Block (XYZ) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 profitability with gross profit up 25% year-over-year to $3.2B and adjusted diluted EPS up 65% to $1.02.

• 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 ISO partnerships.

• Accelerated growth in both Square and Cash App ecosystems, with broad-based strength across products and geographies.

• Major workforce reduction plan reduced headcount by over 40%, incurring $495M in restructuring charges for H1 2026.

Financial highlights

• Q2 2026 gross profit reached $3.2B, up 25% year-over-year; adjusted operating income margin reached an all-time high of 27%.

• Adjusted diluted EPS increased 65% year-over-year to $1.02.

• Cash App gross profit grew 31% year-over-year to $2.0B; Square gross profit rose 13% to $1.16B.

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

• Q2 2026 net revenue was $6.62B, up 9% year-over-year; adjusted EBITDA reached $1.17B with a 37% margin.

Outlook and guidance

• Raised 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 gross profit guidance is $3.13B (+18% YoY); adjusted operating income margin guided to 28%.

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

• Management anticipates ongoing investment in AI automation and operational centralization to drive future efficiency.

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