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Block Q3 Earnings Coming Up: What to Expect From Its Release
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Key Takeaways
Block's Q3 revenues are expected to rise 8.3% to $6.62B, while EPS is projected to jump 88.9% to $1.02.
Square's strong payment volumes and Cash App's growing engagement are likely to support Block's Q3 results.
Block forecasts Q3 gross profit of $3.13B and adjusted operating income of $875M, with a 28% margin.
Block (XYZ - Free Report) is slated to release third-quarter 2026 results on Nov. 3, after market close. The company’s quarterly results are likely to reflect year-over-year growth in both revenues and earnings.
In the last reported quarter, Block reported adjusted EPS of $1.02, up 64.5% year over year and above the Zacks Consensus Estimate of 86 cents by 18.6%. Revenues rose 9.3% to $6.62 billion, beating the consensus mark of $6.54 billion by 1.3%. Cash App lending, commerce activity and stronger Square payment volume supported the quarter’s results. Total Square GPV increased 13.4% to $72.85 billion.
Over the trailing four quarters, the company’s EPS surpassed the Zacks Consensus Estimate on two occasions, matched in one and missed in one, the average surprise being 7.33%. This is depicted in the graph below:
Let’s see how things have shaped up for XYZ before the announcement.
Key Factors to Watch Ahead of Block’s Q3 Results
Block has been witnessing improving momentum across Square and Cash App. Investors will focus on payment activity, customer engagement and whether stronger growth translated into higher profitability.
Square is expected to have benefited from healthy payment volumes, especially across food and beverage businesses and larger sellers. Its gross payment volume rose 13% in the second quarter, and management said July trends remained strong, supporting expectations for the third quarter. Expanding field sales, referral partners and software adoption likely supported third-quarter gross profit.
Cash App’s third-quarter results may reflect healthy card spending, deeper product usage and contributions from Afterpay. New offerings, including Cash App Tags and Afterpay Pre-Purchase, may have helped engagement. However, Cash App Borrow faced tougher year-earlier comparisons, suggesting slower lending growth despite relatively healthy credit trends.
Bitcoin-related items could affect reported results. Bitcoin may complicate reported revenue comparisons. Block preliminarily estimated third-quarter Cash App Bitcoin Ecosystem revenues of $1.8 billion and a $229.7 million gain from remeasuring its bitcoin investment. That gain affects GAAP earnings, not operating income.
For the third quarter, management forecasted gross profit of $3.13 billion, up 18% year over year, adjusted operating income of $875 million at a 28% margin, and adjusted diluted earnings of $1.02 per share, up 89%. It also projected interest expense of $50-$55 million. Higher marketing and AI-related spending could pressure costs, but operating efficiency may help protect profitability.
Q3 Projections for XYZ
The Zacks Consensus Estimate for third-quarter revenues is pegged at $6.62 billion, indicating an increase of 8.3% from the year-ago quarter’s reported figure. The consensus mark for Cash App revenues is pegged at $4.025 billion, suggesting growth from nearly $3.8 billion reported in the year-ago period. The same for Square revenue currently stands at $2.56 billion, up from $2.24 billion reported a year ago.
XYZ’s activities during the to-be-reported period were adequate to garner analysts’ confidence. The Zacks Consensus Estimate for quarterly EPS has been revised upward by 3 cents to $1.02 over the past three months. It also suggests an 88.9% increase from the prior-year quarter’s reported figure.
Here’s What Our Quantitative Model Predicts for XYZ
Our proven model predicts an earnings beat for XYZ this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Block currently has an Earnings ESP of +1.67% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some companies — BILL Holdings, Inc. (BILL - Free Report) and StoneCo Ltd. (STNE - Free Report) — worth considering, as our model shows that these also have the right combination of elements to beat on earnings in their upcoming releases:
BILL Holdings currently has an Earnings ESP of +0.15% and a Zacks Rank #3. BILL is set to report fiscal first-quarter 2027 results on Nov. 3.
