Block shares jump 15.3% after Q3 profit beat and forecast raise

Block said on Nov. 3 that adjusted diluted earnings per share rose to $1.13 in the third quarter, topping the $1.04 consensus estimate, and that it had raised its 2026 forecast.

Shares rose 15.3% in regular trading as of 3:59 p.m. ET on Nov. 4, from a regular-session close of $76.00.

Revenue was $6.72 billion, above the $6.65 billion estimate and up from $6.11 billion a year earlier, according to a regulatory filing that included the company's shareholder letter.

Here's how the company did:

• Adjusted diluted EPS: $1.13 vs. $0.54 a year earlier, $1.04 expected
• Diluted EPS: $0.92 vs. $0.74 a year earlier
• Revenue: $6.72 billion vs. $6.11 billion a year earlier, $6.65 billion expected
• Gross profit: $3.24 billion vs. $2.66 billion a year earlier
• Adjusted operating income: $923 million vs. $480 million a year earlier

Gross profit grew 22% to $3.24 billion, with Cash App gross profit up 27% to $2.07 billion and Square gross profit up 14% to $1.16 billion.

Operating income was $428 million, up 5% from a year earlier, and net income attributable to common stockholders was $566 million.

Net income swung from a loss of $308.7 million in the first quarter of 2026 to a profit of $88.5 million in the second quarter, according to its SEC filings.

2026 guidance

The company raised its 2026 gross profit forecast to $12.63 billion, from the $12.51 billion range it gave on Aug. 5.

It now expects Adjusted Operating Income of $3.52 billion, up from $3.47 billion, and Adjusted Diluted EPS of $4.15, up from $4.02.

For the fourth quarter, the company expects Adjusted Diluted EPS of $1.15, up 77% from a year earlier, and Adjusted Operating Income of $1.005 billion.

Segment results

Square GPV rose 14% to $76.4 billion, with U.S. GPV growth accelerating to 10.4%.

Commerce Enablement gross profit grew 19%, while Financial Solutions gross profit rose 32%, driven by Cash App Consumer Lending.

Consumer Lending origination volume grew 40% to $19.0 billion.

Bitcoin Ecosystem gross profit fell 50% to $52 million, driven primarily by a strategic decision to reduce the fee the company charges on certain bitcoin transactions on Cash App.

Cash App reached 60 million monthly transacting actives in September, and the company credited Neighborhoods, its network that connects Square sellers with consumers, with driving growth in actives.

The company said it expects to generate its first machine intelligence revenue in the fourth quarter, from a pilot of Buzz with prospective customers that began in October.

Costs and charges

Contingencies, restructuring and other charges totaled $435 million in the quarter.

General and administrative expenses rose 56% from a year earlier on a GAAP basis, mainly from higher accrued legal contingencies.

Transaction, loan and consumer receivable losses rose 66% on a GAAP basis, driven by loan growth and product mix shifts.

Jack Dorsey wrote in the shareholder letter: “We believe we’ve meaningfully crossed the chasm of transforming our company from one that creates traditional financial products into one that streams intelligence as people need it.”