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Block
(NYSE:XYZ)
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Rating:76Outperform
Price Target:
$85.00
▲(19.28% Upside)
Action:Upgraded
Date:05/09/26
The score is driven primarily by strong cash flow and a currently low-leverage balance sheet, reinforced by a bullish technical trend and a constructive beat-and-raise earnings call with higher full-year guidance. These positives are tempered by weak valuation interpretability due to a negative P/E, recent revenue growth cooling, and restructuring execution risk.
Positive Factors
Strong free cash flow generation
Sustained multi-billion dollar operating and free cash flow provides durable capacity to fund product investments, AI initiatives, and go-to-market spending without relying on external financing. High FCF supports optionality for buybacks, debt flexibility and cushions cyclical pressure over the next several quarters.
Negative Factors
Revenue growth has cooled
A plateau in top-line expansion signals heavier reliance on product monetization and margin improvement rather than broad user growth. Slower revenue momentum constrains room for margin leverage and requires successful execution on cross-sell and paid features to sustain profit expansion over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Sustained multi-billion dollar operating and free cash flow provides durable capacity to fund product investments, AI initiatives, and go-to-market spending without relying on external financing. High FCF supports optionality for buybacks, debt flexibility and cushions cyclical pressure over the next several quarters.
Read all positive factors
Block Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down income from different business units, highlighting which areas are driving growth and which may need strategic adjustments.
Breaks down income from different business units, highlighting which areas are driving growth and which may need strategic adjustments.
Data provided by:
The Fly
The FlyBlock (XYZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$46.32B
Dividend YieldN/A
Average Volume (3M)6.44M
Price to Earnings (P/E)59.8
Beta (1Y)1.57
Revenue Growth2.27%
EPS Growth-69.08%
CountryUS
Employees12,000
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)1.30
Shares Outstanding535,195,000
10 Day Avg. Volume6,077,289
30 Day Avg. Volume6,439,769
Financial Highlights & Ratios
PEG Ratio-0.56
Price to Book (P/B)1.79
Price to Sales (P/S)1.65
P/FCF Ratio16.44
Enterprise Value/Market Cap0.84
Enterprise Value/Revenue1.58
Enterprise Value/Gross Profit3.52
Enterprise Value/Ebitda24.00
Forecast
1Y Price Target
$89.32Price Target Upside25.34% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering27
EPS Forecast (FY)3.9
Revenue Forecast (FY)$25.95B
Block Business Overview & Revenue Model
Company Description
Block, Inc., operating through its subsidiaries, develops innovative tools that empower merchants to process card payments, gain insights from robust reporting and analytics, and benefit from expedited next-day fund settlement. The company offers ...
How the Company Makes Money
Block makes money mainly by facilitating payments and monetizing financial services across its Square and Cash App ecosystems, with additional revenue from Afterpay. In the Square (seller) business, a major revenue stream is transaction-based reve...
Block Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call presented broad-based operational and financial momentum: strong Q1 results that beat guidance, raised full-year targets, record adjusted profitability, accelerated product velocity and early AI-driven product adoption (Moneybot, Managerbot, Neighborhoods). Key growth engines — Cash App lending/BNPL integration, Square GPV expansion including international and mid-market — showed meaningful acceleration. Offsets include expected normalization of Borrow, moderated actives/MTU growth, near-term step-up in go-to-market investment, hardware-related gross profit dynamics, and operational friction from increased code volume. Management provided clear guidance and conviction in mid-teens exit gross profit growth, while calling out timing and one-time items that will influence comparability in the near term.Positive Updates
Beat-and-Raise: Strong Q1 and Upgraded Full-Year Outlook
Exceeded Q1 guidance and raised 2026 outlook: now expect $12.33B in gross profit (19% YoY growth, +1ppt vs prior guide), $3.34B adjusted operating income, and $3.85 adjusted diluted EPS (expected +62% YoY). Q2 guide: $3.04B gross profit (20% YoY), $740M adjusted operating income (35% YoY, +2ppt margin expansion), and $0.86 adjusted diluted EPS (+39% YoY).
Negative Updates
Actives Growth Moderation and MTU Stagnation
Management expects low single-digit actives growth for the remainder of 2026 and noted Monthly Transacting Users (MTUs) were relatively flat sequentially in Q1 despite YoY acceleration, indicating moderated top-of-funnel expansion.
Read all updates
Q1-2026 Updates
Positive
Negative
Beat-and-Raise: Strong Q1 and Upgraded Full-Year Outlook
Exceeded Q1 guidance and raised 2026 outlook: now expect $12.33B in gross profit (19% YoY growth, +1ppt vs prior guide), $3.34B adjusted operating income, and $3.85 adjusted diluted EPS (expected +62% YoY). Q2 guide: $3.04B gross profit (20% YoY), $740M adjusted operating income (35% YoY, +2ppt margin expansion), and $0.86 adjusted diluted EPS (+39% YoY).
