Block Raises 2026 Profit Outlook Following Cash App Growth
Block increased its full-year gross profit forecast to $12.63 billion after strong third-quarter earnings driven by Cash App and Square.
Block raised its full-year gross profit outlook for 2026 to $12.63 billion, up from a previous forecast of $12.51 billion. The adjustment follows a strong third quarter ending September 30, during which the company reported adjusted operating income of $923 million.
Growth was primarily driven by a 27% surge in gross profit for Cash App and a 14% increase for the Square merchant business. Cash App reached 60 million monthly transacting actives in September, a milestone attributed to the Neighborhoods feature. While banking and lending products diversified revenue, they also led to a 65.6% increase in credit losses, which totaled $601.7 million for the quarter.
Looking ahead, the company forecasts 2027 gross profit of $14.52 billion. Block also expects to generate direct revenue from AI tools for the first time in the fourth quarter of 2026.
