Affirm Holdings’ (AFRM) stock is up 10% after the financial technology company reported Fiscal fourth quarter financial results that beat Wall Street forecasts and issued strong forward guidance.
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The San Francisco-based firm announced earnings per share (EPS) of $0.20, which topped the $0.12 consensus forecast of analysts. Affirm’s revenue in the period amounted to $876 million, which beat estimates of $837 million. Sales were up 33% from a year earlier.
The company also said that its gross merchandise volume, a key metric, rose 43% to $10.4 billion. That beat estimates of $9.61 billion. In terms of guidance, Affirm forecasts Fiscal 2026 gross merchandise volume above $46 billion versus estimates of $45.53 billion.
Affirm’s earnings per share. Source: Main Street Data
Walmart Worries
Affirm is a leader in the buy now, pay later space, offering the ability for consumers to pay for purchases in monthly installments, either with low interest or none at all. Affirm has also launched a debit card this year that has proven to be a popular option with consumers.
However, worries had surfaced related to Affirm in recent months as Walmart (WMT), the world’s biggest retailer, shifted most of its BNPL payments to Affirm’s rival, privately held Klarna. The latest financial results should allay concerns about Walmart, especially as Affirm highlights its partnerships with Amazon (AMZN) and Shopify (SHOP).
Is AFRM Stock a Buy?
The stock of Affirm Holdings has a consensus Moderate Buy rating among 18 Wall Street analysts. That rating is based on 12 Buy and six Hold ratings issued in the last three months. The average AFRM price target of $80.13 implies 0.18% upside from current levels. These ratings could change after the company’s financial results.
