Shares of Affirm Holdings, Inc. (AFRM) are soaring 22.92% in Friday's pre-market trading session following the release of its impressive fourth-quarter earnings report and optimistic fiscal year 2026 outlook. The buy-now, pay-later fintech company significantly outperformed market expectations, demonstrating robust growth across key metrics.
Affirm reported a revenue of $876.4 million for Q4, marking a 33% year-over-year increase and comfortably beating analyst estimates of $837 million. The company's earnings per share (EPS) of $0.20 also surpassed the expected $0.12, showcasing a remarkable turnaround from the loss reported in the same quarter last year. A key driver of Affirm's strong performance was the substantial growth in Gross Merchandise Volume (GMV), which increased by 43% to reach $10.4 billion.
Looking ahead, Affirm provided an optimistic outlook for fiscal year 2026, projecting GMV to exceed $46 billion, which is above the Wall Street consensus of $45.67 billion. This forward-looking guidance, coupled with the company's demonstrated ability to maintain solid unit economics while expanding its user base, has bolstered investor confidence in Affirm's long-term growth prospects. The strong results and outlook have prompted several analysts to raise their price targets, with some firms like Jefferies and TD Cowen increasing their targets to $110 and $115 respectively.
