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Block (XYZ) Shares Rally On Bullish 3-Year Outlook, $5B Buyback

Block Inc (NYSE:XYZ) shares are trading higher Wednesday afternoon after the fintech company unveiled a three-year financial outlook at its 2025 Investor Day.

What To Know: The company outlined a strategy focused on profitable growth and operating leverage, projecting it will achieve the “Rule of 40” in 2026 and sustain that metric through 2028.

Long-term guidance highlights include:

  • Gross Profit: Expected to grow in the mid-teens annually, reaching approximately $15.8 billion by 2028.
  • Profitability: Adjusted Operating Income is projected to grow roughly 30% annually to $4.6 billion, with Adjusted EPS reaching $5.50 by 2028.
  • Cash Flow: The company introduced a new non-GAAP Cash Flow measure, expected to reach more than $4 billion (25% of Gross Profit) by 2028.

For the near term, Block forecasts 2026 Gross Profit to rise 17% year-over-year to $11.98 billion, with adjusted EPS growing over 30% to $3.20. Bolstering investor sentiment, the company also noted a $5 billion increase to its share repurchase program.

COO and CFO Amrita Ahuja emphasized the firm's focus on “scale and efficiency” across its Square and Cash App ecosystems.

Benzinga Edge Rankings: Reinforcing this positive outlook, Benzinga Edge data currently assigns Block a standout Growth score of 94.89.

XYZ Price Action: Block closed higher by 7.56% at $62 on Wednesday, according to Benzinga Pro data.

Read Also: The Fed Is Split – And A December Rate Cut Moves Further Away

How To Buy XYZ Stock

Besides going to a brokerage platform to purchase a share — or fractional share — of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For Block, it is in the Financials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

Image: Shutterstock

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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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