# Block (XYZ) Q3 2026 earnings

Results filed 2026-11-03 for the quarter ended 2026-09-30. Source page: https://earnings.opennash.com/companies/xyz/2026-q3/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/1512673/000162828026069513/0001628280-26-069513-index.htm
> 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.

## Key numbers

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Total net revenue | 6,719,359 |  | GAAP |
| Net income attributable to common stockholders | $566 million |  | GAAP |
| Diluted EPS | $0.92 | up 24% from a year ago | GAAP |
| Adjusted Diluted EPS | $1.13 | up 109% from a year ago | non-GAAP |
| Operating income | $428 million | up 5% from a year ago | GAAP |
| Operating income margin (of gross profit) | 13% |  | GAAP |
| Adjusted Operating Income | $923 million | up 92% from a year ago | non-GAAP |
| Gross profit | $3.24 billion | up 22% from a year ago | GAAP |
| Net cash provided by operating activities | 1,016 |  | GAAP |
| Free Cash Flow | 972 |  | non-GAAP |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Cash App gross profit | 2,070 | up 27% from a year ago |
| Square gross profit | 1,157 | 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 |

## 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

1. **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%.
2. **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.
3. **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.
4. **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.
5. **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.

## 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.

## Slides and investor documents

- [Shareholder Letter](https://s29.q4cdn.com/628966176/files/content_files/Q3-2026-Shareholder-Letter_Block.pdf) (Slide deck)
- [Investor Presentation](https://s29.q4cdn.com/628966176/files/content_files/Investor-Presentation-3Q26_Block.pdf) (Slide deck)
- [Preliminary Cash App Bitcoin Ecosystem Revenue](https://s29.q4cdn.com/628966176/files/doc_financials/2026/q3/Q3-2026-Preliminary-Cash-App-Bitcoin-Ecosystem-Revenue.pdf) (Slide deck)
- [Prepared Remarks from Earnings Call](https://s29.q4cdn.com/628966176/files/content_files/Intro-Remarks_3Q26.pdf) (CFO commentary)
- [Audio File](https://s29.q4cdn.com/628966176/files/content_files/Block-Q3-2026-Earnings-Call.mp4) (Document)
- [10-Q](https://d18rn0p25nwr6d.cloudfront.net/CIK-0001512673/7ea301bb-18c9-46ff-a4ec-4385c49798aa.pdf) (Document)