Affirm Holdings (NASDAQ: AFRM) is a financial-technology company that provides buy now, pay later services. Its platform enables consumers to divide purchases into installments, while Affirm earns revenue through merchant fees and interest-bearing loans.
On August 28, 2026, Cantor Fitzgerald reaffirmed its Overweight rating and $88 price target for Affirm. The firm had originally raised the target to $88 from $80 on July 22, ahead of the company’s fiscal fourth-quarter report.
Affirm reported GAAP diluted EPS of $4.62 for its fiscal fourth quarter. However, this figure was boosted substantially by the release of a tax valuation allowance, which generated a one-time tax benefit of approximately $1.45 billion.
Affirm’s underlying operating results were nevertheless strong. Revenue increased 33% year over year to $1.166 billion, exceeding the consensus estimate of approximately $1.11 billion. GAAP operating margin improved by approximately six percentage points to 12.6%, while adjusted operating income reached approximately $353 million.
Gross merchandise volume, representing the total value of transactions processed through Affirm’s platform, increased 36% to approximately $14.1 billion. Full-year fiscal 2026 GMV reached $50.2 billion, representing growth of approximately 37%.
Revenue less transaction costs, an important measure of Affirm’s transaction economics after funding costs and credit provisions, increased 39% to $589 million. Its RLTC margin reached 4.2% of GMV, remaining above the company’s medium-term target range.
Affirm’s active consumer base increased 21% to 27.8 million, while transactions per active consumer rose 20% to 7.0. Affirm Card GMV more than doubled to approximately $2.8 billion, providing another important source of growth.
For fiscal 2027, Affirm expects GMV to exceed $64 billion, compared with approximately $50.2 billion in fiscal 2026. This implies growth of at least 28%. For the first quarter, the company forecasts GMV of $13.7–$14.0 billion and revenue of $1.19–$1.22 billion.
Affirm shares initially rose approximately 9% in after-hours trading and advanced around 12% during the following session as investors responded to its strong operating performance and outlook.
Several analysts raised their targets after the report. Bank of America increased its price target to $104 from $93 while maintaining a Buy rating. Needham raised its target to $100 from $90, also maintaining a Buy rating.
