Block (XYZ) Goldman Sachs Communacopia + Technology Conference 2026 summary

Financial performance and guidance

• Raised guidance to 21% gross profit growth and nearly $3.5B adjusted operating income for 2026, with 70% adjusted EPS growth and seven points of margin improvement year-over-year.

• Achieved Rule of 52 performance, exceeding the Rule of 40 target, and expect to maintain close to Rule of 50 for the year.

• Strong broad-based traction across Square and Cash App ecosystems, with Square seeing its highest U.S. GPV growth in three years and Cash App growing 31% in Q2.

• Incremental margins reached 50% in Q2, with half of incremental gross profit flowing to the bottom line.

• Significant leverage in the business allows for continued investment while expanding margins.

Operational changes and organizational strategy

• Undertook a 40% headcount reduction to create a flatter, more agile organization focused on accountability and rapid iteration.

• Maintained product resilience and compliance during the transition, while expanding the product roadmap.

• Investments redirected toward AI infrastructure, ecosystem connectivity (Neighborhoods), and go-to-market initiatives.

AI and technology initiatives

• Developed core AI infrastructure over two years, launching Goose, Berd, Buzz, and Builderbot to enhance automation, collaboration, and developer velocity.

• Buzz enables multiplayer AI collaboration, while Builderbot accelerates engineering troubleshooting and reliability.

• AI tools have driven improved product velocity and reliability across the organization.