating the Wall Street consensus estimate of 87 cents per share. The performance comes months after Block cut 4,000 jobs in February as part of an AI-led restructuring, with the company now reporting that agentic AI helped write and review nearly all production code changes in June.

Block Reports $3.17 Billion Q2 Gross Profit

Block's second-quarter gross profit of $3.17 billion exceeded the company's prior guidance, with adjusted operating income of $855 million also surpassing expectations. Adjusted diluted earnings per share reached $1.02, beating the Wall Street consensus estimate of 87 cents per share, according to the results filing.

Block Raises Full-Year 2026 Financial Guidance

Block lifted its full-year gross profit guidance to $12.51 billion from $12.33 billion, and adjusted operating income guidance to $3.47 billion from $3.34 billion. "Our increased guidance reflects the strength of our first-half execution and the momentum we're carrying into the second half of 2026," said Block's chief financial officer Amrita Ahuja in an earnings call.

AI Contributes to Nearly All Production Code Changes

Block stated in a shareholder letter that agentic AI helped write and review nearly all production code changes in June. Owen Jennings, Block's business lead, told analysts in the earnings call that code changes per engineer are up 150% compared to the start of the year. The AI implementation follows Block's February decision to cut 4,000 jobs as part of an AI-led restructuring.

FAQ

What were Block's Q2 2026 financial results? Block reported second-quarter gross profit of $3.17 billion, up 25% year over year, with adjusted operating income of $855 million and adjusted diluted earnings per share of $1.02, beating the Wall Street consensus estimate of 87 cents per share.

How did Block revise its full-year 2026 guidance? Block raised its full-year gross profit guidance to $12.51 billion from $12.33 billion, and adjusted operating income guidance to $3.47 billion from $3.34 billion, according to CFO Amrita Ahuja in an earnings call.

How is AI being used in Block's code development? Block stated in a shareholder letter that agentic AI helped write and review nearly all production code changes in June, with code changes per engineer up 150% compared to the start of the year, according to business lead Owen Jennings.