Track market-moving stories before they get noisy

Affirm maintained strong double-digit growth in gross merchandise volume and active users in Q4, driven by robust BNPL adoption and rapid Affirm Card uptake. Affirm is benefiting from massive Affirm Card GMV growth, with the Visa debit card now representing 20% of total GMV. Rising inflation and geopolitical tensions have shifted rate expectations, making near-term Fed rate cuts unlikely and pressuring rate-sensitive fintech valuations.

Key Takeaways Affirm's Q4 fiscal 2026 GMV rose 36%, revenues climbed 33% and active users increased 21%.Affirm's 30 day delinquency rate was 2.5%, down 26 bps sequentially but up 19 bps year over year.Moderate consumer pressure can boost Affirm demand without significantly hurting credit quality. In recent interviews with CNBC and Bloomberg, Affirm Holdings, Inc. (AFRM - Free Report) CEO Max Levchin pointed to growing pressure on U.S. consumers from higher gas prices and inflation. Rising everyday costs are squeezing household budgets, but they are also making installment payments more useful, prompting more shoppers to turn to Affirm to preserve cash or spread out larger purchases.

That does not automatically make a tougher economy bullish for Affirm. The key is how much stress consumers can absorb. Moderate pressure can lift demand without materially weakening credit quality. Severe pressure is different. If borrowers move from wanting more flexibility to simply being unable to afford purchases, delinquencies and charge-offs can rise, forcing Affirm to tighten approvals and absorb higher credit costs.

So far, the operating picture looks more supportive than alarming. Affirm has continued to post strong growth in gross merchandise volume (up 36% in the fourth quarter of fiscal 2026), revenues (up 33%) and active users (up 21%), while credit trends remain manageable. Its underwriting model also gives it room to decline higher-risk applications, adjust credit limits and require down payments as risk conditions change. Affirm's 30+ day delinquency rate on monthly installment loans was 2.5%, down 26 basis points sequentially, although it was 19 basis points higher year over year.

Funding conditions remain worth watching, but the broader picture is constructive. As long as repayment trends remain stable and underwriting stays disciplined, rising demand for flexible payments could continue supporting Affirm’s growth while keeping credit performance on a healthy footing.

AFRM’s YTD Price PerformanceOver the year-to-date period, shares of Affirm have declined 2.9% against the 0.8% growth of the industry it belongs to.

Image Source: Zacks Investment Research

Zacks Rank & Key PicksAffirm currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader payments space are Remitly Global, Inc. (RELY - Free Report) , Usio, Inc. (USIO - Free Report) and Repay Holdings Corporation (RPAY - Free Report) . While Remitly Global currently sports a Zacks Rank #1 (Strong Buy), Usio and Repay Holdings are carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for Remitly Global’s current-year earnings indicates a 390.6% year-over-year surge to $1.57 per share. It has witnessed one upward estimate revision and no downward movement over the past 30 days. The consensus estimate for RELY’s current-year revenues is pegged at $1.98 billion, implying 21.4% year-over-year growth.

The Zacks Consensus Estimate for USIO’s current-year earnings indicates an 88.9% year-over-year improvement. USIO has witnessed one upward estimate revision over the past month against no cuts. The consensus estimate for current-year revenues indicates 13.9% year-over-year growth.

The Zacks Consensus Estimate for Repay Holdings’ current-year earnings indicates 26.8% year-over-year growth. RPAY witnessed one upward estimate revision over the past month and no downward movement. The consensus estimate for current-year revenues implies a 60.1% year-over-year jump.

Key Takeaways Affirm Holdings' Q4 revenues rose 33% as GMV reached $14.1 billion, up 36% year over year.AFRM's active cardholders more than doubled to 5.2 million, lifting its card attach rate to about 19%.Affirm Holdings expects fiscal 2027 GMV above $64 billion and adjusted operating margin above 30.5%. Affirm Holdings, Inc. (AFRM - Free Report) posted fourth-quarter fiscal 2026 earnings of $4.62 per share. The figure beat the Zacks Consensus Estimate of 33 cents by 1,300%. The metric rose from 20 cents a year ago.

Revenues of $1.17 billion rose 33.0% year over year and surpassed the consensus mark of $1.11 billion by 5.4%.

AFRM’s strong quarterly results were driven by robust Gross Merchandise Volume (“GMV”) growth, higher transactions, strong repeat customer engagement and increased interest income. Rapid growth in Affirm Card adoption and merchant activity also supported the performance. However, elevated operating expenses and higher provision for credit losses partly offset the gains. The bottom line also benefited significantly from a $1.45 billion income tax benefit related to the release of a valuation allowance on domestic deferred tax assets.

