Block Inc. lifted its financial forecast for 2026 on Thursday after reporting better-than-expected results for the latest quarter. The company credited its two main businesses — Cash App and Square — for the outperformance, while also detailing a broad expansion of artificial intelligence across its software engineering teams.
What drove the quarter
Cash App, the peer-to-peer payments platform, and Square, the merchant services arm, both delivered results that topped internal projections, according to the company. Block did not break out specific revenue figures in the preliminary announcement, but said the strength was broad-based across its ecosystem. The company's gross profit grew at a faster pace than anticipated, allowing management to raise its full-year 2026 outlook.
AI across nearly all engineering
Block has been quietly embedding AI tools into its development workflow. The company said it now uses artificial intelligence across “nearly all” of its software engineering. That includes code generation, testing, and deployment. The move is part of a broader push to improve efficiency and speed up product releases. Block did not name specific AI vendors or models, but the integration appears to be internal and custom-built for its engineering teams.
Outlook and what's next
The raised 2026 outlook signals that Block expects the momentum to continue. The company did not provide a new numerical target in the statement, but said the updated forecast reflects “higher confidence” in its growth trajectory. Investors will be watching the next quarterly report for more detail on how AI is affecting margins and whether Cash App and Square can sustain their recent pace. Block's stock rose in after-hours trading following the announcement.
