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.

Fatos confirmados

• 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]

Implicações

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

Ainda não se sabe

• 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

Quem é afetado

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

Fontes

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