Block (XYZ) Stock Recovery Potential Analysis for 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- 2025 Performance Review: Block experienced a 26% stock price decline in 2025, primarily due to a deteriorating macroeconomic environment and regulatory issues, which led to a downward revision of the company's full-year profit guidance, negatively impacting investor confidence.
- Compliance Penalties Impact: In January 2025, Block was ordered by the Consumer Financial Protection Bureau to refund up to $120 million and pay a $55 million penalty, reflecting deficiencies in its security protocols and adversely affecting shareholder sentiment.
- User Growth Potential: As of May 2025, Block had 57 million active users and a cash reserve of $8.7 billion against $8.1 billion in debt, indicating a strong financial position that lays the groundwork for future growth.
- Stock Buyback Plan: Block increased its stock buyback authorization from $1.1 billion to $5 billion in November 2025, signaling management's confidence in the company's stock price while providing additional cash returns to shareholders.
Analyst Views on XYZ
Wall Street analysts forecast XYZ stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for XYZ is 86.35 USD with a low forecast of 55.00 USD and a high forecast of 105.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
27 Analyst Rating
21 Buy
4 Hold
2 Sell
Moderate Buy
Current: 65.610
Low
55.00
Averages
86.35
High
105.00
Current: 65.610
Low
55.00
Averages
86.35
High
105.00
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.
