Block Beats Expectations as Cash App and Square Drive Growth

Direct answer: Block beat expectations in the third quarter of 2026. Gross profit rose 22 percent to $3.24 billion, helped by strong growth at Cash App and Square, and the company raised its outlook for the full year.

What happened

Block, the payments company behind Cash App and Square, reported third quarter results on November 3, 2026, according to its company filing summarised by TradingView. Total revenue rose 9.9 percent from a year earlier to $6.72 billion. Net income was $566 million, or $0.92 per share, up from $462 million, or $0.74 per share, a year earlier.

Adjusted earnings per share, which exclude some one-off items, were $1.13, above the $1.02 expected by analysts in the Zacks consensus estimate. Gross profit, the money left after the direct costs of providing a service, rose 22 percent to $3.24 billion.

Cash App led the growth. Its gross profit rose 27 percent to $2.07 billion. Square, which serves small and medium businesses, grew gross profit by 14 percent to $1.16 billion. One weak spot was Bitcoin: gross profit from the Bitcoin business fell 50 percent to $52 million.

Block also raised its outlook. It now expects full-year 2026 gross profit of $12.626 billion, up 22 percent from a year earlier, and adjusted earnings per share of $4.15. For the fourth quarter, it expects gross profit of $3.32 billion and adjusted earnings per share of $1.15. Shares rose 6.7 percent to $81.10 in after-hours trading on November 3, according to Dow Jones Newswires via Morningstar.

Why it matters for beginners

Block is a useful example of a payments business because many people already use its products. Cash App is a consumer money app, and Square provides card readers and payment tools for shops and small businesses. When more people and businesses use those tools, Block earns more in fees and related income.

Gross profit matters here because it shows whether the core business is growing after its direct costs, before wider company costs. A 22 percent rise, with both main parts growing, suggests demand for its payment tools stayed strong in the quarter.

The raised outlook also matters. Companies raise guidance when they expect the next period to be stronger than they previously thought. That does not guarantee future results, and guidance can change if spending, credit losses, or the wider economy weaken.

For a related payments and online commerce story, see our post on Shopify, which also reported strong revenue growth in the third quarter: https://investclaritypath.com/shopify-revenue-jumps-32-percent-q3-2026-shares-fall/

What to watch next

Watch whether Block delivers its fourth quarter gross profit target of $3.32 billion, and whether Cash App growth stays strong. Also watch two costs flagged in early coverage of the results: loan losses rose as Cash App Borrow and Afterpay lending grew, and the company recorded large legal related charges. If those costs keep rising faster than gross profit, they could offset some of the growth.

Block reports fourth quarter results in early 2027, when investors will check the full-year gross profit figure against the new $12.626 billion target.

FAQ

What is Block?

Block is a US payments and financial technology company. Its best known products are Cash App for consumers and Square for businesses.

What is gross profit?

Gross profit is revenue minus the direct costs of providing a product or service. It is a simple way to see how much a core business earns before wider costs such as marketing, offices, and administration.

Why did Block shares rise after the results?

Shares often move after results when the numbers beat expectations or when a company raises its outlook. Block beat analyst expectations on adjusted earnings and raised its full-year gross profit forecast, which traders read as a positive signal.

Does a strong quarter mean the stock will keep rising?

No. A strong quarter is backward looking, and share prices also reflect expectations, costs, interest rates, and wider market mood. Future results can be weaker than guidance.