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# Block Guides 2027 Adjusted Operating Income To $4.575 Billion After Profit Nearly Doubles
- URL: https://www.bullished.co/block-guides-2027-adjusted-operating-income-to-4-575-billion-after-profit-nearly-doubles-043ba572/
- Published: 2026-11-03T21:20:57.000Z
- Updated: 2026-11-03T21:20:57.000Z
- Description: Block raised its 2026 outlook, and Cash App reached 60 million monthly transacting actives in September.
- Author: Matteo Parrino
- Tags: SEC Filings, XYZ, Industry: Financials

Block, which runs the Square seller business and the Cash App consumer app, expects its 2027 adjusted operating income to grow 30% to [$4.575 billion](https://www.sec.gov/Archives/edgar/data/0001512673/000162828026069513/q32026shareholderletter.htm?ref=bullished.co), after third-quarter adjusted operating income jumped 92% to $923 million. The company also raised its 2026 outlook in its shareholder letter on Tuesday.

## Adjusted profit doubles, reported profit lags

Gross profit rose 22% to $3.24 billion. Cash App gross profit climbed 27% to $2.07 billion and Square's rose 14% to $1.16 billion. Adjusted diluted earnings per share rose 109% to $1.13.

Standard-accounting operating income rose only 5% to $428 million. Block booked $435 million of contingencies, restructuring and other charges, and general and administrative expenses rose 56% on a standard-accounting basis, mainly from accrued legal contingencies.

Adjusted operating income strips out those charges and certain other items. It reached a 29% margin on gross profit.

## Higher 2026 guidance, 2027 targets

For 2026, Block now expects gross profit of $12.626 billion, up 22%, and adjusted operating income of $3.519 billion, up 69%. It also expects adjusted diluted earnings per share of $4.15\. For the fourth quarter it guides to adjusted diluted earnings per share of $1.15.

For 2027, it expects gross profit to grow at least 15% and adjusted operating income to reach $4.575 billion, a 32% margin on gross profit. In Square, it expects gross payment volume growth to accelerate for a third straight year. In Cash App, it expects at least low-single-digit growth in actives.

Square payment volume grew 14% in the quarter, its fastest pace since the first quarter of 2023, and Cash App hit 60 million monthly transacting actives in September. Block said its Neighborhoods loyalty and discovery network was a key driver.

## AI refocus and a bitcoin drag

Block cut staff in February, and product development spending fell 11% from a year earlier on a standard-accounting basis. It is now piloting its Buzz AI collaboration tool with outside customers under a new ecosystem called Builderlab, and expects its first machine intelligence revenue in the fourth quarter.

Bitcoin ecosystem gross profit fell 50% from a year earlier, driven mainly by a deliberate cut in the fee Block charges on certain Cash App bitcoin transactions.

Block holds a San Francisco event on November 10 to introduce Builderlab.

Block reports fourth-quarter results on February 24, 2027, after the market closes.

Learn

- [Item 2.02: results of operations →](https://www.bullished.co/learn/8-k-items-explained/#item-202-results-of-operations)  
From 8-K Items Explained: What Every Item Code From 1.01 To 9.01 Tells You, With Examples

### Sources

- [8-K Filing — Block, Inc. (XYZ)](https://www.sec.gov/Archives/edgar/data/0001512673/000162828026069513/xyz-20261103.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit q32026shareholderletter.htm — Block, Inc. 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001512673/000162828026069513/q32026shareholderletter.htm?ref=bullished.co) — SEC EDGAR

### More on Block

- [Block's Board Rewrites Its Bylaws To Tighten Rules On Where Shareholder Suits Go](https://www.bullished.co/blocks-board-rewrites-its-bylaws-to-tighten-rules-on-where-shareholder-suits-go-8f3c8465/)

[All Block (XYZ) coverage →](https://www.bullished.co/tag/xyz/)