Block Gears Up to Report Q4 Earnings: What's in the Offing?

Block XYZ is set to report fourth-quarter 2025 results on Feb. 26, after market close. While the company’s quarterly results are likely to display a year-over-year rise in revenues, earnings per share (EPS) are expected to decline.

In the previous quarter, this Oakland, CA-based fintech company reported an EPS of 54 cents, missing the Zacks Consensus Estimate of 63 cents. Results reflected a year-over-year increase in total revenues.

Over the trailing four quarters, this fintech company’s EPS surpassed the Zacks Consensus Estimate on one occasion and missed in the remaining three periods, the average miss being 15.45%. This is depicted in the graph below:

Block, Inc. Price and EPS Surprise

Block, Inc. price-eps-surprise | Block, Inc. Quote

Factors Shaping Block’s Q4 Results

Block is strengthening its fintech ecosystem through its two key platforms — Square and Cash App — offering integrated solutions across payments, commerce, lending and banking. Square is regaining market share, reflecting effective product innovation and strategic seller acquisition.

Block is investing aggressively to expand its partner base for sustainable growth. Square deepened its partnership with Thrive to help sellers sync catalogs, sales and inventory across both in-store and online. Block teamed up with Grubhub to upgrade restaurants' food ordering ecosystem. The deal integrates Square’s POS system and adds Cash App Pay as a checkout option for Grubhub customers.

While near-term softness is apparent, gross profit is expected to accelerate in the quarter as Block deepens user engagement and expands features.

Q4 Projections for XYZ

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $6.37 billion, indicating an increase of 5.7% from the year-ago quarter’s reported figure.

For the fourth quarter of 2025, Block expects a gross profit of $2.755 billion, suggesting year-over-year growth of 19%. Adjusted operating income is expected to be $560 million with an operating margin of 20%.

The consensus mark for Block’s Transaction revenues is pegged at $1.84 billion, up from $1.68 billion in the year-ago period. Square’s ecosystem is expected to contribute $1.77 billion, while Cash App is expected to provide $58.3 million to transaction revenues.

Estimates for Subscription and Services revenues are $2.33 billion for the fourth quarter, up from $1.90 billion in the year-ago period. Similarly, the consensus mark for hardware revenues is pegged at $35.8 million, up from $31.1 million in the year-ago period.

However, the consensus estimate for Bitcoin revenues is $2.16 billion, down from $2.43 billion in the prior-year quarter.

XYZ’s activities during the to-be-reported period were inadequate to garner analysts’ confidence. The Zacks Consensus Estimate for quarterly EPS has been revised downward by 4 cents to 65 cents over the past two months. It also suggests a 8.5% decrease from the prior-year quarter’s reported figure.

What Our Quantitative Model Predicts for XYZ

Our proven model does not conclusively predict an earnings beat for Block this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

Block has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell) at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks That Warrant a Look

Here are two other stocks from the Zacks Internet-Software industry — Snowflake SNOW and StoneCo STNE — which you may want to consider, as our model shows that these, too, have the right combination of elements to report a surprise this quarter.

SNOW, scheduled to report quarterly numbers on Feb. 25, currently has an Earnings ESP of +0.57% and carries a Zacks Rank #3 at present.

StoneCo is slated to report quarterly numbers on March 2. STNE has an Earnings ESP of +5.52% and a Zacks Rank #3.

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This article originally published on Zacks Investment Research (zacks.com).

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