Could Block Inc. (NYSE:XYZ) be the unlikely hero of this earnings season? While many expected tech giants to dominate headlines, Block’s surprising financial performance has analysts buzzing. The stock was falling in early trading on Friday, after the company reported upbeat second-quarter earnings on Thursday.
- XYZ is showing resilience. Check the latest price here.
The announcement came amid an exciting earnings season. Here are some key analyst takeaways.
RBC Capital Markets On Block
Analyst Daniel Perlin maintained an Outperform rating, while raising the price target from $63 to $97.
Block's total gross payment volume (GPV) grew 7.5% year-on-year, accelerating from 4.4% in the previous quarter, to $66.6 billion, ahead of Street expectations of $66.1 billion, Perlin. Cash App GPV contracted to $2.4 billion, while Square GPV grew to $64.3 billion, he added.
Management raised its full-year guidance for adjusted gross profit to $10.17 billion, from its previous forecast of $9.96 billion, and operating margin to around 20%, from its previous projection of around 19%, the analyst stated. The guidance reflects an expectation of Square GPV acceleration as well as "Cash App's new products continuing to accelerate in 2H25," he further wrote.
Check out other analyst stock ratings.
KeyBanc Capital Markets On Block
Analyst Alex Markgraff reiterated an Overweight rating, while lifting the price target from $60 to $100.
Block reported healthy second-quarter results, with adjusted EBITDA of $891.4 million topping the consensus of $822.9 million, Markgraff said. The company guided to an adjusted operating margin of 18% for the third quarter, "below the last three quarters and our estimate driven by potentially higher loss rate dollars on Borrow expansion and the timing of GTM initiatives," he added.
Management raised their full-year guidance more than the second-quarter upside, reflecting a sequential acceleration in gross profits in the back half of the year, the analyst stated. "We’re constructive on the rest of the year/FY26," he further wrote.
Needham On Block
Analyst Mayank Tandon reaffirmed a Buy rating, while raising the price target from $80 to $100.
Block's gross profit grew 13.6% year-on-year to $2.54 billion, exceeding consensus of $2.46 billion, Tandon said. Square revenue came in higher than expected, driven by double-digit growth in retail and food and beverage as well as better growth in its mid-market segment, he added.
Cash App's trends were in line with expectations, the analyst stated. Management raised their 2025 guidance "as it projects a strong back half given an improved macro backdrop and building momentum across its product portfolio," he further wrote.
XYZ Price Action: Block shares were down 1.31% at $75.84 at the time of publication on Friday, according to Benzinga Pro.
Read More:
Photo: Shutterstock
