Block, Inc.'s stock surged 23.69% in pre-market trading, driven by the company's fourth-quarter 2025 earnings report and a major corporate overhaul centered on artificial intelligence.
The payments firm reported adjusted earnings per share of $0.65 for the quarter, meeting analyst expectations, with revenue reaching $6.25 billion. Concurrently, Block announced a strategic restructuring plan that includes reducing its workforce by more than 40%—over 4,000 jobs—as it embraces AI and automation to enhance operational efficiency.
CEO Jack Dorsey stated that intelligence tools have fundamentally changed how companies are built and run, enabling significantly smaller teams to achieve more. Investors reacted positively to the combination of solid financial performance and the prospect of substantial future cost savings and improved margins. The company also raised its financial outlook for 2026, forecasting stronger gross profit growth and higher adjusted earnings per share.