Block (XYZ), the U.S. fintech company formerly known as Square, reported second-quarter results that beat expectations across key metrics. Gross profit rose 25% year over year to $3.17 billion, adjusted operating income reached $855 million, and earnings per share came in at $1.02, above Wall Street’s consensus estimate of $0.87.
Full-year guidance moved higher
Following the stronger quarter, Block lifted its full-year forecast. The company raised gross profit guidance from $12.33 billion to $12.51 billion and adjusted operating income guidance from $3.34 billion to $3.47 billion.
Chief Financial Officer Amrita Ahuja said on the earnings call, “The raised guidance reflects the strength of our execution in the first half and the momentum we are carrying into the second half.”
Cash App and Square drove the quarter
Block said the quarter was led by its two core businesses, Cash App and Square. Cash App, which serves as Block’s consumer payments and cryptocurrency entry point, continued to deliver steady growth. Square kept expanding across merchant payment tools and SaaS services.
AI touched nearly all production code changes
The more striking disclosure came from Block’s AI rollout. In its second-quarter shareholder letter, the company said agentic AI helped write and review “nearly all” production code changes in June.
That update came less than six months after Block cut 4,000 jobs in February and launched an AI-led organizational restructuring. On the earnings call, business lead Owen Jennings said code changes per engineer were up 150% from the start of the year. In the company’s framing, the remaining engineering team is producing far more after the workforce reduction.
From 15% to “nearly all” in two months
In June, Block had said its in-house AI tool, Builderbot, handled 15% of production coding work. Two months later, agentic AI’s share had moved from 15% to “nearly all,” pointing to a fast shift from tool-based assistance toward more autonomous agent-style use inside the company.
The report also placed Block alongside a broader industry pattern. According to the input, Anthropic’s Claude has been reported to complete 80% of coding work autonomously, while Google and Meta have repeatedly highlighted AI’s contribution to engineering efficiency on their own earnings calls. Block stands out as one of the earlier tech companies to publish specific internal figures.
Dorsey’s AI push is showing up in operations
Block co-founder and CEO Jack Dorsey has been a public backer of AI adoption for some time. The input says he wrote last year that “middle management” would be ended by AI and described Block as a “micro AGI” company. This quarter’s earnings release and shareholder letter suggest that position is now tied directly to the company’s restructuring and engineering process.
From the February layoff of 4,000 employees, to second-quarter earnings that topped expectations, to the June disclosure that agentic AI was involved in nearly all production code changes, Block’s latest update put financial performance, organizational change, and AI implementation into one narrative.