Why is Block’s Australian stock surging today?

Block stock surged 5.7% to A$115.87 on Wednesday, tracking overnight gains in its U.S. listing after the fintech company delivered a powerful third-quarter 2026 earnings beat.

Block reported adjusted earnings per share of $1.13 against analyst consensus of approximately $1.02–$1.04, while revenue of $6.72 billion exceeded estimates of around $6.58–$6.65 billion. Adjusted operating income jumped 92% year-over-year to a record $923 million, with the adjusted operating margin expanding to an all-time high of 29%, and the company raised its full-year 2026 adjusted EPS guidance to $4.15 — representing 75% year-over-year growth — while lifting its gross profit outlook to $12.626 billion.

The earnings strength was broad-based across Block’s two main ecosystems. Cash App gross profit climbed 27% year-over-year, with monthly transacting actives hitting 60 million in September, while Square’s merchant business posted 14% gross profit growth and consumer lending origination volume surged 40% year-over-year to $19 billion.

Adding to the positive sentiment, Block also announced a preliminary $764 million Department of Justice settlement, removing a significant legal uncertainty that had weighed on the stock. Management noted the company is now on track for what it described as "Rule of 50" performance in 2026, combining strong gross profit growth with a record operating margin.

The ASX 200 provided no tailwind for the move, with the benchmark index trading approximately 0.6–0.75% lower in on Wednesday.