TLDR
- Block (XYZ) stock ended Tuesday at $76, down 1.4%, then rose 6% to 8% after hours.
- Adjusted operating profit nearly doubled to $923 million.
- Adjusted EPS of $1.13 beat the $1.03 estimate.
- Block raised its 2026 adjusted EPS outlook to $4.15 from $4.04.
- The company gave its first 2027 outlook, calling for gross profit growth of at least 15%.
Block (XYZ) stock ended Tuesday at $76, down 1.4%. The after-hours session told a different story.
The stock rose between 6% and 8%, depending on the report. Block had just beaten third-quarter estimates and lifted its yearly outlook.
Adjusted EPS came in at $1.13, ahead of the $1.03 analysts expected. Revenue was $6.72 billion, above the $6.58 billion estimate.
Profit was the main event. Adjusted operating profit hit $923 million, up from $486 million a year earlier.
The adjusted operating margin was 29%. Net income rose to $566 million from $462 million.
Revenue was up from $6.12 billion in the same quarter last year. Gross profit grew 22% to $3.24 billion.
CEO Jack Dorsey said Block beat its own guidance. He pointed to 92% growth in adjusted operating income and 109% growth in adjusted diluted EPS.
Where the Growth Came From
Cash App gross profit rose 27% to $2.07 billion. About 60 million people used it each month in September.
Block said its Neighborhoods feature helped draw users in. Consumer lending origination grew 40% to $19 billion.
Cash App Borrow and Afterpay Post-Purchase drove the lending gain. Both products helped lift the total.
Square gross profit grew 14% to $1.16 billion. Gross payment volume also grew 14%, its fastest pace since Q1 2023.
U.S. volume rose 10.4%. International markets grew 26%.
Bitcoin was the soft spot. Bitcoin ecosystem gross profit fell 50% to $52 million after Block cut fees on certain Cash App transactions.
Even so, bitcoin brought in $1.77 billion of Cash Appâs $4.07 billion in revenue.
The Outlook Moves Up
Block now sees 2026 adjusted EPS of $4.15, up from $4.04. It expects gross profit of $12.626 billion, up 22%.
Adjusted operating income is forecast at $3.519 billion, up 69%. That works out to a 28% margin.
The company said it raised guidance âto reflect the momentum we are seeing across Block.â For Q4, it expects gross profit of $3.315 billion and adjusted operating income of $1.005 billion.
Block also issued its first 2027 outlook. It expects gross profit growth of at least 15% and adjusted operating income of $4.575 billion, up 30%.
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