Block Shares Fall 2% as Q3 Revenue Misses Estimates

Block (NYSE:SQ) saw its shares decline by around 2% in pre-market today following third-quarter earnings that met expectations but revenue missed analyst targets. The company reported adjusted earnings per share of $0.88, aligning with projections, but revenue fell short at $5.98 billion compared to the anticipated $6.24 billion.

Despite the revenue miss, Block’s key segments posted strong performance, with gross profit rising 19% year-over-year to $2.25 billion. Cash App, the company’s popular mobile payment service, led the growth with $1.31 billion in gross profit, up 21% year-over-year, while the Square segment contributed $932 million, a 16% increase from last year.

Block reported $323 million in operating income, with adjusted operating income reaching $444 million, reflecting a 20% margin driven by growth and effective cost control. CEO Jack Dorsey highlighted Cash App’s robust growth, fueled by higher user inflows and improved monetization.

Looking ahead, Block maintained its guidance for at least $8.89 billion in gross profit for the full year, reflecting an 18% growth rate. The company also raised its forecast for adjusted operating income to a minimum of $1.56 billion, achieving an 18% margin.