Notable

Block grows gross profit 22% and raises its 2026 forecast

Block's adjusted earnings per share came in at $1.13, ahead of the $1.04 analysts expected. Gross profit rose 22% to $3.24 billion, with Cash App up 27% and Square up 14%. Block also raised its 2026 forecast.

The results

Q3 2026

+9.1%

Adj. earnings

+1.0%

Revenue

+15.3%

The stock

Adjusted earnings per share

Expected $1.04

$1.13

Revenue

Expected $6.65B

$6.72B

What the company expects

Block now expects 2026 gross profit of $12.626 billion, up 22%, adjusted operating income of $3.519 billion and adjusted earnings per share of $4.15. For the fourth quarter it expects gross profit of $3.315 billion, up 15%. For 2027 it expects gross profit to grow at least 15% and adjusted operating income to grow 30% to $4.575 billion.

Results for Q3 2026, released on November 3, after the close. Expected: average of analysts' forecasts. Earnings per share under GAAP accounting rules: $0.92.

AI analysis

Nov 3

What drove the quarter

Lending drove Cash App

Cash App's gross profit rose 27% to $2.07 billion, and Block says Cash App Borrow, its short-term loan product, drove most of the growth in financial services. Consumer loans issued through Cash App and Afterpay grew 40% to $19.0 billion.

Square payments sped up

Square sellers processed $76.4 billion in card and bank payments, up 14%. Block says that is the fastest growth since the first quarter of 2023, and Square's gross profit grew at the same 14% pace.

What it changes

2026 forecast raised

Block now expects 2026 adjusted operating income of $3.519 billion, up 69%, and adjusted earnings per share of $4.15. Adjusted figures leave out costs the company considers exceptional.

What it does not say

Adjusted profit tells half the story

Under standard accounting, operating income rose 5% to $428 million, while adjusted operating income jumped 92% to $923 million. The adjusted figure leaves out contingencies, restructuring and other charges, and Block says higher accrued legal contingencies pushed up its costs this quarter.

A $764 million settlement

CoinDesk reports that Block agreed in principle to pay $764 million to settle a Justice Department investigation into its anti-money-laundering controls. CoinDesk says Block has already set that amount aside.

One session is not a verdict

Block shares rose 15.3% to $87.63 on November 4, 2026, the day after the results. A one-day move shows how traders first reacted and does not tell you where the business is headed.

Analysis written by an AI from public data. It is not investment advice.