Payments firm Block raised its forecast for annual adjusted core earnings on Thursday and unveiled a $3 billion buyback plan, betting on resilient consumer spending and cost-cutting measures, sending its shares up 6.8% in premarket trading Friday.

A tight labor market has afforded job security for Americans, allowing them to continue spending on travel, shopping and dining out, even as interest rates stay high.

Earlier this week, larger rival PayPal also raised its full-year adjusted profit forecast for the second time.

Block now expects annual adjusted core earnings of at least $2.90 billion, higher than its prior forecast of $2.76 billion.

Jack Dorsey-led Block has also focused on driving "profitable growth" by cutting jobs, reducing its real estate footprint and scaling back discretionary spending.

Operating expenses fell 4% to $1.93 billion in the second quarter, the company said.

Last month, Block struck its first large-scale crypto mining hardware pact with bitcoin miner Core Scientific.

"I'm fully confident and have no doubt that this is going to be a significant business for us and we're going to take a majority of the market share," Dorsey, who has long been bullish on bitcoin, told analysts.

Block also said Afterpay CEO Nick Molnar would take on an expanded role and will lead a "centralized sales function".

Molnar, who will focus immediately on strengthening the Square team, will directly report to Dorsey.

Square, Block's merchant segment, has been losing market share over the past couple years to peers Toast and Fiserv's Clover.

On an adjusted basis, Block earned 93 cents per share in the three months ended June 30, beating estimates of 84 cents, according to LSEG data.

It posted total net revenue of $6.16 billion, compared with expectations of $6.28 billion.

Block shares have slumped 22.6% so far this year, compared with PayPal's 6.3% gain.