Block Q3 gross profit rises 22% to $3.24 billion, raises 2026 outlook

What Block reported for the third quarter

Block, Inc., the parent of Square and Cash App, reported third-quarter 2026 gross profit of $3.24 billion on Nov. 3, 2026, up 22% from the same quarter in 2025. Revenue was $6.72 billion, up 9.9% from $6.11 billion a year earlier, a rate calculated from the income statement figures in the company's shareholder letter.^[1]

Adjusted operating income was $923 million, up 92% from $480 million, for a 29% margin on gross profit. Adjusted diluted earnings per share were $1.13, up 109% from $0.54. On a GAAP basis, operating income was $428 million, up 5%, and diluted earnings per share were $0.92, up 24%, according to the letter and Stock Titan's summary of it.^[1][3]

The gap between the adjusted and GAAP figures is wide. General and administrative expense rose to $847 million from $544 million a year earlier, and Block excludes contingencies, restructuring and other charges from its adjusted measures, per its letter.^[1]

Where the growth came from

Cash App gross profit rose 27% to $2.07 billion, and Square gross profit rose 14% to $1.16 billion. Cash App reached 60 million monthly transacting actives in September, Block said, and Square gross payment volume rose to $76.4 billion from $67.2 billion a year earlier.^[1][2]

By product line, financial solutions gross profit rose 32% to $1.33 billion, driven by Cash App consumer lending, and commerce enablement gross profit rose 19% to $1.85 billion. Consumer lending originations were $19.0 billion, up 40%, according to Yahoo Finance and Stock Titan.^[1][2][3]

Bitcoin ecosystem gross profit fell 50% to $52 million. Block attributed the drop mainly to a decision to cut the fee it charges on certain bitcoin transactions in Cash App.^[1]

Truist Securities analyst Matthew Coad said "the quarter was not perfect" and pointed to Cash App primary banking actives, which he said were flat from the prior quarter, per Yahoo Finance.^[2]

Raised 2026 guidance and the 2027 outlook

Block raised its 2026 guidance to gross profit of $12.626 billion, up 22%, adjusted operating income of $3.519 billion, up 69%, and adjusted diluted earnings per share of $4.15, up 75%. At its November 2025 investor day, the company targeted 2026 gross profit of $11.98 billion and adjusted operating income of $2.70 billion. The new figures are 5% and 30% higher, calculated from the two sets of targets in the letter.^[1]

For the fourth quarter, Block guided to gross profit of $3.315 billion, up 15%, adjusted operating income of $1.005 billion and adjusted diluted earnings per share of $1.15.^[1]

The preliminary 2027 outlook calls for gross profit growth of at least 15%, which the letter puts at $14.519 billion, and adjusted operating income of $4.575 billion, up 30%, a 32% margin. Chief Financial Officer Amrita Ahuja repeated the 15% growth figure on the earnings call, according to the transcript.^[1][4]

Share price reaction and what happens next

Block shares closed at $75.93 on Nov. 3 and traded at $80.50 shortly after the 5 p.m. ET release, up 6.0%, per Stock Titan. Yahoo Finance reported the shares up more than 6% in premarket trading on Nov. 4.^[2][3]

Block said it began piloting its Buzz collaboration tool with prospective customers in October and expects its first revenue from selling machine intelligence products in the fourth quarter. The company will introduce its Builderlab business at an event in San Francisco on Nov. 10, 2026.^[1]