Block XYZ is set to report first-quarter 2026 results on May 7, after market close. The company’s quarterly results are likely to display a year-over-year rise in revenues and earnings per share (EPS).
In the previous quarter, this Oakland, CA-based fintech company reported an EPS of 65 cents, meeting the Zacks Consensus Estimate. Results reflected a year-over-year increase in total revenues.
Over the trailing four quarters, this fintech company’s EPS surpassed the Zacks Consensus Estimate on one occasion, met on one occasion and missed in the remaining two periods, the average miss being 11.83%. This is depicted in the graph below:
Block, Inc. Price and EPS Surprise
Block, Inc. price-eps-surprise | Block, Inc. Quote
Factors Shaping Block’s Q1 Results
Block is strengthening its fintech ecosystem through its two key platforms — Square and Cash App — offering integrated solutions across payments, commerce, lending and banking. Square is regaining market share, reflecting effective product innovation and strategic seller acquisition.
Block is investing aggressively to expand its partner base for sustainable growth. In March 2026, Square expanded its partnership with Steak Escape, where Square’s unified commerce platform empowers Steak Escape’s drive-thru, kiosk and in-store experience across its 23 locations. In the same month, Cinnaholic re-engaged with Square to power its nationwide operations across 85 locations. Similarly, in January 2026, 7 Leaves Cafe adopted Square's comprehensive commerce platform to power its growing operations across 44 locations in the United States.
While near-term softness is apparent, gross profit is expected to accelerate in the quarter as Block deepens user engagement and expands features.
Q1 Projections for XYZ
The Zacks Consensus Estimate for first-quarter revenues is pegged at $6.11 billion, indicating an increase of 5.79% from the year-ago quarter’s reported figure.
For the first quarter of 2025, Block expects a gross profit of $2.80 billion, suggesting year-over-year growth of 22%. Adjusted operating income is expected to be $600 million with an operating margin of 21%.
The consensus mark for Block’s Transaction revenues is pegged at $1.70 billion, up from $1.55 billion in the year-ago period. Square’s ecosystem is expected to contribute $1.63 billion, while Cash App is expected to provide $58.56 million to transaction revenues.
Estimates for Subscription and Services revenues are $2.34 billion for the first quarter, up from $1.89 billion in the year-ago period. Similarly, the consensus mark for hardware revenues is pegged at $29.6 million, up from $28.7 million in the year-ago period.
However, the consensus estimate for Bitcoin revenues is $2.11 billion, down from $2.30 billion in the prior-year quarter.
XYZ’s activities during the to-be-reported period were inadequate to garner analysts’ confidence. The Zacks Consensus Estimate for quarterly EPS has been revised downward by 2 cents to 68 cents over the past three months. However, it suggests a 21.43% increase from the prior-year quarter’s reported figure.
What Our Quantitative Model Predicts for XYZ
Our proven model does not conclusively predict an earnings beat for Block this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Block has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold) at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks That Warrant a Look
Here are two other stocks from the Zacks Internet-Software industry — Audioeye AEYE and StoneCo STNE — which you may want to consider, as our model shows that these, too, have the right combination of elements to report a surprise this quarter.
AEYE, scheduled to report quarterly numbers on May 12, currently has an Earnings ESP of +9.62% and carries a Zacks Rank #3 at present.
StoneCo is slated to report quarterly numbers on May 14. STNE has an Earnings ESP of +3.94% and a Zacks Rank #3.
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This article originally published on Zacks Investment Research (zacks.com).