SQ stock today is in focus after Block, Inc. (SQ) outlined an AI-driven overhaul with about 4,000 job cuts, in-line Q4, and a 2026 EPS guidance of $3.66 that topped estimates. Management also projected $450–$500 million in Q1 restructuring charges. For Singapore investors trading U.S. equities in USD, the headline is simple. Markets are rewarding clearer earnings power and leaner costs, while weighing near-term GAAP noise. We break down what matters and how to position around this pivot.

What Dorsey’s AI overhaul signals for profitability

Block plans about 4,000 layoffs, nearly half its workforce, as it shifts to AI across support, risk, and operations. The goal is faster service, lower unit costs, and simpler product lines. That mix can expand gross profit per employee and lighten operating expenses over time. Execution is key. Clear internal KPIs around churn, support tickets closed, and fraud losses will show if automation is sticking.

Investors prize margin visibility. A smaller, AI-centric cost base can lift operating leverage as volume grows. Management paired the plan with firm earnings targets, which boosted confidence even with restructuring noise. Shares spiked intraday on the announcement source. Dorsey’s plain view on AI and jobs also sharpened the debate on profit versus employment source.

Guidance and near-term charges to watch

SQ issued a 2026 EPS outlook of $3.66, ahead of consensus. Against a recent TTM EPS of 1.67 in our dataset, that implies roughly 119 percent growth if delivered. Investors will watch mix drivers such as Cash App monetisation, seller GPV trends, and AI-enabled cost efficiencies. Clear quarterly progress toward the 2026 run rate should anchor valuation and reduce volatility.

Management flagged $450–$500 million in Q1 restructuring charges. That will pressure near-term GAAP results and could mask underlying margin progress. We expect the market to separate one-time costs from recurring earnings drivers. Clean disclosure on severance, facilities, and systems write-offs versus ongoing Opex reductions will help assess the real earnings power in the second half of 2025 and beyond.

What this means for Singapore investors

SQ is U.S.-listed and trades in USD. Singapore investors typically access it via U.S.-enabled brokers, complete a W-8BEN, and face T+1 settlement. Factor in SGD to USD conversion costs and potential withholding on U.S. dividends if they begin one day. Using SGD-cost averaging and limit orders can manage spread and intraday swings around news-heavy sessions.

AI transitions can be bumpy. Risks include service disruption, customer churn, and regulatory scrutiny in payments. Consider a staged entry so earnings updates confirm the thesis. Use alerts around guidance checkpoints and watch operating metrics that reflect automation quality, such as fraud losses and dispute resolution times. Keep individual position sizes modest relative to portfolio risk.

Key metrics and sentiment snapshot

Recent fundamentals in our dataset show market cap near $51.7 billion, price-to-sales about 2.14, and free cash flow yield around 4.69 percent. Gross margin is 42.8 percent, operating margin 7.1 percent, and debt-to-equity 0.11 with strong interest coverage at 48x. TTM EPS stands at 1.67. These figures provide context as investors weigh the 2026 earnings path.

Analyst snapshot shows 2 Buys with a Buy consensus rating. Our stock-grade model scores SQ at 74.62, a B+ with a BUY suggestion. We view the plan as earnings-accretive if execution holds. The 2026 EPS guide gives a clear yardstick. Watch quarterly Opex trends, GPV growth, and AI-driven support metrics to validate progress.

Final Thoughts

For SQ stock today, the setup is clear. Block paired a bold AI reset and about 4,000 job cuts with a firm 2026 EPS guide of $3.66. Markets cheered because margin math now looks cleaner, even with $450–$500 million in Q1 restructuring charges. For Singapore investors, treat the next few quarters as proof points. Consider scaling in on pullbacks, use limit orders during volatile sessions, and focus on updates to operating expenses, gross profit per employee, and fraud losses. If management hits interim targets, the earnings bridge to 2026 should tighten and support valuation. If automation stumbles, keep risk tight and reassess. Let data drive conviction, not headlines.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.