Block Stock Soars on Ambitious 3-Year Plan

Block's Aggressive Growth Strategy Ignites Investor Confidence

Block Inc. (formerly Square) sent a clear message to Wall Street during its first investor day event since 2022: the company is poised for significant growth. The digital payments giant unveiled an ambitious three-year financial outlook that sent its stock soaring 9% in a single day, reversing a year-long downward trend that saw shares plummet over 30% in 2025.

At the center of the optimism is Block's revised financial roadmap. CFO Amrita Ahuja announced that the company projects gross profit to reach $15.8 billion by 2028, growing at an annual rate in the mid-teens. This represents a dramatic acceleration from current levels, with 2026 gross profit already forecast at $11.98 billion – a 17% increase year-over-year.

Profitability Targets and Shareholder Returns

Block's vision extends beyond top-line growth. The company targets a staggering 30% annual increase in adjusted operating income, projecting it to surpass $4.6 billion by 2028. Adjusted earnings per share are expected to grow in the low 30% range, hitting $5.50 per share in three years – significantly ahead of Wall Street's $4.76 consensus estimate.

Reassuring investors, Block simultaneously authorized a massive $5 billion stock repurchase program, adding to the $1.1 billion remaining from its previous authorization. This commitment to capital return comes as the company boasts approximately $10.5 billion in liquidity, including $9.7 billion in cash, providing ample flexibility for both growth initiatives and shareholder returns.

"Since our last investor day in 2022, we've nearly doubled in size from a gross profit perspective," Ahuja stated. "Our transformation has allowed us to move faster with more connected decisions across our ecosystem."

Dorsey's Automation Vision and Strategic Shifts

CEO Jack Dorsey, making a rare public appearance, emphasized the company's future direction: automation. Dorsey outlined two groundbreaking initiatives in development: "managerbot" for business automation and "moneybot" for personal finance automation. These tools aim to reduce manual work in Block's Square and Cash App ecosystems, positioning the company at the forefront of AI-driven financial services.

This automation push represents a strategic pivot away from Block's increasingly crowded point-of-sale business. The company has been diversifying toward higher-margin services centered around Cash App – which now features pooled payments for group transactions – and AI-powered seller tools. Block also reinforced its long-term commitment to bitcoin, viewing cryptocurrency as a "global, low-cost payment option" that will drive merchant adoption in coming years.

The "Rule of 40" Framework and Market Reaction

A key element of Block's transformation is its adoption of the "rule of 40" framework – where revenue growth rate plus profit margin exceeds 40%. The company expects to achieve this milestone this year, signaling a new phase of balanced growth and profitability. This structural overhaul, including reorganization around a unified technical infrastructure, has enabled faster execution across Block's diverse operations.

The market's enthusiastic response to Block's investor day highlights a potential turning point for the stock. After six consecutive quarters of missing revenue estimates and trailing major indexes, the company's clear targets and strategic focus have reignited investor interest. As Block enters this new execution phase, all eyes will be on whether it can deliver on its ambitious promises and cement its position as a leader in the evolving digital payments landscape.