Block reports 27% Q1 gross profit growth, raises 2026 guidance with strong Cash App momentum

Block, a fintech company, posted a 27% year-over-year increase in Q1 gross profit and a 52% rise in adjusted EPS, signaling strong operational efficiency. The company raised its 2026 guidance, expecting 19% gross profit growth, a 27% adjusted operating margin, and 62% adjusted EPS growth. Cash App is driving growth faster than Square, with new partnerships like Uber expected to boost user engagement and revenue. Despite a premium valuation, Block's forward P/E below 20 and discounted PEG ratio make it an attractive buy based on solid fundamentals.