After a brutal 26% decline in 2025, Block (XYZ 1.11%) has begun to regain ground in early 2026. Even so, investors appear cautious, waiting for clear signs that a sustained turnaround is in motion. So what should investors expect in 2026?
Before looking ahead, let's start with where Block has been and what that might tell investors about Block stock in 2026.
Image source: Getty Images.
Why Block stumbled in 2025
Whether you are paying your dogsitter or a food truck vendor, Block is there to facilitate those transactions through Cash App and the Square credit card reader.
Unfortunately for shareholders, its essential function in so many daily transactions didn't translate into stock price gains last year. In Q1 2025, Block cut its full-year profit guidance, citing a difficult macroeconomic environment.
Fines and compliance issues also dogged the company. In January 2025, the Consumer Financial Protection Bureau (CFPB) ordered Block to provide customer refunds up to $120 million and pay a $55 million penalty. The CFPB accused Block of using weak security protocols that put Cash App users at risk. Just a few months later, in April, Block reached a $40 million settlement with New York's Department of Financial Services for "significant failures in its Bank Secrecy Act/Anti-Money Laundering compliance program..."
That was the bad news in 2025. Now let's turn our attention to 2026.
NYSE: XYZ
Key Data Points
Will Block stock climb in 2026?
This year and beyond, the winning formula for financial technology companies like Block is making an "everything financial app" that more and more customers use to simplify their lives.
Other players in the space, such as Robinhood Markets and SoFi Technologies, have performed well over the last year because they are enabling their users to manage most of their finances in one spot.
Block hasn't quite gained the same reputation as Robinhood or SoFi as a platform for running one's entire financial life. However, management highlighted the importance of positioning Cash App in a similar vein in its November 2025 investor presentation. Said business lead Owen Jennings:
And Cash App is no longer a peer-to-peer payments app. It's a full consumer finance platform that millions and millions rely on to run their everyday lives. We're expanding and deepening network connections on the Cash App side to drive network growth.
Some of those efforts to be that full platform include lending, a buy now, pay later program, its Cash App debit card becoming the fourth-largest debit card program in the United States, and providing artificial intelligence (AI)-driven insights for budgeting, saving, and bill splitting.
If Block can keep pushing the message that you can handle most of your financial life in one place and back it up by building out its offerings to retain current users and attract new ones, shareholders could have a lot to look forward to in 2026.
Block also has a potential ace up its sleeve in the cryptocurrency market, quietly holding nearly 8,800 coins worth roughly $806 million. In addition, the company is positioning itself to be a leader in crypto payment solutions. In October 2025, it launched Square Bitcoin, which allows merchants to accept Bitcoin payments, automatically convert credit card sales into Bitcoin, and manage Bitcoin holdings all within the Square ecosystem.
For another tailwind, Block upped its share buyback authorization in November 2025 from $1.1 billion left under a previous authorization plan to $5 billion. Buybacks are a signal that management believes shares are undervalued while also returning excess cash to shareholders.
What to consider before investing in Block
I see a company that has a strong foundation, with 57 million monthly active users as of May. Block holds more cash than debt, with $8.7 billion on hand versus $8.1 billion owed, signaling a manageable financial position. It's also a profitable business.
For potential investors monitoring Block, watch for increased user engagement, such as larger monthly inflows and growth in banking activities, which are signs the building out of the ecosystem is working. It's also worth monitoring lending, which will need to find growth while limiting loss rates.
Potential shareholders should also be vigilant for any additional financial scrutiny over the company's practices that leads to litigation, as it chips away at investor confidence and eats into time and resources. The key word in 2026 for Block and its stock price will be execution.
