Breaking: Jack Dorsey’s Block Stock Rally 8% After Phenomenal Q3 Earnings Beat

Jack Dorsey’s Block Inc. (NYSE: XYZ) rose 8.1% in after-hours trading on Tuesday, November 3, as the payments company posted better-than-expected earnings for its third quarter and raised its annual financial outlook. The numbers were aided by higher profitability and more activity across Cash App and Square, as well as the company’s initial forecast for 2027.

Block’s Cash App & Square Deliver Strong Growth

Beats reported adjusted earnings per share (EPS) of $1.13, up from Wall Street’s $1.03 estimate. Meanwhile, revenue was $6.72 billion, compared to the expected $6.58 billion. Gross profit grew 22% year-over-year (YoY) to $3.24 billion and adjusted operating profit nearly doubled to $923 million, compared with $486 million the previous year. The company’s adjusted operating margin for the quarter was 29%.

Cash App’s gross profit grew by 27% annually to $2.07 billion. In September, it had 60 million customers transacting on a regular basis each month. Block noted that part of the spike was due to the Neighborhoods feature, which helped draw more users in during the quarter.

Lending origination for consumers also grew 40% YoY to $19 billion. Cash App Borrow and Afterpay Post-Purchase accounted for the growth.

Square’s gross profit grew by 14% to $1.16 billion. Growth in its gross payment volume (GPV) rose to 14% and is the highest since Q1 2023. GPV growth in the U.S. market was 10.4% compared with 26% for international markets.

“We exceeded our guidance with 22% gross profit growth, 92% adjusted operating income growth, and 109% adjusted diluted EPS growth,” said Block CEO Jack Dorsey.

Dorsey’s Firm Upgrades 2026 Forecast, Issues 2027 Outlook

After the Q1 result, Block raised its full-year 2026 forecast for adjusted earnings per share (EPS) to $4.15 from the previous estimate of $4.04, according to a team of analysts.

The firm now expects $12.626 billion in gross profit per year, up 22% YoY. Adjusted operating income is expected to be $3.519 billion, growing 69% annually and at a margin of 28%.

In Q4, Block is expecting gross profit of $3.315 billion, a 15% increase for the year. Moreover, it has forecasted adjusted operating income of $1.005 billion and a 30% margin.

The initial 2027 forecast is for gross profit growth of 15%, at a minimum. The adjusted operating income is forecast to increase 30% YoY to $4.575 billion.