Block, Inc. beats EPS estimates with strong CashApp growth despite monetization challenges.

Block, Inc. reported an EPS of $1.02, surpassing the $0.85 consensus, with 2026 earnings guidance up 70% to $4.02. Adjusted operating income rose 57% year-over-year, driven by a 31% increase in CashApp gross profit and a 59% jump in lending originations to $18.9 billion. However, Square's monetization rate fell from 0.45% to 0.41%, indicating challenges in per-user revenue and cross-selling efforts. Despite these issues and ongoing restructuring costs, the company’s strong fundamentals and growth prospects support maintaining a buy rating, with a forward P/E near its highest level this year at 19.65.