Key Highlights

  • Block (Block (NYSE:XYZ)) reports third quarter 2026 results after the close on Tuesday, November 3, 2026, with Options pricing a move of about 10.5 percent against a ten-year average near 11.5 percent.
  • Adjusted EPS is guided at USD 1.02 for the quarter, up 89 percent year over year, and calendar consensus is USD 1.03, so expectations sit almost on guidance.
  • Second quarter Gross Profit rose 25 percent to USD 3.17 billion, with Cash App at USD 1.97 billion, up 31 percent, and Square at USD 1.16 billion, up 13 percent.
  • Third quarter gross profit is guided at USD 3.13 billion, up 18 percent, with adjusted Operating Income of USD 875 million, a 28 percent margin, simple arithmetic on the two guided figures.

Guidance And The Beat Pattern

Block (Block (NYSE:XYZ)) guided second quarter gross profit of USD 3.04 billion and adjusted EPS of USD 0.86, then delivered USD 3.17 billion and USD 1.02, about 4 percent and 19 percent above guidance, simple arithmetic. Full-year guidance rose to about USD 4.02 of adjusted EPS from USD 3.85, and to USD 12.51 billion of gross profit from USD 12.33 billion. The third quarter gross profit guide of USD 3.13 billion is below the June quarter's USD 3.17 billion, so a sequential dip is built in. A published consensus for the September quarter was USD 1.01 before it moved to USD 1.03, so the bar has crept up toward the guide.

How Block Is Measured

Block guides to gross profit rather than Revenue because reported revenue includes pass-through items that carry little profit. Its Rule of X for the third quarter is 46 percent, the 18 percent gross profit growth guide plus a 28 percent adjusted operating Margin guide. That margin on USD 3.13 billion produces the USD 875 million operating income guide. GAAP results differ sharply: June quarter GAAP EPS was USD 0.15 against USD 1.02 adjusted, so investors weigh Stock Compensation and other adjustments when judging Earnings quality. Options data as of October 30 imply a move of about 10.5 percent, close to the ten-year average, which suggests a typical large reaction.

Scenarios, Peers And Risks

A bull case is gross profit above USD 3.13 billion, Cash App growth near 31 percent and another full-year raise. A bear case is Cash App slowing, Credit weakness in lending or an outlook that confirms the sequential dip. PayPal reported on October 27, 2026 with adjusted EPS of USD 1.45 against USD 1.31 expected and revenue of USD 8.58 billion against USD 8.71 billion, a mixed read-across, since PayPal beat on EPS and missed on revenue. Early trading reaction at PayPal was reported modestly higher, with later moves not verified. A 10.5 percent move on a Market Value near USD 45 billion is about USD 4.8 billion, labelled arithmetic.

Where Things Stand

Block (Block (NYSE:XYZ)) carries a 10.5 percent implied move because its guided USD 1.02 of EPS and the USD 1.03 consensus leave almost no cushion, so a small gross profit or outlook difference can move the stock. The move is just below its ten-year average of 11.5 percent. Evidence favors a company that has beaten guidance, with Cash App credit, the GAAP gap and the sequential dip as risks. The release after the close on November 3 is the next catalyst.