Block Inc. Unveils $15.8B Gross Profit Target by 2028 and $5B Buyback

TLDR

• Block Inc. projects achieving $15.8 billion in gross profit by 2028 with a focus on AI and Bitcoin infrastructure.
• The company has announced a $5 billion increase to its share repurchase program, bringing the total to $6.1 billion.
• Block Inc. expects adjusted operating income to grow by 30% annually, reaching $4.6 billion by 2028.
• The company plans for a 17% rise in gross profit in fiscal year 2026, reaching nearly $12 billion.
• Block’s Cash App continues to drive growth with a 24.3% increase in gross profit and 58 million active users.

Block Inc. saw its shares rise nearly 9% on Wednesday after unveiling plans to achieve $15.8 billion in gross profit by 2028. The company also announced a $5 billion share repurchase program, demonstrating strong confidence in its future profitability. This new outlook, presented at Block’s 2025 Investor Day, signals a strategic shift for the company under CEO Jack Dorsey.

Block Inc.’s Strategic Shift Beyond Payments

Block Inc. is shifting its focus beyond its traditional point-of-sale operation. The company is now targeting growth in consumer services, artificial intelligence tools, and Bitcoin infrastructure. This broader strategy aims for annual gross profit growth in the mid-teens percentage range through 2028.

Block’s three-year plan projects a 30% annual increase in adjusted operating income, with expectations to reach $4.6 billion by 2028. The company also anticipates adjusted earnings per share to grow by over 30% annually, hitting $5.50 by the same year. “We are expanding across various sectors to enhance profitability and diversify our revenue streams,” said CEO Jack Dorsey.

Block Inc. anticipates a 17% rise in gross profit for fiscal year 2026, approaching $12 billion. The company projects adjusted operating income and earnings per share to increase by more than 30%, reaching $2.7 billion and $3.20, respectively. Block has set a goal to meet the “Rule of 40” benchmark by 2026, combining revenue growth and profit margins exceeding 40%.

In addition, Block introduced a new non-GAAP cash flow metric, which is expected to capture 25% of its gross profit by 2028. This translates to over $4 billion in non-GAAP cash flow. The company’s growth strategy highlights efficiency, scale, and innovation in its financial networks.

Recent Performance and Strategic Investments

Block Inc. also announced a $5 billion increase in its share repurchase program. This adds to the $1.1 billion left from a previous authorization, giving the company a total of $6.1 billion available for stock buybacks. The expanded repurchase program highlights Block’s confidence in its ability to generate cash and create shareholder value.

“We believe our business has a strong growth trajectory and ample cash reserves,” said Amrita Ahuja, COO and CFO of Block Inc. The announcement quickly boosted investor sentiment, reversing earlier stock declines caused by rising competition in the payments sector.

Block Inc. reported mixed Q3 results, with earnings and revenue slightly missing analyst expectations. However, the company’s gross profit grew by 18.3%, primarily driven by Cash App’s strong performance. The app saw a 24.3% increase in gross profit, while Square contributed a 9.2% rise.

Block continues to rely on Cash App as its key growth engine, with 58 million active users. Monthly active user growth helped boost the company’s overall profitability, though Bitcoin-related revenue fell by 19%. Despite this decline, Block’s liquidity remains strong, with solid cash reserves and manageable debt.

Block Inc. Pioneers in Cryptocurrency and AI Tools

Block is actively expanding its services beyond traditional payments. The company’s Square Bitcoin initiative allows over 4 million U.S. merchants to accept and manage Bitcoin payments. This initiative includes a one-year fee-free program that began on November 10, 2025.

Block also introduced new artificial intelligence tools to help merchants enhance their operations. The company plans to integrate these tools with Cash App to improve its financial services and reduce reliance on the point-of-sale business. These moves reflect Block’s ongoing commitment to product innovation and scalability.

Over the past decade, Block Inc. has transformed from a card reader provider into a diversified fintech giant. The company’s brands now include Square, Cash App, Afterpay, TIDAL, Bitkey, and Proto. Block’s broad product portfolio has contributed to its robust growth, with 26 products generating over $100 million in annual gross profit.

Block Inc. is also expanding its focus on Bitcoin infrastructure and AI-driven services as part of its long-term growth strategy. The company’s leadership remains optimistic about its ability to drive compounding growth and margin expansion through 2028.

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