Key takeaways
- Block reported Q3 2026 gross profit of $3.24 billion on November 3, up 22%.
- Cash App gross profit rose 27% to $2.07 billion and adjusted operating income rose 92% to $923 million.
- Block raised its full-year 2026 outlook to $12.626 billion in gross profit and $3.519 billion in adjusted operating income.
In its Q3 2026 earnings on November 3, Block reported gross profit of $3.24 billion, up 22% from a year earlier, and it raised its full-year gross profit and profit outlook. The numbers come from the company's Q3 2026 shareholder letter, filed with the SEC. Block's stock trades under XYZ.
Cash App, the larger of Block's two businesses, grew faster than Square, and profit grew much faster than sales.
Gross profit up 22%, adjusted operating income nearly doubles
Net revenue was $6.72 billion, up from $6.11 billion in the third quarter of 2025, according to Block's quarterly report (10-Q). Block leads with gross profit, which strips out the pass-through costs of bitcoin sales and payment processing.
| Measure, Q3 2026 | Result | Change from Q3 2025 |
|---|---|---|
| Gross profit | $3.24 billion | +22% |
| Cash App gross profit | $2.07 billion | +27% |
| Square gross profit | $1.16 billion | +14% |
| Adjusted operating income | $923 million | +92% |
| Operating income (GAAP) | $428.5 million | from $409.4 million |
| Net income | $564 million | n/a |
Adjusted operating income was 29% of gross profit. Block's own forecast for the quarter had been gross profit of $3.13 billion.
What drove it
Cash App had 60 million monthly transacting actives in September 2026, up from 58 million in the third quarter of 2025, per the letter. Square's gross payment volume, the total value of payments it processed, was $76.4 billion, up 14%.
Block also credits its internal AI coding agent, Goose, for part of the cost discipline. The letter says Goose helped the company automate engineering tasks earlier than most others. The 10-Q shows a workforce reduction in February 2026 and related severance costs, but this quarter's filings give no headcount figure, so the size of the AI effect on costs can't be separated out here.
Guidance raised
Block gave these outlook figures in the letter:
- Fourth quarter 2026: gross profit of $3.315 billion, up 15%; adjusted operating income of $1.005 billion; adjusted diluted earnings per share of $1.15.
- Full year 2026, raised: gross profit of $12.626 billion, up 22%; adjusted operating income of $3.519 billion, up 69%.
The fourth-quarter growth rate of 15% is slower than the 22% Block just posted, which is the number to watch when it reports again.
What the filings don't say
The letter does not give a repurchase figure for the quarter alone. The nine-month cash flow statement shows $700.9 million in common stock buybacks through September 30. Block's results also come as AI-linked tech earnings pile up this week: see our reports on AMD and Super Micro.
This is a report of results, not investment advice.
Sources
- Block Q3 2026 shareholder letterBlock, Inc. (SEC filing)
- Block Form 10-Q for the quarter ended September 30, 2026Block, Inc. (SEC filing)