Block shares rose after hours as third-quarter earnings and revenue beat estimates and the company raised its 2026 outlook.

Table of contents

  • Block shares rose about 6.2% in after-hours trading on Tuesday
  • The firm reported third-quarter results that beat analysts’ estimates
  • Block raised its 2026 gross profit outlook to $12.63 billion

Block Inc. (XYZ), the payments company led by Jack Dorsey, reported third-quarter results on Nov. 3 that beat Wall Street estimates. The company also raised its 2026 outlook, which set the stage for the stock’s Tuesday rally.

Block’s earnings and revenue beat estimates

The firm’s adjusted earnings per share came in at $1.13, beating analysts' expectations of $1.03. Revenue topped $6.72 billion, up from $6.12 billion a year earlier, the press release showed.

Gross profit also rose 22% from a year earlier to $3.24 billion. Adjusted operating income increased 92% to $923 million, with a margin of 29%. Block also reported net income of $565.6 million, or $0.92 per share, up from $462 million a year earlier.

"We exceeded our guidance with 22% gross profit growth, 92% adjusted operating income growth, and 109% adjusted diluted EPS growth," Dorsey said.

Much of the growth came from Cash App and steady consumer spending as the US economy grew at its fastest pace in a year in the third quarter. 

On the other end of the report, Block's losses on transactions, loans and consumer receivables rose by 65.6% to $601.7 million.

Cash App grows while Bitcoin profit halves

Cash App’s gross profit jumped by 27% to $2.07 billion in Q3, with the app recording about 60 million monthly transacting users in September.

"Neighborhoods was a key driver of Cash App scaling to 60 million monthly transacting actives in September," Dorsey said in his letter to shareholders. 

Consumer lending originations also rose 40% to $19.0 billion, with Block crediting Cash App Borrow and Afterpay Post-Purchase for the growth.

Square's gross profit rose 14% to $1.16 billion while gross payment volume grew 14%, its fastest pace since the first quarter of 2023. US volume increased by 10.4% and international volume rose 26%.

Block's Bitcoin business, however, went the other way. Gross profit from its Bitcoin ecosystem fell 50% to $52 million, from $104 million a year earlier. Revenue from the segment fell 11% to about $1.8 billion. The company said the fall was due to its decision to cut fees on certain BTC transactions on Cash App. 

The Bitcoin segment includes customer purchases in Cash App and Proto, along with withdrawal fees. Cash App earned $4.07 billion in revenue in the quarter, with only $1.77 billion from Bitcoin in comparison. 

Meanwhile, the company has submitted an application with the  OCC to establish a national trust bank for custody of its BTC and stablecoin.

Block raises 2026 outlook and gives first 2027 forecast

Block projected a 2026 gross profit of $12.626 billion, up 22% from its earlier forecast of $12.51 billion. It raised its adjusted EPS outlook to $4.15 from $4.04, and expects adjusted operating income of $3.519 billion, a 28% margin.

For Q4, Block expects gross profit of $3.315 billion, up 15%, and adjusted operating income of $1.005 billion at a 30% margin. 

"We are raising our full-year guidance to reflect the momentum we are seeing across Block," the company said.

The company also shared guidance for 2027. Block projected a gross profit growth of at least 15%, which comes to around $14.52 billion. The firm also expects adjusted operating income to rise 30% to $4.575 billion. 

It added that it will "expand margins while still investing meaningfully to sustain long-term growth." Executive Owen Jennings said the fourth quarter should be the first time the company earns revenue from AI tools.

Michael Adeleke is a crypto journalist at CoinCodex with more than three years of experience in crypto journalism. He provides crypto news and market analysis in the easiest way possible to help readers know the latest updates in financial markets. With a background in engineering, he brings strong research and analytical skills to his work.