Block boosts 2026 projections following robust quarterly performance, reports AI integration in nearly all software code
The company's Square and Cash App platforms delivered results that surpassed expectations, as Block revealed widespread artificial intelligence deployment throughout its software development operations.
Payment technology firm Block (XYZ) increased its projections for the full year following the announcement of a robust second quarter performance fueled by expansion in its Square and Cash App divisions, with gross profit climbing 25% year over year to reach $3.17 billion, surpassing the company's previous guidance.
The company's adjusted operating income for the second quarter similarly outperformed expectations, hitting $855 million, based on a Wednesday results filing. The adjusted diluted earnings per share came in at $1.02, topping Wall Street's consensus projection of 87 cents per share.
Following these results, Block elevated its full-year gross profit projection to $12.51 billion from the earlier figure of $12.33 billion, while adjusted operating income guidance was raised to $3.47 billion from the previous $3.34 billion.
Our increased guidance reflects the strength of our first-half execution and the momentum we're carrying into the second half of 2026.
Amrita Ahuja, Block's Chief Financial Officer
In a separate development, Block disclosed in a shareholder letter that agentic AI contributed to writing and reviewing nearly all production code changes in June, a milestone that arrives months after the company reduced its workforce by 4,000 jobs in February as part of an AI-led restructuring.
During the earnings call, Owen Jennings, Block's business lead, informed analysts that code changes per engineer have increased 150% compared to the start of the year.