Block raises gross profit outlook to $12.63 billion after third-quarter growth of 22%

Key Facts

Block raised its 2026 gross profit outlook to $12.63 billion, compared with a previous forecast of $12.51 billion, after reporting year-over-year growth of 22% in third-quarter gross profit to $3.24 billion. The company announced the results on November 3, 2026, and said growth spanned its Cash App and Square platforms. In extended trading after the announcement, the company’s shares rose 7%, according to Reuters. Block also forecast gross profit of $3.32 billion for the fourth quarter. The higher annual guidance puts third-quarter performance and app growth at the forefront of the announcement, as losses tied to transactions and lending continue to rise.

Cash App gross profit was up 27% year over year in the third quarter, while Square gross profit rose 14% to $1.16 billion, according to the shareholder letter Block filed with the U.S. Securities and Exchange Commission. The number of Cash App active transacting accounts reached 60 million in September, compared with 59 million in September a year earlier, a 4% annual increase. The company said Neighborhoods contributed to growth in active users. It also linked growth in gross profit from digital commerce enablement tools to the Cash App Card and buy now, pay later products, led by Afterpay Post-Purchase. The figures show profit growth across both platforms alongside a relatively modest increase in active accounts during the period.

Chief Financial Officer Amrita Ahuja told Reuters that spending on the Cash App Card remained strong and repayment rates on Borrow also remained strong. She added that the two indicators signal consumers’ ability to manage their finances. They provide context for the app’s profit growth, which the company highlighted in its quarterly results, and the card and buy now, pay later products are also among the growth drivers Block cited. Meanwhile, the company’s losses from transactions, loans and consumer receivables rose 65.6% year over year to $601.7 million in the third quarter. Reuters attributed the increase to Block’s expansion in lending, leaving profit growth accompanied by higher losses tied to those activities.

The regulatory settlement with the U.S. Department of Justice remains separate from the quarterly operating results. Reuters reported that Block reached a preliminary agreement in October to defer a charge related to failing to maintain an effective anti-money laundering program for three years. The expected net amount to be paid could reach about $764 million after accounting for credits from previous regulatory settlements, according to Reuters. The agreement still requires a final deal and court approval. The potential financial obligation places the company’s regulatory matter alongside the growth and profitability indicators it reported, while the final settlement terms remain unresolved.

Looking ahead, Block expects gross profit of $14.52 billion in 2027, equivalent to annual growth of 15%, according to Reuters. Owen Jennings, the company’s business lead, said the fourth quarter of 2026 would be the first period in which Block expects to generate direct revenue from artificial intelligence tools. That comes alongside the company’s forecast of $3.32 billion in fourth-quarter gross profit and its increase in the 2026 annual estimate to $12.63 billion. Revenue from artificial intelligence tools is a development the company expects in the coming quarter, while the 2027 figures remain forward guidance issued by Block.