Block’s faster innovation and improving Cash App credit metrics draw analyst optimism

Analysts at William Blair doubled down on their Outperform rating for Jack Dorsey's Block (ticker XYZ) on Thursday, arguing the company is “innovating at a meaningfully faster pace” than other fintech firms and remains undervalued as its execution improves.

Block shares closed just below $62 on Thursday, according to The Block's price page  — slightly below Wednesday’s post-investor day pop to $65.50 — after the company outlined three-year targets calling for mid-teens gross profit growth and roughly 30% annual gains in operating income.

In a new research note, analysts Andrew W. Jeffrey and Adib Choudhury reiterated their $90 target for XYZ by the end of 2026, highlighting stronger performance across both of Block’s core ecosystems.

They said Cash App continues to deepen its role as a primary financial hub for many users, pointing to the expansion of Borrow, BNPL, and features like Moneybot. The analysts also expect Cash App’s credit products to drive consistent returns, supported by short-duration loans and data-driven underwriting.

They also pointed to Square, Block’s merchant payments arm, as showing early signs of renewed momentum. Faster product releases, improving traction in food and beverage, and a more focused sales push suggest the business is beginning to reaccelerate.

William Blair said new profit added in the U.S. is now growing faster than new payment volume, an indication Square is moving up-market and could benefit from competitive pullbacks heading into 2026.