Block Q2 Gross Profit Rises 25%, EPS up 65% as Guidance Raised
Block Inc. reported a 25% year-over-year increase in Q2 2026 gross profit and lifted full-year targets, prompting a significant analyst rating upgrade.
Key points
- Block Inc. posted a 25% year-over-year rise in Q2 2026 gross profit and a 65% increase in earnings per share.
- The company raised its full-year 2026 guidance for gross profit and earnings following the strong quarterly performance.
- Piper Sandler upgraded its rating to Overweight and set a USD 100 price target, above the recent USD 76 share price.
Block Inc. (NYSE: SQ) reported a 25 percent year-over-year increase in gross profit for the second quarter of fiscal 2026, driving a 65 percent surge in earnings per share. The company simultaneously raised its full-year 2026 guidance, signaling management confidence in sustained operational leverage and margin expansion across its payment and financial services portfolio.
Q2 operational metrics show strong margin expansion
The second quarter results demonstrate meaningful operating leverage within Block's business model. Gross profit growth outpaced revenue trends, resulting in a substantial improvement in bottom-line profitability. This performance supports the company's strategy of scaling its transaction volume while optimizing cost structures, a key driver for the recent positive market reaction reported by AD HOC NEWS.
Analyst consensus shifts toward higher price targets
Market sentiment has turned constructive, with 36 of 44 covering analysts currently rating the stock as Buy or Strong Buy. Piper Sandler executed a double upgrade, moving its stance from Underweight to Overweight and increasing its price target from USD 58 to USD 100. This revision implies approximately 28 percent upside relative to the recent closing price, reflecting a revised view on the company's earnings trajectory.
The broader consensus average price target stands at USD 95.42, significantly above the recent trading level of approximately USD 76.26. This valuation gap suggests that current market pricing may not fully account for the demonstrated earnings momentum and the raised full-year expectations provided by management.
Current valuation sits below prevailing analyst estimates
Block shares traded in the mid-USD 70s in late September 2026, with a trailing twelve-month earnings per share figure of USD 0.59. The combination of strong fundamental trends in the most recent quarter and elevated forward-looking targets creates a discount between the current market price and prevailing institutional expectations for the remainder of fiscal 2026.
