Block Shares Surge Nearly 8% After Hours Despite $309 Million Net Loss

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Block Shares Surge Nearly 8% After Hours Despite $309 Million Net Loss

Block Inc stock surged in after-hours trading after the firm reported first-quarter earnings.

Block (XYZ) stock closed at $70.14 on the New York Stock Exchange today, a decrease of 0.97%. However, after the market closed, the stock price jumped 7.93% to $75.70, according to data from Google Finance.

Block Q1 Earnings Lifts Stock Prices

Block, led by Jack Dorsey, saw its stock price increase after reporting earnings of $0.85 per share, which was higher than the expected $0.68. This represents a 52% increase in earnings compared to the same time last year.

“This quarterly report represents an earnings surprise of +25.68%,” Zacks noted.

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Block’s $XYZ Q1 2026 results are out. 27% YoY gross profit growth!!! 🔥

— Jevgenijs Kazanins (@jevgenijs) May 7, 2026

Gross profit increased by 27% compared to last year, reaching $2.91 billion, driven by strong performance in both Cash App and Square.

Cash App’s profit increased significantly, growing by 38% to $1.91 billion. Square also saw a profit increase of 9%, reaching $982 million, boosted by faster growth in payments processed. Overall, the company achieved a record operating income of $728 million, improving its profit margin to 25%.

Despite reporting a net loss of $309 million for the quarter, Block demonstrated strong performance overall. This loss was largely due to a $172.8 million decrease in the value of its Bitcoin holdings.

Block increased its financial forecast for 2026 after a strong quarter. They now expect gross profit to grow by 19% this year, reaching $12.33 billion, with improved profit margins and adjusted earnings per share increasing by 62% to $3.85.

In the first quarter, Block achieved strong financial results, driven by the increasing importance of artificial intelligence in our business and product development. We surpassed our projected goals for gross profit, operating income, and earnings per share, as noted in a letter to shareholders from Jack Dorsey.

As a researcher covering Block, I’m anticipating their Q2 gross profit to come in around $3.04 billion, and adjusted diluted EPS of $0.86. That would represent a significant jump from last year – roughly 20% growth in gross profit and 39% in adjusted EPS. We expect the full Q2 results to be released on August 5th.

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2026-05-08 09:43