Aug 5, 2026 earnings call — Raises guidance after record profitability
Raised 2026 gross profit outlook to $12.51 billion, up 21% year-over-year.
Revenue $6.6B (est $6.5B) · EPS $1.02 (est $0.87)
Key quotes
"The biggest proof point is our shipping velocity. The team -- we have a very small team on a product like Buzz, which is not just something that we launch internally, but we're using internally as well."
"We continued to ship innovative new products in the second quarter, including Cash App Tags and Cash App Mobile. And we brought Afterpay Pre-Purchase on Cash App Card to general availability."
"So annualized seller GPV on the platform crossed the $1 billion threshold in June, which is up 220% year-over-year."
Analyst Q&A 8
AI progress and Buzz product
Q (Tien-Tsin Huang · JPMorgan): He asked for a 6-month progress report on the reorg, what they learned about AI investment and talent to scale across Square and Cash App, and whether streaming intelligence is on track with proof points.
A: Management said they are "definitely on track." They pointed to shipping velocity and Buzz being used internally as proof, and said much of the work compounded over the past 2 years. They plan to deliver the same AI benefits to Cash App customers and sellers.
"But it's really something that's foundational, and the only reason we could get it out so quickly with such richness is because of all the work that has compounded over the past 2 years." — Jack Dorsey
Guidance and gross profit outlook
Q (Jason Kupferberg · Wells Fargo): He asked whether recent conservatism is already factored in and requested color on segment-level gross profit growth for the next two quarters, noting Square comps ease and Cash App comps get harder.
A: They said Q2 was very strong with "25% gross profit growth, 65% adjusted diluted EPS growth on a year-over-year basis." They see strong, broad-based momentum and expect 18% gross profit growth in Q3 with margin expansion and Q4 exit in the mid-teens. Square should accelerate gross profit in the back half, while Cash App actives should grow in the low single-digit range and lending volumes normalize.
"First, on the numbers, obviously, a very strong quarter for us in the second quarter, 25% gross profit growth, 65% adjusted diluted EPS growth on a year-over-year basis." — Amrita Ahuja
Hardware costs and supply chain
Q (William Nance · Goldman Sachs): He asked about the hardware and pricing environment, how memory and other hardware costs are impacting the business, access to hardware, and how Block's hardware strategy differs from competitors.
A: They said hardware expertise differentiates products and that their supply chain goes deep into suppliers' suppliers, which helps manage supply. They identified the memory constraint in mid-last year and have been mitigating it; they can't promise never to be impacted but feel they can manage cost and supply dynamics.
"And one thing that I'm proud of is that we are the only company in our space never to go on back order." — Thomas Templeton
GPV growth drivers and margins
Q (Darrin Peller · Wolfe): He asked what drove the acceleration in GPV, how NVA is trending, progress on sales, ISO and partnerships, and whether Square gross profit will grow in line with GPV in the second half.
A: They said GPV acceleration comes from product progress, shipping more products, and expanding distribution channels. They highlighted faster self-onboard NVA, ramping field sales, ISO and partnerships, strong U.S. and international results, and noted a tariff reimbursement benefit offsetting a prior remediation; they expect Square gross profit to grow roughly in line with GPV in the back half.
"I think, first, fundamentally, it all goes back to the compounding benefits of our progress against our product strategy and shipping more products at pace and are expanding our distribution channels from a go-to-market perspective." — Amrita Ahuja
Cash App growth plan and loss rates
Q (Adam Frisch · Evercore): He asked how Cash App can sustain outsized gross profit growth after lapping big Borrow growth, what the playbook is, and what the loss rate was this quarter and how it will trend.
A: Management said Cash App growth is driven by an ecosystem approach across network products, banking, commerce and Bitcoin, with new bets like Neighborhoods, teens/families, tags, Afterpay and other products to drive actives, inflows and monetization. On losses, they said Cash App Borrow loss rates "continued to be healthy," cohort seasoning improves repayment and they expect transaction loan and consumer receivable losses to moderate through the remainder of '26.
"We look at cohort level loss rates, as you know, and as borrower cohorts season, we generally see that repayment behavior improves and loss rates decline." — Amrita Ahuja
SFS banking role and Neighborhoods rollout
Q (Timothy Chiodo · UBS): He asked how SFS will help fund loans with deposits and act as an acquiring sponsor to reduce costs; the exchange also included a shareholder question asking for an update on Neighborhoods rollout.
A: They said SFS gives optionality, better economics and a direct connection to regulators. Sellers maintaining at least $10,000 in Square savings are eligible to earn 3.5% APY and deposits can become a larger part of funding originations over time; acquiring processing began in June and migrating more in-house is multiyear. On Neighborhoods, they said they have product-market fit and are scaling quickly, with annualized seller GPV crossing the $1 billion threshold in June and new sellers onboarding 8x in July versus March.
"annualized seller GPV on the platform crossed the $1 billion threshold in June, which is up 220% year-over-year." — Owen Jennings
Cash App Tags performance and demand
Q (James Friedman · Susquehanna): He asked how Cash App Tags are performing: whether tags increase engagement or ticket size, which cohorts use them, and any other perspective on tags.
A: They said tags feel like a viral new hardware product: waterproof, battery-free NFC modules that turn items into Cash App payment devices. They launched three form factors, sold out faster than expected with the second wand drop selling out in just over 30 minutes, have over 3 million people signed up for notifications, are ramping production and plan new SKUs and partnerships. Management added that faster product shipping reflects improved development velocity from AI tools.
"And today, we have over 3 million people who have asked to be notified for the next drop." — Thomas Templeton
AI cost plan and AI product monetization
Q (Nikolai Cremo · Barclays): He asked how Block will manage AI costs with a model-agnostic approach as token costs rise, and how they plan to monetize Managerbot and Moneybot near to medium term.
A: They said budgets are rising but they focus on returns, routing workloads intelligently, leveraging multiple models including open source, and evolving as technology advances. They built Goose to be model agnostic and an internal evaluation system that scores models on quality and cost, and they see clear monetization opportunities for Managerbot, Moneybot and Buzz with multiple pricing options while focusing first on quality and distribution.
"secondarily, what I'd say is that from an engineering perspective, we've built an internal evaluation system that is scoring each model on a number of metrics from quality to cost based on our real production data" — Amrita Ahuja