Block Raises 2026 Outlook as Q3 Adjusted EPS Jumps 109.3% to $1.13
Block raised its full-year outlook after third-quarter adjusted earnings per share more than doubled, up 109.3% to a record $1.13, as gross profit grew 21.5% to $3.24 billion on strength in both Cash App and Square.
The fintech company beat its own third-quarter guidance for gross profit, adjusted operating income and adjusted EPS, according to the shareholder letter it filed with an 8-K on Tuesday. GAAP diluted EPS rose 24.3% to $0.92 from $0.74, and net income attributable to common stockholders increased 22.5% to $565.6 million from $461.5 million. Total net revenue grew 9.9% to $6.72 billion from $6.11 billion.
Adjusted operating income, a non-GAAP profitability measure, jumped 92.3% to $923 million from $480 million, lifting its margin to a record 29% of gross profit. GAAP operating income rose 4.6% to $428 million from $409 million, and adjusted EBITDA reached $1.23 billion, up from $833 million.
Cash App leads growth
Cash App gross profit climbed 27.5% to $2.07 billion from $1.62 billion. Monthly transacting actives reached 60 million in September, and the company said its Neighborhoods loyalty and discovery network was a key driver of that growth. Consumer lending origination volume rose to $19.0 billion from $13.6 billion, driven by Cash App Borrow and Afterpay Post-Purchase.
Square gross profit grew 13.7% to $1.16 billion from $1.02 billion, in line with gross payment volume, which rose 13.7% to $76.4 billion. U.S. GPV growth accelerated to 10%, and international GPV grew 26%, the company said.
Guidance raised, 2027 previewed
For 2026, Block now expects gross profit of $12.626 billion, up 22%, adjusted operating income of $3.519 billion, a 28% margin and 69% growth, and adjusted EPS of $4.15, up 75%. Those targets compare with the $11.980 billion of gross profit and $2.700 billion of adjusted operating income it outlined at its November 2025 Investor Day.
For the fourth quarter, Block expects gross profit of $3.315 billion, up 15%, adjusted operating income of $1.005 billion and adjusted EPS of $1.15.
In a preliminary 2027 outlook, Block expects gross profit to grow at least 15%, to $14.519 billion, and adjusted operating income to grow 30% to $4.575 billion. It expects Square to accelerate GPV growth for a third consecutive year and Cash App to grow actives at least at a low-single-digit rate.
Betting on AI products
The company said it began piloting Buzz, its AI collaboration environment, with prospective customers in October and expects to generate its first machine intelligence revenue in the fourth quarter. It plans an event in San Francisco on Nov. 10 to introduce Builderlab, a new ecosystem built around those tools, and recently rebranded its Square seller AI product as Squaremates.
Free cash flow was $972 million in the quarter, compared with $1.40 billion a year earlier. The letter did not detail share repurchases or a dividend for the quarter.
By the numbers
- Adjusted EPS: $1.13, up 109.3%
- GAAP EPS: $0.92, up 24.3%
- Gross profit: $3.24 billion, up 21.5%
- Adjusted operating income: $923 million, up 92.3%
- Cash App gross profit: $2.07 billion, up 27.5%
- 2026 adjusted EPS outlook: $4.15
Sources
- Block Form 8-K with third-quarter 2026 shareholder letter, filed Nov. 3, 2026 (accession 0001628280-26-069513)
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