- Block stock surged in after-hours trading after the company beat analysts’ Q3 earnings estimates.
- Adjusted EPS reached $1.13, beating expectations of $1.03, while revenue totalled $6.72 billion.
- Cash App gross profit rose 27% to $2.07 billion, while Block disclosed a proposed $764 million DOJ resolution over anti-money laundering compliance failures.
Shares of Jack Dorsey’s Block Inc rose 8.1% in after hours trading after third quarter financials came in stronger than expected and it raised its full year outlook.
Block Beats Q3 Earnings Estimates As Revenue & Profits Grow
In Q3, the payments giant saw adjusted earnings per share of $1.13, comfortably ahead of Wall Street projections of $1.03. Revenues rose to $6.72 billion against estimates of $6.58 billion. Gross profits grew 22% year on year to $3.24 billion, whilst adjusted operating income climbed 92% to $923 million.
Source: block.com
Cash App Leads Growth As Square Delivers Steady Performance
Cash App drove growth by increasing gross profits 27% to $2.07 billion. The consumer platform recorded 60 million monthly transacting active users in September, supported by its Neighborhoods feature, whilst consumer lending originations expanded 40% to $19 billion. Square also saw steady growth with gross profits rising 14% to $1.16 billion.
Bitcoin Profit Declines 50% As Block Faces Proposed DOJ Settlement
However, this was offset by some legal issues. Bitcoin related gross profits fell 50% to $52 million, driven down by reduced fee margins on cryptocurrency transactions. Concurrently, Block disclosed in an SEC filing that it faces a proposed $764 million. This is due to the settlement with the US Department of Justice over the issues of anti-money laundering and customer identification.
This is under a 3 year deferred prosecution agreement, which comes after an investigation into the company after a short seller report in 2023. It comes after previous fines including a $40 million fine issued by the New York Department of Financial Services in 2025.
Block Raises 2026 Guidance, Projects Strong Growth In 2027
Block did however raise its guidance for 2026. It now expects full year adjusted EPS of $4.15, gross profit of $12.63 billion and adjusted operating income of $3.52 billion. For 2027, management projected a further 15% increase in gross profit alongside a 30% rise in adjusted operating income to $4.58 billion.
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