AI Automates Code, Boosting Engineer Output 150% as Block Raises 2026 Outlook

Woofun AI reports that Block has revised its 2026 full-year financial trajectory upward, a strategic pivot anchored by aggressive AI integration across Cash App and Square operations. This outlook adjustment follows a robust second quarter, with leadership including CFO Amrita Ahuja and business lead Owen Jennings highlighting the dual drivers of revenue growth and automated engineering workflows.

Financial metrics for the second quarter significantly outpaced prior expectations, with gross profit climbing 25% year-over-year to $3.17 billion. Adjusted operating income reached $855 million, while adjusted diluted earnings per share hit $1.02, surpassing the 87 cents consensus estimate. Per Woofun AI, the company submitted updated full-year guidance on Wednesday, raising gross profit targets to $12.51 billion from $12.33 billion, and adjusted operating income to $3.47 billion from $3.34 billion.

The deeper driver is the deployment of agentic AI, which authored and reviewed nearly all production code changes in June. This technological shift follows an AI-led restructuring in February that eliminated 4,000 jobs.

Structurally, the impact is quantifiable: Owen Jennings noted that code changes per engineer have increased by 150% compared to the start of the year, demonstrating a direct correlation between workforce reduction and automated output.

Amrita Ahuja attributed the guidance increase to strong first-half execution and sustained momentum into the second half of 2026, as stated in the earnings call. Analysts are now recalibrating models to reflect this new baseline of efficiency. This marks a definitive transition where automation, rather than headcount expansion, fuels top-line growth.