Block Raises 2026 Gross Profit Forecast to $12.63 Billion as Cash App Grows

How much did Block raise its 2026 gross profit forecast?

Block increased its 2026 gross profit outlook from $12.51 billion to $12.63 billion, targeting 22% annual growth, alongside $3.52 billion in adjusted operating income and adjusted diluted earnings of $4.15 per share.

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Why does the higher forecast matter for Block's profitability?

Block's stronger Cash App and Square businesses are generating more gross profit, supporting a forecast 69% increase in annual adjusted operating income and a 28% adjusted operating margin measured against gross profit.

What drove Block's third quarter growth?

Cash App gross profit increased 27% to $2.07 billion, while Square grew 14% to $1.16 billion, helping Block deliver $3.24 billion in quarterly gross profit and $923 million in adjusted operating income.

Could the stronger outlook support Block stock?

Block shares, listed on the NYSE under XYZ, rose approximately 7% in extended trading following the announcement, as improved earnings expectations strengthened the investment case, although rising lending losses and regulatory costs could offset some of those benefits.

How significant is Block's proposed $764 million DOJ settlement?

Block reached an agreement in principle in October 2026 to defer prosecution for three years over alleged anti money laundering compliance failures, with an expected net payment of approximately $764 million after credits for earlier regulatory resolutions. The company had accrued that amount, but the settlement still requires a final agreement and court approval, and additional losses remain possible.

What should Block investors watch next?

Block forecasts $3.32 billion in fourth quarter gross profit and approximately $14.52 billion for 2027, while investors can assess whether Cash App growth offsets rising credit losses when fourth quarter results are released on February 24, 2027, and whether the DOJ settlement receives final approval.