Analyst predicts 35% upside for Dorsey's Block ahead of earnings
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Jack Dorsey's financial services company Block, Inc. (NYSE: XYZ) is set to report the financial results for the first quarter of 2026 on May 7.
As Dorsey is a strong Bitcoin (BTC) advocate, Block's products integrate the top cryptocurrency.
- Cash App, a wallet that allows Bitcoin investing
- Bitkey, a self-custody Bitcoin hardware wallet
- Proto, a Bitcoin mining system
- Square, a point-of-sale system for merchants with Bitcoin integration
Related: Jack Dorsey’s app launches interest-bearing accounts for kids
When the company reported the Q4 2025 financial results in February, it disclosed generating gross profit of $2.87 billion, up 24% year-over-year (YoY).
But it also laid off 40% of its staff at the same time, with Dorsey attributing the decision to the broader adoption of artificial intelligence (AI) in operations.
Though a few of the laid-off employees returned to work soon, Dorsey envisions AI replacing middle management in the near future.
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Analyst predicts 35% upside for Block stock
As Block prepares to report earnings for Q1 2026, an analyst predicted 35% upside for the company's stock.
Evercore ISI, the equity research, sales, and trading division of the global independent investment banking advisory firm Evercore, reiterated an "Outperform" rating and a price target of $96 on Block, Investing.com reported on May 4.
When the company reports its quarterly earnings, Evercore ISI analyst Adam Frisch expects it to show continued fundamental turnaround progress at both Square and Cash App.
The results will reflect severance-related costs from the 40% staff cut, he added.
But he doesn't expect any material revisions to the fiscal 2026 guidance, as updated expectations were provided during the Q4 earnings call.
The Block stock was trading at $70.92 at the time of writing. So, Frisch's price target represents an upside of 35%.
Related: Mysterious trader files lawsuit against Coinbase ahead of earnings
