- Block projects mid-teens annual gross profit growth to reach US$15.8 billion (AU$24.3B) and adjusted operating income of US$4.6B (AU$7.1B) by 2028.
- The company expanded its stock buyback programme by US$5 billion (AU$7.7B), adding to US$1.1B (AU$1.7B) remaining, boosting investor confidence.
- Cash App and Square developments, including increased Borrow usage and crypto payment integration, underpin growth, with analysts noting over 40% upside potential.
Block’s stock climbed over 7% on Wednesday after management unveiled a multi-year plan forecasting higher revenue and profitability through 2028. At its first investor day since 2022, the fintech company projected gross profit growth in the mid-teens annually, reaching approximately US$15.8 billion (AU$24.3 billion).
Shares had been paused briefly before the announcement, then surged to US$62 (AU$95.5) when trading resumed. The company anticipates adjusted operating income to increase around 30% per year, exceeding US$4.6 billion (AU$7.1 billion), while adjusted EPS is expected to grow in the low-30% range, reaching US$5.50 (AU$8.47) by 2028.
Block also expanded its stock repurchase programme by US$5 billion (AU$7.7 billion), adding to the US$1.1 billion (AU$1.7 billion) previously authorised. This guidance follows quarterly results showing strong gross profit growth alongside another revenue miss, demonstrating ongoing operational challenges.
The company has diversified beyond its traditional point-of-sale business, enhancing Cash App features including stablecoin and Lightning Bitcoin payments, and integrating AI-based tools for sellers. Analysts from William Blair highlighted the 134% increase in Cash App Borrow activity, describing Block as undervalued and forecasting potential upside of over 40%.
Related: Jack Dorsey’s Cash App Picks Solana – Not Bitcoin – for New Stablecoin Payments
Market Response to Fintech Expansion
CFO Amrita Ahuja emphasised that Block has become more mature and interconnected, streamlining operations across Square, Cash App, and Afterpay, and pursuing cost efficiencies while accelerating product development. The company’s new “rule of 40” investment framework is intended to balance growth and profitability, with projected gross cash flow reaching over US$4 billion (AU$6.2 billion), or 25% of gross profit, by 2028.
After years of underperformance relative to the S&P 500, Block appears determined to reset its narrative with ambitious targets, operational discipline, and an expanded share buyback programme designed to reinforce investor confidence.
Related: Bear Market: Bitcoin Wipes Out 2025 Gains as Price Drops Further
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