Block, the payments company founded by Jack Dorsey, has told investors that both of its main businesses are growing faster. The owner of Cash App and Square beat third-quarter estimates on Tuesday, raised its profit forecast for 2026 and saw its shares climb after the market closed.
The results
Gross profit rose 22% from a year earlier to $3.24 billion, beating the analyst consensus of $3.1 billion. Block also reported net income of $566 million, up from $462 million a year earlier.
The company lifted its annual target. It now expects full-year 2026 gross profit of about $12.626 billion, which would be 22% growth, up from roughly $12.5 billion. Block also raised its outlook for adjusted operating income and adjusted earnings per share.
Cash App powers growth
The consumer app remains the faster-growing engine. Cash App booked $2.07 billion in gross profit, up 27% year on year. Two areas stood out: lending and buy now, pay later. Management credited new features, including Neighborhoods and wider use of buy now, pay later on the Cash App Card. Consumer lending originations totalled $19 billion, up 40%.
User numbers are growing slowly but steadily. Cash App had 60 million monthly transacting actives in September, up 4% year over year, and the company expects low-single-digit growth in actives to continue. Block is therefore relying on getting more value from each customer rather than adding users rapidly.
That strategy fits a wider trend among fintech firms that want to act more like banks. Cash App is introducing additional bank-like features, including borrowing and saving tools that compete with traditional lenders.
Square speeds up
The merchant side improved too. Square’s gross payment volume growth accelerated to 14% year over year, the fastest pace since early 2023. Square gross profit also grew 14%, driven by volume growth, increased software adoption and growth in Square Loans.
The company said gross payment volume growth has more than doubled over the past two years as it has expanded distribution and accelerated product development. Block is also pushing into restaurants and testing AI features for sellers. Square is expanding among restaurant merchants, and Block has begun selling select internally developed AI tools.
The Bitcoin drag
One segment moved the other way. Bitcoin ecosystem gross profit fell 50% year over year to $52 million, mainly because of a decision to lower fees on Cash App. The company chose to cut prices on bitcoin transactions to attract users, giving up near-term profit. With bitcoin trading activity uneven, it is a small part of overall earnings.
The outlook
Management gave a measured view of the next year. Block forecast gross profit of $3.32 billion for the fourth quarter and $14.52 billion for 2027, a 15% increase. That implies a slowdown from this year’s 22% pace, though still solid growth for a business of Block’s size. In the fourth quarter, the company expects gross profit to grow roughly in line with payment volume.
Market reaction
The stock had a quiet session before the report. Block shares closed down 1.4% at $76 on Tuesday, then jumped 6.2% in after-hours trading. Other outlets reported gains above 7%.
Why it matters
Block’s results speak to the health of consumers and small businesses. Rising loan volumes and card usage suggest customers are still borrowing and spending, though lending growth raises its own questions. Investors will watch credit losses closely, particularly if the economy slows or interest rates rise further.
The company also shows how the banking industry is being reshaped. Tools for borrowing, saving, paying and investing that once required a bank account are now built into a phone app. Block’s challenge is to keep growing that ecosystem while managing risk. This quarter, it showed it can do both.
