Why did Block stock jump today?

Shares spiked after management issued 2026 EPS guidance of $3.66, ahead of the $3.22 consensus, and announced roughly 40% workforce reductions tied to AI efficiencies. Investors expect lower operating expenses and stronger free cash flow after one-time restructuring charges of $450–$500 million, mainly in Q1, roll off.

What are the key risks after the rally?

Execution on automation, cultural impact from Block layoffs, and near-term disruption are top risks. Consumer spending trends, small-business health, and regulatory scrutiny could also pressure results. If savings lag or revenue growth cools, Block stock may retrace part of its move as margins miss expectations.

How should I value Block after the guidance?

Use a simple check: divide the current share price by $3.66 to estimate the 2026 P/E. Compare that to peers and your required return. A premium may be warranted if margins expand and growth holds. A discount is fair if execution or demand slows.

What should I watch in the next earnings reports?

Focus on adjusted operating margin, free cash flow, stock-based compensation as a percent of revenue, and the expense run-rate as Q1 charges fade. Also track Seller GPV trends, Cash App monetization per user, and management’s updates on AI-driven productivity and hiring discipline.

Did Jack Dorsey comment on the layoffs?

Yes. CEO Jack Dorsey framed the reductions as necessary to improve efficiency with AI and sharpen focus. Coverage highlighted his view that many companies will follow similar paths. Investors will watch whether savings materialize without hurting product velocity or customer engagement.

Global Market Insights

SQ Stock Today: February 27 – 40% Cuts, 2026 EPS Hike Fuel 24% Surge

ByHuzaifa Zahoor February 27, 2026February 27, 2026

Block stock ripped higher on February 27, soaring as much as 24% after the company outlined roughly 40% workforce reductions tied to AI gains and issued 2026 EPS guidance of $3.66, above the $3.22 consensus. Management also flagged $450–$500 million in restructuring charges, largely in Q1. Investors see a quicker path to profit growth if costs fall and revenue holds. Shares of SQ rallied as traders recalibrated margins and free cash flow. We break down the catalysts, valuation framing, and key risks.