Block, the payments firm led by Jack Dorsey, projects a robust period of growth, anticipating gross profit to expand annually in the mid-teens range over the next three years, ultimately reaching approximately $15.8 billion by 2028. This outlook was presented at the company’s investor day, its first since 2022, aiming to reassure Wall Street which has grown increasingly wary of the company’s stock performance. In 2025, Block shares have declined by over 30%, diverging sharply from the upward trajectory of major market indexes.
Trading in Block shares was temporarily halted in anticipation of the announcement, followed by a 9% surge upon resumption, suggesting investor confidence in the company’s revised financial projections. The investor day presentation arrives on the heels of Block’s recent quarterly earnings report, which, for the sixth consecutive time, fell short of revenue expectations.
In response to an increasingly competitive point-of-sale landscape, Block has strategically diversified its offerings. This includes expanding the functionality of its Cash App and integrating artificial intelligence tools to enhance services for its seller base. This diversification strategy highlights Block’s commitment to long-term growth and innovation.
The company’s forward-looking statements include a projection of adjusted operating income rising by approximately 30% annually, exceeding $4.6 billion by 2028. Adjusted earnings per share (EPS) are also expected to increase in the low 30% range, reaching $5.50 within the same timeframe. These projections offer a glimpse into Block’s management’s confidence in its ability to execute its strategic initiatives.
Amrita Ahuja, Block’s Chief Financial Officer, emphasized the company’s transition into a new phase of execution. This transition involves a focus on operational efficiency, strategic resource allocation, and leveraging technological advancements to drive sustainable growth. The company is keen to demonstrate improved execution and strategic clarity.
Block vs. Nasdaq this year
“Since our last investor day in 2022, we’ve nearly doubled in size from a gross profit perspective,” Ahuja stated, further noting that earnings before interest, taxes, depreciation, and amortization (EBITDA) have “more than tripled,” showcasing the company’s enhanced profitability and operational leverage.
Block introduced a new non-GAAP cash flow metric to provide investors with a clearer understanding of the capital required to support the growth of its lending products. The company anticipates that this metric will reach more than $4 billion, or 25% of gross profit, by 2028, reflecting the growing importance of its lending operations.
Looking ahead to 2026, Block forecasts a 17% increase in gross profit, reaching $11.98 billion. Adjusted operating income and EPS are both projected to increase by more than 30%, to $2.7 billion and $3.20, respectively, indicating continued strong financial performance.
Ahuja highlighted that Block has adopted a “rule of 40” investment framework. This framework, which typically refers to revenue growth rate plus profit margin exceeding 40, suggests that Block is prioritizing a balance between growth and profitability. The company expects to achieve this metric this year and has reorganized around a single roadmap with a shared technical infrastructure, further streamlining operations.
“That transformation has resulted in us moving faster, with more connected decisions across our ecosystem,” Ahuja explained, emphasizing the benefits of the company’s restructuring efforts and the enhanced collaboration and efficiency they have fostered.
Block also announced an expansion of 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, signaling the company’s confidence in its future prospects and its commitment to returning value to shareholders.
Jack Dorsey, Block CEO and co-founder, attended the investor event. Dorsey’s presence underscores his continued commitment to the company’s long-term vision and strategic direction, despite his reduced public profile in recent years.
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