Affirm Holdings Surges 11-13% After Record Profitable Quarter and Q1 Revenue Beat

Affirm Holdings jumped roughly 11-13% in premarket and regular trading on August 28 after reporting its most profitable quarter on record in fiscal Q4 2026. The buy-now, pay-later company posted adjusted earnings per share of $4.62, well above the analyst consensus of $3.77, though analysts noted the headline GAAP figure was inflated by a one-time tax valuation allowance release of approximately $1.5-1.6 billion and does not reflect core profitability. Operationally, Affirm delivered 33% revenue growth and 36% gross merchandise volume growth year over year, with adjusted operating income rising 49% and funding costs declining 103 basis points to 5.8%.

The company's Q1 revenue guidance also topped the average analyst estimate, and Affirm and Shopify expanded their global partnership to launch Shop Pay Installments in Australia. Oppenheimer raised its price target on AFRM from $100 to $104 with an Outperform rating, while Bank of America flagged only modest near-term growth in its guidance but cited multiple potential catalysts and sees nearly 35% upside from current levels. Delinquency rates remained low, and credit performance was stable despite broader industry concerns.

The stock's forward price-to-earnings ratio remains elevated at around 40, with a price-to-sales ratio near 6.3.