Block Raises 2026 Gross Profit Outlook

The payments company lifted its full-year forecast as Cash App gross profit grew 27 per cent in the third quarter.

Updated on Nov. 3, 2026 in Public Companies

Isometric editorial illustration of a stack of plain matte cards beside a blank card reader in oxblood, teal, and mustard, suggesting payments growth. — Block raised its 2026 gross profit forecast to $12.63 billion as Cash App gross profit climbed 27 per cent, while credit losses rose to $601.7 million. AI Illustration. Upload story photo >

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Block posted higher third-quarter earnings and raised its 2026 gross profit forecast to $12.63 billion, up from $12.51 billion. Cash App gross profit rose 27 per cent year over year, while Square merchant gross profit grew 14 per cent.

Why it matters

The raised outlook signals that Block's diversification into banking and lending products is driving growth beyond transaction fees. Rising credit losses, however, show that expansion into lending is also adding risk to the business.

Block projects 2026 gross profit of $12.63 billion, a 22 per cent increase, and forecasts fourth-quarter gross profit of $3.32 billion. Third-quarter adjusted operating income reached $923 million, or $1.13 per share, versus $480 million, or 54 cents per share, a year earlier.

The players

Block

Block is the financial technology company behind the Cash App payments service and the Square merchant platform.

The details

Block's Cash App reached 60 million monthly transacting actives in September, and its banking and lending products helped diversify revenue. Losses on transaction, loan and consumer receivables climbed to $601.7 million in the third quarter, reflecting the higher risk that comes with lending.

Third quarter 2025 served as the baseline for year-over-year comparisons.
The third quarter of 2026 ended September 30, 2026.
Block reached 60 million Cash App monthly transacting actives in September 2026.
Block expects its fourth quarter of 2026 to mark its first direct revenue from AI tools.
Block forecasts 2027 gross profit of $14.52 billion.

Market Landscape

Block's growth in Cash App's banking and lending products reflects a broader push by payments firms to build revenue beyond transaction fees. That shift also brings higher credit exposure, as the rise in Block's losses on loans and receivables shows.

For Cash App users, the growth in banking and lending products means more financial services available within the same app. Rising credit losses at the company suggest that lending products may come with tighter approval standards over time.

The takeaway

Block's raised outlook shows that diversifying beyond transaction fees can accelerate growth, but expanding into lending brings credit risk that investors and users should watch closely. The company's bet on AI tools in the fourth quarter will be an early test of whether that diversification can continue.

What happens next

Block expects its fourth quarter of 2026 to mark its first direct revenue from AI tools, and it forecasts 2027 gross profit of $14.52 billion, implying 15 per cent growth.