Block (XYZ) reported third-quarter gross profit of $3.24 billion, up 22% from a year earlier, and said it exceeded its guidance on that metric, on adjusted operating income growth of 92%, and on adjusted diluted earnings growth of 109%.

The payments and fintech company raised its 2026 outlook for gross profit and adjusted operating income. It now expects full-year gross profit of $12.626 billion, or 22% year-over-year growth, versus the $11.980 billion, or 17% growth, it outlined at Investor Day in November 2025. Adjusted operating income is now guided to $3.519 billion, or 69% growth and a 28% margin, from a prior $2.700 billion, or 31% growth and a 23% margin.

Gross profit growth slowed from 25% in the second quarter, after 27% in the first. Cash App gross profit was $2.07 billion, up 27% year over year, after 31% growth in the prior quarter. Square gross profit was $1.16 billion, up 14% from a year earlier.

Square gross payment volume growth accelerated to 14% in the third quarter, which the company described as the strongest rate since the first quarter of 2023, citing continued distribution expansion and higher product velocity. New sellers joining through independent sales organizations grew 90% quarter over quarter. Field sales and an expanded enterprise motion continued to add customers in the United States and internationally.

Cash App reached 60 million monthly transacting actives in September. The company said Neighborhoods was a key driver of actives growth in the quarter. In August it auto-enrolled more than 30,000 new seller locations onto Neighborhoods, growing that network more than 10 times from June. Sellers on Neighborhoods represented nearly $5 billion in annualized GPV, up nearly five times since June.

GAAP operating income was $428 million, a 13% margin of gross profit, compared with $447 million and a 14% margin in the second quarter. Adjusted operating income was $923 million, a 29% margin. Diluted EPS was $0.92. Adjusted diluted EPS was $1.13.

The company said it expects to perform meaningfully better in 2026 than the November 2025 Investor Day plan. For 2027 it expects gross profit to grow at least 15% year over year to $14.519 billion, and adjusted operating income to grow 30% to $4.575 billion, a 32% margin.

In Square, it said it expects to accelerate GPV growth for a third consecutive year, with gross profit growing roughly in line with GPV. Outside the United States, it has delivered more than 20% constant-currency GPV growth in each quarter for the past six years and said it expects to sustain that strength in 2027.

In Cash App, the company expects at least low-single-digit actives growth and strong growth in both Commerce Enablement and Financial Solutions gross profit. As of September, Cash App was over $8 billion in annualized gross profit, with 28 million monthly transacting actives using Cash App Card.

Squaremates, the rebranded AI product for Square sellers, became generally available in the United States in October. Block launched a new voice-enabled Square Kiosk in October and said it began piloting Buzz with prospective customers, expecting its first machine-intelligence revenue in the fourth quarter.