Affirm Holdings, Inc. Price, Consensus and EPS SurpriseAFRM’s Q4 PerformanceAs of June 30, 2026, AFRM’s active merchants totaled 570,800, up 50% year over year. GMV increased 36% year over year to $14.1 billion. The figure also surpassed the Zacks Consensus Estimate of $13.4 billion. The metric gained from strong contributions from direct merchant point-of-sale integrations, wallet partnerships and direct-to-consumer offerings.

Total transactions rallied 41.1% year over year to 52.9 million on the back of a significant surge in repeat customer transactions. The metric beat the consensus mark of 47.4 million. Active cardholders more than doubled to 5.2 million, lifting the card attach rate to about 19%.

Servicing income of $46.1 million advanced 36% year over year and beat the consensus mark of $45.4 million. Interest income rose 35% year over year to $567.3 million and beat the Zacks Consensus Estimate of $542.3 million.

Merchant network revenues improved 26.3% year over year to $302.4 million but missed the consensus mark of $306.1 million. The metric gained from growing GMV. Card network revenues amounted to $85.2 million, up 26.9% year over year, attributable to higher usage of Affirm Card and Affirm virtual cards. The metric beat the consensus mark of $75.9 million.

Operating expenses increased 24.5% year over year to $1.02 billion. Provision for credit losses climbed 42.5% to $223.2 million, while technology and data analytics expenses rose 31% to $202.6 million. Higher infrastructure costs and amortization of internally developed software contributed to the increase in technology and data analytics expenses.

Operating income improved to $147.3 million from $58.1 million, with operating margin expanding to 12.6% from 6.6%. Adjusted operating income increased 49% to $353.4 million, and adjusted operating margin improved to 30.3% from 27.0%.

Financial Position of Affirm (As of June 30, 2026)Affirm exited the fiscal fourth quarter with cash and cash equivalents of $1.6 billion, which increased from $1.4 billion as of fiscal 2025-end. Total assets of $15.8 billion rose from the fiscal 2025-end level of $11.2 billion.

Funding debt totaled $3.3 billion compared with $1.6 billion at the end of fiscal 2025. Total stockholders’ equity was $5.5 billion, up from $3.1 billion at the end of fiscal 2025.

AFRM generated $1.2 billion in net cash from operations for the 12 months ended June 30, 2026, compared with $793.9 million for the 12 months ended June 30, 2025.

Full-Year UpdateAFRM reported 2026 operating revenues of $4.3 billion, up from $3.2 billion a year ago. Full-year adjusted net income was $5.53 per share, up from 15 cents a year ago. 

Q1 2027 and FY2027 GuidanceFor the first quarter of fiscal 2027, AFRM expects GMV of $13.7-$14.0 billion and revenues of $1.19-$1.22 billion. The company projects revenue less transaction costs of $575-$590 million, an adjusted operating margin of 28.0-30.0% and a GAAP operating margin of 11.5-13.5%.

For fiscal 2027, management expects GMV of more than $64 billion. The company expects revenues to remain near 8.49% of GMV, the fiscal 2026 level. Adjusted and GAAP operating margins are projected to exceed 30.5% and 14.5%, respectively.

Zacks Rank of Affirm HoldingsAffirm Holdings currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

How Did the Peers Perform?Other payment space players like Mastercard Incorporated (MA - Free Report) , Visa Inc. (V - Free Report) and American Express (AXP - Free Report) have also reported their quarterly numbers. Here’s how they have performed:

Mastercard reported second-quarter 2026 adjusted EPS of $5.04, which topped the Zacks Consensus Estimate by 5.7%. The bottom line improved 21.4% year over year. Net revenues advanced 14.1% year over year to $9.3 billion. The top line beat the consensus mark by 2.4%. Mastercard’s quarterly results benefited from strong cross-border volume growth, increased switched transactions and robust demand for value-added services. The upside was partly offset by higher payment network rebates from renewed deals and an escalating operating expense level.

Visa delivered third-quarter fiscal 2026 adjusted earnings of $3.32 per share, which rose 11% year over year and beat the Zacks Consensus Estimate by 2.8%. Net revenues were $11.63 billion, rising 14% year over year. Visa’s quarterly results reflected resilient spending trends, higher cross-border volumes and solid network activity, including a 10% year-over-year increase in payments volume on a constant-dollar basis. The upside was partly offset by increased operating expenses.

American Express reported second-quarter 2026 earnings per share of $4.53, which surpassed the Zacks Consensus Estimate by 2.7%. The bottom line advanced 11% year over year. Total revenues, net of interest expense, improved 10% year over year to $19.6 billion. AXP’s quarterly results were driven by increased Card Member spending, higher net interest income and improved card fee growth. However, the upside was partly offset by elevated operating expenses.

