Q1 26 EPS
$0.85
Q1 26 Revenue
$6.06B
Did XYZ Beat Earnings? Q1 2026 Results
Block, Inc. Posted a strong first quarter of fiscal 2026, reporting adjusted diluted EPS of $0.85 on total net revenue of $6.06 billion, as the company's adjusted operating income climbed 56% year over year to $728 million at a 25% margin. The headli… Read more Block, Inc. Posted a strong first quarter of fiscal 2026, reporting adjusted diluted EPS of $0.85 on total net revenue of $6.06 billion, as the company's adjusted operating income climbed 56% year over year to $728 million at a 25% margin. The headline driver was Cash App, where gross profit grew 38% to $1.91 billion, fueled by an explosive 82% surge in Consumer Lending origination volume to $17.60 billion and nearly triple growth in Cash App Borrow originations. GAAP results were weighed down by $852 million in restructuring and legal charges tied to a February reorganization, resulting in a net loss of $309 million, though the adjusted picture told a markedly different story. Square also contributed, with gross profit rising 9% to $982 million and GPV accelerating to 13% growth at $61.20 billion. Looking ahead, Block raised its full-year 2026 guidance, now targeting $12.33 billion in gross profit, $3.34 billion in adjusted operating income, and adjusted diluted EPS of $3.85, reflecting 62% growth year over year.
Key Takeaways
- • Cash App gross profit growth of 38% YoY driven by Cash App Borrow and Commerce Enablement
- • Consumer Lending origination volume growth accelerated to 82% YoY to $17.6B
- • Cash App Commerce Enablement volume growth accelerated to 18% YoY to $55.0B
- • Square GPV growth accelerated to 13% YoY to $61.2B
- • Primary Banking Actives grew 18% YoY to 9.7 million
- • Adjusted Operating Income margin expanded to 25%, up from 20% YoY
- • Production code changes per engineer up over 2.5x since January due to AI tools
- • Non-GAAP product development expenses decreased 9% YoY
XYZ Forward Guidance & Outlook
Block raised its full-year 2026 guidance: gross profit of $12.33 billion (19% YoY growth), Adjusted Operating Income of $3.34 billion (27% margin, 60% YoY growth), and Adjusted Diluted EPS of $3.85 (62% YoY growth). For Q2 2026, the company expects gross profit of $3.04 billion (20% YoY growth), Adjusted Operating Income of $740 million (24% margin, 35% YoY growth), and Adjusted Diluted EPS of $0.86 (39% YoY growth). The company plans to increase go-to-market spending meaningfully in Q2 as it continues investing in high-ROI growth initiatives. Transaction, loan, and consumer receivable losses growth rates are expected to decline throughout the rest of 2026. Square gross profit is expected to grow in line with GPV growth in the second half of the year.
XYZ YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
XYZ Revenue by Segment
With YoY comparisons, source: SEC Filings
“AI tools have changed what it means to build and run a company. A significantly smaller team, using the tools we are building, can do more and do it better.”
— Jack Dorsey, Q1 2026 Earnings Press Release
XYZ Earnings Trends
XYZ vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
XYZ EPS Trend
Earnings per share: estimate vs actual
XYZ Revenue Trend
Quarterly revenue: estimate vs actual
XYZ Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 | — | $0.85 | — | $6.06B | — |
| Q4 25 BEAT FY | $0.64 | $0.65 | +1.67% | $6.25B | -1.41% |
| FY Full Year | $2.39 | $2.37 | -0.69% | $24.19B | -0.37% |
| Q3 25 MISS | $0.66 | $0.54 | -18.18% | $6.11B | -3.12% |
| Q2 25 MISS | $0.68 | $0.62 | -8.78% | $6.05B | -3.79% |
| Q1 25 MISS | $0.94 | $0.56 | -40.68% | $5.77B | -6.63% |