Block Inc stock surged in after-hours trading after the firm reported first-quarter earnings.
Block (XYZ) shares ended regular trading at $70.14 on the NYSE, down 0.97%. The stock then rose 7.93% to $75.70 in after-hours trading, according to Google Finance data.
Block Q1 Earnings Lifts Stock Prices
The rise came as the Jack Dorsey-led company reported adjusted diluted earnings of $0.85 per share, topping estimates of $0.68. The EPS grew 52% year over year.
“This quarterly report represents an earnings surprise of +25.68%,” Zacks noted.
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Furthermore, gross profit climbed 27% year over year to $2.91 billion, with strength across both the Cash App and Square segments.
Cash App gross profit grew 38% to $1.91 billion. Square’s gross profit rose 9% to $982 million as gross payment volume growth accelerated to 13%. Adjusted operating income grew to a record $728 million, expanding margins to 25%.
The strong performance arrived even as Block swung to a net quarterly loss. The payments firm posted a $309 million net loss attributable to common stockholders. The figures reflect a $172.8 million remeasurement loss on its Bitcoin investment.
Notably, Block raised its full-year 2026 guidance on the back of the quarter’s outperformance. The company now projects gross profit growth of 19% for the year ($12.33 billion), alongside margin expansion and a 62% jump in adjusted diluted EPS ($3.85).
“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,” Dorsey wrote in the shareholder letter.
For Q2, Block expects $3.04 billion in gross profit and $0.86 in adjusted diluted EPS, marking 20% and 39% year-over-year growth, respectively. The firm will report Q2 results on August 5.
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The post Block Shares Surge Nearly 8% After Hours Despite $309 Million Net Loss appeared first on BeInCrypto.
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