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Block Earnings: Cash App Drives a Beat and a Third Straight Guidance Raise

Block earnings: Q3 adjusted EPS of $1.13 and $3.24 billion gross profit beat forecasts; Block raised its 2026 outlook and set a $14.52 billion 2027 goal.

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Block earnings: Block co-founder Jack Dorsey speaking at a U.S. Senate hearing in Washington, D.C., in 2018
Jack Dorsey, co-founder and head of Block, in Washington in September 2018 (file photo). Photo: Mark Warner, Wikimedia Commons, CC BY 2.0.

Block on Tuesday, Nov. 3, 2026, reported third-quarter profit and revenue above Wall Street’s forecasts and raised its full-year outlook for the third quarter in a row. The Block earnings report sent shares of the company, which owns Cash App and Square, up 6% to 7% in after-hours trading. The company also gave a first look at 2027.

Key figures: Adjusted EPS $1.13 (est. $1.03) · revenue $6.72 billion (est. $6.58 billion) · gross profit $3.24 billion, +22% · Cash App gross profit $2.07 billion, +27% · 2026 gross profit guide raised to $12.63 billion · 2027 gross profit at least $14.52 billion

The quarter

Adjusted earnings were $1.13 a share, up from 54 cents a year earlier and above the $1.03 analysts expected. Revenue rose about 10% to $6.72 billion, beating estimates of $6.58 billion. Gross profit, the measure Block emphasizes, grew 22% to $3.24 billion.

Cash App generated $2.07 billion of gross profit, up 27%, and had 60 million monthly active users. Square, the merchant business, produced $1.16 billion of gross profit on $76.4 billion of gross payment volume, up 14%. Bitcoin gross profit fell by about half to $52 million, according to SiliconANGLE.

Adjusted operating income was $923 million, a 29% margin on gross profit. GAAP operating income was $428 million. Lending is growing quickly: originations rose 40% to $19 billion. Losses on transaction, loan and consumer receivables rose 65.6% to $601.7 million, Reuters reported. Chief Financial Officer Amrita Ahuja told Reuters that strong Cash App Card spending and “strong repayment rates on Borrow” were signals that consumers are managing their finances.

Block earnings by the numbers

Block earnings chart: 2026 gross profit guidance raised from $12.51 billion to $12.63 billion, with a 2027 outlook of at least $14.52 billion
Source: Block Q3 2026 results via SiliconANGLE; chart: The Boston Report.

Analysis: The new 2026 forecast is $120 million above August’s, and the 2027 outlook implies about 15% growth from it, by TBR’s calculation. Cash App made up about 64% of gross profit in the quarter. That makes Block’s growth more dependent on consumer lending and payments, while bitcoin is becoming a smaller part of the business. The 66% rise in losses, faster than the 40% rise in originations, is the number to watch as lending grows.

Guidance and AI

For the fourth quarter, Block expects gross profit of $3.32 billion, up 15%, and adjusted earnings of $1.15 a share, a cent below the $1.16 analysts expected. For the full year, it now expects gross profit of $12.63 billion, up from $12.51 billion, and adjusted earnings of $4.15 a share, up from $4.02. For 2027, Block forecast gross profit of at least $14.52 billion and adjusted operating income of $4.58 billion.

Jack Dorsey, Block’s co-founder and head, said the company had “meaningfully crossed the chasm” in its turnaround, according to SiliconANGLE. Block said it expects first revenue from Buzz, its AI product, in the fourth quarter. It plans a Builderlab event on Nov. 10.

Justice Department settlement

Block also disclosed that in October it reached an agreement in principle with the U.S. Department of Justice to defer for three years a charge that it failed to maintain an effective anti-money laundering program, in violation of the Bank Secrecy Act, Reuters reported. Block said the deferred prosecution agreement could lead to a net payment of about $764 million after credits for earlier regulatory settlements. The deal still needs a final agreement and court approval. Block warned that its losses could exceed the amount it has already set aside.

Market context

Fintech stocks have moved with interest rates and consumer credit this year. Block’s report came the same day Supermicro raised its outlook (our Supermicro earnings story) and a day after a major crypto exchange hack (our Binance story). Our business news page tracks other earnings reports this week.

Sources

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