Block Inc (XYZ) Faces Mixed Outlook with Growth and Challenges

Block Inc (NYSE:XYZ) is one of the best NYSE stocks to buy for the long term. On February 12, Morgan Stanley kept its Equalweight rating and $72 price target on Block Inc. (NYSE:XYZ), noting slower growth in Square’s payment volumes. The firm now expects Q4 2025 Seller GPV growth of 10.3% year‑over‑year, down from 12.7%, with U.S. growth at 7% and international growth at 26%. Square’s gross profit growth is projected at 8%, lower than earlier estimates, due to processor transition impacts that may last until mid‑2025.

For Q4 2025, Morgan Stanley forecasts total gross profit growth of 18.2%, with Square at 8% and Cash App steady at 25%. Looking to 2026, the firm sees gross profit growth of 16.9%, supported by 12% growth in Square and 20% in Cash App, leading to adjusted operating income of $2.7 billion and EPS of $3.19.

On February 4, Block’s Square division launched the second-generation of its Square Register POS system. This new device is 40% faster than the old model, the company said. This improvement is intended to support a quicker checkout process, particularly during high-volume hours.

According to a Bloomberg report on February 7, Block Inc plans to slash up to 10% of its workforce. This plan is part of the company’s effort to operate more efficiently. The company has been on the efficiency drive since 2024, seeking to adjust its business model and staffing.

On January 27, Cantor Fitzgerald initiated coverage of Block stock with an Overweight rating and a price target of $87. In taking this action, the firm pointed to the early success of Block’s turnaround efforts. The firm also cited Block’s new product initiatives as another source of optimism in the stock.

Block Inc (NYSE:XYZ) is an American technology company that provides an array of financial services to merchants and consumers. Through its Square unit, it offers devices and software for checkout counters. It also offers loans and mines Bitcoin.

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Disclosure: None. This article is originally published at Insider Monkey.