Block Inc. anticipates Q4 earnings decline but raises full-year guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 12 2026
0mins
Should l Buy XYZ?
Source: seekingalpha
Block Inc. shares rose by 5.01% as the stock crossed above its 5-day SMA, despite the broader market decline with the Nasdaq-100 down 1.26% and the S&P 500 down 0.55%.
The company anticipates a Q4 EPS of $0.65, reflecting an 8.5% decline, while projecting a revenue increase of 3.2% to $6.22 billion. Additionally, Block raised its full-year gross profit guidance to $10.243 billion, showcasing confidence in its long-term growth strategy. Analysts remain optimistic, assigning a 'Buy' rating, indicating recognition of the company's potential for future growth despite recent stock price challenges.
This positive outlook on revenue growth and profitability improvements, alongside analyst support, suggests that Block Inc. is navigating through market pressures effectively, which may enhance investor confidence moving forward.
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Analyst Views on XYZ
Wall Street analysts forecast XYZ stock price to rise
30 Analyst Rating
25 Buy
3 Hold
2 Sell
Strong Buy
Current: 51.940
Low
55.00
Averages
86.51
High
108.00
Current: 51.940
Low
55.00
Averages
86.51
High
108.00
About XYZ
Block, Inc. builds technology to increase access to the global economy. The Company operates through two segments: Square and Cash App. The Square includes managed payment services, software solutions, hardware, and financial services offered to sellers, excluding those that involve Cash App. The Cash App segment includes the financial tools available to individuals within the mobile Cash App, including peer-to-peer payments, bitcoin and stock investments. The Cash App also includes Cash App Card, which is linked to customer stored balances that customers can use to pay for purchases or withdraw funds from an ATM. Cash App also includes the BNPL platform. Its Afterpay business is transforming the way customers manage their spending over time. Its TIDAL business is a music platform that empowers artists to thrive as entrepreneurs. Its Bitkey business is a simple self-custody wallet built for bitcoin. Proto business is a suite of bitcoin mining products and services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Financial Performance Boost: In Q4, Block generated $2.87 billion in gross profit, a 24% year-over-year increase, with total gross profit for the year reaching $10.36 billion, reflecting a 17% growth, indicating ongoing improvements in revenue growth and profitability.
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- Optimistic Outlook: The company expects an 18% increase in gross profit for 2026 to $12.2 billion and has raised its adjusted operating income guidance to $3.2 billion, reflecting strong confidence in future growth, particularly in the application of AI and intelligence tools.
See More
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- Ethereum Performance: Ethereum sharply fell in early trading but recovered later, with its Market Value to Realized Value ratio dropping to 0.78, a level historically signaling market bottoms, potentially attracting investor interest.
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See More
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- Adjusted Earnings: Excluding special items, Block Inc. reported adjusted earnings of $402 million, or $0.65 per share, aligning with analyst expectations, which reflects the company's efforts in cost management amidst declining profits.
- Revenue Growth: Despite the profit decline, Block Inc.'s revenue increased by 3.6% year-over-year to $6.252 billion from $6.033 billion last year, demonstrating the company's strong sales capabilities in the market.
- Future Outlook: The company anticipates a 54% year-over-year growth in adjusted diluted EPS to $3.66 by 2026, showcasing management's confidence in future performance recovery despite current challenges.
See More
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- Layoff Announcement: Block has announced a workforce reduction of over 40% due to the efficiency gains from intelligent technology, which allows fewer employees to accomplish more, expected to significantly lower operational costs and enhance profit margins.
- Stock Market Reaction: Following the announcement, Block's stock surged by 24%, indicating a positive market response to the company's transformation strategy and increased investor confidence in future growth potential.
- Employee Compensation Package: Affected employees will receive severance equal to 20 weeks of salary plus one week for each year of tenure, along with health insurance and transition funds, aimed at mitigating the negative impact of layoffs and preserving the company's reputation.
- Leadership Decision: CEO Jack Dorsey stated that opting for immediate layoffs rather than gradual cuts was to avoid long-term damage to employee morale and customer trust, demonstrating the company's decisiveness and transparency in facing challenges.
See More
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- Block Layoffs Impact: Block announced layoffs of over 4,000 employees, about half of its workforce, leading to a 24% surge in after-hours trading, indicating strong market confidence in its cost-cutting measures.
- Monster Beverage Earnings: Despite reporting adjusted earnings of 51 cents per share, exceeding the expected 48 cents, Monster Beverage's fourth-quarter operating margin of 29% fell short of the 29.8% consensus estimate, resulting in a 3% drop in stock price, reflecting investor concerns over profitability.
- Dell Strong Performance: Dell Technologies reported a fourth-quarter earnings per share of $3.89, surpassing analyst expectations of $3.53, with revenue of $33.38 billion exceeding the $31.73 billion forecast, leading to a 10% increase in stock price, showcasing its competitive strength in the market.
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