Block Inc shares surged 22% in after-hours trading following a robust earnings report and a sweeping structural overhaul that will eliminate 40% of the company's workforce. The financial technology giant reported fourth-quarter adjusted earnings of $0.65 per share, slightly above the $0.64 analyst consensus, while revenue reached $6.25 billion.
Gross profit jumped 24% year-over-year to $2.87 billion, driven by a 33% surge in Cash App performance. The Square ecosystem also showed resilience, with gross payment volume accelerating to 12% growth through late February. In a candid letter to shareholders, CEO Jack Dorsey detailed plans to reduce the team from over 10,000 employees to fewer than 6,000.
Dorsey described the move as a pivot toward an "intelligence-native" model, arguing that a significantly smaller team using AI tools can accomplish more. The CEO characterized the restructuring as a proactive response to shifting economic conditions, stating he'd "rather get there honestly and on our own terms than be forced into it reactively." Management raised its full-year 2026 outlook, now forecasting gross profit of $12.20 billion and adjusted operating income of $3.20 billion.
Source: Investing.com News · Summarized by HeadlinesBriefing