Block lifts full-year profit outlook as Q3 net income climbs — but bitcoin gross profit halves

Jack Dorsey's Block Inc. (ticker XYZ) posted third-quarter net income of $566 million on Tuesday, up from $462 million a year earlier, and raised its full-year gross profit forecast to $12.63 billion, according to The Block's account of the company's quarterly report. Shares, which closed down 1.4% at $76, rose 6.2% in after-hours trading on the release.

Total revenue came in at $6.72 billion, up from $6.12 billion in the same quarter last year. Gross profit rose 22% year-on-year to $3.24 billion, led by Cash App, which booked $2.07 billion in gross profit, up 27%. Cash App generated $4.07 billion in total revenue for the quarter.

The new $12.63 billion full-year gross profit target would represent roughly 22% year-on-year growth. In its own words, Block said it was "raising our full-year guidance to reflect the momentum we are seeing across Block," and said it expects gross profit to grow at least 15% in 2027 while continuing to "expand margins" and "invest meaningfully." Those are the company's characterizations and projections, not independently verified outcomes.

The weak spot sat in bitcoin. Block's bitcoin ecosystem gross profit fell 50% year-over-year to $52 million. The company attributed the drop to a "strategic decision to reduce the fee" charged on certain bitcoin transactions in Cash App. That segment — mainly customer bitcoin purchases in Cash App, the Proto mining effort, and withdrawal fees — still drove $1.77 billion of Cash App's $4.07 billion in Q3 revenue, a reminder that high bitcoin revenue does not translate into comparable profit once fees are cut.

Key facts

• Q3 net income: $566 million, up from $462 million a year earlier (The Block, citing Block's Q3 report).
• Total revenue: $6.72 billion, up from $6.12 billion (same source).
• Overall gross profit: $3.24 billion, +22% YoY; Cash App gross profit $2.07 billion, +27% (same source).
• Bitcoin ecosystem gross profit: $52 million, −50% YoY, attributed to lower Cash App bitcoin fees (same source).
• Raised full-year gross profit forecast: $12.63 billion (~22% growth); shares +6.2% after-hours after closing −1.4% at $76 (same source).

The real-world read

The headline is "raised guidance," but the guidance and the "momentum" language come from Block's own release — interested-party framing that should be read as such until the full filing and later quarters bear it out. The quieter number is the 50% collapse in bitcoin gross profit. Block frames the fee cut as strategic; the effect is that its most crypto-native line shrank sharply even as bitcoin revenue stayed near $1.77 billion. Whether lower fees win enough volume to recover that profit isn't yet shown in the numbers disclosed. The after-hours pop reflects Cash App's margins, not bitcoin.

Opinion, and whose

Block itself: expects at least 15% gross profit growth in 2027 and to keep expanding margins. That is management's forecast, not a result.

Sources

• The Block (Nov. 4, 2026) — reported Block's Q3 figures, guidance and share move, citing the company's quarterly report. Secondary reporting of a primary earnings release; the full filing was not reviewed here.

This is news, not financial advice.