Block Lifts Outlook on Cash App Growth

Block raised its full-year guidance after reporting strong second-quarter results driven by its Cash App ecosystem. The company now projects full-year gross profit above $12.5 billion, a 28% adjusted operating margin, and 70% growth in adjusted diluted earnings per share. Management credited the expansion to consumer lending momentum alongside operational efficiencies and cost cuts.

For the second quarter, Block posted revenue of $6.62 billion, up 9.3% from the prior year. Total gross profit rose 25% to $3.17 billion, while adjusted operating income reached $864 million, delivering a record 27% adjusted operating margin. Adjusted earnings per share rose 65% year over year to $1.02, beating prior management targets.

Cash App gross profit grew 31% year over year, led by the Cash App Borrow product. While monthly transacting active users rose by a modest 3%, Cash App consumer lending origination volume surged 59% and commerce enablement volume gained 17%. Block also expanded its data strategy by opening its Cash App Score to external lenders through Nova Credit's Cash Flow Intelligence Platform.

Institutional interest in Block expanded during the quarter. Filings tracked by Insider Monkey show 76 hedge funds held positions by the end of the second quarter of 2026, up from 63 in the first quarter. BlackRock remains the company's largest institutional shareholder, holding 41.57 million shares for a 7.69% stake.