Key financial results
- Gross profit: Gross profit grew 22% year-over-year to $3.24 billion in the third quarter.
Gross profit grew 22% year-over-year to $3.24 billion.
- Operating income: Adjusted operating income grew 92% year-over-year to $923 million, representing a record 29% margin.
Adjusted operating income grew 92% year-over-year to $923 million or a record 29% margin.
- EPS: Adjusted diluted EPS more than doubled, growing 109% year-over-year to $1.13, marking a quarterly record.
Adjusted [indiscernible] more than doubled, growing 109% year-over-year to $1.13, also a quarterly record for us.
Business segment results
- Square GPV: Square GPV growth accelerated to 14% year-over-year in the third quarter, which was the strongest growth rate since the first quarter of 2023.
Square GPV growth accelerated to 14% year-over-year in the third quarter, our strongest growth rate since the first quarter of 2023.
- Square gross profit: Square gross profit grew 14% year-over-year, driven by volume growth, increased software adoption, and Square loans growth.
Square gross profit grew 14% year-over-year, in line with GPV growth, driven by volume growth, increased software adoption and square loans growth.
- Cash App gross profit: Cash App gross profit grew 27% year-over-year in the third quarter.
Cash App gross profit grew 27% year-over-year in the third quarter.
- Cash App actives: Cash App monthly transacting actives grew 4% year-over-year to 60 million in September, with Neighborhoods acting as a key contributor.
Monthly transacting actives grew 4% year-over-year to $60 million in September with Neighborhoods a key contributor.
- Commerce enablement: Cash App commerce enablement gross profit grew 27% year-over-year, driven by higher Buy Now Pay Later adoption on Cash App Card.
Cash App commerce enablement gross profit grew 27% year-over-year, driven by higher Buy Now Pay Later adoption on Cash App Card.
- Financial solutions: Financial Solutions gross profit grew 36% year-over-year on borrower origination growth and strong returns.
Financial Solutions gross profit grew 36% year-over-year on borrower origination growth and strong returns.
Capital allocation
- Reinvestment: Management plans to reinvest profit upside into long-term strategic growth initiatives like Neighborhoods and Builder Lab.
Given the strong incremental margins and high return investment opportunities we see, we plan to reinvest profit upside and long-term strategic growth initiatives like Neighborhoods and Builder Lab
Industry trends and dynamics
- AI interface: Management noted that voice is viewed as the most natural interface to interact with intelligence.
We believe voice is the most natural interface to interact with intelligence.
Competitive landscape
- Differentiation: Management stated that Block differentiates itself by offering the entire bank rather than just a wallet.
I think the biggest differentiator is we're not just the wallet, we're the entire bank.
Macroeconomic environment
- The call did not discuss broader macroeconomic environment details.
Growth opportunities and strategies
- AI tools: Block is building Builder Lab and Buzz to externalize AI capabilities and interfaces.
- Neighborhoods: Neighborhoods annualized GPV of sellers increased nearly 5x from June to September.
Annualized GPV of sellers on Neighborhoods increased nearly 5x from June to September
Financial guidance and outlook
- Full year 2026 gross profit: For the full year 2026, Block expects gross profit of $12.626 billion, up 22% year-over-year.
For the full year, we now expect gross profit of $12.626 billion, up 22% year-over-year.
- Full year 2026 operating income: For the full year 2026, Block expects adjusted operating income of $3.519 billion, or a 28% margin.
Adjusted operating income of $3.519 billion or a 28% margin.
- Full year 2026 EPS: For the full year 2026, Block expects adjusted diluted EPS of $4.15, up 75% year-over-year.
We also expect adjusted diluted EPS of $4.15, up 75% year-over-year.
- Fourth quarter 2026 guidance: For the fourth quarter of 2026, Block expects year-over-year gross profit growth of over 15%, adjusted operating income margin of 30%, and year-over-year adjusted diluted EPS growth of 77%.
For the fourth quarter, we expect year-over-year gross profit growth of over 15%, adjusted operating income margin of 30% and year-over-year adjusted diluted EPS growth of 77%.
- 2027 outlook: For 2027, Block expects at least 15% year-over-year gross profit growth and adjusted operating income margins of 32%, or 30% year-over-year adjusted operating income growth.
Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Gross profit | $3.24 billion | grew 22% year-over-year |
| Adjusted operating income | $923 million | grew 92% year-over-year |
| Adjusted diluted EPS | $1.13 | grew 109% year-over-year |
| Square GPV growth | 14% | accelerated year-over-year in the third quarter |
| Cash App gross profit | 27% | grew year-over-year |
| Cash App monthly transacting actives | 60 million | grew 4% year-over-year in September |
How management sounded
Positive (+45 on our -100 to +100 scale). Management expressed high confidence after outperforming guided metrics and raising expectations for the remainder of the year and 2027. Management sounded more upbeat than on 62% of the 302 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Read the analyst Q&A summary and guidance and outlook for this call.
What to watch before the next call
- Progress on scaling Neighborhoods and its broader impact on Cash App actives.
- Monetization and adoption of Builder Lab and AI tools in the fourth quarter.
- Execution of Square product velocity and upmarket distribution channels.
Earlier calls
- Q2 2026 (Aug 5, 2026), tone Positive: Block reported 25% gross profit growth and record profitability in the second quarter, leading management to raise full-year guidance.
