Shares of Block $SQ XYZ have gained 24.9% in the past three months, outperforming the industry’s 0.4% upside.
This fintech company offers financial and marketing services through a commerce ecosystem that helps sellers start, run and grow their businesses. It operates through two reportable segments, Square and Cash App. Square provides point-of-sale tools that help sellers accept payments and manage operations. Cash App provides consumer financial products focused on peer-to-peer payments and money management.
Image Source: Zacks Investment Research
Let us decipher the possible factors behind the surge in the stock price of this Zacks Rank #3 (Hold) company.
Block remains focused on generating profit, as evidenced by its first-quarter 2026 gross profit growth of 27% year over year to $2.91 billion. Management raised full-year 2026 gross profit guidance to $12.33 billion, indicating 19% year-over-year growth. The company also plans to increase its go-to-market spending in high return on investment (ROI) areas, while still targeting mid-teens gross profit growth exiting 2026, which supports a multi-year growth path with expanding profitability.
