Block's shares dropped the day after its Q2 earnings report, which showed a significant 65% year-over-year increase in adjusted earnings per share to $1.02, surpassing the $0.87 consensus estimate. However, the market reacted negatively to the decelerating growth in Cash App's monthly transacting actives, which grew only 3% year-over-year, down from 4% in the previous quarter. Management attributed the earnings jump to an AI-centered strategy, including a 40% workforce reduction, and expects full-year earnings to grow by 70%. Other metrics showed strength, with U.S. Square gross payment volume up 10% and international GPV up 28%.