Block raised its full year guidance Wednesday after reporting stronger than expected second quarter results, driven by continued growth across Cash App, Square and its consumer lending products.

The company reported adjusted earnings of $1.02 per diluted share, above Wall Street expectations of $0.87. Revenue rose 9% from the previous year to $6.62 billion, surpassing analysts’ estimate of approximately $6.49 billion.

Block shares initially rose more than 4% following the release before reversing direction. At 5:30 p.m. ET, the stock was down approximately 2% in after hours trading at $82.53, compared with Wednesday’s closing price of $84.20.

Gross profit increased 25% year over year to $3.17 billion, exceeding Block’s previous guidance of $3.04 billion. Adjusted operating income reached a record $864 million, representing a margin of 27% of gross profit.

Block reported $447 million in GAAP operating income and $89 million in net income attributable to common shareholders. GAAP diluted earnings were $0.15 per share, while adjusted diluted earnings increased 65% from the previous year to $1.02.

Cash App generated $1.97 billion in gross profit, an increase of 31% year over year. Cash App commerce volume rose 17% to $56.5 billion, while consumer lending originations increased 59% to $18.9 billion.

Cash App had 59 million monthly transacting active accounts in June. Primary Banking Actives increased 17% to 9.4 million as more customers used the platform for wages, spending and financial services.

Square gross profit increased 13% to $1.16 billion. Total Square gross payment volume rose 13% to $72.8 billion, while US payment volume growth accelerated to its strongest rate since the second quarter of 2023.

Block said Square’s growth was supported by new customer acquisition, greater software adoption and stronger payment volumes. International Square payment volume increased 28%, or 25% on a constant currency basis.

The company raised its full year gross profit guidance to $12.51 billion from $12.33 billion, representing expected annual growth of 21%. Block also increased its adjusted operating income forecast to $3.47 billion and its adjusted diluted earnings guidance to $4.02 per share.

For the third quarter, Block expects gross profit of $3.13 billion, adjusted operating income of $875 million and adjusted diluted earnings of $1.02 per share. The quarterly gross profit forecast was approximately in line with Wall Street expectations.

Block also highlighted its increasing use of artificial intelligence across its operations. The company said agentic AI helped write and review nearly all production code changes in June, while its Moneybot assistant reached more than one million weekly engaged accounts.