Block Inc. delivered a mixed second-quarter performance, with earnings per share surging to $0.87 from $0.31 but missing analyst estimates of $0.68. Revenue dipped 1.7% to $6.054 billion, disappointing Wall Street. Yet, the stock soared 12% in after-hours trading as the company raised its 2025 gross profit forecast to $10.17 billion, up $210 million from prior guidance. Analysts remain divided: one major firm upgraded its price target to $95, citing U.S. market share gains, while another downgraded the stock, questioning the sustainability of growth—particularly from Block’s Borrow feature, which boosted profits but raised concerns about risk.
Bitcoin Slump Offsets Cash App Strength
The Cash App drove a 16% gross profit increase, and Square—Block’s small-business segment—grew 11%. However, Bitcoin revenue fell to $2.14 billion from $2.61 billion, as holders clung to coins amid record highs. Despite adjusted earnings jumping to $385 million, Block’s stock remains 10% down year-to-date, reflecting lingering doubts over its balance of innovation and stability.