Jack Dorsey-led fintech firm Block Inc. saw its shares jump in after-hours trading on Tuesday after reporting stronger third-quarter earnings and raising its full-year profit outlook. Block posted net income of $566 million for Q3, up from $462 million a year earlier, while total revenue rose to $6.72 billion from $6.12 billion. Company-wide gross profit increased 22% year-over-year to $3.24 billion, and Block raised its full-year gross profit forecast to $12.63 billion, representing 22% growth.
Cash App was a key driver, with gross profit up 27% to $2.07 billion and 60 million monthly transacting users in September. Square also accelerated: gross payment volume grew 14% year-over-year, the fastest pace since Q1 2023, including 10.4% growth in the US and 26% internationally. Adjusted earnings per share reached $1.13, more than double the previous year, and adjusted operating income margin hit a company record 29%. Customer loan originations rose 40%, helped by Cash App Borrow and Afterpay.
The company's Bitcoin segment moved in the opposite direction. Bitcoin ecosystem gross profit fell 50% year-over-year to $52 million, which Block attributed to its strategic decision to reduce fees on certain bitcoin transactions in Cash App. Cash App generated $4.07 billion in revenue in Q3, including $1.77 billion from the bitcoin ecosystem segment.
Block shares closed down 1.4% at $76 on Tuesday, then jumped 6.2% in immediate after-hours trading, with some reports showing the after-market gain later widening to more than 8%. For 2026, Block forecasts 22% gross profit growth, 69% growth in adjusted operating income and a 75% rise in adjusted diluted EPS. For 2027, management expects gross profit to grow at least 15% and adjusted operating income to reach $4.575 billion.
