Block Inc (NYSE:SQ) shares added almost 6% after the financial technology firm outlined its three-year outlook during its 2025 Investor Day and announced a $5 billion increase to its share repurchase program.
The company outlined plans for profitable growth and operating leverage through 2028, highlighting the scale of its ecosystems, including Cash App, Square, and Proto, alongside continued discipline in execution.
Block projected that gross profit will grow in the mid-teens annually through 2028, reaching approximately $15.8 billion.
Adjusted operating income is expected to grow about 30% annually to $4.6 billion, while adjusted earnings per share are anticipated to increase in the low 30% range to $5.50, compared with the Wall Street consensus of $4.76.
The company also introduced a new non-GAAP cash flow measure, which accounts for capital required to grow its lending products, and expects this to reach 25% of gross profit, or more than $4.0 billion, by 2028.
Additionally, Block expects to achieve the Rule of 40 in 2026 and maintain it through 2028.
For 2026, Block forecasted gross profit of $11.98 billion, slightly above the FactSet consensus of $11.78 billion.
Adjusted operating income is expected to reach $2.70 billion, with adjusted EPS projected at $3.20, close to the FactSet consensus of $3.24. Non-GAAP cash flow for 2026 is expected to reach $2.40 billion, or 20% of gross profit.
As of September 30, approximately $1.1 billion remained under the company’s prior $4 billion repurchase authorization, meaning the new $5 billion increase significantly expands its buyback capacity.