TLDR
- Block (XYZ) closed down 1.4% at $76 on Tuesday, then rose 6% to 8% after hours.
- Q3 adjusted EPS was $1.13 versus the $1.03 estimate, and revenue was $6.72 billion.
- Cash App gross profit rose 27% to $2.07 billion.
- Block raised its 2026 adjusted EPS outlook to $4.15 from $4.04.
- The company gave its first 2027 outlook, with gross profit growth of at least 15%.
Block (XYZ) stock closed Tuesday down 1.4% at $76. Then the earnings report landed.
In after-hours trading, the stock jumped between 6% and 8%, depending on the report. The move followed a third-quarter beat and a higher full-year outlook.
Adjusted earnings per share came in at $1.13, ahead of the $1.03 Wall Street expected. Revenue hit $6.72 billion against a $6.58 billion estimate.
Revenue was up from $6.12 billion a year ago. Net income rose to $566 million from $462 million.
BLOCK $XYZ Q3’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $6.72B (Est. $6.59B) 🟢; +10% YoY
🔹 Adj. EPS: $1.13 (Est. $1.03) 🟢; +109% YoY
🔹 Gross Profit: $3.24B; +22% YoY
🔹 Adj. Oper Income: $923M (Est. $855M) 🟢; +92% YoY
🔹 Adjusted EBITDA: $1.23B (Est. $1.19B) 🟢Customers &… pic.twitter.com/ArkzCS4enj
— Wall St Engine (@wallstengine) November 3, 2026
Gross profit grew 22% to $3.24 billion. Adjusted operating profit nearly doubled to $923 million from $486 million.
Cash App and Square Lead the Quarter
Cash App gross profit climbed 27% to $2.07 billion. About 60 million customers used it each month in September.
Block credited its Neighborhoods feature for part of that rise in users. The feature pulled more people in during the quarter.
Consumer lending origination grew 40% to $19 billion. Cash App Borrow and Afterpay Post-Purchase drove the gain.
Square gross profit grew 14% to $1.16 billion. Gross payment volume also grew 14%, the best pace since Q1 2023.
U.S. volume growth was 10.4%. International markets grew 26%.
CEO Jack Dorsey cited 22% gross profit growth, 92% adjusted operating income growth and 109% adjusted EPS growth. He said the company beat its own guidance.
Not every line went up. Bitcoin ecosystem gross profit fell 50% to $52 million.
Block blamed its decision to cut fees on certain bitcoin transactions in Cash App. Bitcoin still brought in $1.77 billion of the app’s $4.07 billion in revenue.
Guidance Moves Higher
Block lifted its 2026 adjusted EPS outlook to $4.15 from $4.04. It now expects $12.626 billion in gross profit, up 22%.
Adjusted operating income is forecast at $3.519 billion, up 69%, at a 28% margin. The company said it is raising guidance to reflect “the momentum we are seeing across Block.”
For Q4, Block expects gross profit of $3.315 billion, up 15%. It sees adjusted operating income of $1.005 billion at a 30% margin.
Block also issued its first 2027 outlook. It expects gross profit growth of at least 15% and adjusted operating income of $4.575 billion, up 30%.
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