Financial Results (Q3 2026)
- Gross profit rose by 22% to $3.24 billion. [s29.q4cdn.com]
- Cash App gross profit rose by 27% to $2.07 billion. [s29.q4cdn.com]
- Square’s gross profit rose by 14% to $1.16 billion. [s29.q4cdn.com]
- Adjusted operating income rose by 92% to $923 million. [s29.q4cdn.com]
- Adjusted EPS (earnings per share) rose by 109% to $1.13. [s29.q4cdn.com]
- The company has raised its full-year forecast. [s29.q4cdn.com]
Strategic Focus
Block is increasingly focusing on artificial intelligence . The revised strategy includes: [s29.q4cdn.com]
- Transforming the company itself into an “intelligence” platform.
- Creating the best AI for businesses.
- Creating the best AI for personal finance.
- Building an open financial infrastructure.
- Connecting local communities (“Neighborhoods”) globally. [s29.q4cdn.com]
AI Initiatives
- Internal AI Platform Buzz is used for collaboration and software development. [s29.q4cdn.com]
- New Ecosystem Builderlab plans to offer these AI tools to other companies in the future. [s29.q4cdn.com]
- The first revenue from the “Machine Intelligence” segment is already expected in the fourth quarter. [s29.q4cdn.com]
- Language model Dessa is highlighted as a major AI breakthrough. [s29.q4cdn.com]
Business Performance
- Square’s payment volume grew by 14%, the highest growth rate since early 2023. [s29.q4cdn.com]
- Over 180 new Square features were released in the first three quarters. [s29.q4cdn.com]
- According to the company, the number of new merchants acquired through sales partners rose by 90% compared to the previous quarter. [s29.q4cdn.com]
Cash App
- The number of monthly active users of Cash App reached 60 million. [s29.q4cdn.com]
- Block is increasingly focusing on Bitcoin and stablecoin infrastructure to expand its ecosystem. [s29.q4cdn.com]
Conclusion
The letter shows that Block aims to evolve from a traditional fintech company into a provider of AI-powered software and financial infrastructure. At the same time, its operating metrics remain strong, with double-digit growth in earnings and profitability. [s29.q4cdn.com]