Block, Inc. Q3 2026 Earnings Recap

Block’s shares rose 15.3% after earnings, as the company lifted its 2026 outlook and projected at least 15% gross profit growth with higher operating margins in 2027. The quarter’s standout figures included 22% gross profit growth and a record 29% adjusted operating margin.

Key Takeaways

• Third-quarter gross profit increased 22% year over year to $3.24 billion; adjusted operating income rose 92% to $923 million, and adjusted EPS more than doubled to $1.13.
• Square GPV growth accelerated to 14%, its strongest rate since Q1 2023. Square gross profit also grew 14%, and the company expects it to grow roughly in line with GPV in Q4.
• Cash App gross profit grew 27%; monthly transacting actives rose 4% to 60 million. Consumer lending originations increased 40% to $19 billion, while variable profit margins were consistent with the prior-year period.
• Block raised 2026 guidance to $12.626 billion in gross profit, $3.519 billion in adjusted operating income, and $4.15 in adjusted diluted EPS. For Q4, it expects gross profit growth above 15% and a 30% adjusted operating income margin.
• For 2027, the company expects at least 15% gross profit growth and a 32% adjusted operating income margin. It also expects to generate its first AI revenue in Q4.