Block and Circle Report Strong Q3 Earnings, Raise Full-Year Guidance

Block, the fintech company co-founded by Jack Dorsey, has announced its third-quarter results for 2026, surpassing Wall Street expectations for both earnings and revenue. The company reported adjusted diluted earnings per share of $1.13, exceeding analyst estimates of $1.02, and net income of $565.6 million. Revenue for the quarter reached $6.72 billion, comfortably above the consensus estimate of $6.62 billion.

Block's gross profit rose 22% year-over-year to $3.24 billion, with its Cash App segment generating $2.07 billion in gross profit, a 27% increase from the previous year. However, the company's Bitcoin segment saw a significant decline, with gross profit dropping 50% to $52 million, attributed to lower transaction fees.

In light of these results, Block has raised its full-year guidance, projecting adjusted diluted EPS of $4.15 and full-year gross profit of $12.626 billion, representing a 22% growth.

Meanwhile, Circle, the issuer of the USDC stablecoin, reported Q3 2026 revenue of $865 million and adjusted EBITDA of $317 million, surpassing analyst projections. The company also launched its Arc blockchain, which went live with over 100 institutional partners, including BlackRock and Visa. The launch coincided with a presale of ARC tokens, raising approximately $222 million.

Circle's revenue growth was driven by income from USDC reserves and the presale of ARC tokens. The Arc blockchain aims to integrate traditional fiat transactions with on-chain financial activities, positioning Circle as a key player in tokenized finance and cross-border payments.