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# Block Guides To At Least 15% Gross Profit Growth In 2027 — Without Counting On Its AI Bets
- URL: https://www.bullished.co/block-guides-to-at-least-15-gross-profit-growth-in-2027-without-counting-on-its-ai-bets-cd5df170/
- Published: 2026-11-04T00:51:42.000Z
- Updated: 2026-11-04T00:51:42.000Z
- Description: Block's finance chief said on the earnings call that next year's outlook leans on the core business, not BuilderLab or other new ventures.
- Author: Matteo Parrino
- Tags: Earnings, XYZ, Industry: Financials

Block, the payments company behind Square and Cash App, is guiding to at least 15% gross profit growth in 2027, and its finance chief said on the company's earnings call Tuesday that the outlook does not depend on its newest AI ventures. Chief Operating Officer and Chief Financial Officer Amrita Ahuja also raised 2026 guidance, giving an early read on next year that Block has not usually offered on its third-quarter call.

## A 2027 target built on the core

For 2027, Ahuja guided to at least 15% gross profit growth, with adjusted operating income margins of 32%, or 30% growth in adjusted operating income. She called that "a tall order" because it comes off a much larger 2026 base. She said the adjusted operating income outlook sits more than a billion dollars above the implied investor day target from last year.

Asked by an analyst at Wolfe Research for the building blocks, Ahuja said Block first estimates run rates on its existing products, then layers on a probability-weighted portfolio of new initiatives. Of Cash App Score, BuilderLab and SquareMates, she said: "our 2027 growth guidance does not rely on those initiatives." Block will keep investing in them.

Asked by a Citi analyst about Cash App growth, Business Lead Owen Jennings said nothing in the preliminary 2027 guidance requires a reacceleration in engagement. He said he wants to improve primary banking actives.

## 2026 outlook raised again

Block now expects 2026 gross profit of $12.626 billion, up 22%, adjusted operating income of $3.519 billion, a 28% margin, and adjusted diluted earnings per share of $4.15, up 75%. For the fourth quarter it expects gross profit growth of over 15% and an adjusted operating margin of 30%.

A year ago, Ahuja said, Block guided to meeting the "Rule of 40" in 2026, with 17% gross profit growth and a 23% margin. The updated numbers imply a Rule of 50, which adds growth and margin, at 22% and 28%.

Third-quarter gross profit grew 22% to $3.24 billion. Adjusted operating income rose 92% to $923 million, a record 29% margin.

## Reinvesting the upside

Ahuja said Block plans to reinvest profit upside in Neighborhoods and BuilderLab. It expects its first AI revenue in the fourth quarter as it begins to offer its AI tools to outside customers. CEO Jack Dorsey said the company will share more about BuilderLab at an event on November 10.

Block will give more detail on its 2027 expectations on its fourth-quarter call in February.

Block's BuilderLab event is set for November 10, and its next financial update on 2027 comes in February.

Learn

- [How To Read An Earnings Call Transcript: Start With Guidance, Then Find What's Missing →](https://www.bullished.co/learn/how-to-read-an-earnings-call/)  
How to read an earnings call transcript: check guidance first, look for dropped metrics, compare growth with last quarter, and watch hedged wording.

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