TLDR
- Affirm stock jumped 12% in premarket trading after Q2 FY2026 earnings beat Wall Street estimates across the board.
- Revenue rose 33% year-over-year to $1.17 billion, beating analyst expectations of $1.11 billion.
- Gross merchandise volume (GMV) hit $14.1 billion, topping the $13.4 billion consensus estimate.
- GAAP EPS came in at $4.62, crushing analyst estimates of $0.35.
- Affirm announced a new partnership with Shopify to launch Shop Pay Installments in Australia.
Affirm (AFRM) stock surged 12% to $86.80 in premarket trading on Friday after the buy now, pay later company delivered a strong fiscal Q2 report that beat expectations across multiple metrics.
Revenue for the quarter ended June 30 came in at $1.17 billion, up 33% year-over-year and ahead of the $1.11 billion Wall Street had forecast. That beat came in at 5.2% above consensus.
GMV, the total value of transactions processed through Affirm’s platform, jumped 36% to $14.1 billion. Analysts had expected $13.4 billion. Direct merchant point-of-sale integrations drove roughly half that growth.
$AFRM FQ4’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $1.17B (Est. $1.11B) 🟢
🔹 GMV: $14.1B; +36% YoY
🔹 EPS: $4.62; incl. $1.45B tax benefit
🔹 Adj. Oper Income: $353M; 30% marginQ1 Guide:
🔹 Revenue: $1.19B-$1.22B (Est. $1.16B) 🟢
🔹 GMV: $13.7B-$14.0BOther Q4 Metrics:
🔹 Revenue… pic.twitter.com/d3lJlsBBFh— Wall St Engine (@wallstengine) August 27, 2026
GAAP EPS landed at $4.62, far above analyst estimates of $0.35. Pre-tax profit hit $169.1 million, representing a 14.5% margin.
Michael Linford, newly appointed company president, called the results a “home run.” He pointed out this was the 11th straight quarter of GMV growth exceeding 30%.
GAAP operating margins grew to 12.6%, up 6% from the same period last year.
Guidance Tops Expectations
For Q3 CY2026, Affirm guided revenue to $1.21 billion at the midpoint, which is 3.6% above what analysts had penciled in at $1.16 billion.
For the full fiscal year, the company expects GMV to exceed $64 billion, ahead of the $63 billion consensus. CEO Max Levchin has long targeted $100 billion in GMV, a milestone analysts expect by 2029.
Susquehanna analyst James Friedman raised his price target to $110 from $105 and kept a Positive rating, calling the results and guidance “exceptionally strong.”
Fintech Peers Lag Behind
Affirm’s strong quarter stands out against a rough stretch for fintech peers. SoFi is down 27% in 2026, while Klarna has dropped nearly 52%. Affirm itself is up just 4.1% year-to-date, trailing the broader market, but this print could change that narrative.
Jefferies analyst John Hecht noted that fintech stocks had already started outperforming the S&P 500 in the weeks leading up to earnings, gaining an average of 6.7% against the index’s 3.2% rise.
Linford credited strong consumer financial health for the results. Excluding Peloton and Pay in 4 loans, Affirm’s 30-day delinquency rate rose 2.5% from last year, a deceleration from the 2.7% to 2.8% increases seen over the prior three quarters.
Affirm also unveiled a new growth team led by Pat Suh, former SVP of revenue, to oversee its push into new markets.
On the partnerships front, Affirm and Shopify announced the launch of Shop Pay Installments in Australia. Shop Pay Installments has been one of Shopify’s most popular products in North America since its 2021 launch.
Linford framed the Australia expansion as Shopify pulling Affirm into new markets, pointing to a similar UK expansion the two companies undertook last year.
Affirm’s annualized revenue growth over the last five years stands at 37.4%, with the last two years running at 35.4%.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
