Block (XYZ) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 profitability with gross profit up 25% year-over-year to $3.2B, driven by Cash App gross profit up 31% and Square up 13%.

• Adjusted diluted EPS rose 65% year-over-year to $1.02, reflecting strong profitability.

• Raised full-year and 2026 guidance for gross profit, adjusted operating income, and adjusted diluted EPS, reflecting strong execution and momentum.

• Continued investment in AI, product innovation, and go-to-market strategies, including the public launch of Buzz and expansion of the Neighborhoods program.

• Major workforce reduction plan reduced headcount by over 40%, incurring $495M in restructuring charges for the first half of 2026.

Financial highlights

• Q2 2026 gross profit reached $3.17B, up from $2.54B in Q2 2025; adjusted operating income margin reached an all-time high of 27%.

• Adjusted diluted EPS increased 65% year-over-year to $1.02; adjusted EBITDA grew 31% to $1.17B with a 37% margin.

• Square gross profit and GPV both grew 13% year-over-year; U.S. GPV up 10%, international GPV up 28%.

• Cash App gross profit grew 31% year-over-year to $2.0B; commerce enablement volume up 17%, consumer lending origination volume up 59%.

• Net income attributable to common stockholders was $88.5M, down from $538.5M in Q2 2025, impacted by a bitcoin remeasurement loss.

Outlook and guidance

• Raised full-year and 2026 guidance: gross profit expected at $12.51B (+21% YoY), adjusted operating income at $3.47B (28% margin), and adjusted diluted EPS at $4.02 (+70% YoY).

• Q3 2026 guidance: gross profit growth of 18% YoY, adjusted operating income margin of 28%, adjusted diluted EPS growth of 89%.

• Annualized net cost savings from restructuring are projected at $800M–$900M, with some reinvestment planned.

• Q3 interest expense expected at $50M-$55M; full-year interest expense at $200M-$210M; mid-20% Non-GAAP effective tax rate.

• Exiting Q4, gross profit growth expected in the mid-teens, consistent with prior guidance.