Block shares XYZ surged in trading on Wednesday after the fintech company reported third-quarter earnings and revenue above analyst expectations and raised its full-year profit outlook.
The Jack Dorsey-led company posted adjusted earnings of $1.13 per share for the quarter ended September 2026, beating estimates of around $1.02 to $1.04 per share.
Revenue reached $6.72 billion, compared with the consensus estimate of $6.58 billion and $6.12 billion a year earlier.
Block shares rose more than 14% in trading, adding to the 6.2% gain in after-hours trading on Tuesday.
Block raises full-year profit guidance
Block raised its full-year adjusted earnings forecast to $4.15 per share and increased its gross profit outlook to $12.63 billion, representing annual growth of 22%.
Its previous gross profit forecast was $11.98 billion.
The company also expects fourth-quarter adjusted earnings of $1.15 per share.
For 2027, Block projected gross profit of $14.52 billion.
The company said the outlook reflected how its investments in artificial intelligence and broader focus on velocity could support sustained growth.
In its earnings update, Block said it was raising its full-year guidance to reflect the momentum across the business.
It also expects gross profit to grow at least 15% in 2027 while continuing to invest in long-term growth.
Third-quarter gross profit increased 22% year over year to $3.24 billion. Net income rose to $566 million from $462 million in the same period last year.
Adjusted operating income climbed 92% to a record $923 million, while the adjusted operating margin expanded by more than 1,000 basis points to 29%.
Cash App and Square deliver growth
Block’s two main business platforms recorded higher gross profit during the quarter.
Cash App gross profit increased 27% year over year to $2.07 billion, while Square, the merchant facing division’s gross profit rose 14%.
Square gross payment volume growth accelerated to 14%, its strongest rate since the first quarter of 2023.
Cash App reached 60 million monthly transacting active users, while consumer lending originations increased 40% to $19 billion.
Block generates revenue through transaction fees across its platforms, including Square, Cash App, and buy now, pay later service Afterpay.
Cash App also allows customers to buy and sell Bitcoin.
The company said it began piloting Buzz, a free, open-source collaboration platform announced in July.
Chief Executive Jack Dorsey said Block expects to generate its first machine intelligence revenue from the product in the fourth quarter.
Bitcoin business and analyst outlook
Block’s Bitcoin-related business recorded weaker gross profit despite an increase in the value of its Bitcoin holdings.
Bitcoin ecosystem gross profit fell 50% year over year to $52 million.
The company attributed the decline to a strategic reduction in fees charged on certain Bitcoin transactions through Cash App.
Cash App generated $4.07 billion in revenue during the quarter, including $1.77 billion from its Bitcoin ecosystem segment.
Block also reported that the value of its Bitcoin holdings increased by $229.7 million during the period.
Analysts maintained different assessments of the stock following the results.
Citizens retained its Market Perform rating and $76 price target, while Raymond James raised its price target to $100 from $97 and maintained an Outperform rating.
AI disclosure: AI tools assisted with research and drafting of this piece. An Invezz editor reviewed the facts, sources and wording before publication. Any opinions or analysis are Invezz’s, not those of an automated system.
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