Block’s third-quarter 2025 earnings were up 64% year over year as the company turned from losses two years ago to consistent quarterly profits.
The stock trades at 13 times trailing earnings versus the S&P 500’s 21 times multiple despite delivering 64% earnings growth.
Wall Street’s consensus target of $84 implies a 30% upside and 94% of analysts rate the stock as a Buy or Strong Buy.
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Block (NYSE:XYZ) has built strong momentum into 2025, with shares rising steadily as the company demonstrates improving profitability and operating leverage. The fintech platform operator behind Square and Cash App has gone from losses just two years ago to consistent quarterly profits, with Q3 2025 earnings up 64% year over year. With Wall Street’s consensus target at $84, investors are wondering if Block can reach $100 in 2026.
Analysts are optimistic about Block’s trajectory. The 12-month consensus price target of $84 implies a 30% upside from current levels of around $64, and 31 out of 33 analysts rate the stock a Buy or Strong Buy. That’s a 94% positive rating.
The bullish view arises from Block’s increasing profitability. The company’s P/E ratio of just 13 looks attractive for a fintech platform that’s growing earnings at this rate. The S&P 500 trades at about 21 times forward earnings, meaning Block is trading at a significant discount despite generating 64% earnings growth in the third quarter.
However, it’s worth noting that much of Block’s profitability comes from income tax. earnings instead of operating income. Still, the company’s operating income was negative in 2023 and has steadily recovered to nearly $1.4 billion over the past 12 months.
Gross profit grew 18% last quarter, driven by Cash App’s 24% expansion and Square’s 9% increase. Both support the thesis that Block is capturing market share in both consumer and merchant payments. Management raised the full-year guidance to $10.24 billion in gross profit.
Reaching $100 would require Block to gain 55% from current levels. At the current price, Block trades at 13 times trailing earnings. If shares were to hit $100, they would trade at roughly 20 times trailing earnings based on current yields. That’s still below the S&P 500’s average multiple and is reasonable for a company demonstrating this growth rate.
(However, as we noted above, much of this gain comes from income tax benefits, which helps explain why Block is trading for such a relatively “cheap” P/E ratio.)
This infographic details the bull case for XYZ stock, projecting a potential price of $100 by 2026, backed by strong growth, profitability, and key catalysts.
What could drive Block to reach $100? Several catalysts stand out. First, the company’s PEG ratio of 1.27 suggests the stock is not overvalued relative to growth. Second, Block has a track record of dramatically beating estimates when execution clicks. In the second quarter of 2021, the company delivered a 113% earnings surprise. In the first quarter of 2021, it exceeded by 156%. Mistakes have occurred in recent quarters, leading to reduced expectations for 2026 and creating potential for positive surprises.
Third, retail investor enthusiasm is increasing. A $1 million bet on Block garnered 338 upvotes and 232 comments on r/wallstreetbets in early December, with sentiment scores reaching 90 (very bullish). The peak activity of 69 upvotes per hour demonstrates significant retail interest.
Fourth, Block’s AI tools for sellers and expanded bitcoin payment capabilities through Square position the company to capture emerging trends. CEO Jack Dorsey’s upbeat comment about “delivering for customers” bolsters management’s confidence.
A 55% gain seems ambitious, but Block has a history of explosive returns. The stock’s beta of 2.66 indicates high volatility. The company’s transformation from a $541 million loss in 2022 to $2.9 billion in net income in 2024 demonstrates operating leverage that could fuel multiple expansion.
In 2017, the stock gained 154%
In 2018, they followed that performance with gains of 62%.
In 2020, the stock achieved a return of 248%
While the last few years have been tough for Block investors (shares fell more than 20% in 2025 after falling 61% in 2022 and 26% in 2021), the company’s stock could rise if digital assets like bitcoin have a strong year or if sentiment in the digital wallet space improves.
Reaching $100 would require Block to gain 55% in 2026. Wall Street is already forecasting a 30% rise, and the stock trades at just 13 times earnings despite 64% earnings growth. If Block continues to expand its margins, beat lowered expectations, and benefit from a favorable market environment for growth stocks, $100 could be reached. For a company with Block’s track record of profitability and retail enthusiasm, we’ve outlined the plan for how it could happen.
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