Affirm posts better-than-expected revenue and gross merchandise volume in its fiscal fourth quarter.

Affirm Holdings Inc (NASDAQ:AFRM) on Thursday reported better-than-expected fourth-quarter financial results and issued first-quarter sales guidance above estimates.

Affirm reported quarterly earnings of $4.62 per share, according to Benzinga Pro data. Quarterly revenue came in at $1.17 billion, which beat the analyst consensus estimate of $1.11 billion and was up from $876.42 million in the same period last year.

"We delivered another outstanding set of results this quarter, especially in the broader context of global economic uncertainty," said CEO Max Levchin.

Affirm expects first-quarter revenue in a range of $1.19 billion to $1.22 billion, versus the $1.16 billion analyst estimate.

Affirm shares rose 11.2% to $86.20 in pre-market trading

These analysts made changes to their price targets on Affirm following earnings announcement.

Needham analyst Kyle Peterson maintained the stock with a Buy and raised the price target from $90 to $100. B of A Securities analyst Matthew O’Neill maintained the stock with a Buy and raised the price target from $93 to $104. Morgan Stanley analyst James Faucette maintained the stock with an Equal-Weight rating and raised the price target from $80 to $82. BMO Capital analyst Rufus Hone maintained the stock with an Outperform rating and raised the price target from $86 to $101. Trending

Considering buying AFRM stock? Here’s what analysts think:

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Is a “breakout on tap” for shares of Affirm?

Key Takeaways Affirm returned to Australia by launching Shop Pay Installments with Shopify.The rollout gives Affirm access to Shopify's Australian merchants and is expected to add GMV and revenue.Affirm ended fiscal 2026 with GMV up 36%, revenue up 33% and active merchants up 51%. Affirm Holdings, Inc. (AFRM - Free Report) recently expanded its partnership with Shopify by launching Shop Pay Installments in Australia. The service is powered exclusively by Affirm and sits inside Shopify’s Shop Pay checkout. Affirm makes a real-time underwriting decision on every transaction and does not charge late fees, account fees or compounding interest. The launch marks the company’s return to Australia after it wound down operations there in 2023 as part of a broader effort to focus on growth and profitability.

The re-entry gives Affirm access to Shopify’s Australian merchant base while advancing a broader global partnership already spanning the United States, Canada and the U.K., with further expansion planned across Western Europe. AFRM can help merchants boost conversions and basket sizes by making larger purchases easier for customers to manage.

Shop Pay has more than 250 million buyers globally, while over 90% of Affirm purchases in North America come from repeat customers. That creates a large channel and strengthens Affirm’s international expansion opportunity over time.

The Australian rollout is expected to add GMV and transaction-driven revenue as adoption builds, while also widening Affirm’s merchant network. In fourth quarter fiscal 2026, GMV jumped 36% to $14.1 billion, revenues rose 33% to $1.17 billion and revenue less transaction costs increased 39% to $589 million.

Active consumers climbed 21% to 27.8 million, while transaction per active consumer grew 20%, giving Affirm a larger base for international growth and recurring transaction volume across new markets over time. Also, active merchant count surged 51% to 571,000 as of June 30, 2026.

How Are Peers Placed?Affirm is going back to a competitive Australian BNPL market, where several companies already have established positions. PayPal Holdings Inc. (PYPL - Free Report) has considerable reach through Pay in 4. PayPal says the product is available across more than 9 million active Australian PayPal accounts, while its 2025 survey showed usage among 51% of Australian BNPL users, up from 45% a year earlier.

Meanwhile, Block, Inc. (XYZ - Free Report) is one of the strongest competitors through Afterpay, which originated in Australia. Afterpay currently cites about 4.4 million active consumers in Australia and New Zealand. PayPal’s 2025 Australian survey found that 78% of Australian BNPL users had used Afterpay in the prior six months.

Affirm’s Price Performance, Valuation and EstimatesShares of Affirm have gained 4.1% year to date, outperforming the broader industry but trailing the S&P 500 Index.

Affirm’s YTD Price Performance Image Source: Zacks Investment Research

From a valuation standpoint, Affirm trades at a forward price-to-earnings ratio of 41.42X, up from the industry average of 27.93X. AFRM carries a Value Score of D.

It beat earnings estimates in each of the past four quarters, with an average surprise of 379.4%.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways AFRM posted its most profitable quarter ever, excluding a tax allowance release, as Q4 beat estimates.AFRM targets card, in-store and merchant expansion, with card users generating about twice typical usage.AFRM will keep credit discipline tight while building U.K., Edge and longer-term products beyond fiscal 2027. Affirm Holdings, Inc. (AFRM - Free Report) used its fiscal fourth-quarter 2026 earnings call to emphasize growth, tighter execution and a wider product roadmap after what CEO Max Levchin called the company’s most profitable quarter ever, excluding a tax allowance release. The quarter ended on June 30, 2026.

