Block raises 2025 gross profit guidance 14.4% on strong Q2 results

Block Inc. (NYSE: XYZ) has raised its full-year gross profit guidance for fiscal 2025, driven by stronger-than-expected performance in the second quarter. The company now anticipates gross profit of $10.17 billion for the year, up 14.4% year over year, marking a significant upward revision from earlier forecasts [1]. This update follows Q2 gross profit of $2.45 billion, which reflects a 9.5% increase compared to the same period last year and exceeded analyst projections [2].

The company has also increased its adjusted operating income target for the year, signaling continued confidence in its ability to expand margins and maintain cost discipline [3]. The revised guidance is supported by robust contributions from its two core businesses, Square and Cash App. In Q2, Square’s gross payment volume (GPV) rose 7.2% year over year, while Cash App’s gross profit increased by 10% [4]. Analysts expect this momentum to continue into the second half of the year, with gross profit growth expected to accelerate further [5].

Despite a decline in Cash App’s GPV during the quarter, the company managed to achieve higher gross profit, pointing to a strategic shift toward more profitable segments of its business [6]. Management attributed the improvement to disciplined cost control, enhanced pricing power, and strategic adjustments in its digital commerce and financial services offerings. The ability to offset lower volume with higher margins has been highlighted by analysts as a key factor behind the revised guidance.

The company’s strong Q2 results have driven a positive reaction in the stock market. Shares of Block surged 11% in after-hours trading following the guidance update [7]. The performance has reinforced investor confidence in the company’s operational resilience, particularly in navigating macroeconomic challenges and maintaining customer engagement in a competitive fintech landscape [8].

The upward revision in gross profit expectations also sets a higher benchmark for the remainder of the year. Analysts and investors will be closely watching Block’s upcoming quarterly results to see if the current momentum can be sustained [9]. The company’s ability to adapt to changing market conditions and maintain profitability amid shifting consumer behavior has been a key reason for the revised outlook.

The updated guidance reflects Block’s strong execution in the first half of the year and suggests that the company remains well-positioned to deliver on its long-term growth objectives. As the fintech sector faces ongoing challenges, Block’s performance highlights its strategic focus on margin expansion and operational efficiency.

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[1] Block shares gain after strong gross profit growth despite ... (Investing.com, https://ng.investing.com/news/earnings/block-shares-gain-after-strong-gross-profit-growth-despite-eps-miss-205120)

[2] Block Gears Up to Report Q2 Earnings: What's in the Offing? (Yahoo, https://finance.yahoo.com/news/block-gears-report-q2-earnings-164600617.html)

[3] Block, Inc. Q2 2025 Earnings Analysis (Monexa, https://monexa.ai/blog/block-inc-q2-2025-earnings-analysis-ecosystem-expa-XYZ-2025-08-06)

[4] Here's what Wall Street experts are saying about Block ... (TipRanks, https://www.tipranks.com/news/the-fly/heres-what-wall-street-experts-are-saying-about-block-ahead-of-earnings-thefly)

[5] Is Block Stock (XYZ) a Buy Ahead of Q2 Earnings? (TipRanks, https://www.tipranks.com/news/is-block-stock-xyz-a-buy-ahead-of-q2-earnings)

[6] Block boosts 2025 gross profit guidance, after Q2 GPV, gross profit top estimates (Seeking Alpha, https://seekingalpha.com/news/4481832-block-in-charts-gross-payment-volume-for-cash-app-continues-decline-in-q2)