Block, Inc. stock research
FY2026 Q1
Block (XYZ) Gross Margin — Quarter Ended Mar 31, 2026
Revenue decreased from the prior quarter but increased from the same quarter last year, while gross profit remained stable sequentially and grew year over year. Cost of revenue declined both sequentially and year over year, leading to an improvement in gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue decreased from the prior quarter but increased from the same quarter last year, while gross profit remained stable sequentially and grew year over year. Cost of revenue declined both sequentially and year over year, leading to an improvement in gross margin.
- The reduction in cost of revenue, which fell more sharply than the small decline in revenue sequentially and also decreased year over year, was the strongest observable driver of the improved gross margin.
- Compared to the immediately preceding quarter, revenue was lower while gross profit was flat, and cost of revenue was lower, resulting in a higher gross margin. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was lower, and gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
48.0%
Gross profit
$2.9B
Revenue
$6.1B
Cost of revenue
$3.1B
Quarter-over-quarter change
+2.1 pts
Year-over-year change
+8.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2025 | $6.1B | $2.5B | $3.5B | 41.9% |
| Sep 30, 2025 | $6.1B | $2.7B | $3.5B | 43.5% |
| Dec 31, 2025 | $6.3B | $2.9B | $3.4B | 45.9% |
| Mar 31, 2026 | $6.1B | $2.9B | $3.1B | 48.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
+2.1 pts
Year-over-year change
Mar 31, 2025
+8.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The reduction in cost of revenue, which fell more sharply than the small decline in revenue sequentially and also decreased year over year, was the strongest observable driver of the improved gross margin.
Compared to the immediately preceding quarter, revenue was lower while gross profit was flat, and cost of revenue was lower, resulting in a higher gross margin. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was lower, and gross margin was higher.
Monitor the trajectory of cost of revenue, as its decline was the primary factor behind the margin expansion in the current quarter.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Block, Inc. (XYZ) | 48.0% |