Block Reports Q3 Gross Profit of $3.24 Billion, Adjusted EPS of $1.13

What happened

Block reported third-quarter 2026 revenue of $6.72 billion and gross profit of $3.24 billion, up 22% from a year earlier. Net income was $566 million and adjusted diluted earnings per share reached $1.13.

Confirmed

Global impact / market context

Higher gross profit, which is revenue minus the direct cost of delivering services, gives Block more cash to fund product launches and seller tools. Raised guidance signals management expects this growth to continue, which can support the stock and future spending.

Analyst inference

Cash App reached 60 million monthly transacting active accounts, meaning users who completed a money movement that month, while Square payment volume growth accelerated. This mix of consumer app growth and seller tools shows Block expanding on two fronts rather than relying on one engine.

Analyst inference

What to watch

1. Block issued a preliminary 2027 outlook that includes at least 15% gross profit growth, a forward target investors can compare against quarterly results. Confirmed
2. Watch whether Neighborhoods auto-enrollment, now covering more than 30,000 additional seller locations, turns into measurable payment volume growth for Square sellers. Proposed
3. If Cash App account growth and Square payment volume keep accelerating, Block may need added spending on products and support, which could pressure costs even as profit rises. Analyst inference

Evidence

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