Block credits AI for tripling its product output and raises its full-year outlook six months after cutting 40% of its staff

by | Aug 6, 2026 | Latest E-commerce News & Updates

Block raised its full-year outlook, lifting expected gross profit growth to 21% from 19% and adjusted diluted earnings per share to $4.02 from $3.85. Executives credited AI, saying Block has tripled the volume of products it develops and ships this year, six months after a 40% staff cut the company also attributed to AI. Second-quarter revenue reached $6.6 billion against $6.1 billion a year earlier, while net income fell to $87 million from $538 million. CFO and COO Amrita Ahuja said Block’s AI budgets are rising but that pulling back on the tools would be the wrong answer, and that staying model agnostic keeps it from locking into any one provider. Block also told analysts agentic AI wrote or reviewed nearly all of its production code changes in June.

Paul Drecksler is the founder and editor of Shopifreaks, covering the most important stories in e-commerce.

Companies: Block

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