Block Raises Full-Year Profit Outlook on Cash App Strength Amid Bitcoin Profit Dip

XYZ raised its full-year outlook after the close on Tuesday, Nov. 3, lifting 2026 gross profit guidance to $12.63 billion from $12.51 billion on Cash App strength. Shares rose 7% in extended trading, per Reuters, and more than 6% in premarket trading on Wednesday, per Investing.com.

Third-quarter adjusted EPS was $1.13 against a consensus of $1.02, according to Zacks, with revenue of $6.72 billion beating expectations by 1.50%. Investing.com cited a $1.03 consensus. The company's shareholder letter put GAAP diluted EPS at $0.92. Gross profit rose 22% to $3.24 billion, with Cash App up 27% to $2.07 billion and Square up 14% to $1.16 billion, and adjusted operating income was $923 million.

Bitcoin was the soft spot. Bitcoin ecosystem gross profit fell 50% to $52 million, which the shareholder letter attributed primarily to a strategic decision to reduce the fee charged on certain bitcoin transactions on Cash App. That is gross profit, not net profit, and bitcoin ecosystem revenue also fell, to $1,804 million from $2,021 million.

Block also disclosed a preliminary deal with the Justice Department. Per Reuters, it reached an agreement in principle in October to defer for three years a charge of failing to maintain an effective anti-money-laundering program under the Bank Secrecy Act, with an expected net payment of about $764 million after credits for prior regulatory resolutions. The deal is subject to a final agreement and court approval, and final terms could produce losses above the amount accrued. Also worth watching: credit losses rose 65.6% to $601.7 million, and the 2026 adjusted EPS guide of $4.15 compares with a $4.04 consensus.