Block lifts full-year profit outlook as Cash App fuels Q3 growth

Block has raised its full-year profit outlook after third-quarter results showed Cash App driving growth, offering investors a brighter view of the payments group's earnings trajectory.

The update puts the consumer finance app at the center of Block's story. Cash App has expanded well beyond peer-to-peer transfers into areas such as debit cards, direct deposit, investing and bitcoin, while the Square seller business serves merchants with hardware, software and payment processing.

Management has been working to make the two sides of the company more efficient, trimming costs and sharpening the focus on profitable growth rather than expansion at any price. The raised outlook suggests that effort is gaining traction, at least by the company's own measure.

Investors have watched closely to see whether Cash App can keep adding users and deepen engagement without becoming a heavy drag on margins. The revised guidance implies confidence that the app's momentum can carry through the rest of the year, even as competition in consumer payments stays intense and scrutiny of fintech spending persists.