Block Inc., the digital payments company behind Square and Cash App, announced significant changes as part of its pivot towards artificial intelligence, highlighted by impressive fourth-quarter earnings. The company reported an operating income of $485 million and adjusted EBITDA of $930 million, also raising its gross profit guidance for 2026 to $12.2 billion, marking an 18% increase from the previous year. Additionally, Block plans to streamline its operations by reducing its workforce from over 10,000 to under 6,000, aiming to create a more “smaller” and “AI-first” organization, as stated by CEO Jack Dorsey. This strategic shift comes as analysts see Square as having the greatest potential for AI integration in automating customer functionality, positioning it to leverage its strengths in self-onboarding and operational technology effectively.
Block Inc. reports $116M net income as it pivots to AI
