Block reported first quarter 2026 results that exceeded analyst expectations across every major metric. Gross profit rose 27 percent year over year to 2.91 billion dollars. Adjusted operating income reached a record 728 million dollars, representing a 25 percent margin. Adjusted diluted earnings per share grew 52 percent to a record 0.85 dollars.
Cash App drove the outperformance. Gross profit from the consumer platform accelerated 38 percent year over year, fueled by 82 percent growth in Borrow originations and a 10 percent increase in inflows per active user. Cash App now generates approximately two-thirds of Block’s total gross profit, confirming the platform’s transition from a peer-to-peer payments tool to a consumer financial services ecosystem.
Square’s merchant business grew nine percent, a more modest pace that reflects the competitive intensity in small and mid-market merchant acquiring. However, management noted that Square’s gross profit growth accelerated sequentially, suggesting stabilization after several quarters of deceleration.
Block raised its full-year 2026 guidance to 12.33 billion dollars in gross profit (19 percent growth), 3.34 billion dollars in adjusted operating income (27 percent margin), and 3.44 dollars in adjusted diluted earnings per share. The Q2 2026 outlook calls for 3.04 billion in gross profit with 20 percent growth and adjusted diluted EPS of 0.86 dollars, representing 39 percent year-over-year growth.
