Block, Inc. (XYZ Quick QuoteXYZ - Free Report) reported third-quarter 2026 adjusted earnings per share (EPS) of $1.13, which surged 109.3% year over year and topped the Zacks Consensus Estimate by 10.8%.

Revenues increased 9.9% year over year to $6.72 billion, beating the consensus mark by 1.5%. Strong Cash App lending activity, higher commerce monetization and accelerating Square payment volumes supported the results. Square’s gross payment volume (GPV) grew 14% year over year to $76.4 billion.

In response to the strong performance, XYZ stock was trading almost 10% higher in today’s pre-market trading session.

XYZ's Revenue Mix Benefits From Financial Solutions Growth

Commerce Enablement revenues increased 15.9% year over year to $3.48 billion, reflecting growth in payments, software and commerce-related products. Financial Solutions revenues rose 31.5% to $1.44 billion, driven by expanding consumer lending activity.

Bitcoin Ecosystem revenues declined 10.7% to $1.80 billion. Despite this weakness, total gross profit climbed 21.6% to $3.24 billion. Commerce Enablement gross profit rose 19% to $1.85 billion, while Financial Solutions gross profit increased 32% to $1.33 billion. Bitcoin Ecosystem gross profit declined 50% to $52 million, primarily reflecting lower fees on certain Cash App bitcoin transactions.

Block's Cash App Lending and Monetization Remain Strong

Cash App gross profit advanced 27% year over year to $2.07 billion. Commerce Enablement gross profit grew 27% to $990 million, while Financial Solutions gross profit increased 36% to $1.02 billion.

Consumer Lending origination volume jumped 40% to $19 billion, driven by Cash App Borrow and Afterpay Post-Purchase. Monthly transacting actives reached 60 million in September, increasing 4% year over year. Primary Banking Actives grew 13% to 9.4 million.

Commerce Enablement volume rose 14% to $56.9 billion, while the monetization rate improved to 1.74% from 1.56% a year earlier. Inflows per transacting active increased 6% to $1,446. The Neighborhoods initiative supported customer acquisition by connecting Square sellers with Cash App consumers.

XYZ's Square Payment Volumes Accelerate Across Markets

Square's gross profit rose 14% year over year to $1.16 billion, supported by stronger transaction volumes, increased software adoption and growth in Square Loans. Commerce Enablement gross profit advanced 11% to $846 million, while Financial Solutions gross profit grew 21% to $310 million.

U.S. GPV increased 10.4%, marking the strongest domestic growth since the first quarter of 2023. International GPV advanced 26% on both reported and constant-currency bases.

Block continued expanding its distribution network, with more than 400 independent sales organization partners onboarded. The company also accelerated product development, releasing more than 180 Square features through September, exceeding its combined releases during 2024 and 2025.

Block's Adjusted Profitability Hits Record Levels

GAAP operating income increased 4.7% year over year to $428 million. Adjusted operating income surged 92% to a record $923 million, with the adjusted operating margin expanding to 29% of gross profit from 18%.

Adjusted EBITDA rose 47% to $1.23 billion. Net income attributable to common stockholders reached $566 million compared with $462 million a year earlier.

The company maintained profitability while increasing investments in distribution, Neighborhoods, and artificial intelligence initiatives.

XYZ's Expenses Reflect Lending Growth and Legal Costs

Operating expenses totaled $2.81 billion, increasing 24.6% year over year. General and administrative expenses rose 55.8% to $847 million, primarily reflecting increased accrued legal contingencies.

Transaction, loan and consumer receivable losses increased 65.6% to $602 million, driven by higher lending volumes and product mix changes. Sales and marketing expenses jumped 14.8% to $688 million, reflecting additional go-to-market investments.

However, product development expenses declined 10.6% to $636 million, benefiting from lower personnel-related costs following organizational changes.

Block Raises Its 2026 Outlook and Details 2027 Targets

For the fourth quarter of 2026, Block expects gross profit of $3.315 billion, suggesting 15% year-over-year growth. Adjusted operating income is projected at $1.005 billion, with a 30% margin. Adjusted EPS is forecast at $1.15, indicating 77% growth. The Zacks Consensus Estimate is pegged at $1.16.

Management raised its full-year 2026 gross profit outlook to $12.626 billion, implying 22% growth. Adjusted operating income is now expected to reach $3.519 billion, calling for a 28% margin and 69% year-over-year growth. Adjusted EPS is projected at $4.15, up 75%, while the estimate stands at $4.05.

Currently, Block carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Block, Inc. Price, Consensus and EPS Surprise

Block, Inc. price-consensus-eps-surprise-chart | Block, Inc. Quote

Performance of Another Fintech Stock

PayPal Holdings, Inc. (PYPL Quick QuotePYPL - Free Report) reported third-quarter 2026 non-GAAP EPS of $1.45, which rose 8% year over year and outpaced the Zacks Consensus Estimate of $1.31.

The quarter benefited from higher payment volumes, increased transaction activity, improved customer engagement and lower transaction and credit loss rates.

An Upcoming Earnings Release

We now look forward to the earnings release of another stock in the Zacks Computer Software industry, Intuit, Inc. (INTU Quick QuoteINTU - Free Report) . Intuit is scheduled to report on Nov. 19, 2026.

The consensus estimate for Intuit’s first-quarter fiscal 2027 EPS is pegged at $2.47, indicating a 26.05% decrease year over year.