Affirm (NASDAQ:AFRM) Shares Gap Up After Better-Than-Expected Earnings

Posted by Stanley Muller on Aug 28th, 2026

Affirm Holdings, Inc. (NASDAQ:AFRM – Get Free Report) gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $77.49, but opened at $86.00. Affirm shares last traded at $85.78, with a volume of 6,684,154 shares.

The company reported $4.62 EPS for the quarter, topping the consensus estimate of $0.35 by $4.27. Affirm had a return on equity of 11.17% and a net margin of 9.63%.The firm had revenue of $1.07 billion during the quarter, compared to analyst estimates of $1.11 billion. During the same period in the prior year, the business posted $0.20 EPS. Affirm’s revenue was up 33.1% on a year-over-year basis.

Key Headlines Impacting Affirm

Here are the key news stories impacting Affirm this week:

Positive Sentiment: Strong operating performance: Affirm reported 33% year-over-year revenue growth, 36% gross merchandise volume growth and a 49% increase in adjusted operating income. Expanding margins, stable credit performance and a 103-basis-point decline in funding costs to 5.8% supported profitability. Affirm: Ignore The Ludicrous $1.6 Billion, Own The Real Story
Positive Sentiment: Headline earnings beat estimates: Fiscal fourth-quarter EPS was $4.62 versus consensus estimates of roughly $0.33-$0.35, compared with $0.20 a year earlier. The earnings release and related coverage also pointed to better-than-expected GMV and continued momentum in the BNPL business. Affirm Stock Jumps After Earnings
Positive Sentiment: Analyst support improved: BMO Capital Markets raised its price target to $101 and assigned an outperform rating, while Cantor Fitzgerald reaffirmed its overweight rating with an $88 target. Morgan Stanley also increased its target to $80, although it maintained an equal-weight rating.
Positive Sentiment: International expansion: Affirm and Shopify launched Shop Pay Installments in Australia, extending Affirm’s exclusive partnership to another market and potentially broadening transaction volume over time. Affirm and Shopify launch Shop Pay Installments in Australia
Neutral Sentiment: Fiscal 2027 outlook: First-quarter revenue guidance of approximately $1.2 billion was broadly in line with consensus, limiting the possibility of a major near-term forecast surprise.
Negative Sentiment: Quality of the EPS beat is a concern: The unusually large GAAP profit primarily reflected a one-time tax allowance release rather than recurring earnings power. Revenue of $1.07 billion also fell short of the approximately $1.11 billion analyst estimate, making underlying operating metrics more important to investors.
Negative Sentiment: Valuation and mixed ratings: With a high earnings multiple and a recent Zacks downgrade from strong buy to hold, some investors may question whether the operational gains are fully reflected in AFRM’s valuation.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the company. Needham & Company LLC raised their price objective on Affirm from $90.00 to $100.00 and gave the stock a “buy” rating in a research note on Friday. Wells Fargo & Company boosted their price objective on Affirm from $89.00 to $96.00 and gave the company an “overweight” rating in a research note on Wednesday, July 8th. UBS Group reissued a “neutral” rating and issued a $90.00 target price on shares of Affirm in a report on Friday. Royal Bank Of Canada raised their target price on shares of Affirm from $77.00 to $80.00 and gave the stock a “sector perform” rating in a research note on Friday, May 8th. Finally, Wolfe Research reaffirmed an “outperform” rating on shares of Affirm in a report on Friday. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat.com, Affirm presently has an average rating of “Moderate Buy” and an average price target of $96.19.

Check Out Our Latest Stock Report on Affirm

Insider Buying and Selling

In other Affirm news, COO Michael Linford sold 100,000 shares of the business’s stock in a transaction on Friday, June 26th. The shares were sold at an average price of $80.04, for a total value of $8,004,000.00. Following the sale, the chief operating officer owned 117,984 shares in the company, valued at $9,443,439.36. The trade was a 45.87% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 11.01% of the stock is currently owned by insiders.

Institutional Trading of Affirm

A number of large investors have recently added to or reduced their stakes in the company. Greenline Wealth Management LLC purchased a new stake in shares of Affirm during the 4th quarter worth approximately $26,000. Syntegra Private Wealth Group LLC bought a new position in shares of Affirm during the 1st quarter valued at approximately $28,000. Triumph Capital Management purchased a new position in shares of Affirm in the third quarter valued at $31,000. Strive Financial Group LLC purchased a new position in shares of Affirm in the fourth quarter valued at $33,000. Finally, Fideuram Intesa Sanpaolo Private Banking S.P.A. bought a new stake in Affirm in the first quarter worth $34,000. Institutional investors own 69.29% of the company’s stock.

Affirm Price Performance

The company has a market cap of $28.59 billion, a P/E ratio of 77.61, a PEG ratio of 3.10 and a beta of 3.71. The firm’s 50-day moving average is $77.37 and its two-hundred day moving average is $64.50. The company has a debt-to-equity ratio of 2.39, a current ratio of 11.32 and a quick ratio of 11.32.

Affirm Company Profile

(Get Free Report)

Affirm Holdings, Inc is a financial technology company that provides point-of-sale consumer lending and payments solutions for online and in-store purchases. Its core product is a buy-now-pay-later (BNPL) platform that enables consumers to split purchases into fixed, transparent installment loans with no hidden fees. Affirm offers a range of financing options through merchant integrations, a consumer-facing mobile app and virtual card capabilities, and tools for merchants to offer alternative payment methods at checkout.