Block (XYZ) · Financial Technology
Block Q3 2026 earnings: summary, key numbers & outlook
Results filed 3 Nov 2026 · Quarter ended 30 Sep 2026
Slides (31 pages)Press release ↗Investor relations ↗
Summaries and transcripts are machine-generated and can contain errors.
In brief
Gross profit grew 22% year over year to $3.24 billion, with Adjusted Operating Income up 92% to $923 million and Adjusted Diluted EPS up 109% to a record $1.13.
Block grew gross profit 22% to $3.24 billion in the third quarter, with Cash App up 27% and Square up 14%. Adjusted Operating Income rose 92% to $923 million, a record 29% margin. Adjusted Diluted EPS reached a record $1.13, while GAAP diluted EPS was $0.92. Cash App reached 60 million monthly transacting actives, and Square payment volume growth hit 14%, its fastest since early 2023.
Management raised 2026 guidance to $12.626 billion of gross profit and $3.519 billion of Adjusted Operating Income. It guided the fourth quarter to $3.315B of gross profit, 15% growth, and previewed 2027 gross profit growth of at least 15%. The tension is that bitcoin gross profit fell 50%, legal and loan-loss costs weigh on GAAP profit, and 2027 spending on AI and Neighborhoods is set to rise.
Slides & documents
Open the slide deck (PDF, 31 pages) ↗
Showing the first 6 of 31 pages.
From Block investor relations
- Investor PresentationSlide deck ↗
- Preliminary Cash App Bitcoin Ecosystem RevenueSlide deck ↗
- Prepared Remarks from Earnings CallCFO commentary ↗
- Audio FileDocument ↗
- 10-QDocument ↗
SEC filing
Key numbers
- Total net revenue · GAAP
- $6.7B
- Net income attributable to common stockholders · GAAP
- $566 million
- Diluted EPS · GAAP
- $0.92
- Adjusted Diluted EPS · non-GAAP
- $1.13
- Operating income · GAAP
- $428 million
- Operating income margin (of gross profit) · GAAP
- 13%
- Adjusted Operating Income · non-GAAP
- $923 million
- Gross profit · GAAP
- $3.24 billion
up 24% from a year ago
up 109% from a year ago
up 5% from a year ago
up 92% from a year ago
up 22% from a year ago
| Segment or metric | Value | Change |
|---|---|---|
| Cash App gross profit | $2.1B | up 27% from a year ago |
| Square gross profit | $1.2B | up 14% from a year ago |
| Square GPV | $76.4 billion | up 14% from a year ago |
| Cash App monthly transacting actives | 60 million | |
| Cash App Consumer Lending origination volume | $19.0 billion | up 40% from a year ago |
| Cash App Commerce Enablement monetization rate | 1.74% | up 18 basis points from a year ago |
Where each number comes from
- Total net revenue: “Bitcoin ecosystem revenue | 1,803,807 | 2,020,974 | 5,493,947 | 6,522,386 Total net revenue | 6,719,359 | 6,114,952 | 19,393,893 | 17,941,205”
- Net income attributable to common stockholders: “Net income attributable to common stockholders was $566 million and Adjusted EBITDA reached $1.2 billion.”
- Diluted EPS: “GAAP diluted EPS was $0.92, and Adjusted Diluted EPS grew 109% year over year to $1.13.”
- Adjusted Diluted EPS: “GAAP diluted EPS was $0.92, and Adjusted Diluted EPS grew 109% year over year to $1.13.”
- Operating income: “Operating income was $428 million, up 5% year over year, while Adjusted Operating Income grew 92% year over year to $923 million.”
- Operating income margin (of gross profit): “Operating Income (Loss) Margin (%) of gross profit | 15% | 17% | (6)% | 14% | 13% Adjusted Operating Income ($M) | 480 | 588 | 728 | 864 | 923”
- Adjusted Operating Income: “Operating income was $428 million, up 5% year over year, while Adjusted Operating Income grew 92% year over year to $923 million.”
- Gross profit: “Gross profit grew 22% year over year to $3.24 billion, with strong growth in both Cash App and Square.”
- Cash App gross profit: “Cash App Gross Profit ($M) | 1,624 | 1,831 | 1,908 | 1,973 | 2,070 YoY Growth | 24% | 33% | 38% | 31% | 27%”
- Square gross profit: “Square Gross Profit ($M) | 1,018 | 993 | 982 | 1,160 | 1,157 YoY Growth | 9% | 7% | 9% | 13% | 14%”
- Square GPV: “Square GPV grew 14% year over year in the third quarter on a reported and constant currency basis to $76.4 billion, reflecting strong GPV growth from new sellers.”
- Cash App monthly transacting actives: “Cash App monthly transacting actives grew to 60 million in September, as Neighborhoods brought more Square seller customers into Cash App.”
- Cash App Consumer Lending origination volume: “Consumer Lending origination volume grew 40% year over year to $19.0 billion, driven by Cash App Borrow and Afterpay Post-Purchase.”
