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Revenues rose 9.3% to $6.62 billion, beating the consensus mark of $6.54 billion by 1.3%. Cash App lending, commerce activity and stronger Square payment volume supported the quarter’s results. Total Square gross payment volume (GPV) increased 13.4% to $72.85 billion.
XYZ’s Revenue Mix Benefits From Commerce Enablement Growth
Commerce Enablement revenues increased 15.3% year over year to $3.34 billion. Financial Solutions revenues advanced 40.3% to $1.38 billion, reflecting continued growth across lending and other financial products.
Bitcoin Ecosystem revenues declined 12.8% to $1.89 billion. Despite that pressure, total gross profit climbed 24.8% to $3.17 billion. The Commerce Enablement gross profit rose 18% to $1.81 billion, while Financial Solutions gross profit increased 42.9% to $1.29 billion.
XYZ’s Cash App Monetization Gains Momentum
Cash App gross profit advanced 31.4% year over year to $1.97 billion. Cash App Commerce Enablement volume rose 17% to $56.5 billion, supported by Cash App Card and buy now, pay later (BNPL) products. Commerce Enablement monetization rate improved 12 basis points to 1.65%, aided by higher Afterpay Post-Purchase attach rates.
Consumer Lending origination volume increased 58.8% to $18.9 billion, driven largely by Cash App Borrow. Cash App Primary Banking Actives (PBAs) grew 17% to 9.4 million, while monthly transacting actives reached 59 million in June. Inflows per transacting active rose 9.2% to $1,469.
XYZ’s Square Trends Strengthen Across Markets
Square’s gross profit increased 12.9% year over year to $1.16 billion. Growth was driven by Commerce Enablement, reflecting stronger payment volumes, increased software adoption and continued momentum in Financial Solutions, particularly Square Loans. A one-time tariff reimbursement contributed roughly two percentage points to Square’s gross profit growth.
Square GPV reached $72.85 billion. U.S. GPV increased 9.8%, marking the strongest domestic growth rate since the second quarter of 2023. International GPV rose 28% on a reported basis and 25% at constant currency. Food and beverage GPV grew 20%, retail advanced 13% and services increased 7%.
XYZ’s Adjusted Profitability Reaches a Record
GAAP operating income was $447 million compared with $484 million a year earlier. General and administrative expenses increased sharply, primarily due to higher accrued legal contingencies.
Adjusted operating income rose 57.1% year over year to a record $864 million. The adjusted operating margin expanded to 27% of gross profit from 22%. Adjusted EBITDA increased 31.2% to $1.17 billion, while adjusted net income climbed to $620 million from $385 million.
XYZ’s Expenses Reflect Lending & Legal Costs
Operating expenses totaled $2.72 billion, up from $2.05 billion in the prior-year quarter. Contingencies, restructuring and other charges were $365 million compared with $16 million in the prior-year quarter. Non-GAAP operating expenses increased to $2.32 billion from $2.00 billion.
Transaction, loan and consumer receivable losses increased 99% year over year, primarily because of higher loan volumes. Management noted that cohort-level Borrow risk-loss rates remained healthy as origination volume shifted toward the six-week loan product.
Block Raises Its 2026 Financial Outlook
For the third quarter of fiscal 2026, Block expects gross profit of $3.13 billion, representing 18% year-over-year growth. Adjusted operating income is projected at $875 million, with a 28% margin. Adjusted EPS is forecasted at $1.02, up 89%.
Management raised its full-year outlook to gross profit of $12.51 billion, implying 21% growth. Adjusted operating income is now anticipated to be $3.47 billion, representing a 28% margin and 67% year-over-year growth. Adjusted EPS are expected to increase 70% to $4.02. The Zacks Consensus Estimate for earnings is pinned at $3.90.
PayPal Holdings, Inc. (PYPL - Free Report) reported second-quarter 2026 non-GAAP EPS of $1.38, which beat the Zacks Consensus Estimate of $1.28 by 7.81%. The metric declined 1% year over year. Revenues of $8.68 billion surpassed the consensus mark of $8.51 billion by 2.02% and increased 5% year over year.
The quarter benefited from solid growth in total payment volume (TPV), along with continued momentum in Venmo and Braintree. TPV increased 10% to $486.45 billion or 9% on a currency-neutral basis.
Upcoming Earnings Releases
We now look forward to the earnings release of other stocks in the Zacks Computer Software industry, Intuit, Inc. (INTU - Free Report) . Intuit is scheduled to report on Aug. 25, 2026.
The Zacks Consensus Estimate for Intuit’s fourth-quarter fiscal 2026 EPS is pinned at $3.59, indicating a 30.55% increase year over year.
View the Zacks #1 Rank List
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Block's Q2 Earnings & Revenues Beat on Cash App & Square Strength
Key Takeaways
Block, Inc. (XYZ - Free Report) reported second-quarter 2026 adjusted earnings per share (EPS) of $1.02, up 64.5% year over year and above the Zacks Consensus Estimate of 86 cents by 18.6%.
