Block’s Square unit stands to gain most from Dorsey’s AI pivot, analysts say
Analysts believe Block's Square unit will benefit most from the company's pivot to an intelligence-centric, AI-first model following major layoffs.Summary
Block Inc. reported strong fourth-quarter earnings and raised its 2026 gross profit guidance, but the major focus is CEO Jack Dorsey's strategic pivot towards artificial intelligence, which involves slashing headcount by over 40% (from over 10,000 to under 6,000). Dorsey admitted to over-hiring during the pandemic and aims for greater efficiency, targeting $2 million in gross profit per person. While Cash App performed well, William Blair analysts specifically noted that Square is positioned to gain the most from this AI shift due to its self-onboarding and operational technology, anticipating it will automate customer functionality and allow merchants to build bespoke AI solutions. Block's stock surged following the news, despite being significantly down from its COVID-era highs.
(Source：The Block)