Payment services company Block has projected its gross profit will grow in the mid-teens percentage range each year to 2028, sending shares up 7.6%.
Gross profit will likely reach around US$15.8 billion in 2028, it said at its first investor day event since 2022. It also expects 17% gross profit growth to $11.98 billion across 2026.
“We’re moving faster with greater scale and efficiency, driving product velocity across Square and Cash App to serve more customers and help them participate in the modern economy,” said Block CFO and COO Amrita Ahuja.
“Our guidance reflects the strength of our connected ecosystems and our ability to deliver compounding growth while expanding margins. We’ll continue to invest in innovation across our networks to sustain performance and create long-term value for our customers and shareholders.”
Adjusted earnings per share are expected to increase in the low thirties percentage range annually, reaching $5.50 by 2028, according to the company's prediction.
Its adjusted operating income would also grow by around 30% each year to $4.6 billion in 2028.
Block missed estimates on both revenue and earnings per share in its earnings report this month despite an increase in its Square business’ gross payment volumes. It raised its gross profit guidance after seeing 18% year-over-year growth, however.
The company’s shares have fallen by 28.5% across 2025 to date.
Block’s (NYSE: XYZ) share price closed at $62.00, up from its previous close at $57.64. Its market capitalisation is $35.03 billion.
