Affirm (NASDAQ:AFRM) Announces Quarterly Earnings Results, Beats Estimates By $4.27 EPS

Posted by Geri Gentry on Aug 29th, 2026

Affirm (NASDAQ:AFRM – Get Free Report) announced its quarterly earnings data on Thursday. The company reported $4.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.35 by $4.27, FiscalAI reports. The company had revenue of $1.07 billion for the quarter, compared to analysts’ expectations of $1.11 billion. Affirm had a return on equity of 54.47% and a net margin of 45.29%.Affirm’s revenue was up 33.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.20 earnings per share.

Here are the key takeaways from Affirm’s conference call:

Affirm reported its most profitable quarter ever, excluding the benefit from a tax allowance release, with management saying the core business is performing strongly.
Management expects continued growth in fiscal 2027, supported by expansion across Affirm Card, Pay in X, services, additional e-commerce merchants, and the U.K. market; the company says it currently reaches only about 80 of the top 250 e-commerce sites.
Affirm expects its revenue less transaction costs margin to be about 4.16% in fiscal 2027, helped by favorable debt-capital-markets execution and funding costs, while credit performance remains healthy.
The company is investing in longer-term initiatives, including improved in-store functionality, Affirm Edge for bank partners, and additional consumer financial products, but several projects are still in development and may not materially contribute until fiscal 2028 or later.
Management emphasized disciplined underwriting rather than maximizing approval rates, saying it would adjust growth before allowing credit performance to deteriorate; it also cautioned that fiscal 2027 GAAP EPS could be volatile because of the effective tax rate.

Affirm Trading Up 0.3%

NASDAQ AFRM opened at $77.76 on Friday. The company has a quick ratio of 11.32, a current ratio of 11.32 and a debt-to-equity ratio of 2.39. The firm has a market cap of $26.04 billion, a PE ratio of 14.09, a price-to-earnings-growth ratio of 3.14 and a beta of 3.71. The company has a 50 day moving average price of $77.45 and a 200 day moving average price of $64.60. Affirm has a 52 week low of $42.10 and a 52 week high of $100.00.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the company. Compass Point set a $100.00 target price on Affirm in a report on Friday, July 17th. UBS Group raised their price target on Affirm from $82.00 to $90.00 and gave the company a “neutral” rating in a research note on Friday. Oppenheimer lifted their price objective on Affirm from $100.00 to $104.00 and gave the company an “outperform” rating in a report on Friday. BMO Capital Markets upped their price objective on shares of Affirm from $86.00 to $101.00 and gave the stock an “outperform” rating in a research note on Friday. Finally, Bank of America increased their target price on shares of Affirm from $93.00 to $104.00 and gave the stock a “buy” rating in a report on Friday. One research analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and eight have assigned a Hold rating to the stock. Based on data from MarketBeat, Affirm currently has an average rating of “Moderate Buy” and an average price target of $98.08.

Get Our Latest Report on AFRM

Insider Buying and Selling

In other Affirm news, COO Michael Linford sold 100,000 shares of the firm’s stock in a transaction that occurred 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 completion of the sale, the chief operating officer directly owned 117,984 shares in the company, valued at $9,443,439.36. This trade represents a 45.87% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 11.01% of the stock is owned by insiders.

Institutional Trading of Affirm

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Royal Bank of Canada grew its stake in Affirm by 2.1% during the 1st quarter. Royal Bank of Canada now owns 193,601 shares of the company’s stock worth $8,748,000 after buying an additional 3,892 shares during the last quarter. Empowered Funds LLC raised its stake in Affirm by 90.7% in the first quarter. Empowered Funds LLC now owns 16,852 shares of the company’s stock valued at $762,000 after buying an additional 8,014 shares during the last quarter. Focus Partners Wealth purchased a new stake in Affirm in the first quarter valued at about $243,000. EverSource Wealth Advisors LLC boosted its holdings in Affirm by 18.5% in the second quarter. EverSource Wealth Advisors LLC now owns 2,738 shares of the company’s stock worth $189,000 after acquiring an additional 427 shares in the last quarter. Finally, First Trust Advisors LP boosted its holdings in Affirm by 44.8% in the second quarter. First Trust Advisors LP now owns 191,525 shares of the company’s stock worth $13,242,000 after acquiring an additional 59,297 shares in the last quarter. Hedge funds and other institutional investors own 69.29% of the company’s stock.

Key Stories Impacting Affirm

Here are the key news stories impacting Affirm this week:

Positive Sentiment: Affirm reported record quarterly profitability, with adjusted EPS of $4.62 versus estimates ranging from approximately $0.35 to $3.77. Revenue increased 33% year over year, while gross merchandise volume rose 36% and adjusted operating income climbed 49%. Affirm Q4 Earnings and Revenues Beat Estimates
Positive Sentiment: Management’s fiscal 2027 outlook was reportedly above consensus, supported by continued card adoption, merchant expansion and growing use of installment payments for smaller, everyday purchases. Credit performance remained stable, helping reduce concerns about consumer losses. Affirm Q4 Earnings Call Highlights Growth and Product Expansion
Positive Sentiment: Lower funding costs were another profit tailwind: financing costs fell 103 basis points to 5.8%, allowing margin expansion while the company maintained tight underwriting standards. Affirm Operational Results and Funding Costs
Positive Sentiment: Several analysts raised their targets following the results. JPMorgan lifted its target to $105 and maintained an overweight rating, BMO raised its target to $101 with an outperform rating, and RBC increased its target to $96. Analyst Price Target Changes
Positive Sentiment: Affirm expanded its Shopify partnership into Australia through Shop Pay Installments, opening a new international growth channel and increasing the potential reach of its payment products. Affirm and Shopify Launch Shop Pay Installments in Australia
Neutral Sentiment: Unusually heavy call-option activity and a broader rebound in buy-now-pay-later stocks may be amplifying the move, but these signals do not necessarily reflect long-term fundamental demand.
Negative Sentiment: The $4.62 EPS headline should be interpreted cautiously because it benefited from a one-time tax allowance release. Reported revenue of roughly $1.07 billion was also below some analyst estimates near $1.11 billion, while the stock’s elevated valuation leaves limited room for execution disappointments. Affirm Earnings Quality Analysis

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.