Block Surges on Record Quarter, But One Analyst Remains Skeptical
Block Inc., led by CEO Jack Dorsey, reported a record-breaking first quarter, beating analyst expectations. The company's adjusted earnings per share (EPS) came in at $0.85, surpassing the consensus estimate of $0.68 on Koyfin.
The San Francisco-based fintech posted revenue of $6.06 billion, narrowly exceeding the expected $6.03 billion. Block also raised its full-year 2026 guidance, targeting $12.33 billion in gross profit and $3.85 in adjusted diluted EPS.
Wall Street analysts rushed to raise price targets on Block's stock after the earnings report. Goldman Sachs boosted its target to $95 from $86, while Citi increased its target to $100 from $85. However, Piper Sandler maintained an 'Underweight' rating, expressing skepticism about Block's lofty growth targets and the sustainability of recent margin expansion.
Dorsey emphasized the company's focus on building AI products that are proactive, rather than just assistants or advisors. Cash App now features 'Moneybot,' while 'Managerbot' is being expanded to over one million Square sellers ahead of a broader rollout expected in June.