Catenaa, Monday, March 09, 2026- Block Inc. posted robust fourth-quarter results and raised its 2026 gross profit guidance to $12.2 billion, as CEO Jack Dorsey accelerates the company’s shift toward artificial intelligence.
The firm reported operating income of $485 million and adjusted operating income of $588 million. Net income attributable to common stockholders was $116 million, while adjusted EBITDA reached $930 million.
Block also purchased 103 bitcoin, bringing its holdings to 8,883 BTC, worth approximately $577 million.
Block is cutting headcount by over 40%, reducing its workforce from more than 10,000 to just under 6,000 employees, aiming for a “smaller,” “flatter,” and AI-first structure. The move follows rapid pandemic-era hiring, when staff expanded from 3,900 to 12,500.
Dorsey highlighted plans to quadruple per-employee gross profit efficiency compared with pre-COVID levels.
Analysts from William Blair said Square, Block’s point-of-sale business, could see the largest benefits from AI, with automation enabling merchants to implement custom solutions.
Cash App’s financial services gross profit reached $865 million, surpassing estimates of $770 million, driven by short-term consumer liquidity products and new offerings for restaurants.
Square’s year-to-date gross payment volume growth rose 7.5%, outpacing Q4 by 50 basis points.
Overall payment volume is up 12%, reflecting strong adoption and competitive positioning in the U.S. market. Block shares surged more than 22% in after-hours trading, reaching $62.34.
