Cash App and Square Support Quarterly Growth

Block, the fintech company led by Jack Dorsey, raised its full-year gross profit outlook on Tuesday after reporting stronger third-quarter earnings, supported by growth across its Cash App and Square businesses.

Cash App, the company’s consumer-focused financial platform, delivered a 27% increase in gross profit compared with the same period last year. Its Square merchant business recorded 14% growth.

The performance reflected continued consumer spending despite an uncertain economic environment.

Chief Executive Jack Dorsey said in a shareholder letter that the company’s Neighborhoods initiative was a key contributor to Cash App reaching 60 million monthly transacting active users in September.

Expanded Financial Services Drive Cash App Activity

Cash App’s growing banking and lending offerings have helped Block diversify its revenue sources beyond transaction fees.

However, the expansion has also increased credit-related losses. Block’s losses on transaction, loan and consumer receivables rose 65.6% to $601.7 million in the third quarter.

Chief Financial Officer Amrita Ahuja told Reuters that spending through the Cash App Card remained strong, alongside solid repayment rates on the company’s Borrow product.

She said these indicators suggest consumers are continuing to manage their finances and maintain spending capacity.

The development highlights the balance Block faces as it expands financial services while managing the associated credit risks.

Block Raises 2026 Gross Profit Forecast

Block now expects full-year 2026 gross profit of $12.63 billion, representing 22% growth. Its previous forecast was $12.51 billion.

For the fourth quarter, the company projected gross profit of $3.32 billion.

The revised outlook reflects the company’s stronger quarterly performance and continued activity across its consumer and merchant platforms.

Block also expects its fourth quarter to mark the first time it generates revenue directly from artificial intelligence tools, according to Executive Officer and Head of Business Owen Jennings.

2027 Outlook Points to Continued Growth

Block forecast 2027 gross profit of $14.52 billion, implying annual growth of 15%.

The company expects its investments in artificial intelligence to support sustained growth, with the anticipated introduction of direct revenue from AI tools representing a further development in its business strategy.

The forecast places AI among the company’s potential growth drivers alongside its established financial services and merchant payment operations.

Adjusted Operating Income More Than Doubles

For the three months ended September 30, adjusted operating income increased to $923 million, compared with $480 million in the corresponding period a year earlier.

Adjusted earnings per share reached $1.13, up from $0.54 in the prior-year quarter.

The improvement in adjusted operating income and earnings per share accompanied stronger gross profit across Cash App and Square.

What Investors Should Watch Next

Investors will be monitoring whether Cash App can sustain its growth in monthly transacting users and financial services activity, while Block manages the rising losses associated with its lending and consumer receivables.

The company’s fourth-quarter gross profit target and anticipated first direct revenue from AI tools will provide important indicators of execution. Its 2027 forecast will also place attention on whether AI investments can support the projected 15% gross profit growth.