Block raised its 2026 outlook after a strong quarter, with Cash App and Square driving better-than-expected results. The company also expanded its use of AI across software engineering, stating that AI now touches nearly all of its code.
Cash App and Square Lead the Quarter
Both Cash App and Square delivered results that beat internal forecasts. The company didn't break out specific revenue figures, but the performance was enough to push Block to revise its expectations for 2026 upward. That's a notable shift from earlier this year, when the company's outlook was more cautious.
Cash App continues to be a key growth driver, especially as more users rely on it for everyday transactions. Square, the merchant payments arm, also held its own, processing a steady volume of payments from small and medium businesses. Together, the two segments gave Block the confidence to raise its full-year guidance.
AI's Growing Role in Engineering
Block has been quietly embedding AI into its engineering workflow. The company said AI now touches nearly all of its code — from writing and reviewing to testing and deployment. That's a broad claim, but it reflects a deliberate push to make AI a core part of how the company builds software.
The expansion isn't limited to one product. Engineers across both Cash App and Square are using AI tools to speed up development and catch bugs earlier. Block didn't name specific AI models or vendors, but the shift suggests the company sees AI as a competitive advantage, not just a buzzword.
What the 2026 Outlook Means
Raising the 2026 outlook this early signals that Block expects the momentum to last. The company is betting that its AI investments will continue to improve efficiency and product quality, which could translate into better margins and faster feature releases.
But the outlook also comes with risks. AI adoption in software engineering is still new, and the benefits aren't guaranteed. If the tools don't scale or if they introduce new bugs, the cost savings could evaporate. Block's next quarterly report will show whether the AI investments are paying off as expected.
