Block shares slip despite second-quarter beat and raised 2026 guidance
Shares in Block Inc. fell almost 2% in late trading today despite the payments and financial services company beating Wall Street expectations for second-quarter earnings and revenue and raising its full-year outlook for the second consecutive quarter.
For the quarter that ended on June 30, Block reported adjusted earnings of $1.02 per share, up 65% from 62 cents in the same quarter of the previous year, on revenue of $6.62 billion, up 9% year-over-year. Analysts were expecting 87 cents per share on revenue of $6.49 billion.
Gross profit, Block’s headline growth measure, rose 25% to $3.17 billion and landed above the company’s own guidance. Adjusted operating income grew 57% to a record $864 million, pushing the adjusted operating margin to 27% of gross profit, an all-time high for the company. Adjusted EBITDA hit a record $1.17 billion.
The unadjusted figures were softer. Operating income slipped to $447 million from $484 million a year ago and net income attributable to common stockholders fell to $89 million from $538 million, leaving unadjusted diluted earnings of 15 cents per share against 87 cents in the same quarter last year. Operating expenses for the quarter included $365 million in contingencies, restructuring and other charges.
