Jack Dorsey-led Block raised its full-year gross profit outlook to $12.33 billion for 2026, up from a prior forecast of $12.20 billion, after a strong first quarter driven by resilient consumer spending and standout growth in its Cash App business.
Shares jumped 7.7% in extended trading. The stock is up about 9% year-to-date.
Cash App gross profit surged 38% year-over-year, with consumer lending origination volume soaring 82% to $17.6 billion. The launch of Cash App Green, a premium banking benefits program, helped attract 9.7 million primary banking actives-up 18% from last year.
Block's Square merchant segment reported 9% gross profit growth, with gross payment volume up 13%.
Overall gross profit rose 27% in the first quarter. Block posted record adjusted earnings of 85 cents per share, beating analyst expectations of 68 cents.
For the second quarter, the company expects gross profit of $3.04 billion, up 20% year-over-year.
Block recorded $852 million in restructuring charges in the first quarter after cutting over 4,000 jobs. CEO Jack Dorsey said artificial intelligence is helping the company move faster internally and build products that act earlier for customers.
Seaport Research analyst Jeff Cantwell noted Cash App was the standout and that recent workforce reductions don't appear to be hindering execution.