- Cash App Commerce Enablement monetization rate: “Commerce Enablement monetization rate expanded 18 basis points year over year to 1.74%, driven by higher BNPL adoption on Cash App Card”
Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.
| From the filing | Q3 2026 | vs year ago | vs last quarter |
|---|---|---|---|
| Revenue | $6.7B | +9.9% | +1.5% |
| Operating income | $428.5M | +4.7% | −4.1% |
| Net income | $565.6M | +22.5% | +538.9% |
| Diluted EPS | $0.92 | +24.3% | +513.3% |
| Free cash flow | $972.0M | −30.6% | +0.6% |
| Gross margin | 48.1% | +4.6 pts | +0.3 pts |
| Operating margin | 6.4% | −0.3 pts | −0.4 pts |
Calculated by code from XBRL, not by the model.
Outlook
| Metric | Period | Outlook |
|---|---|---|
| Q4 2026 gross profit | fourth quarter of 2026 (gross profit) | $3.315B |
| Q4 2026 Adjusted Operating Income | fourth quarter of 2026 (Adjusted Operating Income) | $1.005B |
| Q4 2026 Adjusted Diluted EPS | fourth quarter of 2026 | $1.15 |
| 2026 gross profit | 2026 (gross profit) | $12.626 billion |
| 2026 Adjusted Operating Income | 2026 (Adjusted Operating Income) | $3.519 billion |
| 2026 Adjusted Diluted EPS | 2026 | $4.15 |
| 2027 gross profit growth | 2027 (gross profit growth) | at least 15% |
| 2027 Adjusted Operating Income | 2027 (Adjusted Operating Income) | $4.575 billion |
Key takeaways
Profit growth far outpaced gross profit growth
Gross profit grew 22% year over year, while Adjusted Operating Income grew 92% and Adjusted Diluted EPS grew 109% to $1.13. Adjusted Operating Income margin reached an all time high of 29%.
Cash App growth led by lending and commerce
Cash App gross profit grew 27%, and Consumer Lending origination volume grew 40% year over year to $19.0 billion. Monthly transacting actives reached 60 million, helped by Neighborhoods.
Square payment volume growth accelerated to 14%
Square GPV grew 14%, with U.S. GPV growth accelerating to 10.4% and International growing 26%. Square gross profit grew 14%, in line with GPV.
Bitcoin gross profit halved after fee cut
Bitcoin Ecosystem gross profit declined 50% year over year, driven primarily by a strategic decision to reduce the fee charged on certain bitcoin transactions on Cash App.
GAAP profit lagged adjusted profit measures
GAAP operating income was $428 million versus $923 million of Adjusted Operating Income, with contingencies, restructuring and other charges of $434,971 thousand. Transaction, loan, and consumer receivable losses rose 66% on a GAAP basis.
Charts
Fourth quarter worked out from the annual figure.
Data
| Q4 2024 | $6.0B * |
| Q1 2025 | $5.8B |
| Q2 2025 | $6.1B |
| Q3 2025 | $6.1B |
| Q4 2025 | $6.3B * |
| Q1 2026 | $6.1B |
| Q2 2026 | $6.6B |
| Q3 2026 | $6.7B |
Data
| Q1 2025 | $0.30 |
| Q2 2025 | $0.87 |
| Q3 2025 | $0.74 |
| Q1 2026 | -$0.52 |
| Q2 2026 | $0.15 |
| Q3 2026 | $0.92 |
Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.
Data
| Q4 2024 | 0.2% |
| Q1 2025 | 5.7% |
| Q2 2025 | 8.0% |
| Q3 2025 | 6.7% |
| Q4 2025 | 7.8% |
| Q1 2026 | -2.8% |
| Q2 2026 | 6.8% |
| Q3 2026 | 6.4% |
Data
| Q4 2024 | -$13.2M |
| Q1 2025 | $101.5M |
| Q2 2025 | $343.0M |
| Q3 2025 | $1.4B |
| Q4 2025 | $579.8M |
| Q1 2026 | $935.0M |
| Q2 2026 | $966.6M |
| Q3 2026 | $972.0M |
Operating cash flow minus capital expenditure, from cash flow statements.
Questions
What were Block's main results in Q3 2026?
Gross profit grew 22% year over year to $3.24 billion, Adjusted Operating Income grew 92% to $923 million, and Adjusted Diluted EPS grew 109% to $1.13. GAAP diluted EPS was $0.92, up 24%.
How did Cash App and Square perform?
Cash App gross profit grew 27% to $2.07B and monthly transacting actives reached 60 million. Square gross profit grew 14% to $1.16B, with GPV up 14% to $76.4 billion.
What is Block's guidance for the fourth quarter and 2026?
For Q4 2026, Block guides to $3.315B of gross profit, $1.005B of Adjusted Operating Income and $1.15 of Adjusted Diluted EPS. For 2026, it expects $12.626 billion of gross profit, $3.519 billion of Adjusted Operating Income and $4.15 of Adjusted Diluted EPS.
What did Block say about 2027?
Block expects gross profit to grow at least 15% year over year and Adjusted Operating Income to grow 30% to $4.575 billion. It plans to ramp investments in initiatives such as Neighborhoods and AI solutions externally.
What are the main risks or weak spots in the quarter?
Bitcoin Ecosystem gross profit fell 50% year over year after a fee reduction. Transaction, loan, and consumer receivable losses rose 66% on a GAAP basis, and general and administrative expenses rose 56% on accrued legal contingencies.
Call recording
Call recording on YouTube ↗. Official replay ↗.