With a market cap of $50.1 billion, Block, Inc. (XYZ) is a global technology company focused on expanding access to the economy through innovative financial and commerce solutions. Through brands such as Square, Cash App, Afterpay, TIDAL, Bitkey, and Proto, the company empowers individuals, businesses, and creators with tools for payments, financial services, digital assets, and entrepreneurship.
Shares of the Oakland, California-based company have lagged behind the broader market over the past 52 weeks. XYZ stock has risen 8.6% over this time frame, while the broader S&P 500 Index ($SPX) has returned 22.6%. However, shares of the company are up 27% on a YTD basis, outpacing SPX’s 12.8% gain.
Focusing more closely, shares of Block have underperformed the State Street Financial Select Sector SPDR ETF’s (XLF) 12.3% increase over the past 52 weeks.
Block reported stronger-than-expected Q2 2026 results on Aug. 5, with adjusted EPS of $1.02 and revenue of $6.62 billion, driven by resilient consumer spending and a 31% year-over-year increase in Cash App gross profit. The company also raised its full-year 2026 gross profit forecast to $12.51 billion, reflecting continued momentum in Cash App and improving profitability. Additionally, adjusted operating margin expanded to 27%, supported by cost-cutting initiatives and AI-driven operational efficiencies.
For the fiscal year ending in December 2026, analysts expect Block’s EPS to grow 5.5% year-over-year to $2.48. The company’s earnings surprise history is promising. It beat the consensus estimates in each of the last four quarters.
Among the 41 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 28 “Strong Buy” ratings, four “Moderate Buys,” and nine “Holds.”
This configuration is slightly less bullish than three months ago, with 29 “Strong Buy” ratings on the stock.
On Jul. 23, Bank of America Securities analyst Matthew O’Neill reiterated a “Buy” rating on Block and maintained a $100 price target.
The mean price target of $91.42 represents an 8.6% premium to XYZ’s current price levels. The Street-high price target of $115 suggests a 36.6% potential upside.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
/An%20image%20of%20the%20Snowflake%20logo%20on%20a%20corporate%20office_%20Image%20by%20Grand%20Warszawski%20via%20Shutterstock_.jpg)
/Netflix%20on%20tv%20with%20remote%20by%20freestocks%20via%20Unsplash.jpg)