Block Beats Q1 Estimates, Stock Surges 7% on Rosy Profit Outlook
Block posts $6.1B in Q1 revenue, topping estimates, and hikes its 2026 gross profit forecast after AI-driven layoffs.
Block just dropped a Q1 earnings report that Wall Street loved. Revenue hit $6.1 billion, up 5% year-over-year and comfortably ahead of the $5.9 billion analysts expected. Shares of XYZ popped more than 7% in after-hours trading.
The bigger story: Block raised its 2026 gross profit forecast above consensus estimates, painting a rosier picture of what's ahead.
That optimism comes with a sharp edge. The company recently executed a significant round of layoffs tied to artificial intelligence — cutting jobs as it leans harder into AI-powered operations. The move appears to be paying off, at least by the numbers.
Block is betting that AI can do more with fewer humans. For now, investors are buying the thesis. Whether the trimmed workforce can sustain the momentum remains the question nobody's asking yet.