The company reported fiscal fourth-quarter earnings per share (EPS) of $4.62, which beat the Zacks Consensus Estimate of $0.33. Revenues of $1.17 billion surpassed the consensus mark of $1.10 billion.

AFRM Sets the Fiscal 2027 Profitability ToneChief Financial Officer Rob O’Hare said that fiscal 2027 revenue less transaction costs should reflect take rates broadly consistent with fiscal 2026, supported by current funding costs and a similar funding mix.

Management’s outlook implies a 4.16% revenue-less-transaction-costs rate for fiscal 2027, above the 3.25%-4% midterm range referenced during the Q&A. O’Hare also expects only a slight shift toward interest-bearing loans.

On a GAAP EPS basis, O’Hare stopped short of a precise forecast. He reiterated a mid-to-high-20% run-rate tax rate while cautioning that accounting and stock-compensation effects can create volatility.

Affirm Pushes Card and In-Store ExpansionLevchin, founder, CEO and chairman, said that in-store commerce remains a major product opportunity, but the experience requires more work around connectivity, point-of-sale systems and transaction adjustments than online checkout.

He said that the company is developing in-store features intended to deliver more value despite added approval steps, with new ideas expected in coming quarters. E-commerce expansion remains a parallel priority.

Affirm Card is another focus. Levchin said that card users generate about twice the usage of typical customers, while card attachment stands at 19% of active users. Management plans card-specific features to lift both adoption and engagement.

AFRM Sees More Merchant GreenfieldA Redburn analyst pressed management on why Affirm remains available at only a portion of major e-commerce merchants despite broader payment-platform integrations. Levchin framed the gap as an opportunity rather than a sales constraint.

He said that large merchants often face long implementation cycles because legacy systems require significant modifications. That limits how quickly new checkout options can be added even when merchants are receptive.

Levchin also emphasized network effects. He said that adding consumers and merchants should make the platform more valuable to both sides, reinforcing Affirm’s long-term focus on network scale rather than short-term product shifts.

Affirm Keeps Credit Discipline CentralA Wells Fargo analyst asked whether resilient consumer performance creates room to loosen underwriting. Levchin rejected the idea of treating credit policy as a single broad lever.

He said Affirm makes roughly 100 million transaction-level credit decisions per quarter and continually adjusts policy across consumers, merchants and transaction classes. Credit targets remain an input to growth rather than an output.

Levchin added that management would slow growth before accepting a meaningful credit disturbance. O’Hare separately said that current consumer-credit performance does not give management pause in its fiscal 2027 assumptions.

AFRM Builds U.K. and Edge OpportunitiesLevchin described early U.K. performance as solid, citing positive merchant feedback and consumer receptivity. He also said that management had not observed a notable competitive response from incumbents so far.

Affirm Edge is moving more deliberately. Levchin said that bank partners face regulatory and implementation requirements, while Affirm is still completing parts of the technology needed for partner-controlled financing programs.

He expects the first launches to require close support and said that the company will prioritize execution quality over speed. Affirm Money Account is also being developed as a first-party model for the Edge experience.

Affirm Keeps Its Long-Term Product FocusLevchin said that his expanded product focus will increasingly target initiatives that may not contribute until fiscal 2028, fiscal 2029 and beyond. The current outlook instead reflects products already operating and generating profits.

Management’s call tone combined confidence in the existing network with restraint around newer initiatives. The company is pushing merchant coverage, card usage, international growth and bank partnerships without building near-term guidance around unproven products.

What AFRM’s Zacks Signals IndicatePresently, AFRM carries a Zacks Rank #3 (Hold), alongside a Value Score of D, a Growth Score of A, a Momentum Score of A and a VGM Score of B. The Style Score framework treats A and B readings as stronger, while D is less favorable. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Growth, Momentum and VGM scores therefore provide stronger style signals than Value, but the Zacks Rank remains the primary indicator in the framework. The Zacks Rank can change as analyst earnings estimates are revised after the newly reported results.

Affirm (NASDAQ:AFRM) said its fiscal fourth quarter was its most profitable ever, excluding the release of a tax valuation allowance, as the buy now, pay later company pointed to continued momentum in its core business and outlined product, merchant and international expansion priorities.

Founder and Chief Executive Officer Max Levchin also announced leadership changes intended to support execution and free more of his time for longer-term product development. Pat Suh was promoted to senior vice president and general manager of global markets, while Michael Linford was promoted to president. Levchin said he expects to focus more deeply on products and services that may not materially contribute until fiscal 2029 and beyond.

