Analyst: Block's shift to AI strategy could benefit Square's business the most

Odaily Planet Daily reports that after announcing strong financial results and advancing its AI transformation strategy, analysts believe that the company’s merchant payment business, Square, will be the main beneficiary of this strategic shift.

The financial report shows that Block achieved an operating profit of $485 million in the fourth quarter, with an adjusted operating profit of $588 million. Net profit attributable to common shareholders was $116 million, and adjusted EBITDA reached $930 million. The company also raised its 2026 gross profit guidance to $12.2 billion, an increase of approximately 18% year-over-year.

CEO Jack Dorsey recently announced that the company will cut over 40% of its staff, reducing the total from over 10,000 to less than 6,000 employees, to promote a leaner, AI-centric operational model. Analysts believe that Block is one of the first fintech companies to fundamentally reassess its workforce structure and productivity.

Additionally, the company recently increased its Bitcoin holdings by 103 BTC, bringing its total to approximately 8,883 BTC, valued at around $577 million, making it the 14th largest corporate Bitcoin holder globally.

Dorsey stated that during the pandemic, the company rapidly expanded its workforce and established independent systems for Square and Cash App, leading to redundancies. Block is now pushing organizational integration and plans to increase per-employee gross profit to over $2 million, roughly four times pre-pandemic levels. Analysts believe that, under the backdrop of AI-driven efficiency improvements, Square’s business is expected to be the first to achieve scaled revenue growth.