Block Inc (NYSE:XYZ) shares are tanking on Friday after the company announced on Thursday downbeat first-quarter results.

The announcement came amid an exciting earnings season. Here are some key analyst takeaways.

Benchmark On Block

Analyst Mark Palmer downgraded the rating from Buy to Hold.

Cash App generated gross profits of $1.38 billion, missing Street estimate of $1.42 billion, which contributed to "Block's shortfalls on other metrics," Palmer said in a note. The company reported gross payment volume (GPV) of $54.1 billion, short of consensus of $58 billion, and adjusted earnings of 56 cents per share, missing consensus 97 cents per share, he added.

"Management attributed Cash App's slowdown to softness in discretionary spending in categories like travel and entertainment," the analyst wrote. Management expects Block's gross profit growth to reaccelerate in the back half of the year, he further stated.

KeyBanc Capital Markets On Block

Analyst Alex Markgraff maintained an Overweight rating, while cutting the price target from $65 to $60.

Block reported adjusted EBITDA of $812.8 million, which missed consensus of $783.4 million, Markgraff said. Management revised their full-year guidance lower, he added.

The downward revision in full-year guidance reflects further softening in the macro environment, the analyst stated. "New guidance still implies an acceleration in gross profit for both Cash App and Square through the balance of the year, though a lower absolute level," he further wrote.

RBC Capital Markets On Block

Analyst Daniel Perlin reiterated an Outperform rating, while lowering the price target from $86 to $63.

Cash App's GPV came in at $2.7 billion, down 32% year-on-year and 10% sequentially, Perlin said. The figure missed expectations by a wide margin, with consensus at $3.6 billion, he added.

"While GPV growth slowed meaningfully, April showed some improvement, giving management confidence in its 2H25 gross profit ramp," the analyst wrote. However, guidance was cut meaningfully, reflecting a more cautious macro outlook and continued Cash App woes, he further stated.

JPMorgan On Block

Analyst Tien-tsin Huang reaffirmed an Overweight rating, while reducing the price target from $90 to $60.

Block posted "a rare top-line miss," with gross profits growing by 9% versus the 11% guidance, Huang said. This miss was due to a "surprise weakness" at Cash App, while Square modestly outperformed, he added.

"Guidance was cut to reflect a weaker macro beyond what was observed in April month, but still implies acceleration, though not quite as steep as before," the analyst wrote. Management lowered their gross profit growth guidance by three percentage points to 12%, he further stated.

Check out other analyst stock ratings.

Needham On Block

Analyst Mayank Tandon maintained a Buy rating, while cutting the price target from $90 to $60.

Block reported mixed first-quarter results, with "softer Cash App inflows and consumer spending pressures," Tandon said. Management expects macro conditions to lead to further spending pressures, reflected in their soft guidance for the second quarter and lowered 2025 outlook "across the board," he added.

"With international momentum holding steady combined with ongoing product roll-outs and expansions, we believe the growth runway remains large and growth could inflect higher in 2H25 even in the face of macro uncertainty," the analyst wrote.

Canaccord Genuity On Block

Analyst Joseph Vafi reiterated a Buy rating, while lowering the price target from $100 to $80.

Cash App inflows were hurt during the tax refund season and its gross profit growth decelerated to 10% year-on-year in the first quarter, from 16% in the previous quarter, Vafi said.

The company lowered its 2025 gross profit projection to $9.9 billion, from its previous outlook of $10.22 billion, the analyst stated. "This outlook encompasses a healthy amount of conservatism as April trended better than what this outlook assumes," he further wrote.

Stephens On Block

Analyst Charles Nabhan reaffirmed an Overweight rating and price target of $75.

Cash App's gross profit grew 9.7% to $1.38 billion, versus Street estimates of $1.42 billion, Nabhan said.  The miss reflects "decelerating growth rates across all its major KPIs," he added.

"Cash App did face tougher comps with total GP growth +25% y/y in 1Q’24 and 7bps of monetization rate expansion (+1bp y/y in 1Q’25)," the analyst wrote. However, the slowdown in Cash App and reduced guidance will likely keep shares under pressure, he further stated.

Seaport Global On Block

Analyst Jeff Cantwell downgraded the rating from Buy to Neutral.

"We had taken our estimates down for Block's Q1 heading into earnings, but apparently not by enough," Cantwell wrote in the downgrade note. Both the company's segments are generating sub-optimal growth, he added.

The analyst foresees further downside to Block’s numbers this year, despite the reduction in guidance. "Block simply is not an investable story to us at the moment," he wrote.

XYZ Price Action: Shares of Block had declined by 19.70% to $46.96 at the time of publication on Friday.

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