Block raises profit outlook on Cash App growth, reaches DOJ settlement

Block raised its full-year gross profit outlook Tuesday after strong Cash App performance boosted quarterly earnings, and reached a preliminary settlement with the US Department of Justice over anti-money laundering violations. Shares rose 7 percent in extended trading. Cash App gross profit surged 27 percent in the third quarter, while Square merchant business grew 14 percent. Block now expects 2026 gross profit of $12.63 billion, up from a prior $12.51 billion forecast, and forecasts $14.52 billion for 2027. The DOJ deferred prosecution agreement could require a net payment of roughly $764 million, subject to final terms and court approval. Credit losses rose 65.6 percent to $601.7 million, and adjusted operating income climbed to $923 million from $480 million a year earlier.