StoneCo currently has an Earnings ESP of +2.74% and a Zacks Rank #3. STNE is slated to report third-quarter 2026 results on Nov. 12.
View the Zacks #1 Rank List
Image: Bigstock
Block Q3 Earnings Coming Up: What to Expect From Its Release
Key Takeaways
Block (XYZ - Free Report) is slated to release third-quarter 2026 results on Nov. 3, after market close. The company’s quarterly results are likely to reflect year-over-year growth in both revenues and earnings.
In the last reported quarter, Block reported adjusted EPS of $1.02, up 64.5% year over year and above the Zacks Consensus Estimate of 86 cents by 18.6%. Revenues rose 9.3% to $6.62 billion, beating the consensus mark of $6.54 billion by 1.3%. Cash App lending, commerce activity and stronger Square payment volume supported the quarter’s results. Total Square GPV increased 13.4% to $72.85 billion.
Over the trailing four quarters, the company’s EPS surpassed the Zacks Consensus Estimate on two occasions, matched in one and missed in one, the average surprise being 7.33%. This is depicted in the graph below:
Block, Inc. Price and EPS Surprise
Block, Inc. price-eps-surprise | Block, Inc. Quote
Let’s see how things have shaped up for XYZ before the announcement.
Key Factors to Watch Ahead of Block’s Q3 Results
Block has been witnessing improving momentum across Square and Cash App. Investors will focus on payment activity, customer engagement and whether stronger growth translated into higher profitability.
Square is expected to have benefited from healthy payment volumes, especially across food and beverage businesses and larger sellers. Its gross payment volume rose 13% in the second quarter, and management said July trends remained strong, supporting expectations for the third quarter. Expanding field sales, referral partners and software adoption likely supported third-quarter gross profit.
Cash App’s third-quarter results may reflect healthy card spending, deeper product usage and contributions from Afterpay. New offerings, including Cash App Tags and Afterpay Pre-Purchase, may have helped engagement. However, Cash App Borrow faced tougher year-earlier comparisons, suggesting slower lending growth despite relatively healthy credit trends.
Bitcoin-related items could affect reported results. Bitcoin may complicate reported revenue comparisons. Block preliminarily estimated third-quarter Cash App Bitcoin Ecosystem revenues of $1.8 billion and a $229.7 million gain from remeasuring its bitcoin investment. That gain affects GAAP earnings, not operating income.
For the third quarter, management forecasted gross profit of $3.13 billion, up 18% year over year, adjusted operating income of $875 million at a 28% margin, and adjusted diluted earnings of $1.02 per share, up 89%. It also projected interest expense of $50-$55 million. Higher marketing and AI-related spending could pressure costs, but operating efficiency may help protect profitability.
Q3 Projections for XYZ
The Zacks Consensus Estimate for third-quarter revenues is pegged at $6.62 billion, indicating an increase of 8.3% from the year-ago quarter’s reported figure. The consensus mark for Cash App revenues is pegged at $4.025 billion, suggesting growth from nearly $3.8 billion reported in the year-ago period. The same for Square revenue currently stands at $2.56 billion, up from $2.24 billion reported a year ago.
XYZ’s activities during the to-be-reported period were adequate to garner analysts’ confidence. The Zacks Consensus Estimate for quarterly EPS has been revised upward by 3 cents to $1.02 over the past three months. It also suggests an 88.9% increase from the prior-year quarter’s reported figure.
Here’s What Our Quantitative Model Predicts for XYZ
Our proven model predicts an earnings beat for XYZ this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Block currently has an Earnings ESP of +1.67% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some companies — BILL Holdings, Inc. (BILL - Free Report) and StoneCo Ltd. (STNE - Free Report) — worth considering, as our model shows that these also have the right combination of elements to beat on earnings in their upcoming releases:
BILL Holdings currently has an Earnings ESP of +0.15% and a Zacks Rank #3. BILL is set to report fiscal first-quarter 2027 results on Nov. 3.
StoneCo currently has an Earnings ESP of +2.74% and a Zacks Rank #3. STNE is slated to report third-quarter 2026 results on Nov. 12.