Block (XYZ.US) Raises 2026 Guidelines, AI Reshapes Code and Lays Off 4,000 Employees

According to WooFunai, Block (XYZ.US) officially raised its 2026 performance forecast after releasing the financial report. Its core driving force is that artificial intelligence technology has penetrated deeply into almost all code modification processes and completely restructured the R&D process.

Financial data for the second quarter fully exceeded expectations. Gross profit increased 25% year over year to US$3.17 billion, and adjusted operating profit reached US$855 million. According to data compiled by WooFunai, adjusted earnings per diluted share were recorded at $1.02, which was significantly higher than Wall Street's previous forecast of $0.87, showing strong single-quarter profitability.

Based on this, Block raised its full-year gross profit guidance from US$12.33 billion to US$12.51 billion, and the adjusted operating profit guidance from US$3.34 billion to US$3.47 billion. Chief Financial Officer Amrita Ahuja pointed out that this adjustment not only reflects outstanding performance in the first half of the year, but also confirms the continued positive development trend in the second half of 2026.

In a letter to shareholders, Block disclosed that almost all code changes in June were completed with the assistance of proxy AI technology. As early as February, the company laid off 4,000 employees through an AI-based restructuring plan. Business leader Owen Jennings confirmed that the amount of code modifications handled by each engineer increased by 150% compared to the beginning of the year, and the jump in efficiency became a key footnote to organizational change.