Product expansion and offline opportunity Levchin said Affirm already offers consumers several products beyond its traditional point-of-sale installment loans, including the Affirm Card, an account product and financing for business purchases. While most of its offerings remain forms of credit, he said the company expects to keep expanding into additional products, verticals and use cases. A major opportunity is in-store commerce, where Levchin said the company sees significant room for growth despite operational complexities that differ from online checkout. About 30% of Affirm Card transactions currently occur offline, according to an analyst question, though offline activity remains a small share of total gross merchandise volume.

Levchin said the company’s innovation team is working to improve in-store approvals and payment delivery, including addressing weak connectivity in large stores, point-of-sale systems that may not support QR codes, and issues such as transaction-size adjustments. He said Affirm intends to introduce “uniquely Affirm-specific” ideas in coming quarters, though he did not provide details.

“The bar for error is much lower” in stores than online, Levchin said, noting that consumers face greater inconvenience when a transaction fails at a physical checkout line.

Merchant expansion remains a long-term growth driver Management said Affirm has substantial room to add merchants. Levchin noted that the company is available at 80 of the top 250 e-commerce sites and roughly 10% of e-commerce merchants overall. He described that opportunity as “enormous” greenfield rather than a sign of impediments to growth.

Large merchant sales cycles can take time because retailers often operate complex or outdated technology systems, he said. Still, Levchin said merchants increasingly understand the value of adding Affirm at checkout, and the company expects its sales organization to continue signing merchants individually and, in some cases, in groups.

Levchin also said the company is seeing faster movement from merchant launch to meaningful impact. He cited the recent launch of Crate & Barrel and said coordination around merchant onboarding, marketing and performance reporting has improved. Meanwhile, transactions per user per year have continued to rise, supported in part by expanding merchant availability and the Affirm Card.

Zero-interest financing, card adoption and product mix Management highlighted continued growth in Pay in X offerings, including Pay in 4 and longer-term zero-interest financing programs funded by merchants and other partners. Levchin said zero-interest financing broadens the appeal of Affirm’s services to consumers across the credit spectrum, including customers who could otherwise pay with cash or a credit card.

Chief Financial Officer Rob O’Hare said Pay in 4 growth accelerated during the quarter after a large merchant with a relatively low average order value made the product an evergreen part of its financing program. He said Affirm tailors financing choices to a merchant’s products and basket sizes, and may offer different loan structures as transaction values increase.

O’Hare also said direct-to-consumer products carry a higher proportion of interest-bearing loans, with more than 80% of that product set interest-bearing. The continued scaling of products such as the Affirm Card has contributed to a modest shift toward interest-bearing loans, even as the company has increased zero-percent offers within point-of-sale integrations.

Levchin said the Affirm Card has a 19% attach rate relative to active users and generates roughly twice the usage of a typical customer relationship. The company expects both adoption and spending per cardholder to increase. He said Affirm plans to add card-specific features and benefits while maintaining the financing programs available through its standard point-of-sale experience.

Credit discipline and capital markets outlook Levchin said Affirm does not view credit risk as a binary decision to broadly tighten or loosen lending. Instead, the company assesses transaction-level risk in real time and can adjust approvals across particular consumer groups, merchants or transaction categories. He said Affirm would slow growth before allowing a significant deterioration in credit outcomes.

“Credit target is the input, not the output of the business,” Levchin said, emphasizing the company’s responsibility to capital-markets partners that fund its lending activity.

O’Hare said the company’s outlook for revenue less transaction costs in fiscal 2027 reflects debt-capital-markets execution that has provided a funding-cost profile expected to continue through the year. He expects funding mix to remain broadly consistent with fiscal 2026 and said any shift toward interest-bearing products should be slight.

On profitability, O’Hare said management has provided guidance for GAAP operating income and share count, while cautioning that the effective GAAP tax rate could be volatile. He said the company expects a run-rate GAAP tax rate in the mid- to high-20% range, though stock-based compensation and other GAAP-versus-tax differences may cause fluctuations.

Affirm also expects gain-on-sale revenue to vary by quarter depending on non-consolidated asset-backed securitization activity. O’Hare said the company completed two such deals in fiscal 2026 and anticipates a broadly similar funding approach in fiscal 2027.

Internationally, Levchin said the company is encouraged by its early progress in the United Kingdom. He said consumer and merchant feedback has been strong, citing the company’s fee-free approach, and said management has not seen a meaningful competitive response so far.

About Affirm (NASDAQ:AFRM) Affirm Holdings, Inc is a financial technology company that provides point-of-sale consumer lending and payments solutions for online and in-store purchases. Its core product is a buy-now-pay-later (BNPL) platform that enables consumers to split purchases into fixed, transparent installment loans with no hidden fees. Affirm offers a range of financing options through merchant integrations, a consumer-facing mobile app and virtual card capabilities, and tools for merchants to offer alternative payment methods at checkout.

