Schwab Network on $XYZ (Nov 4, 2026)
XYZ rose double digits after results the speaker called better than expected: revenue of $6.72 billion beat just over $6.5 billion expected and third-quarter total profits rose about 22%, though EPS was $1.13 versus $1.20 expected. Profit expectations strengthened; Cash App hit 60 million monthly active users, breaking out of the prior 58 to 59 million range, and Square payout volume rose 14% versus expectations. 2026/2027 total profit is projected around $12.6 billion/above $14.5 billion; AI revenue is due in the fourth quarter, but productivity gains remain unproven.
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Block this morning. Block's stock took off strongly this morning. The trading symbol "XYZ" is rising by double digits thanks to its better-than-expected quarterly results . Earnings came in at $1.13 per share.
This is a strong oversight . Analysts were expecting $1.20.
Revenues also came in higher than expected, reaching $6.72 billion. Analysts had been expecting just over $6.5 billion . So, they excelled in both profits and revenues.
Third-quarter total profits rose by about 22%, and they have stronger profit expectations going forward. The parent company of CashApp and Square is demonstrating strong business growth along with real-world savings.
This company came under a lot of scrutiny earlier this year after it made a significant reduction in its workforce. Remember that they cut about 40% of their workforce, which is equivalent to about 4,000 jobs last February.
That was part of their plans to move more towards artificial intelligence.
They have an AI agent platform called "Buzz" that they are working on building and trying to sell its tools to different companies. The idea is that they will replace some of the external software vendors there.
The first AI revenues are expected to appear in the fourth quarter. They have been testing this with potential customers, and the question will be: Can artificial intelligence deliver the productivity gains that are expected?
One of the interesting things about CashApp is that it has reached 60 million monthly active users. This is crucial because over the past few quarters they have been stuck in the 58 to 59 million range.
So, they've made a breakthrough, you know when we look at the chart and see an arrow going out of its usual range. This is the number of users who are out of range here. So, you have 60 million.
The other thing that Block wants from Cash App. They want it to operate more like a financial technology company, don't they? More than just, you know, let's say that you or I use "Cash App", Nicole.
We send each other some money for something, or we pay each other the value of something. They want it to be used by consumers much like a bank account, right? Beyond simply sending money and splitting bills.
Square's payout volume also increased by 14% compared to expectations.
Oh, for 2026, they have projections of total profits of around 12.6 billion, or a little more than that. And in 2027, they expect more than 14.5 billion, Nicole.
Yes, and as you know, the "Cash App" was what Dan Doleff talked about a long time ago, where people were depositing their checks using it. Therefore, they still seem to have the ability to continue developing this part of their business.
Currently, the stock is up 12.5 percent, which is a good move.