Read all positive updates
Company Guidance
Management raised 2026 guidance after a strong Q1 beat: full‑year gross profit of $12.33B (≈19% YoY, +1 ppt vs prior), adjusted operating income of $3.34B (margin +1 ppt vs prior) and adjusted diluted EPS of $3.85 (up 62% YoY). Q2 guidance: gross profit $3.04B (20% YoY), adjusted operating income $740M (35% YoY; +2 pts of margin expansion) and adjusted diluted EPS $0.86 (39% YoY). They expect to exit 2026 at a mid‑teens gross profit growth rate, low single‑digit actives growth for the remainder of the year with a slight seasonal Q2 sequential decline in primary banking actives, accelerating GPV growth in 2026 vs 2025 (April Square GPV +12% CC; U.S. +9% YoY; international +25% CC), Square gross profit to track GPV in 2H with the Q2 gap narrowing as they lap a prior network remediation payment and benefit from a one‑time tariff refund, plan to step up high‑ROI go‑to‑market investment in Q2, expect Q2 interest expense of $55–60M (FY ~$200–210M) and a mid‑20% non‑GAAP effective tax rate for Q2 and the full year.Block Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
81
Very Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 24.48B | 24.19B | 24.12B | 21.92B | 17.53B | 17.66B |
| Gross Profit | 10.98B | 10.36B | 8.89B | 7.50B | 5.99B | 4.42B |
| EBITDA | 1.61B | 2.19B | 1.74B | 379.42M | -188.57M | 554.99M |
| Net Income | 807.08M | 1.31B | 2.90B | 9.77M | -540.75M | 166.28M |
Balance Sheet | ||||||
| Total Assets | 39.99B | 39.55B | 36.78B | 33.03B | 31.36B | 13.93B |
| Cash, Cash Equivalents and Short-Term Investments | 13.26B | 11.96B | 12.75B | 9.42B | 8.81B | 8.14B |
| Total Debt | 8.13B | 8.97B | 7.92B | 6.07B | 6.33B | 5.52B |
| Total Liabilities | 18.31B | 17.38B | 15.54B | 14.34B | 14.11B | 10.61B |
| Stockholders Equity | 21.72B | 22.20B | 21.27B | 18.70B | 17.22B | 3.27B |
Cash Flow | ||||||
| Free Cash Flow | 3.26B | 2.42B | 1.55B | -50.19M | 5.09M | 543.51M |
| Operating Cash Flow | 3.41B | 2.58B | 1.71B | 100.96M | 175.90M | 847.83M |
| Investing Cash Flow | -3.42B | -2.80B | 649.95M | 683.20M | 1.23B | -1.31B |
| Financing Cash Flow | 346.62M | -613.10M | 1.95B | -240.14M | 97.58M | 2.65B |
Block Technical Analysis
Positive
71.26
Price Trends
71.57
Positive
65.29
Positive
67.28
Positive
Market Momentum
1.35
Negative
60.97
Neutral
83.83
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XYZ, the sentiment is Positive. The current price of 71.26 is below the 20-day moving average (MA) of 72.40, below the 50-day MA of 71.57, and above the 200-day MA of 67.28, indicating a bullish trend. The MACD of 1.35 indicates Negative momentum. The RSI at 60.97 is Neutral, neither overbought nor oversold. The STOCH value of 83.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XYZ.
Block Risk Analysis
Block disclosed 50 risk factors in its most recent earnings report. Block reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Block Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $21.73B | 19.64 | 30.57% | ― | 18.26% | 16.45% | |
76 Outperform | $46.32B | 59.77 | 3.64% | ― | 2.27% | -69.08% | |
75 Outperform | $15.71B | 38.69 | 20.74% | ― | 23.44% | 151.36% | |
66 Neutral | $39.07B | 8.25 | 25.08% | ― | 6.97% | 19.31% | |
65 Neutral | $19.09B | -23.58 | -3.07% | 1.25% | -12.55% | -39.16% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $3.78B | 53.11 | 6.42% | ― | 28.28% | -72.43% |
* Technology Sector Average
XYZ
Block
77.82
9.89
14.56%
CPAY
Corpay Inc
332.48
0.66
0.20%
GPN
Global Payments
69.80
-9.20
-11.65%
PYPL
PayPal Holdings
44.29
-29.39
-39.89%
FOUR
Shift4 Payments
47.65
-51.46
-51.92%
TOST
Toast Inc
27.08
-17.21
-38.86%
Block Corporate Events
Executive/Board Changes
Block Appoints Andrea Acosta as New Chief Accounting Officer
Positive
May 4, 2026
On April 30, 2026, Block, Inc. appointed Andrea Acosta as Chief Accounting Officer, effective May 26, 2026, succeeding interim principal accounting officer Amrita Ahuja, who will continue as Chief Financial Officer and Chief Operating Officer. Aco...
Business Operations and StrategyFinancial Disclosures
Block Restructures Workforce to Become AI-Native Fintech
Negative
Feb 26, 2026
On February 26, 2026, Block announced a sweeping workforce reduction and restructuring plan that will cut its headcount by more than 40%, shrinking the company from over 10,000 employees to just under 6,000 as it seeks to align its organization wi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.