Block Inc. (NYSE:XYZ) is one of the most undervalued stocks to buy and hold for 2 years.
On May 7, Block reported Q1 2026 earnings, exceeding guidance with gross profit up 27% to $2.91 billion and adjusted diluted EPS reaching an all-time high of $0.85 (up 52% year-over-year)
Growth was driven by broad-based strength in both the Cash App and Square ecosystems, with adjusted EBITDA hitting $1 billion. The company is aggressively integrating AI solutions like “Moneybot” and “Managerbot” to automate operations and improve customer engagement, resulting in significant internal productivity gains. Strategic initiatives such as the expansion of “Neighborhoods,” new ISO partnerships, and deeper integration of “Buy Now, Pay Later” across the Cash App platform are accelerating network connectivity and transaction volume.
Management raised its full-year 2026 outlook, now expecting $12.33 billion in gross profit (19% growth) and adjusted EPS of $3.85 (62% growth). Block Inc. (NYSE:XYZ) remains focused on a long-term strategy of evolving into an “intelligence company,” using AI to provide proactive financial services and deeper, personalized value to both consumers and sellers. Block Inc. (NYSE:XYZ), founded in 2009 by Jack Dorsey, is an American financial services company.