Block said Wednesday that it expects gross profit to increase in the mid-teens annually for the next three years, reaching about $15.8 billion in 2028.
At the payment company’s first investor day event since 2022, Block unveiled a three-year financial outlook. The announcements land as Wall Street has turned skeptical on Block’s prospects, pushing the stock down by more than 30% in 2025, while major indexes have notched solid gains.
Block shares were initially halted around the time of the announcement and then jumped 9% when trading resumed.
The fresh guidance also comes two weeks after Block reported quarterly results, missing revenue estimates for a sixth straight time. Block has been diversifying away from its point-of-sale business, which has become increasingly crowded, launching more services tied to Cash App and offering artificial intelligence tools to sellers.
Block said in its new outlook that adjusted operating income is projected to increase about 30% annually, topping $4.6 billion by 2028. Adjusted earnings per share will grow in the low 30% range, reaching $5.50 in three years.
Chief Financial Officer Amrita Ahuja told CNBC ahead of the release that the company is entering a new phase of execution.
Block vs. Nasdaq this year
“Since 2022, our last investor day, we’re nearly double the size from a gross profit perspective,” Ahuja said, adding that earnings before interest, taxes, depreciation and amortization “more than tripled.”
Block also introduced a new non-GAAP cash flow metric, designed to reflect the capital required to grow its lending products, which it expects to reach more than $4 billion, or 25% of gross profit, by 2028.
For 2026, Block expects gross profit to rise 17% to $11.98 billion, with adjusted operating income and EPS both increasing more than 30%, to $2.7 billion and $3.20, respectively.
Ahuja said Block has adopted a “rule of 40” investment framework. That typically refers to revenue growth rate plus profit margin exceeding 40. She said the company expects to reach that metric this year and has reorganized around a single roadmap with a shared technical infrastructure.
“That transformation has resulted in us moving faster, with more connected decisions across our ecosystem,” Ahuja said.
On Wednesday, Block also expanded its share repurchase program by $5 billion, adding to the $1.1 billion in remaining authorization as of Sept. 30. The prior buyback plan was for up to $4 billion in purchases.
Block CEO Jack Dorsey, who co-founded the company as Square in 2009, was in attendance at the investor event. Dorsey has largely been out of public view in recent years.
WATCH: Block shares drop more than 8% on quarterly miss
