Block raises 2026 outlook on strong quarter, says AI touches nearly all code
Cash App and Square drove better-than-expected results, while the company said it expanded its use of AI across software engineering.
Block, the fintech company, boosted its full-year outlook after delivering a strong second quarter driven by growth in Cash App and Square. Cash App and Square outperformed expectations, while the company highlighted its expanded use of AI across software engineering. Gross profit increased by 25% year over year to $3.17 billion, surpassing Block's initial guidance.
Adjusted operating income exceeded expectations as well, reaching $855 million, ahead of previous forecasts. The robust results led Block to raise its full-year gross profit guidance to $12.51 billion, up from $12.33 billion, and its adjusted operating income guidance to $3.47 billion, up from $3.34 billion. CFO Amrita Ahuja revealed in an earnings call that the company's increased guidance is a reflection of strong first-half execution and the momentum heading into the second half of 2026.
Block disclosed in a shareholder letter that AI, specifically agentic AI, assisted in writing and reviewing nearly all production code changes in June, following its February job cuts as part of an AI-driven restructuring. Block's Business Lead, Owen Jennings, shared with analysts during the earnings call that code changes per engineer have surged by 150% since the beginning of the year.
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