Why Is Jack Dorsey’s Block (XYZ) Stock Up Today?

Jack Dorsey’s Block has announced plans to cut over 40% of its workforce, a move that has sparked double-digit gains for the XYZ stock. The stock also rose as the company reported Q4 earnings, which came in line with expectations.

Block (XYZ) Stock Surges 20% On The Back Of Mass Layoffs

TradingView data shows that the XYZ stock is up over 20%, rallying to almost $66, from yesterday’s close of $54. This follows the release of the company’s Q4 2025 financial report, which revealed that it is reducing its workforce by almost half, from over 10,000 to just under 6,000.

Block’s CEO, Jack Dorsey, also confirmed this move in an X post, describing it as one of the “hardest decisions” in the company’s history. He noted that they are not making this decision because they are in trouble, as the business is strong. “Gross profit continues to grow, we continue to serve more and more customers, and profitability is improving,” he further remarked.

Dorsey admitted that artificial intelligence (AI) has changed things and the way the company fundamentally operates, enabling them to work with a smaller team. Notably, the XYZ stock climbed as the company raised its guidance, predicting higher profitability amid these layoffs.

Block stated that it now expects $12.20 billion in gross profit for this year, representing 18% year-over-year (YoY) growth. Furthermore, they expect full-year adjusted operating income of $3.20 billion, representing 54% YoY growth. In this first quarter, Dorsey’s company expects their gross profit to grow 22% YoY to $2.80 billion and an adjusted operating income of $600 million.

The Block stock rose as investors welcomed this guidance as a positive development, especially given that layoffs are likely to boost profitability. It is worth noting that the crypto stock remains down 17% year-to-date (YTD) despite this recent surge.

Q4 Earnings Come In Line With Expectations

The XYZ stock also rose as Block’s Q4 earnings came in line with expectations. The company reported earnings per share (EPS) of $0.65 for the fourth quarter of last year while it recorded a revenue of $6.25 billion, just above estimates of $6.22 billion.

For 2025, the company recorded a gross profit of $10.36 billion, representing a 17% YoY growth. The adjusted diluted EPS was $2.37 while the company’s adjusted operating income was $2.08 billion, representing a 20% margin.

The company added 340 more BTC in the fourth quarter of last year. Block is currently ranked 14th among public BTC treasuries, with holdings of 8,883 BTC, according to BitcoinTreasuries data.

According to the financial report, Block’s Bitcoin investment was worth $777.5 million at year-end 2025. Meanwhile, the company reported a remeasurement loss of $55.9 million as the Bitcoin price declined in the fourth quarter of last year.

However, it noted that its Bitcoin ecosystem gross profit grew 10% YoY in the fourth quarter, driven by Proto shipments. This is the part of the company’s business that focuses on BTC mining products, with the aim of decentralizing mining hardware.