Block raises outlook as Cash App grows 27% and profit nearly doubles

What the company reported. The shareholder letter came out on November 3 at about 4:05 p.m. US Eastern time. Gross profit, which is revenue minus direct costs, rose 22% to $3.24 billion. Block treats it as its main measure, because much of its revenue is bitcoin that customers buy in Cash App at a thin markup. Revenue was $6.72 billion.

Where growth came from. Cash App gross profit rose 27% to $2.07 billion. Square, the payments business for shops and cafes, rose 14% to $1.16 billion. Cash App had 60 million monthly transacting users in September. Consumer loans issued rose 40% to $19.0 billion, mostly through Cash App Borrow and Afterpay. Square payment volume grew 14%.

Profit. Adjusted operating income rose 92% to $923 million, a 29% margin. Adjusted earnings per share were $1.13, against $0.54 a year ago. Under standard accounting rules, operating income rose only 5% to $428 million, and earnings per share rose 24% to $0.92. The gap is because adjusted figures leave out some costs, such as stock-based pay and one-off charges.

Risks. Per Reuters, losses on payments, loans and customer receivables rose 65.6% to $601.7 million. CFO Amrita Ahuja told Reuters that customers are repaying Borrow loans well. Per StockTitan, Block's gross profit from bitcoin halved to $52 million.

Outlook and reaction. Block expects $12.63 billion in 2026 gross profit (up 22%), up from the $12.51 billion it expected before, per Reuters. For Q4 it expects $3.32 billion and adjusted earnings of $1.15 per share. For 2027 it sees $14.52 billion, growth of at least 15%, and adjusted operating income of $4.58 billion. Per StockTitan, the stock was at $80.50 at 5:01 p.m. Eastern, 6% above the close. This is an overview, not advice.

Confirmed facts

• Block published its Q3 2026 shareholder letter on November 3 at 4:05 p.m. US Eastern time.^[1][3]
• Gross profit rose 22% from a year earlier to $3.24 billion, on revenue of $6.72 billion.^[1][3]
• Cash App gross profit rose 27% to $2.07 billion, and Square rose 14% to $1.16 billion.^[1][2]
• Cash App had 60 million monthly transacting actives in September.^[1][2]
• Consumer lending originations rose 40% to $19.0 billion; Square payment volume grew 14%.^[1]
• Adjusted operating income was $923 million (up 92%, a 29% margin), and adjusted earnings per share were $1.13 against $0.54.^[1][2]
• Operating income under standard accounting rules was $428 million (up 5%), and earnings per share were $0.92 (up 24%).^[1]
• Losses on transaction, loan and consumer receivables rose 65.6% to $601.7 million.^[2]
• Block's gross profit from bitcoin fell 50% to $52 million.^[3]
• The 2026 gross profit forecast is $12.63 billion (up 22%), against $12.51 billion before.^[1][2]
• Q4 outlook: gross profit of $3.32 billion and adjusted earnings of $1.15 per share.^[1][2]
• Preliminary 2027 outlook: gross profit of $14.52 billion (growth of at least 15%) and adjusted operating income of $4.58 billion.^[1][2]
• At 5:01 p.m. Eastern, Block shares traded at $80.50, 6% above the $75.93 close.^[3]

Implications

• ConfirmedCash App is now Block's main growth engine: its gross profit grows almost twice as fast as Square's.
• ConfirmedMore lending inside Cash App comes with higher credit losses.
• Our readingIf the US economy weakens, loans become the main risk to Block's profit. That is our reading.

Still unknown

• How Block stock trades in the regular session on November 4
• How Cash App loan losses develop in the next quarters
• How much Block will really earn from the AI tools it talks about

Who it affects

United States, Global. Cash App and Square users, people who follow fintech stocks or borrow through apps

Sources

1. Block (SEC filing): Block Third Quarter 2026 Shareholder Letter November 3, 2026 · official
2. Reuters (via U.S. News): Block Raises Full-Year Profit Outlook as Cash App Drives Q3 Growth November 3, 2026 · media
3. StockTitan: Block (XYZ) Earnings Show Adjusted EPS Up 109% to a Record $1.13 November 3, 2026 · media