Here’s what Wall Street experts are saying about Block ahead of earnings

Block (XYZ) is scheduled to report results for its third fiscal quarter after the market close on Thursday, November 6, with a conference call scheduled for 5:00 pm EDT. What to watch for:

OUTLOOK: During the last earnings conference call, Block said, “We are raising our guidance to reflect the strength we are seeing across our business. We now expect $10.17 billion in gross profit for 2025, reflecting growth of over 14% year over year. We expect full year Adjusted Operating Income of $2.03 billion, or 20% margin, representing a 2% margin expansion year over year. We expect gross profit in the third quarter to grow 16% year over year to $2.60 billion with Adjusted Operating Income margins of 18%.”

Current consensus EPS and revenue forecasts for Block’s third quarter stand at 68c and $6.31B, respectively, according to data from Yahoo Finance. For FY25, current consensus EPS and revenue forecasts stand at $2.61 and $24.81B, respectively.

STRONG RESULTS: Truist raised the firm’s price target on Block to $74 from $70 but kept a Sell rating on the shares as part of a broader research note previewing Q3 earnings in Payments/FinTech. Overall, Q3 results should be strong as consumer spending has held up well, but the firm also fears that Q4 guidance for certain firms may come in worse than the Street expectations due to tougher comps in Q4 following the strong holiday spending season last year, the firm tells investors in a research note. Investors should continue to be selective when allocating to the payments/FinTech space, Truist added.

Jefferies also raised the firm’s price target on Block to $95 from $90, while maintaining a Buy rating on the shares as part of a Q3 earnings preview. The firm believes Square’s U.S. share gains, which it views as the most important driver for the stock, should gain momentum on another above-market acceleration in payment volume. Management messaging on Square’s runway should be upbeat as field sales and distribution partnerships ramp, the firm tells investors in a research note.

BUY BLOCK: Late last month, Wells Fargo initiated coverage of Block with an Overweight rating and $91 price target The firm, which started coverage on 20 stocks in the Payments, Processors & IT Services sector, says the Payments space has suffered from rotation to AI-centric stocks, as well as multiple instances of subpar execution by various companies, but the firm thinks “too many stocks have been painted with the same brush.” The Payments sector has “been a minefield for investors,” but Wells sees some “particularly attractive opportunities.”

SENTIMENT: Click here to check out the recent Media Buzz Sentiment on Block as measured by TipRanks.