The head of buy now, pay later provider Affirm says gas prices are weighing on consumers. “The U.S. consumer undoubtedly sees the higher gas prices, so can't, can't ignore that,” Max Levchin said in an interview with CNBC's “Squawk Box” Friday (Aug. 28).

Key Takeaways Affirm's BNPL growth is fueled by rising GMV, merchant adoption and deeper consumer engagement.Visa's payments volume and Value-Added Services are growing, while AI and stablecoins add new opportunities.Affirm's active merchant count rose 44%, while active consumers increased 22% in Q3 FY26. The digital payments industry is expanding beyond traditional card transactions as consumers increasingly adopt mobile payments, real-time money movement and flexible financing options. At the same time, emerging technologies such as artificial intelligence are reshaping how transactions are initiated, processed and secured, creating new growth opportunities across the payments ecosystem.

Visa Inc. (V - Free Report) and Affirm Holdings, Inc. (AFRM - Free Report) offer distinct ways to participate in this growth. Visa operates a global payments network and is expanding into areas such as real-time money movement, installments and AI-enabled commerce, while Affirm is focused more directly on consumer financing and pay-over-time solutions. Affirm is also broadening its reach through partnerships that embed its BNPL capabilities into debit-card programs, including a 2026 collaboration with Fiserv. These differences in business models, growth drivers and exposure to consumer spending make the stocks worth comparing from a fundamental and strategic perspective.

Let’s dive deep and closely compare the fundamentals of the two stocks to determine which stock offers greater upside right now.

The Case for VisaVisa’s growth story continues to rest on a broadening payments ecosystem rather than a single volume driver. In the third quarter of fiscal 2026, payments volume rose 10% year over year in constant dollars, and processed transactions increased 10% to 71.7 billion. Cross-border volume, excluding intra-Europe transactions, climbed 12%, with cross-border e-commerce advancing 16%, providing another strong contributor as travel and digital commerce remain healthy.

Value-added services (VAS) are becoming an increasingly important layer of Visa’s growth beyond its core payment network. VAS revenues jumped 34% year over year in constant dollars in the fiscal third quarter, with revenue growth across Issuing, Acceptance, and Risk and Security solutions staying above 20% in the past year.

Visa beat earnings in each of the past four quarters with an average surprise of 2.8%.

The company is also expanding its presence in buy now, pay later (BNPL), with Visa Installments providing issuers and fintechs with flexible financing capabilities that can be integrated into the checkout experience. Installment payments become a more established part of digital commerce, which creates another avenue for V to monetize its network.

The company is also positioning its infrastructure for the next phase of digital commerce. The Visa Stablecoin Platform is being built to support stablecoin minting, movement and management, while its integration with Pismo could support tokenized deposits. On the front end, V is developing agentic-commerce capabilities and has partnered with OpenAI to enable secure payments in AI-driven transactions. More than 150 AI-powered applications are already in use, and Visa has shipped more than 300 major product releases over the past year.

However, escalating operating expenses and higher rebates and client incentives will likely impact its growth potential. In the third quarter of fiscal 2026, V’s adjusted operating expenses rose 17% year over year. In the United States, the Department of Justice earlier accused the company of using its dominance to overcharge merchants. European and U.K. regulators are also investigating cross-border and merchant fees, potentially leading to fee caps or new compliance requirements, which could dent revenue growth in the region.

The Case for AffirmAffirm’s core BNPL business continues to expand as merchant adoption and consumer demand support higher transaction volumes. Active merchant count increased 44% year over year in the third quarter of fiscal 2026, with large payment service providers and platforms such as Shopify continuing to add merchants to the network. Pay in X has also become the company’s fastest-growing segment, supported by Shopify and a major program that shifted to an evergreen 0% Pay in 4 offering, a trend expected to continue into fourth-quarter fiscal 2026.

Gross Merchandise Volume (GMV) continues to provide a strong foundation for the company’s growth. The momentum was broad-based, with transactions surging 45% year over year to 45.3 million in the third quarter of fiscal 2026 and active consumers growing 22% to 26.8 million. Transactions per active consumer also increased 20% to 6.7, suggesting that growth is coming not only from a larger user base but also from deeper engagement. Meanwhile, cardholders count reached 4.4 million, while the product remains the company’s fastest-growing and most profitable offering. It beat earnings in each of the past four quarters with an average surprise of 74.9%.

Affirm is also expanding beyond traditional BNPL through technology that helps merchants optimize financing offers and improve conversion. Its AI-driven tools can tailor financing programs to consumer and merchant needs, potentially increasing GMV while strengthening Affirm’s value proposition at checkout.

