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Block Stock Jumps on Strong Outlook as Analyst Calls Split

Investor enthusiasm reflects a robust 2026 outlook fueled by Cash App momentum.

Overview

  • Shares rose 27% over five sessions, lifting market value by about $8.4 billion to roughly $39 billion, according to Forbes.
  • Oppenheimer lifted its price target to $89 after Q4 results and highlighted a restructuring with a workforce reduction of more than 40% to support AI-driven automation.
  • Bank of America cut its price target to $75, citing a lower multiple tied to softer sentiment for payment stocks and weaker peer valuations.
  • Block guided to 2026 adjusted operating income of $3.2 billion at a 26% margin and full-year gross profit of $12.2 billion, with Q1 targets of $2.8 billion gross profit and $600 million adjusted operating income at a 21% margin.
  • Q4 results included adjusted EPS of $0.65, gross profit of $2.87 billion on 33% Cash App growth, gross payment volume of $66.9 billion, and adjusted EBITDA of $930 million.