Block’s adjusted EPS reached $1.02, beating expectations
Block Inc. reported a strong quarter with adjusted EPS of $1.02, surpassing the expected $0.87. The company also raised its full-year guidance.
The quarter saw a 25% year-over-year increase in gross profit, with an adjusted operating income margin of 27%. Square’s US gross payment volume accelerated, and Cash App gross profit grew 31%.
The company’s cost structure improvements, driven by AI tools, have increased engineer productivity and reduced headcount needs. This has led to a 150% increase in code changes per engineer since the start of the year.
The efficiency gains and business growth have positioned the company for long-term leverage, with new launches and partnerships driving user engagement.