XYZ US S&P 500Russell 1000 Earnings call · transcribed from the recording
Block, Inc. (XYZ) · Q3 2026 results and valuation
Share price: $85.72 · 2026-11-11
Block, Inc. provides a suite of financial services, commerce solutions, and bitcoin-related products for individuals and small businesses. The company operates through the Cash App and Square ecosystems, offering tools for money management, payment processing, and artist tools via TIDAL. It serves a global customer base across various industries and geographic regions. Source: 10-K annual report (2026-02-26)
Results Q3 2026 vs Q2 2026 · previous quarter · published 3 Nov 2026 and 5 Aug 2026
Net income up 549.5% on the previous quarter, guidance raised. Management sounded very upbeat, though noticeably less so answering analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+549.5%
Net income vs Q2 2026
Guidance raised
Net income 565.6M vs 87.1M
Revenue +1.5%
Against the same quarter last year (Q3 2025) it is +22.5% — part of the move on last quarter is seasonal.
2 · How management spoke
Very upbeat
Among the most upbeat of all company calls
Answers to analysts: upbeat, but clearly less so than the script.
Similar to last call.
3 · What stood out
Guidance ↑
Block had a strong third quarter, exceeding its guidance and raising its outlook for the year.
Valuation
Is Block, Inc. undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 11.3% growth a year (3-year revenue growth), the model's fair value is $106.42 a share — the stock trades 19% below it. Today's price assumes 8.2% growth a year.
Current price
$85.72
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+8.2% for 10 yrs
Fair value / share
$106.42
Buy below
$79.82
Price vs fair value
Undervalued 19%
Price vs buy-below price
Overvalued 7%
Read between the lines
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Figure
Adjusted operating income grew 92% year-over-year to $923 million, or a record 29% margin.
Source quote
“Adjusted operating income grew 92% year-over-year to $923 million, or a record 29% margin. Gross profit grew 22% year-over-year to $3.24 billion. And adjusted income, yes, more than doubled, growing 109% year-over-year to $1.13, also a quarterly record for us.”
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Guidance
Block expects to outperform by about 10 points, 5 points on growth and 5 points on margin in 2026.
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Management sounded noticeably less positive answering analysts than in its prepared script — one of the biggest drops of any company call. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.
Sentences that drove the tone
“Financial Solutions growth profit grew 36% year-over-year on borrow origination growth and strong returns.”
“Given the strong incremental margins and high return investment opportunities we see, we plan to reinvest profit upside in long-term strategic growth initiatives like Neighborhood and Builder Lab, which we...”
“This growth and margin expansion is a strong demonstration of our commitment to delivering durable, profitable growth at scale.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 6.72B | 6.62B | +1.5% | 6.11B | +9.9% |
| Gross profit | 3.24B | 3.17B | +2.2% | 2.66B | +21.6% |
| Operating income | 428.5M | 446.9M | −4.1% | 409.4M | +4.7% |
| Net income | 565.6M | 87.1M | +549.5% | 461.5M | +22.5% |
| EPS | 0.92 | 0.15 | +513.3% | 0.74 | +24.3% |
| P/E today 112.5 | 96.7 | 135.7 | −39.0 | 14.5 | +82.2 |
Topics
Most discussed now
- Block is also building new ways for people to interact with intelligence.
- Block has a strong quarter in cash-up, and it continues to accelerate in Square with USGPV growth more than doubling...
- Block is transforming its company from one that creates traditional financial products into one that streams intelligence as people need it.
- Block has conviction in its actives growth strategies and expect to grow actives by at least low single digits in...
- As Block looks to 27, delivering on the growth rates that it set out at Investor Day for 2027, the...
Faded since Q2 2026
- Dropped That's been Block's focus from the beginning, and it's why its network gets stronger with every seller and every customer...
- Dropped The strategy from a cost perspective for it starts with intelligently routing its workloads, being efficient in how Block thinks...
- Dropped It's obviously a major one, and Block thinks around cost for AI and it thinks relative to the industry, it...
- Fading GPV and continued strength in the other target verticals for it with larger sellers and the market growth over 20%...
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
- Articles or bylaws amended · SEC 8-K · routine
- Results of operations · SEC 8-K
The company reported gross profit of $3.17 billion for the second quarter of 2026, representing a 25% increase compared to the previous year.
- Shareholder vote results · SEC 8-K · routine
- Director or officer change · SEC 8-K
Block, Inc. announced that Engineering Lead Arnaud Weber departed the company on June 5, 2026, with the engineering organization now reporting to Block Head Jack Dorsey.
- Results of operations · SEC 8-K
Block reported gross profit of $2.91 billion for the first quarter of 2026, which represents a 27% increase compared to the same period last year.
- Director or officer change · SEC 8-K
Block, Inc. appointed Andrea Acosta as Chief Accounting Officer effective May 26, 2026, replacing Amrita Ahuja who remains Chief Financial Officer.
- Results of operations; Restructuring costs · SEC 8-K
The company announced a workforce reduction of more than 40% with estimated restructuring costs between $450 million and $500 million, following a Q4 2025 gross profit of $2.87 billion, up 24% year over year.
Balance sheet & ownership
From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-11.
Cash & runway
Cash & equivalents
$6.43B
2026-06-30
Short-term investments
$1.12B
total $7.55B
Implied runway
—
operating cash flow positive over the TTM window
Dilution
weighted-average basic shares, per quarter. Change: -2.5% YoY, +0.0% QoQ.
| Quarter | Shares |
|---|---|
| Q3 2024 | 616.4M |
| Q1 2025 | 619.4M |
| Q2 2025 | 612.9M |
| Q3 2025 | 610.2M |
| Q1 2026 | 597.6M |
| Q2 2026 | 597.8M |
Insider transactions
Form 4 open-market trades (codes S/P), trailing 12 months. Coverage: newest 50 of 107 filings; 50 filings parsed.
Sold by insiders
786.9K shares
$63.1M · 95 transactions
Bought by insiders
0 shares
0 transactions
Net direction
net selling
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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second half of the year
gross profit growth in line with GPV
Source quote
“We drove strong gross profit growth across commerce enablement and financial solutions and we continue to expect gross profit to grow roughly in line with GPV in the second half of the year.”
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2026
low single-digit actives growth
Source quote
“Monthly transacting actives grew 3% year-over-year in June, and we continue to expect low single-digit actives growth in 2026 as we execute on our network growth strategies.”
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2026
raised guidance across gross profit, adjusted operating income, and adjusted diluted EPS
Source quote
“We're raising our 2026 guidance across gross profit, adjusted operating income, and adjusted diluted EPS, flowing through the Q2 outperformance and raising our expectations for the second half of the year.”
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Full year
gross profit of $12.51 billion, adjusted operating income of $3.47 billion, and adjusted diluted EPS growth of 70% year-over-year
Source quote
“For the full year, we now expect gross profit of $12.51 billion, up 21% year-over-year, adjusted operating income of $3.47 billion or a 28% margin, and adjusted diluted EPS growth of 70% year-over-year.”
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third quarter
gross profit growth of 18%, adjusted operating income margin of 28%, and adjusted diluted EPS growth of 89%
Source quote
“For the third quarter, we expect year-over-year gross profit growth of 18%, adjusted operating income margin of 28%, and year-over-year adjusted diluted EPS growth of 89%.”