block announced Wednesday that it expects its gross profit to grow by mid-teens per year for the next three years, reaching about $15.8 billion in 2028.
At the payments company’s first Investor Day event since 2022, Block presented his three-year financial outlook. The announcement came as Wall Street grew skeptical of Mr. Bullock’s outlook, sending stocks down more than 30% in 2025 while major indexes posted solid gains.
Block’s stock initially halted trading around the time of the announcement, but then soared 9% when trading resumed.
The new guidance comes two weeks after Block reported quarterly results, missing revenue estimates for the sixth consecutive time. Block is diversifying away from its increasingly crowded POS business, launching more services related to Cash App and providing artificial intelligence tools to merchants.
In his new outlook, Block said he expects adjusted operating profit to rise about 30% annually to $4.6 billion by 2028. Adjusted earnings per share will grow in the low 30s and reach $5.50 in three years.
Chief Financial Officer Amrita Ahuja told CNBC ahead of the announcement that the company is entering a new phase of execution.
Block vs Nasdaq this year
“Since our last investor date in 2022, we have almost doubled in size from a gross margin perspective,” Ahuja said, adding that earnings before interest, taxes, depreciation and amortization “have more than tripled.”
Block also introduced a new non-GAAP cash flow metric designed to reflect the capital needed to grow its lending products, which it expects to reach more than $4 billion, representing 25% of total profits, by 2028.
Block expects 2026 gross profit to increase 17% to $11.98 billion, and adjusted operating income and EPS to both increase more than 30% to $2.7 billion and $3.20, respectively.
Mr. Ahuja said Mr. Block employs a “Rule of 40” investment framework. This typically refers to sales growth and profit margins above 40. The company expects to reach that metric this year and has reorganized around a single roadmap with shared technology infrastructure, she said.
“This transformation allows us to move faster and make more collaborative decisions across the ecosystem,” Ahuja said.
On Wednesday, Block expanded its stock repurchase program by $5 billion, adding to the $1.1 billion remaining authorized as of Sept. 30. A previous buyback plan called for purchases of up to $4 billion.
Block CEO Jack Dorsey, who co-founded the company as Square in 2009, attended the investor event. Dorsey has largely disappeared from public view in recent years.
WATCH: Block stocks drop more than 8% after quarterly miss
