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The bloc’s shares jumped nearly 9% on Wednesday after it revealed plans to achieve $15.8 billion in gross profit by 2028 and announced a $5 billion share buyback, underscoring confidence in continued profitability.
The presentation of three-year prospects, launched at the Investor Day in 2025, marks a strategic change for the company led by Jack Dorsey. Block is moving beyond its core point-of-sale operations towards consumer services, artificial intelligence tools and Bitcoin infrastructure..
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The overall financial goal reflects the transformation
Block’s roadmap stated a goal of mid-double-digit gross profit growth annually through 2028. The company expects adjusted operating income to grow approximately 30% annually, reaching $4.6 billion by 2028. Adjusted earnings per share are expected to grow more than 30% annually, reaching $5.50 in 2028.
CEO Jack Dorsey made a rare appearance at the event. Shares were down 30% at the beginning of 2025 due to the payment competition. However, a commercial stoppage and subsequent announcement quickly announced this decline.
Block expects gross profit to rise 17% to nearly $12 billion by fiscal year 2026. Adjusted operating income and earnings per share are expected to climb more than 30%, reaching $2.7 billion and $3.20 each, respectively. The new non-GAAP cash flow measure, which takes into account capital needs in loans, is expected to reach 25% of gross profit – more than $4 billion – by 2028.
Block aims to achieve the “Rule 40” benchmark in 2026 and maintain it in 2028. This performance metric, which combines revenue growth with profit margins above 40%, is a primary goal for software and fintech companies. The official version of Block He emphasized efficiency, scalability and product innovation in his financial networks.
The expanded share buyback program adds $5 billion to the remaining $1.1 billion from a previous authorization. In total, Block now has about $6.1 billion available for stock purchases, indicating confidence in cash generation.
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Recent performance sets a platform for growth
Block gave the results Third quarter Mixed, with earnings and revenue falling slightly short of analyst expectations. However, gross profit grew by 18.3%, mainly driven by a 24.3% increase in cash application. Square also contributed a 9.2% increase in gross profit.
Cash App has remained the growth engine for Block Company. The number of monthly active users reached 58 million, and revenue per user increased by 25.3%. The total payment volume grew by 10.9% compared to the previous year.
Revenues from subscriptions and services increased by 22.6%, indicating healthy renewable revenue sources. While Bitcoin revenue decreased by 19%. Despite this, Block maintains strong liquidity with sufficient liquidity reserves against manageable debt levels.
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Management noted that by investor day in 2022, gross profit has almost doubled and adjusted EBITDA has tripled. The company now operates 26 products that generate more than $100 million in gross profit annually, demonstrating healthy diversification across its portfolio.
Strategic initiatives extend Block’s reach
Block’s expansion plan includes businesses in technology and finance in ways beyond payment processing. Its brands include Square, Cash App, Afterpay (buy now, pay later), TIDAL (music streaming service), Bitkey (Bitcoin wallets), and Proto (Bitcoin mining products).
In October, he launched Square Bitcoin squareenabling more than 4 million merchants in the United States to accept and manage Bitcoin through Square’s existing systems. Merchants can accept Bitcoin at checkout, transfer up to 50% of daily sales, and manage funds on their Square dashboard.
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The Bitcoin payment program launches with zero transaction fees for one year, starting on November 10, 2025. The launch covers all US states except New York due to regulatory restrictions. The 2024 pilot saw traders accumulate 142 BTC, showing strong interest Binance Other Cryptocurrencies Among the retailers.
The company is deploying AI tools for merchants and expanding Cash App’s financial services. Management emphasized technical standardization and efficiency throughout the ecosystem. These efforts are aimed at reducing reliance on the core business of the point of sale, as competition from PayPal, Stripe and traditional processors has increased.
CEO and CFO Amrita Ahuga emphasized Block’s focus on volume and long-term value. The leadership expressed its confidence in innovation and investment as drivers of double growth and margin expansion until 2028.
During its 10-year journey since its IPO in 2015, Block has transformed from a card reader provider into a diversified fintech giant. The November 19 announcements aim to set a clear path as the company matures in core markets and seeks growth in cryptocurrency infrastructure and AI-driven services.
