Block shares jump after Q1 EPS tops estimates

Block Inc. shares rose 7.93% in after-hours trading after the company reported first-quarter adjusted diluted earnings per share of $0.85, above estimates of $0.68. The firm posted a net loss of $309 million for the quarter, which included a $172.8 million Bitcoin remeasurement charge. The stock closed regular trading at $70.14 and traded at $75.70 after hours.

Adjusted EPS increased 52% year over year. Gross profit for the quarter rose 27% to $2.91 billion. Cash App gross profit was $1.91 billion, up 38% from a year earlier. Square’s gross profit was $982 million, up 9%, while gross payment volume growth accelerated to 13%.

Adjusted operating income reached $728 million and adjusted operating margin expanded to 25%. Those adjusted measures exclude items that contributed to the GAAP net loss. On a GAAP basis, net loss attributable to common stockholders was $309 million, which included the $172.8 million Bitcoin remeasurement loss.

Block raised its full-year 2026 outlook following the quarter. The company now expects full-year gross profit of about $12.33 billion, roughly 19% growth, and forecasts adjusted diluted EPS of $3.85 for the year, about a 62% increase from the prior year’s adjusted figure. For the second quarter, Block projects $3.04 billion in gross profit and $0.86 in adjusted diluted EPS, representing year-over-year growth of about 20% and 39%, respectively. The company will report second-quarter results on Aug. 5.

In the shareholder letter, Jack Dorsey wrote, “We continued to deliver strong financial performance in the first quarter as AI became more central to how Block operates and what we build for customers. We exceeded our guidance across gross profit, Adjusted Operating Income, and Adjusted EPS.”

The company reported growth in its payments and consumer-finance businesses while the Bitcoin remeasurement reduced GAAP profitability.