Block, Inc. shares soared almost 9% on Wednesday after revealing plans to achieve $15.8 billion in gross profit by 2028 and announcing a $5 billion share repurchase, underscoring confidence in continued profitability.
The three-year outlook, launched at the 2025 Investor Day, marks a strategic shift for the Jack Dorsey-led company. Block is moving beyond its core point-of-sale operation into consumer services, artificial intelligence tools, and Bitcoin infrastructure.
Sponsored
Comprehensive Financial Targets Reflect Transformation
Block mapped out a roadmap targeting mid-teens percentage gross profit growth annually through 2028. The company expects adjusted operating income to rise about 30% per year, reaching $4.6 billion by 2028. Adjusted earnings per share are projected to grow by more than 30% each year, reaching $5.50 in 2028.
The event featured a rare appearance by CEO Jack Dorsey. The stock had dropped 30% earlier in 2025 due to competition in payments. However, the trading halt and subsequent announcement quickly reversed that decline.
For fiscal year 2026, Block projects gross profit rising 17% to nearly $12 billion. Adjusted operating income and earnings per share are each expected to climb by more than 30%, reaching $2.7 billion and $3.20, respectively. The new non-GAAP cash flow metric, which accounts for capital needs in lending, is forecast to get 25% of gross profit—more than $4 billion—by 2028.
Block aims to achieve the “Rule of 40” benchmark in 2026 and sustain it through 2028. This performance measure, combining revenue growth and profit margin over 40%, is a key target for software and fintech firms. Block’s official release emphasized efficiency, scale, and product innovation in its financial networks.
The expanded buyback program adds $5 billion to the $1.1 billion remaining from a previous authorization. In total, Block now has about $6.1 billion available for share repurchases, signaling confidence in cash generation.
Sponsored
Recent Performance Lays Out Growth Platform
Block reported mixed Q3 results, with earnings and revenue slightly missing analyst expectations. However, gross profit rose 18.3%, driven primarily by Cash App’s 24.3% increase. Square also contributed with a 9.2% gain in gross profit.
Cash App remained Block’s growth engine. Monthly active users reached 58 million, with profit per user rising 25.3%. Gross Payment Volume grew 10.9% year-over-year.
Subscription and services revenue increased 22.6%, indicating healthy recurring income streams. Bitcoin-related revenue, however, fell 19%. Despite this, Block maintains strong liquidity with ample cash reserves against manageable debt levels.
Sponsored
Management noted that since 2022’s investor day, gross profit has nearly doubled and adjusted EBITDA has tripled. The company now runs 26 products generating over $100 million in annual gross profit, showing healthy diversification across its portfolio.
Strategic Initiatives Broaden Block’s Reach
Block’s expansion plan includes ventures in tech and finance beyond payment processing. Its brands include Square, Cash App, Afterpay (buy-now-pay-later), TIDAL (music streaming), Bitkey (Bitcoin wallets), and Proto (Bitcoin mining products).
In October, Square launched Square Bitcoin, enabling over 4 million US merchants to accept and manage Bitcoin through existing Square systems. Merchants can accept Bitcoin at checkout, convert up to 50% of daily sales, and manage holdings on the Square Dashboard.
Sponsored
The Bitcoin payment program began with zero transaction fees for 1 year, starting November 10, 2025. The rollout covers all US states except New York due to regulatory limits. The 2024 pilot saw merchants accumulate 142 BTC, indicating strong interest in BNB and other cryptocurrencies among retailers.
The company is deploying artificial intelligence tools for merchants and expanding Cash App’s financial services. Management stressed technical unification and efficiency across the ecosystem. These efforts aim to reduce reliance on the core point-of-sale business, where competition from PayPal, Stripe, and traditional processors has grown.
COO and CFO Amrita Ahuja underscored Block’s focus on scale and long-term value. Leadership voiced confidence in innovation and investment as drivers of compounding growth and margin expansion through 2028.
Over its 10-year journey since its 2015 IPO, Block has transformed from a card reader provider into a diversified fintech giant. The November 19 announcements seek to chart a clear path as the company matures in core markets and pursues growth in cryptocurrency infrastructure and AI-driven services.
Source: https://beincrypto.com/block-5b-buyback-2028-growth-plan/