Lower funding costs and international expansion add further upside to the longer-term story. Affirm’s funding costs declined about 125 basis points year over year in the third quarter of fiscal 2026 as ABS deals continued to attract strong demand and spreads tightened. At the same time, preparations for international launches are already underway, with additional investment planned as new markets come online.

However, it continues to face a rise in total expenses. Total operating expenses rose 20.1% year over year in the fiscal third quarter. Affirm’s funding model relies on securitizations, warehouse facilities and other debt funding, which keeps balance sheet leverage elevated. Its long-term debt-to-capital of 70.5% is higher than V’s 37.2% and the industry’s average of 19.4%.

How Do Estimates Compare for V & AFRM?The Zacks Consensus Estimate for Affirm's bottom line is comparably favorable at this stage. The consensus estimate for V’s fiscal 2026 earnings indicates an 11.5% increase from a year ago, while the same for revenues suggests 14.6% growth. On the other hand, the Zacks Consensus Estimate for Affirm's fiscal 2026 EPS indicates a 726.7% year-over-year improvement, and the same for revenues signals a 30.5% rise.

Price Performance ComparisonOver the past three months, Visa’s shares have underperformed compared with AFRM. Meanwhile, the S&P 500 increased 2.3% during this time.

Price Performance – V, AFRM & S&P 500
Image Source: Zacks Investment Research

Valuation: V vs. AFRMOn a price-to-sales basis, Visa sits at 13.04X forward revenues, significantly above Affirm’s multiple of 4.69X. AFRM’s cheaper P/S multiple leaves room for significant growth as business expansion accelerates.

Image Source: Zacks Investment Research

Price TargetVisa currently trades below its average analyst price target of $418.18, implying a 14.4% potential upside from current levels. AFRM also trades below its average analyst price target of $93.50, implying an attractive 20.9% potential upside from current levels.

ConclusionVisa and Affirm both offer compelling exposure to the continued evolution of digital payments, but their upside comes from different sources. Visa benefits from a highly scaled global network, resilient payment volumes, strong Value-Added Services growth and emerging opportunities in AI, stablecoins and agentic commerce. Affirm, meanwhile, is growing at a faster pace, supported by expanding BNPL adoption, rising GMV, a broader merchant network and increasing use of its Card.

AFRM’s stronger growth profile, expanding ecosystem and lower valuation multiple offer greater upside potential. For investors seeking rapid future gains rather than stability, Affirm appears to have the edge at this stage of the cycle, even though both companies currently carry a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Klarna Group (NYSE:KLAR | KLAR Price Prediction) stock is down 19% to $15.84 Tuesday morning after the buy now, pay later company cut its full-year revenue and volume outlook, overshadowing a Q2 2026 beat and raised profit guidance. Klarna stock is on track for its biggest single-day drop in nearly six months.

The reaction stands apart from peers. Affirm (NASDAQ:AFRM) stock is up 0.5% to $74.9, while Sezzle (NASDAQ:SEZL) stock is down 0.6% to $121.5 and PayPal (NASDAQ:PYPL) stock is up 2% to $61.41.

Through Monday’s close, Klarna stock was down 33% year to date (YTD), Affirm stock sat up 0.1% YTD, Sezzle stock was up 92% YTD, and PayPal stock was up 4% YTD. Tuesday’s split confirms single-name positioning around Klarna rather than sector-wide pressure.

Guidance Cut Overshadows a Clean Beat Klarna’s Q2 2026 report beat on every headline. The company’s revenue came in at $1.04 billion, up 27% year over year (YoY), topping the $996 million consensus, and adjusted earnings of $0.01 per share beat a consensus loss of $0.06. The company’s gross merchandise volume reached $36.6 billion, up 18% YoY.

Klarna’s transaction margin dollars landed at $446 million, up 42% YoY and equal to 42.8% of revenue. The company’s U.S. revenue rose 37% to $376 million, and merchants on the platform grew 54% YoY to more than 1.2 million.

The catalyst is the full-year cut. Klarna now guides FY26 GMV to $149 billion to $151 billion, from a prior view above $155 billion and revenue to $4.08 billion to $4.16 billion, from a prior view above $4.34 billion. The company attributes $600 million of the reduction to currency.

Profit Outlook Held While Volume Guide Came Down Klarna raised full-year transaction margin dollar guidance to $1.62 billion to $1.65 billion, equal to 1.09% of GMV, up from a prior view above 1.04% of GMV. The company’s adjusted operating income guidance was broadly unchanged at $280 million to $300 million. The company is guiding to less business at better economics.

Germany is the pain point, Klarna’s largest market by volume, where management flagged that German retail sales grew less than 1% in real terms in the first half, with softness concentrated in discretionary retail. The weakness is concentrated in categories most exposed to consumer discretion rather than staples.

