Block shares jump after new three-year outlook calls for accelerating growth, expanded buyback
Shares of the Jack Dorsey-led Block surged on Wednesday after the company laid out a three-year financial outlook that calls for faster growth and substantially higher profitability.
At its first investor day since 2022, Block said it expects gross profit to grow at a mid-teens annual rate through 2028, reaching roughly $15.8 billion, according to CNBC.
The stock was halted shortly before the guidance was released, then jumped roughly 8% to $62 once trading resumed, according to The Block's price page.
Block (XYZ) Price Chart. Source: The Block/TradingView
Adjusted operating income is projected to rise about 30% per year over the same period, topping $4.6 billion by 2028, while adjusted earnings per share are expected to climb into the low-30% range.
Block also enlarged its stock buyback capacity with an additional $5 billion authorization, supplementing the $1.1 billion left from the previous allotment as of September.
The outlook comes two weeks after Block’s latest results, which showed strong gross profit growth but another revenue miss, and follows a three-week slide that pushed shares just above $57 before today’s rebound.
Analysts at William Blair see Block as well-positioned as consumers shift toward fast-turn, app-based borrowing tools, pointing to Cash App’s 134% jump in Borrow usage and calling the company undervalued with more than 40% upside.
Square, the firm's merchant payments unit, is also seeing early traction from refreshed underwriting models and broader distribution.
Block has been expanding deeper into crypto payments as well. Cash App recently added support for stablecoins and Lightning-based bitcoin payments, features that link the app more tightly with Square’s merchant network.
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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