Block Shares Jump on ASX After Third-Quarter Beat and Third Straight Guidance Upgrade Lift Payments Giant

SYDNEY — Shares of Block Inc. climbed more than 6% on the Australian Securities Exchange on Wednesday after the payments company behind Square, Cash App and Afterpay beat Wall Street's third-quarter forecasts and raised its full-year outlook for a third consecutive time.

Block's ASX-listed shares rose A$7.05, or 6.43%, to A$116.71 in afternoon trade, making the stock the strongest performer among the market's leading gainers. The shares traded between A$115.01 and A$118.00, with about 574,700 shares changing hands.

The gain came against a weak broader market. The S&P/ASX 200 dropped 63.40 points, or 0.71%, to 8,823.40 shortly after the open, with consumer discretionary stocks taking the biggest early hit.

Earnings top forecasts

The rally on the ASX followed a strong reaction in New York, where Block reported results after the close of regular trading on Tuesday. The company's shares rose more than 7% in late trading after it beat third-quarter expectations and raised its full-year guidance for the third straight time.

For the quarter ended Sept. 30, Block reported adjusted earnings of $1.13 per share, up from 54 cents a year earlier, on revenue of $6.72 billion, an increase of nearly 10%. Analysts had expected $1.03 per share on revenue of $6.58 billion.

Profitability improved sharply. Gross profit grew 22% to $3.24 billion, ahead of the company's own guidance, while adjusted operating income nearly doubled to a record $923 million. Product development spending fell 11% from a year earlier, reflecting the workforce cut Block made in February.

The headline figures were more modest on an unadjusted basis. Operating income rose 5% to $428 million, held back by $435 million in contingencies, restructuring and other charges, while net income attributable to common stockholders reached $566 million, compared with $462 million a year earlier.

Cash App and Square both accelerate

Block's consumer-facing Cash App remained the main growth engine. Cash App gross profit grew 27% to $2.07 billion, and monthly transacting actives reached 60 million in September.

Lending has become a larger part of the story. Consumer lending originations rose 40% to $19 billion, led by Cash App Borrow and Afterpay Post-Purchase, though transaction, loan and consumer receivable losses climbed 66% as that lending grew. Block said it had deployed $1.4 billion in capital to grow its lending products over the past 12 months.

The merchant business also picked up speed. Square gross payment volume grew 14% to $76.4 billion, the fastest rate since the first quarter of 2023, with U.S. growth accelerating to 10.4%.

Not every division expanded. Gross profit from Block's bitcoin business halved to $52 million after the company cut fees on certain bitcoin transactions in Cash App.

Guidance raised again

The forward outlook drew the most attention from investors. Block now projects full-year gross profit of $12.63 billion, up from the $12.51 billion it forecast in August, and adjusted earnings of $4.15 per share, up from $4.02, compared with a consensus estimate of $4.06.

The fourth-quarter forecast was slightly softer than some expected. Block guided to gross profit growth of 15% to $3.32 billion and adjusted earnings of $1.15 per share, a cent below the $1.16 analysts had expected.

The company also offered an early look at 2027. Its preliminary outlook calls for gross profit to grow at least 15% to $14.52 billion, with adjusted operating income expected to rise 30% to $4.58 billion, well above the $3.51 billion target set at its investor day in November 2025.

AI push in focus

Chief Executive Jack Dorsey devoted much of his shareholder letter to artificial intelligence. Dorsey wrote that Block has "meaningfully crossed the chasm" in transforming itself into a company that delivers intelligence as people need it.

Block said pilots of Buzz, its open-source workspace for people and AI agents, began with prospective customers in October, and it expects to book its first machine intelligence revenue in the fourth quarter. Builderlab, the ecosystem Block created to sell Buzz and related tools to other companies, will be formally introduced at a San Francisco event on Nov. 10.

Balance sheet and buybacks

Block ended the period with ample liquidity. The company finished the quarter with $10.1 billion of total liquidity, including $9.2 billion in cash, cash equivalents, restricted cash and marketable debt securities.

The company has also been returning cash to investors. In November 2025, its board authorized an increase of up to $5 billion to the share repurchase program, and as of June 30 it had $4.6 billion in remaining authorization.

Analyst views mixed heading into results

Sentiment had been divided before the report. Clear Street lowered its price target on Block to $82 from $87 with a Hold rating, while Morgan Stanley analyst James Faucette downgraded the stock to Equal Weight from Overweight with an $80 target. BTIG reiterated a Buy rating on Oct. 28 with a $100 target.

Investors had been particularly focused on credit quality ahead of the report. Block entered its earnings with improving operating expectations but rising investor scrutiny of Cash App lending losses.

Despite Wednesday's jump, the ASX-listed shares have gained only about 3.5% over the past year, reflecting a volatile stretch for the stock. Block has been listed in Australia since its acquisition of buy-now-pay-later provider Afterpay.