Block’s Q3 beat sends shares up 8.1%—because apparently the house has square rooms 🧾

Block Inc. (NYSE: XYZ) rose 8.1% in after-hours trading on Tuesday, November 3 after reporting third-quarter results that exceeded Wall Street expectations and raised its annual financial outlook. Higher profitability and increased activity across Cash App and Square supported the results, alongside the company’s initial forecast for 2027.

Adjusted earnings per share reached $1.13, ahead of the $1.03 estimate, while revenue totaled $6.72 billion compared with expectations of $6.58 billion. Gross profit increased 22% year-over-year to $3.24 billion, and adjusted operating profit nearly doubled to $923 million from $486 million in the prior year. Block’s adjusted operating margin was 29%.

Cash App gross profit grew 27% annually to $2.07 billion. The company reported 60 million customers transacting regularly each month in September, with part of the increase attributed to the Neighborhoods feature drawing more users during the quarter. Consumer lending origination rose 40% year-over-year to $19 billion, driven by Cash App Borrow and Afterpay Post-Purchase.

Square gross profit increased 14% to $1.16 billion as gross payment volume grew 14%, its highest rate since Q1 2023. U.S. gross payment volume rose 10.4%, compared with 26% growth in international markets. “We exceeded our guidance with 22% gross profit growth, 92% adjusted operating income growth, and 109% adjusted diluted EPS growth,” Block’s CEO said.