Dear Affirm Stock Fans, Mark Your Calendars for August 27

Digital payments are moving beyond traditional card transactions as consumers are embracing mobile payments, real-time money movement, and flexible financing options. At the same time, emerging technologies are reshaping transactions, creating new growth opportunities across the payments ecosystem.

Affirm Holdings (AFRM) is one of the companies gaining from these changes. Its main buy-now-pay-later (BNPL) business is growing as more merchants and consumers use it, boosting transaction volumes. Notably, the number of active merchants reached 515 thousand by the end of Q3, with payment service providers and platforms like Shopify (SHOP) further expanding their merchant networks.

That expansion is not limited to BNPL. The company is progressing with initiatives including the Affirm Card, app-based shopping features, and artificial intelligence (AI)-driven development tools, indicating ongoing investment as the platform expands beyond traditional BNPL. 

Investors should now look out for Thursday, Aug. 27, when the company releases its Q4 FY2026 shareholder letter and financial results after the market closes.

The report is expected to offer new insights into AFRM’s recent performance, future growth opportunities, and overall trajectory, making the stock a noteworthy option to monitor.

About Affirm Stock

Based in San Francisco, California, Affirm Holdings operates a digital payment network that provides consumers with alternatives to traditional payment methods. With a market cap of $25.8 billion, the company offers a range of products through its Affirm platform, app, card, and website. 

These services include point-of-sale (POS) financing, merchant solutions, personalized offers, virtual cards, and installment payment options. However, on the price-performance front, AFRM stock has delivered mixed results.

Shares are down 0.14% over the last 52 weeks, but momentum picked up considerably in recent months. AFRM stock has surged 61.1% over the past six months and added another 10% in the last month, highlighting the stock’s recent strength.

Coming to valuation, the stock is trading at approximately 24.93 times forward adjusted price-to-earnings and 6.13 times sales, both above industry benchmarks. This suggests that investors are placing a relatively high valuation on Affirm’s earnings potential and growth prospects.

Affirm Surpasses Q3 Earnings

Affirm delivered a solid Q3 FY2026 performance on May 7, with results exceeding Wall Street expectations. Total revenue rose 32.7% year-over-year (YOY) to $1.04 billion, beating estimates of $997.9 million, while revenue less transaction costs (RLTC) climbed 41% to $498 million, or 4.31% of gross merchandise volume (GMV), reflecting stronger monetization and improved operating leverage.

Profitability also improved significantly. Net income reached $102.9 million, compared with just $2.8 million a year earlier, while adjusted operating income increased to $280.8 million. This translated into an adjusted operating margin of 27%, up from 22.3% in the prior-year quarter. EPS came in at $0.30, comfortably ahead of analysts’ estimate of $0.17.

Strong consumer and merchant activity further supported Affirm's growth. GMV increased 34.9% YOY to $11.6 billion, surpassing the company’s prior guidance of $11 billion to $11.3 billion. Active consumers grew 22% to 26.8 million as of March 31, while transactions per active user rose 20% to 6.7, indicating stronger engagement. 

Meanwhile, active merchants jumped 44%. Affirm Card also remained the fastest-growing and most profitable product, with cardholders reaching 4.4 million by quarter-end. 

Following the solid quarter, Affirm has raised its FY2026 outlook, calling for GMV of $49.27 billion to $49.57 billion, revenue of $4.175 billion to $4.205 billion, and an adjusted operating margin of 28.2% to 28.8%. For Q4, management expects GMV of $13.15 billion to $13.45 billion and revenue of $1.08 billion to $1.11 billion.

On the other hand, analysts expect Q4 FY2026 EPS to surge 65% YOY to $0.33. For full-year FY2026, they forecast EPS to rise 726.7% from the previous year to $1.24, followed by a 39.5% growth to $1.73 in FY2027.

What Do Analysts Expect for Affirm Stock?

Ahead of Affirm’s Q4 FY2026 earnings report, analysts remain broadly bullish on the stock. Rufus Hone of BMO Capital Markets raised his price target to $86 from $78, while Rayna Kumar of Oppenheimer reiterated a “Buy” rating with a $100 price target.

The stock has received an overall rating of “Strong Buy” from Wall Street. Among 35 analysts covering the name, 26 have issued “Strong Buy” ratings, two are going with “Moderate Buy,” while seven are staying with a “Hold” call.

The bullish sentiment is also reflected in price targets. The average price target of $93.61 represents potential upside of 20.8%. Meanwhile, the Street-High target of $117 points to a gain of 51% from current levels.