Why did SQ stock today jump more than 20% after-hours?

Block announced an AI-first plan with deep cost cuts, including reducing headcount to under 6,000 and up to $500m in restructuring charges. Investors expect faster margin expansion across Square and Cash App from automation and simpler operations, so they bid the shares higher. The market is pricing in benefits this year rather than a distant timeline.

What does the $500m restructuring include?

Management guided to up to $500m in restructuring charges as it streamlines the organisation. That typically covers severance, facility costs, and systems consolidation. The goal is to rebase operating expenses and reallocate spend toward AI and core growth work. Investors should watch quarterly disclosures for the timing and mix of these charges.

How could AI improve Square and Cash App margins?

AI can cut support workloads, improve fraud detection, and speed software delivery. For sellers, that may mean fewer chargebacks and faster onboarding. For Cash App, better risk models can reduce losses. Combined, these efficiencies can lower unit costs and lift operating margins, which is central to the bullish reaction in SQ stock today.

Is SQ stock today expensive after the spike?

Valuation sits around 2.16 times sales and about 1.88 times enterprise value to sales on recent figures, which is moderate for scaled fintech. After a sharp move, near-term swings are common. Many investors wait for management to confirm cost savings and margin targets before adding, then reassess multiples versus growth and cash generation.

Global Market Insights

SQ Stock Today: February 27 — AI Pivot, $500m Restructuring Spark Rally

ByHuzaifa Zahoor February 27, 2026February 27, 2026

SQ stock today is in focus after Jack Dorsey said Block will cut headcount to under 6,000, book up to $500m in restructuring, and pivot to AI across Square and Cash App. Shares of SQ surged more than 20% after-hours on 27 February as traders priced in faster margin gains. For UK investors, the move matters because Square serves British sellers, and any cost reset plus automation could lift profitability sooner rather than later.