Block share in focus: New forecasts are well received despite the weak fintech environment

• Block disappoints with Q3 numbers
• Block CFO emphasizes growth potential
• Company goals better than analyst expectations

Since the pandemic era, the financial technology sector in general and Block Inc. in particular have struggled. In the last twelve months alone, investors with the block share suffered a loss of around 38 percent, while the S&P 500 index, which reflects the broad US stock market, increased by 12.5 percent (as of December 3, 2025).

The parent company of Square and Cash App is not satisfied with this: “We do not believe that our share price today reflects the strength of the underlying fundamentals of our business,” Chief Financial Officer Amrita Ahuja told MarketWatch.

Block CFO sees a lot of potential

As Ahuja explained, they focused on cost efficiency, tried to improve product development through artificial intelligence and had the co-founder Jack Dorsey in a more active role within the Square merchant business. Block also focuses on promoting synergies between its business areas.

She also discussed the Square business, which sells payment technology to restaurants and stores. There have been concerns about profitability here recently. But Ahuja said these are “temporary” factors rather than underlying business issues. She further explained that Square was able to attract new customers to its platform, which could make 2025 the strongest year for additional volume in the company’s history.

Quarterly figures disappoint

However, the results for the third quarter published at the beginning of November were mixed. Although profits were better than expected, sales were below forecasts. The various divisions also developed inconsistently: While Cash App continues to expand strongly, Square is under greater pressure from the market environment. The market reacted to the quarterly balance sheet with significant price losses.

Block with optimistic goals

However, as “MarketWatch” reports, the company recently gave an optimistic outlook at its first investor day since 2022. Block expects gross profit of $11.98 billion and adjusted earnings per share of $3.20 for 2026. The FactSet consensus assumes $11.78 billion or $3.24.

Long-term, the company is more optimistic than analysts, expecting adjusted earnings per share of $5.50 in 2028, compared to analysts’ FactSet consensus of just $4.76.

Analysts give a thumbs up

William Blair analyst Andrew Jeffrey believes that Block is demonstrating a significantly faster pace of innovation than traditional fintech companies. For this reason, he “believes that performance relative to these targets, with possible upside potential, should result in an increase in the multiple,” Jeffrey argues, citing the stock’s ability to command a higher valuation. Therefore, he encouraged investors to buy the stock and profit from its recent underperformance.

Seaport Research analyst Jeff Campbell was a little more reserved. “The three-year targets that management presented at today’s investor day appear to be solid,” he praised, but warned that “Block has often deviated from its longer-term goals in the past.” In view of this, he maintained his neutral rating for the block share.

Editorial team finanzen.net

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