Block (XYZ) Q3 2026 earnings summary

Executive summary

• Q3 gross profit rose 22% YoY to $3.235B; adjusted operating income grew 92% to $922.7M, a record 29% of gross profit.

• Net revenue increased 10% to $6.719B; excluding bitcoin ecosystem revenue, growth was 20%.

• Cash App and Square gross profit grew 27% and 14%, respectively, with growth led by lending, Cash App Card, Square processing, Square Loans and Square Software.

• Full-year 2026 outlook was raised across gross profit, adjusted operating income and adjusted diluted EPS.

• Preliminary 2027 outlook targets at least 15% gross profit growth and a 32% adjusted operating income margin, while continuing meaningful investment.

Financial highlights

• Q3 adjusted diluted EPS rose 109% YoY to a record $1.13; adjusted EBITDA increased 47% to $1.228B.

• Net income attributable to common stockholders was $565.6M versus $461.5M; Q3 diluted GAAP EPS was $0.92 versus $0.74 and included a $229.7M bitcoin remeasurement gain.

• Nine-month revenue increased 8% to $19.39B; excluding bitcoin ecosystem revenue, it grew 22%.

• Nine-month net income attributable to common stockholders fell to $345.4M from $1.19B; diluted EPS was $0.57 versus $1.91.

• Nine-month adjusted EBITDA was $3.41B versus $2.54B; operating cash flow was $3.00B.

Outlook and guidance

• FY2026 guidance: gross profit $12.626B, up 22%; adjusted operating income $3.519B at a 28% margin; adjusted diluted EPS $4.15, up 75%.

• Q4 2026 outlook: gross profit $3.315B, up 15%; adjusted operating income $1.005B at a 30% margin; adjusted diluted EPS $1.15, up 77%.

• Preliminary 2027 outlook: gross profit growth of at least 15% to $14.519B; adjusted operating income of $4.575B, up 30%, at a 32% margin.

• Rule of X outlook is 50 for 2026 and 47 for 2027; the long-term framework targets sustaining Rule of 40 annually.

• Expected 2027 Cash App actives growth is at least low single digits; Square GPV growth is expected to accelerate for a third consecutive year.