Block shares jump after new three-year outlook calls for accelerating growth, expanded buyback
Block's shares surged after its new three-year outlook projected accelerating growth, higher profitability, and an expanded $5 billion stock buyback.Summary
Shares of Jack Dorsey-led Block rose significantly after the company presented a new three-year financial outlook projecting faster growth and substantially increased profitability through 2028. Block expects gross profit to grow at a mid-teens annual rate, reaching approximately $15.8 billion by 2028, while adjusted operating income is projected to increase by about 30% annually, exceeding $4.6 billion. Furthermore, Block authorized an additional $5 billion for its stock buyback program. This positive guidance followed a recent earnings report showing strong gross profit growth despite a revenue miss. Analysts remain optimistic, citing strong adoption of borrowing tools within Cash App and potential upside, while noting traction in Square's merchant unit and Block's continued expansion into crypto payments like stablecoin and Lightning Network support.
(Source：The Block)