What happened

Square's (SQ 0.56%) share price continued to move upward Thursday -- by 3.2% as of 11:53 a.m. EDT -- in the wake of the company's second-quarter report. The results were leaked a day ahead of schedule, which led the company to publish them officially late on Tuesday; that sent its share price skyrocketing Wednesday. The strong report also resulted in several analysts raising their price targets for Square's stock Thursday.

So what 

The market is apparently still excited about Square's results. Revenue increased 64% year over year to $1.92 billion. But it was the company's earnings beat that really impressed investors. Square reported non-GAAP earnings of $0.18 in the quarter, markedly better than the 0.05 per share loss analysts had expected.

A blue chart with an arrow pointing up.

Image source: Getty Images.

Gross profit from the company's Cash App increased 167% year over year to $281 million, and revenue (excluding bitcoin) jumped 140% to $325 million. That growth was driven by a rise in the number of active Cash customers to more than 30 million in the quarter. 

In response to the strong results, KeyBanc Capital raised its price target on Square stock from $140 to $165, Canaccord Genuity raised it from $80 to $180, and Bank of America Securities raised it from $84 to $100.

Now what 

Like many other companies, Square didn't provide any guidance for the third quarter or the full year because of the pandemic. "We recognize there can be a wide range of outcomes for our financial results during the remainder of the year, depending on regional restrictions of business reopenings and government stimulus efforts," said CFO Amrita Ahuja on the company's earnings call.

Square's share price is up 151% year to date, but with continuing economic uncertainty ahead, the market could see more volatility in the coming quarters.