Block Stock Jumps 7% After Hours: Cash App Powers a Third Straight Guidance Raise

Block stock jumped about 7% in extended trading on Tuesday, November 3, 2026, after the Jack Dorsey-led fintech beat third-quarter expectations, said Cash App gross profit surged 27%, and raised its full-year outlook for the third straight time. The company also disclosed a preliminary settlement with the U.S. Department of Justice that eases a long-running regulatory overhang.

What happened

Block, the parent of Square for merchants and Cash App for consumers, reported third-quarter results for the period ended September 30 after the closing bell. Adjusted earnings came in at $1.13 per share, ahead of the roughly $1.03 analysts expected and more than double the 54 cents reported a year earlier, according to Reuters and SiliconANGLE. Revenue rose nearly 10% year over year to $6.72 billion, ahead of expectations near $6.58 billion, while net income rose to $566 million from $462 million a year earlier, The Block reported.

The shares had closed down 1.4% at $76, then reversed after hours. Reports put the gain at about 6% to 8%, with Reuters and SiliconANGLE both reporting more than 7% in late trading.

Why it is blowing up

The headline beat was powered by the consumer side of the business. Gross profit rose 22% to $3.24 billion, ahead of the company's own guidance. Cash App gross profit jumped 27% to $2.07 billion, while Square gross profit rose 14% to $1.16 billion. Adjusted operating income almost doubled to a record $923 million, helped by lower product development spending after workforce cuts in February.

Chief Financial Officer Amrita Ahuja told Reuters the company had seen continued strong spending on Cash App Card and strong repayment rates on Borrow, signals that consumers were managing their finances well. Cash App reached 60 million monthly transacting actives in September, and consumer lending originations rose 40% to $19 billion, led by Cash App Borrow and Afterpay, SiliconANGLE reported.

Management then raised the outlook again. Block now expects full-year 2026 gross profit of $12.63 billion, representing 22% growth, up from the $12.51 billion forecast in August, and full-year adjusted earnings of $4.15 per share, up from $4.02. Fourth-quarter gross profit is forecast at $3.32 billion. For 2027, Block forecast gross profit of $14.52 billion, implying growth of at least 15%, and said it expects the fourth quarter to be the first in which it generates revenue directly from AI tools.

Key facts

• Stock move: Up about 7% in extended trading Tuesday, after closing down 1.4% at $76.
• Earnings: Adjusted EPS of $1.13 versus about $1.03 expected; net income of $566 million versus $462 million a year earlier.
• Revenue and gross profit: Revenue of $6.72 billion, up nearly 10%; gross profit of $3.24 billion, up 22%.
• Segments: Cash App gross profit up 27% to $2.07 billion; Square gross profit up 14% to $1.16 billion; bitcoin gross profit halved to $52 million after fee cuts on some Cash App bitcoin transactions.
• Guidance: Full-year gross profit raised to $12.63 billion; 2027 gross profit forecast at $14.52 billion.
• The cost side: Losses on transaction, loan and consumer receivables rose about 66% to $601.7 million as lending grew, Reuters reported, and unadjusted operating income rose a more modest 5% to $428 million after $435 million in contingencies, restructuring and other charges.

The DOJ settlement

Separately, Block said it reached an agreement in principle with the Department of Justice in October to defer for three years a charge that it failed to maintain an effective anti-money laundering program in violation of the Bank Secrecy Act. The deferred prosecution agreement could result in an expected net payment of roughly $764 million after credits for prior regulatory resolutions. Reuters noted the resolution remains subject to a final agreement and court approval, and Block warned the ultimate terms could result in losses exceeding the amount already accrued. Even so, the disclosure removes some uncertainty around the probe, as Reuters via SRN News reported.

What is next

Investors will watch whether Cash App lending can keep growing without credit losses rising faster, and whether the DOJ agreement is finalized on the disclosed terms. Block will also introduce Builderlab, its ecosystem for selling its Buzz AI workspace, on November 10, and expects its first AI-tool revenue in the fourth quarter. This post reports what happened and why markets reacted; it is not a recommendation to buy, sell or hold any security.

FAQ

Why did Block stock rise after hours?

Block beat third-quarter earnings and revenue expectations, Cash App gross profit rose 27%, and management raised full-year guidance for the third straight time, lifting the shares about 7% in extended trading.

What were Block's Q3 2026 results?

Adjusted earnings were $1.13 per share on revenue of $6.72 billion, with gross profit up 22% to $3.24 billion and net income of $566 million for the quarter ended September 30.

What is Block's new full-year guidance?

Block raised its 2026 gross profit forecast to $12.63 billion, up from $12.51 billion, and forecast 2027 gross profit of $14.52 billion, implying growth of at least 15%.

What is Block's DOJ settlement about?

Block reached a preliminary deferred prosecution agreement over its anti-money laundering program, with an expected net payment of roughly $764 million after credits; it still needs a final agreement and court approval.