PomegraBlock Stock Jumps 16% After Q3 Earnings Beat
Why did Block stock jump 16%?
Block (XYZ) stock jumped 16% to about $88 on Wednesday after the company beat third-quarter earnings and revenue estimates and raised its full-year outlook for the third straight time.
Key numbers
| Adjusted EPS | $1.13+109% YoY; est. $1.03 |
|---|---|
| Revenue | $6.72B+10% YoY; est. $6.58B |
| Gross profit | $3.24B+22% YoY |
| Cash App gross profit | $2.07B+27% YoY |
| 2026 adjusted EPS outlook | $4.15from $4.02 |
| Loan and transaction losses | $602M+66% YoY |
What happened
Block (XYZ) stock jumped 16% to about $88 on Wednesday after the company beat third-quarter earnings and revenue estimates and raised its full-year outlook for the third straight time. Block, the company behind Cash App and Square, earned an adjusted $1.13 per share on $6.72 billion in sales, beating forecasts of $1.03 and $6.58 billion. Gross profit, which is what is left after direct costs, rose 22% to $3.24 billion. Block also raised its 2026 earnings forecast to $4.15 a share from $4.02.
Why it matters
Block's Cash App business is growing faster and more profitably than analysts had forecast. The company now expects gross profit to rise at least 15% in 2027, to about $14.52 billion. The main worry is loan losses, which rose 66% to $602 million as more customers borrowed through Cash App.
Who this affects
- MarketbullishMedium impact
- Fintech investors gained as payments stocks rallied alongside Block.
- CompanybullishHigh impact
- Block shareholders gained as the stock hit a 52-week high.
- CompetitorsbullishLow impact
- PayPal and SoFi each rose about 4% in sympathy.
- IndustrymixedMedium impact
- Strong Cash App growth helps, but rising loan losses worry investors.
Block vs PayPal, SoFi
How we got here
Block raised its 2026 gross profit outlook to $12.51B after second-quarter results
Block reported Q3 results after the close; shares rose more than 7% in late trading
Block stock jumped about 16% to near $88; PayPal and SoFi rose about 4%
Block traded at a new 52-week high, up 16% over the week
What to watch
- Block's Q4 forecast: gross profit of $3.32B and adjusted EPS of $1.15, just below the $1.16 consensusQ4 2026
- Whether loan and transaction losses, up 66% to $602M, keep rising as Cash App lending growsQ4 2026
- Progress toward the 2027 target of at least 15% gross profit growth, to about $14.52B2027
Educational content only. Not investment advice.
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