Block stock jumps 6% on strong Q4 results and major job cuts signaling a leaner future

Block's stock rose about 6% after reporting strong Q4 fiscal 2025 earnings with adjusted EPS beating estimates and significant gross profit growth, especially from Cash App. The company announced a workforce reduction of over 40%, aiming to become more efficient through AI-driven transformation. Analysts remain optimistic, maintaining buy ratings and raising price targets, while investors watch for Q1 2026 results to confirm cost savings and earnings momentum. Despite some risks like increased loan losses, Block's valuation appears reasonable given its growth outlook.