Revenues rose 9.3% to $6.62 billion, beating the consensus mark of $6.54 billion by 1.3%. Cash App lending, commerce activity and stronger Square payment volume supported the quarter’s results. Total Square gross payment volume (GPV) increased 13.4% to $72.85 billion.
XYZ’s Revenue Mix Benefits From Commerce Enablement Growth
Commerce Enablement revenues increased 15.3% year over year to $3.34 billion. Financial Solutions revenues advanced 40.3% to $1.38 billion, reflecting continued growth across lending and other financial products.
Bitcoin Ecosystem revenues declined 12.8% to $1.89 billion. Despite that pressure, total gross profit climbed 24.8% to $3.17 billion. The Commerce Enablement gross profit rose 18% to $1.81 billion, while Financial Solutions gross profit increased 42.9% to $1.29 billion.
XYZ’s Cash App Monetization Gains Momentum
Cash App gross profit advanced 31.4% year over year to $1.97 billion. Cash App Commerce Enablement volume rose 17% to $56.5 billion, supported by Cash App Card and buy now, pay later (BNPL) products. Commerce Enablement monetization rate improved 12 basis points to 1.65%, aided by higher Afterpay Post-Purchase attach rates.
Consumer Lending origination volume increased 58.8% to $18.9 billion, driven largely by Cash App Borrow. Cash App Primary Banking Actives (PBAs) grew 17% to 9.4 million, while monthly transacting actives reached 59 million in June. Inflows per transacting active rose 9.2% to $1,469.
XYZ’s Square Trends Strengthen Across Markets
Square’s gross profit increased 12.9% year over year to $1.16 billion. Growth was driven by Commerce Enablement, reflecting stronger payment volumes, increased software adoption and continued momentum in Financial Solutions, particularly Square Loans. A one-time tariff reimbursement contributed roughly two percentage points to Square’s gross profit growth.
Square GPV reached $72.85 billion. U.S. GPV increased 9.8%, marking the strongest domestic growth rate since the second quarter of 2023. International GPV rose 28% on a reported basis and 25% at constant currency. Food and beverage GPV grew 20%, retail advanced 13% and services increased 7%.
XYZ’s Adjusted Profitability Reaches a Record
GAAP operating income was $447 million compared with $484 million a year earlier. General and administrative expenses increased sharply, primarily due to higher accrued legal contingencies.
Adjusted operating income rose 57.1% year over year to a record $864 million. The adjusted operating margin expanded to 27% of gross profit from 22%. Adjusted EBITDA increased 31.2% to $1.17 billion, while adjusted net income climbed to $620 million from $385 million.
XYZ’s Expenses Reflect Lending & Legal Costs
Operating expenses totaled $2.72 billion, up from $2.05 billion in the prior-year quarter. Contingencies, restructuring and other charges were $365 million compared with $16 million in the prior-year quarter. Non-GAAP operating expenses increased to $2.32 billion from $2.00 billion.
Transaction, loan and consumer receivable losses increased 99% year over year, primarily because of higher loan volumes. Management noted that cohort-level Borrow risk-loss rates remained healthy as origination volume shifted toward the six-week loan product.
Block Raises Its 2026 Financial Outlook
For the third quarter of fiscal 2026, Block expects gross profit of $3.13 billion, representing 18% year-over-year growth. Adjusted operating income is projected at $875 million, with a 28% margin. Adjusted EPS is forecasted at $1.02, up 89%.
Management raised its full-year outlook to gross profit of $12.51 billion, implying 21% growth. Adjusted operating income is now anticipated to be $3.47 billion, representing a 28% margin and 67% year-over-year growth. Adjusted EPS are expected to increase 70% to $4.02. The Zacks Consensus Estimate for earnings is pinned at $3.90.
Currently, Block carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Block, Inc. Price, Consensus and EPS Surprise
Block, Inc. price-consensus-eps-surprise-chart | Block, Inc. Quote
Performance of Other Fintech Stock
PayPal Holdings, Inc. (PYPL - Free Report) reported second-quarter 2026 non-GAAP EPS of $1.38, which beat the Zacks Consensus Estimate of $1.28 by 7.81%. The metric declined 1% year over year. Revenues of $8.68 billion surpassed the consensus mark of $8.51 billion by 2.02% and increased 5% year over year.
The quarter benefited from solid growth in total payment volume (TPV), along with continued momentum in Venmo and Braintree. TPV increased 10% to $486.45 billion or 9% on a currency-neutral basis.
Upcoming Earnings Releases
We now look forward to the earnings release of other stocks in the Zacks Computer Software industry, Intuit, Inc. (INTU - Free Report) . Intuit is scheduled to report on Aug. 25, 2026.
The Zacks Consensus Estimate for Intuit’s fourth-quarter fiscal 2026 EPS is pinned at $3.59, indicating a 30.55% increase year over year.