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Payments platform Block's Q3 profit beats estimates

By Reuters News


Overview

  • Payments platform's Q3 adjusted EPS beat analyst expectations

  • Q3 adjusted EBITDA slightly beat analyst expectations

  • Company highlights strong yr/yr growth in gross profit and operating income


Outlook

  • Block expects to generate first machine intelligence revenue in Q4 2026

  • Company aims to connect local communities via Cash App and expand bitcoin and stablecoin use


Result Drivers

  • AI PRODUCTIVITY TOOLS - Co said use of AI tools accelerated product development and allowed teams to focus on differentiated products

  • SQUARE GPV GROWTH - Stronger Square GPV growth driven by distribution expansion and increased product adoption

  • CASH APP ENGAGEMENT - Higher Cash App engagement with 60 mln monthly transacting actives and new features launched


Company press release: Full Story


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Adjusted EPS

Beat

$1.13

$1.03 (36 Analysts)

Q3 EPS

$0.92

Q3 Adjusted EBITDA

Slight Beat*

$1.2 bln

$1.19 bln (32 Analysts)

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 39 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the business support services peer group is "buy"

  • Wall Street's median 12-month price target for Block, Inc. is $100.00, about 29.7% above its November 2 closing price of $77.08

  • The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 18 three months ago


Reuters Recommended Reads

  • Nov 3 - Block raises full-year profit outlook as Cash App drives Q3 growth

  • Nov 3 - Fiserv Q3 adjusted EPS beats, revenue slightly tops estimates

  • Nov 2 - Paymentus Q3 revenue beats on higher billers and transaction volumes


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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