Shares of Block Inc. (NYSE: XYZ) advanced approximately 6% in after-hours trading following the payments and financial technology company’s release of stronger-than-expected third-quarter results and an upward revision to its full-year profit guidance.
The move reflected investor confidence in the firm’s ability to sustain growth across its core platforms while navigating broader economic uncertainties.
Block, the parent company of Square and Cash App led by co-founder Jack Dorsey, reported third-quarter performance that exceeded prior internal targets. Gross profit rose 22% year over year to roughly $3.24 billion.
Within that total, Cash App, the consumer-facing platform, delivered particularly robust results with gross profit climbing 27% to about $2.07 billion.
Square, the merchant services business, posted a 14% increase in gross profit.
The company also noted that Cash App reached 60 million monthly transacting active users in September, with features such as its Neighborhoods loyalty network contributing to engagement.
Adjusted operating income nearly doubled from the year-earlier period to a record $923 million, producing a 29% margin on gross profit.
Adjusted diluted earnings per share more than doubled to $1.13.
Total revenue reached approximately $6.72 billion.
Management highlighted disciplined cost management, including benefits from earlier workforce reductions, alongside continued product investment as factors supporting the improved profitability.
On the back of these results, Block lifted its full-year 2026 gross profit forecast to $12.63 billion.
That figure implies 22% growth compared with the prior year and sits above the company’s earlier projection of $12.51 billion.
For the fourth quarter specifically, the company guided for gross profit of about $3.32 billion, corresponding to roughly 15% year-over-year growth.
It also provided an initial outlook for 2027, projecting gross profit of $14.52 billion, or at least 15% growth, as investments in artificial intelligence are expected to support ongoing expansion.
Executives pointed to steady consumer spending as a key driver that helped offset macroeconomic headwinds.
They further indicated that the fourth quarter should mark the first period in which Block generates direct revenue from AI tools, including capabilities being externalized through initiatives such as its Builder Lab and Buzz collaboration platform.
Square’s gross payment volume growth accelerated, while Cash App continued to benefit from lending products, the Cash App Card, and related financial services.
The after-hours gain underscored market approval of both the quarterly beat and the raised full-year targets, which also included higher adjusted operating income and earnings-per-share expectations.
Block has now raised its annual outlook multiple times this year, signaling consistent execution relative to earlier guidance. While the broader economic environment remains mixed, the results illustrate how Block’s overall focus on consumer and merchant ecosystems, combined with efficiency gains and emerging AI efforts, is translating into measurable financial progress.
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