Block

(AI video summary)

This video was created on 27 February 2026 for IG audiences by ausbiz.

ASX code: SQ2

Block's restructuring and financial performance

Block has announced a major restructuring plan involving a 40% workforce reduction, equating to approximately 4000 jobs. This move aims to integrate artificial intelligence (AI) tools into its operations.

Fourth quarter (Q4) and full year 2025 results: 

• Gross profit: a 17% increase in gross profit for 2025, reaching US$10.36 billion, with a 24% rise from US$8.7 billion
• Adjusted earnings per share (EPS): US$0.65, meeting market expectations for the December quarter.
• Full-year gross profit guidance: raised to US$12.2 billion, as lending saw significant growth, with Cash App borrowing volume up more than fourfold.

Assessing AI-driven restructuring

Analysts highlight a trend of aggressive cost-cutting for AI efficiencies among tech firms. While such moves may yield savings, they can also indicate a lack of growth strategy and hurt employee morale. Comparisons have been drawn to Australian companies like Telstra, which successfully employed AI for cost optimisation.

Investment outlook

AI disruption is a key theme influencing cost management and efficiency. Analysts suggest weighing value against the restructuring risks. While Block's strategy carries risk, its financial performance is promising.