Block raises 2026 outlook on strong quarter, says AI touches nearly all code

Cash App and Square drove better-than-expected results, while the company said it expanded its use of AI across software engineering.Fintech company Block (XYZ) has lifted its full-year outlook after reporting a strong second quarter driven by growth in Cash App and Square, with gross profit up 25% year over year to $3.17 billion, ahead of Block’s prior guidance. Second-quarter adjusted operating income also exceeded guidance, reaching $855 million, according to a results filing on Wednesday. Adjusted diluted earnings per share were $1.02, beating the Wall Street consensus estimate of 87 cents per share.The results led Block to lift its full-year gross profit guidance to $12.51 billion from $12.33 billion, and adjusted operating income to $3.47 billion from $3.34 billion. “Our increased guidance reflects the strength of our first-half execution and the momentum we’re carrying into the second half of 2026,” said Block’s chief financial officer Amrita Ahuja in an earnings call. Meanwhile, Block said in a shareholder letter that agentic AI helped write and review nearly all production code changes in June, coming months after it cut 4,000 jobs in February as part of an AI-led restruct...