Key Stats for Block Stock
- Price change for Block stock Today: 20%
- $XYZ Share Price as of Feb. 26: $55
- 52-Week High: $83
- $XYZ Stock Price Target: $84
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What Happened?
Block (XYZ) stock is up over 20% in pre-market trading after the company announced it’s cutting roughly half its workforce — going from over 10,000 employees to just under 6,000.
CEO Jack Dorsey was direct about the decision. In a letter to shareholders, he said the cuts weren’t a sign of trouble. They were a choice.
“We are choosing to shift how we operate at a time when our business is accelerating,” CFO Amrita Ahuja wrote. The company believes smaller, AI-powered teams can simply do more.
Dorsey went further, saying he thinks most companies will eventually reach the same conclusion. “Within the next year, I believe the majority of companies will reach the same conclusion and make similar structural changes,” he wrote on X. “I’d rather get there honestly and on our own terms than be forced into it reactively.”
Block isn’t alone here. Pinterest, CrowdStrike, and Chegg have all recently announced cuts they directly linked to AI reshaping how work gets done.
The layoffs came alongside Block’s solid Q4 earnings.
- It reported adjusted EPS of $0.65, in line with estimates.
- Gross profit jumped 24% year-over-year to $2.87 billion.
But the real headline was the full-year guidance. Block now expects $3.66 in adjusted EPS for 2026 — well above the $3.22 analysts had penciled in.
The restructuring will cost between $450 million and $500 million, mostly for severance and share-vesting expenses. Most of those hits are in Q1.
See analysts’ growth forecasts and price targets for Block stock (It’s free!) >>>
What the Market Is Telling Us About Block Stock
The 20% pop in Block stock tells you exactly what investors think: this is good news. The market isn’t reading this as a sign of distress for Block. It’s reading it as a company getting leaner, faster, and more profitable.
The numbers back that up.
Block is guiding for 54% adjusted operating income growth in 2026 and six points of margin expansion.
Gross profit growth is expected to hit 18% for the full year. That’s a strong setup. Block stock had been under pressure heading into earnings, but today’s move suggests investors see the AI-driven restructuring as a real unlock — not just cost-cutting for its own sake.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
