Block XYZ EPS Rises 65% But Shares Drop 6% After Earnings

Block Inc. (NYSE: XYZ) reported an adjusted EPS of $1.02 on August 5, exceeding expectations of $0.87, while raising its full-year guidance. Despite this, shares fell approximately 6% the following day due to concerns over Cash App's growth, which saw only 3% year-over-year increase in monthly transacting actives in June. Management has since guided for low single-digit actives growth for 2026, indicating a slowdown in one of the company's key growth areas. This reflects rising competition in mobile payments and investor apprehension following insider selling by CFO Amrita Ahuja on the same day as the earnings report, raising questions around market confidence.