Block Inc: Updating estimates, following strong 1Q

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Block Inc: Updating estimates, following strong 1Q

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Block Inc

Updating estimates, following strong 1Q

Maintain Rating: BUY | PO: 100.00 USD | Price: 74.85 USD

Strong start to the year following the 40% reset 11 May 2026

We maintain our Buy rating on XYZ following a strong 1Q print that featured a clear beat Equity

and raise and marked a constructive start to the year. Results exceeded BofA and Street

expectations across gross profit, operating income, and EPS, with upside driven by

Key Changesimproved execution and disciplined cost control rather than one-time items.

Management raised FY guidance, reflecting growing confidence in operating leverage (US$) Previous Current

and margin expansion as AI enabled productivity gains scale across the platform. Against 2026E Rev (m) 25,067.3 25,633.7

a still mixed macro backdrop, the quarter provides early evidence that the earnings 2027E Rev (m) 28,034.5 28,228.7

profile is inflecting, supporting a more constructive near-term narrative. 2026E EPS 3.73 3.99

2027E EPS 5.07 5.08

Unlocking execution, productivity, and margins

The quarter reinforces our view that XYZ’s structural reset is beginning to unlock Matthew C. O'Neill

Research Analyst

meaningful improvements in operating cadence and efficiency. Management highlighted BofAS

clearer accountability, faster decision making, and accelerating productivity driven by AI +1 646 855 1681 matthew.c.oneill@bofa.com

tools embedded across product development and internal workflows. These gains are

Mihir Bhatia

translating into higher output per engineer, improving quality metrics, and structurally Research Analyst

lower cost, even as the company continues to invest in growth initiatives. Importantly, BofAS +1 415 436 3553