Block (XYZ) Earnings Date & Reports

Key Takeaways

• Block reported third-quarter 2026 adjusted diluted earnings per share (EPS) of $1.13, topping the Street consensus of roughly $1.02–$1.03 per share.
• Net revenue reached $6.72 billion, up 10% year over year and above analyst estimates of about $6.58 billion.
• Gross profit, Block's preferred operating metric, grew 22% year over year to $3.24 billion, ahead of guidance.
• Cash App gross profit rose 27% to $2.07 billion, while Square's gross payment volume (GPV) growth accelerated to 14%, its fastest pace since early 2023.
• Block raised its full-year 2026 outlook for adjusted EPS to $4.15 and gross profit to $12.63 billion, and issued preliminary 2027 targets.
• Shares climbed about 8% in after-hours trading following the release.
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Earnings Context and Why It Matters

Block's quarterly results are closely watched because the company, formerly known as Square, operates two distinct growth engines — the Square seller ecosystem and the Cash App consumer platform. The report arrives as the fintech seeks to prove that a sweeping early-2026 restructuring, which cut its workforce by more than 40%, is converting leaner operations into durable profit growth. Prior quarters showed accelerating gross profit and strong EPS beats, but investors remained focused on rising credit losses and whether Square's payment volume could re-accelerate. These results offer a direct read on both questions, making the quarter a key checkpoint for the stock's 2026 rally.

Reported Results

For the third quarter ended September 30, 2026, Block posted adjusted diluted EPS of $1.13, above consensus estimates near $1.02–$1.03 and up sharply from $0.54 a year earlier. Net revenue climbed 10% year over year to $6.72 billion, exceeding analyst expectations of about $6.58 billion.

Gross profit, the metric management emphasizes most, rose 22% year over year to $3.24 billion, ahead of its own guidance. Adjusted operating income jumped 92% to $923 million, a record 29% margin, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA, a profitability measure that strips out non-cash and financing items) increased 47% to $1.23 billion.

Segment results were broad-based. Cash App gross profit grew 27% to $2.07 billion, and monthly transacting actives reached 60 million. Square gross profit rose 14% to $1.16 billion, with GPV (gross payment volume, the total dollar value of payments processed) up 14% year over year — the strongest growth since the first quarter of 2023. On a generally accepted accounting principles (GAAP) basis, however, transaction and loan losses rose about 66% to $602 million, and Bitcoin gross profit fell roughly 50%.

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Market Reaction and Investor Sentiment

Investors responded positively to the double beat and the raised outlook. Block shares rose roughly 8% in after-hours trading on November 3, 2026, to the low-$82 range, building on a gain of about 18% for the stock in 2026 heading into the report. Sentiment was supported by Square's re-accelerating payment volume, record adjusted operating margin, and management's confidence in sustained growth, including preliminary 2027 targets. The main points of caution centered on rising credit losses and a weaker Bitcoin contribution, which tempered an otherwise strong quarter but did not prevent the after-hours advance.

Forward Outlook and Key Factors to Monitor

Block raised its full-year 2026 guidance, now projecting adjusted EPS of $4.15, gross profit of $12.63 billion (up 22% year over year), and adjusted operating income of $3.52 billion. For the fourth quarter, management expects gross profit of about $3.32 billion and adjusted operating income near $1.01 billion, implying a 30% margin.

Looking further ahead, the company issued a preliminary 2027 outlook calling for gross profit growth of at least 15% and adjusted operating income growth of roughly 30% to $4.58 billion. Management attributed the confidence partly to early investments in AI, and said the fourth quarter is expected to mark the first time Block generates revenue directly from AI tools.

Investors should monitor several items next. First, whether transaction and loan losses — up sharply this quarter — begin to moderate as management expects once Cash App Borrow limits rise again. Second, whether Square's payment volume acceleration is sustainable beyond a single quarter. Third, the trajectory of Bitcoin gross profit after this quarter's decline. These factors will help determine whether Block can deliver on its elevated guidance while keeping credit and legal costs in check.

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