Block (XYZ) Is Up 7.8% After Announcing a US$5 Billion Expansion of Share Buyback Program

• On November 19, 2025, Block announced an increase to its equity buyback plan, raising the total authorization by US$5 billion to a new total of US$9 billion.
• This expanded buyback reflects both management's confidence in Block's long-term prospects and aims to return additional capital to shareholders.
• We'll examine how Block’s expanded US$9 billion buyback authorization could influence the company's investment narrative and future prospects.

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Block Investment Narrative Recap

Block’s investment story centers on its ability to drive ecosystem growth and recurring revenue through Cash App and Square, while navigating intense competition and rapidly evolving fintech trends. The US$9 billion buyback authorization signals management’s intent to boost shareholder returns, but does not materially alter the fact that future performance remains closely tied to user growth, engagement, and the company’s exposure to credit and crypto market risks.

Recent product updates to Cash App, such as the launch of a new banking feature and AI-powered navigation, are especially relevant, as they directly address the key catalyst of expanding user engagement and growing ARPU. These continuous innovations can reinforce the core investment proposition, though investors should continue to weigh execution risk against the company’s ability to capture new cohorts and deepen user relationships.

However, investors should also be mindful of another dimension: if credit risk in BNPL and Borrow products rises, especially in a weaker economy...

Read the full narrative on Block (it's free!)

Block’s outlook forecasts $32.8 billion in revenue and $2.4 billion in earnings by 2028. Achieving this requires an annual revenue growth rate of 11.3%, but earnings are expected to decrease by $0.6 billion from current earnings of $3.0 billion.

Uncover how Block's forecasts yield a $84.01 fair value, a 26% upside to its current price.

Exploring Other Perspectives

Fifteen community fair value estimates for Block range from US$56.91 to US$103, reflecting a spread of retail investor forecasts from the Simply Wall St Community. Risks tied to Block’s expanding credit offerings continue to shape debate on future earnings sustainability and portfolio performance, so consider a variety of perspectives when assessing your next move.

Explore 15 other fair value estimates on Block - why the stock might be worth 15% less than the current price!

Build Your Own Block Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Block research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Block research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Block's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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