Block raises 2026 profit forecast on Cash App growth and nears DOJ deal
Block lifted its full-year gross profit outlook as Cash App strength boosted quarterly earnings, and disclosed a preliminary US Justice Department settlement, per Reuters.
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what happened
Payments company Block, led by Jack Dorsey, now expects 2026 gross profit of $12.63 billion, up from its earlier $12.51 billion target, Reuters reported. The change follows a strong third quarter at Cash App, where gross profit climbed 27% year on year, while the Square merchant unit grew 14%. The shares gained about 7% in extended trading.
The company also said it has a preliminary understanding with the Justice Department over its anti-money laundering program. Under a deferred prosecution arrangement lasting three years, Block expects a net payment of roughly $764 million after credits for earlier regulatory resolutions. Final terms still require a formal deal and court sign-off, and the firm cautioned that its losses could exceed the amount it has already set aside.
why it matters
Resilient consumer spending and growth in lending and banking products are supporting fintech revenue, yet losses on receivables rose 65.6% to $601.7 million, showing the trade-off. Easing part of the regulatory uncertainty also helps sentiment around the stock.
market impact
Block shares: higher profit outlook and less legal uncertainty support the stock
- Block shares pressure up — raised gross profit forecast and reduced uncertainty from the DOJ probe
tags
instruments
sources
- Block lifts profit outlook on Cash App strength, reaches preliminary DOJ settlement — Reuters, 3 November 2026 at 23:54 UTC
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