Block just dropped its most ambitious financial roadmap yet, projecting gross profit will nearly double to $15.8 billion by 2028. The payment company's first investor day since 2022 comes as its stock has cratered over 30% this year, making these mid-teens annual growth targets a high-stakes bet on its diversification strategy beyond point-of-sale systems.
Block is betting big on a financial turnaround that would see the payment giant nearly double its gross profit over the next three years. At its first investor day since 2022, the company unveiled projections for $15.8 billion in gross profit by 2028 - a target that represents mid-teens annual growth from current levels.
The timing couldn't be more critical. Block's stock has tumbled more than 30% this year while major indexes posted solid gains, reflecting Wall Street's growing skepticism about the company's prospects. Trading was actually halted around the announcement, underscoring just how much investor attention these new targets are getting.
"Since 2022, our last investor day, we're nearly double the size from a gross profit perspective," CFO Amrita Ahuja told CNBC ahead of the release. She added that earnings before interest, taxes, depreciation and amortization "more than tripled" over that period.
But the path forward looks steeper. Block has missed revenue estimates for six consecutive quarters, most recently two weeks ago when it reported quarterly results. The company's core point-of-sale business faces mounting competition, forcing an aggressive pivot toward Cash App services and AI tools for sellers.
The new financial framework is built around what Ahuja calls a "rule of 40" strategy - where revenue growth rate plus profit margin exceeds 40%. Block expects to hit that benchmark this year and has reorganized around a single technical roadmap to accelerate decision-making across its ecosystem.
Adjusted operating income is projected to surge about 30% annually, reaching $4.6 billion by 2028. Earnings per share will grow in the low 30% range to $5.50 within three years. For 2026 specifically, Block expects gross profit to rise 17% to $11.98 billion, with both adjusted operating income and EPS jumping more than 30%.
The company also introduced a new non-GAAP cash flow metric designed to reflect capital requirements for its expanding lending products. These lending services are expected to generate more than $4 billion, or 25% of gross profit, by 2028 - a significant revenue diversification play.