CEO Sebastian Siemiatkowski remained confident:

Over 120 million consumers now use Klarna, and each is using it for more of their everyday spend — revenue per active consumer grew 24%. That deepening engagement is why transaction margin dollars grew 42%, well ahead of revenue and volume.

The company added, “We enter the second half with real momentum.”

Klarna announced planned 2027 transitions for CFO Niclas Neglén, after six years, and CMO David Sandström, after nine. The company has begun a search for a New York-based CFO, and both executives will lead their organizations through the handoff.

Peers Aren’t Following Affirm stock is essentially flat, Sezzle stock is fractionally lower, and PayPal stock is higher, signaling no BNPL contagion. Traders are pricing Klarna’s European volume problem as company-specific.

Retail sentiment on Stocktwits flipped from neutral to extremely bullish over the past 24 hours on extremely high message volume, with users framing the decline as a buying opportunity. The tone shift suggests dip-buyers are stepping in despite the guidance cut.

Bull Case, Bear Case The bull case rests on a clean beat, exceeded guided ranges on every headline, raised transaction margin dollar guidance, held adjusted operating income guidance, and growing merchants and revenue per consumer. A large share of the reduction is currency-driven.

The bear case is straightforward. A lowered volume and revenue outlook pressures a growth-multiple story, German softness may not resolve this year, a CFO transition arrives at an awkward moment, and Klarna stock was already down sharply on the year heading into Tuesday.

What to Watch Investors could look for signs that German discretionary spend stabilizes in September and October retail data. A second checkpoint is whether Q3 revenue lands inside Klarna’s $940 million to $980 million guide.

The other open question is whether transaction margin dollars keep outpacing revenue growth into Q4, since that underpins Klarna’s raised profit outlook despite the volume cut. Tuesday’s action says the market wants top-line proof before crediting the mix shift.

Contact [email protected] for any questions or corrections.

Airwallex is adding Affirm's installment payment options to its checkout platform, giving merchants in 35 countries a way to offer pay-over-time financing to eligible customers in the United States. Under the partnership announced Thursday (Aug. 13), merchants using Airwallex can make Affirm available at checkout without completing a separate integration.

Affirm Holdings (AFRM - Free Report) closed the most recent trading day at $76.58, moving -2.41% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.18%. Elsewhere, the Dow lost 0.85%, while the tech-heavy Nasdaq lost 0.06%.

Shares of the operator of digital commerce platform have depreciated by 3.46% over the course of the past month, underperforming the Computer and Technology sector's gain of 1.48%, and the S&P 500's gain of 3.33%.

Investors will be eagerly watching for the performance of Affirm Holdings in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.33, reflecting a 65% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.11 billion, reflecting a 26.39% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.23 per share and revenue of $4.21 billion, which would represent changes of +720% and +30.62%, respectively, from the prior year.

Any recent changes to analyst estimates for Affirm Holdings should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.21% higher. Affirm Holdings is currently a Zacks Rank #2 (Buy).

In terms of valuation, Affirm Holdings is presently being traded at a Forward P/E ratio of 45.5. This expresses a premium compared to the average Forward P/E of 21.6 of its industry.

We can also see that AFRM currently has a PEG ratio of 3.19. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. AFRM's industry had an average PEG ratio of 1.21 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 107, placing it within the top 44% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

Wall Street is discussing rate increases as the Federal Reserve seeks to address high inflation. Donald Trump is still pushing for rate cuts.

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?

Let's take a look at what these Wall Street heavyweights have to say about Affirm Holdings (AFRM - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Affirm Holdings currently has an average brokerage recommendation (ABR) of 1.51, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 35 brokerage firms. An ABR of 1.51 approximates between Strong Buy and Buy.

Of the 35 recommendations that derive the current ABR, 25 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 71.4% and 5.7% of all recommendations.

Brokerage Recommendation Trends for AFRM

Check price target & stock forecast for Affirm Holdings here>>>

While the ABR calls for buying Affirm Holdings, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Should You Invest in AFRM?In terms of earnings estimate revisions for Affirm Holdings, the Zacks Consensus Estimate for the current year has increased 0.9% over the past month to $1.23.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Affirm Holdings. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, the Buy-equivalent ABR for Affirm Holdings may serve as a useful guide for investors.

Affirm Holdings (AFRM - Free Report) closed the most recent trading day at $73.97, moving -1% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.14%. Elsewhere, the Dow saw a downswing of 0.01%, while the tech-heavy Nasdaq depreciated by 0.57%.

Shares of the operator of digital commerce platform witnessed a gain of 4.02% over the previous month, beating the performance of the Computer and Technology sector with its loss of 4.82%, and the S&P 500's gain of 0.25%.

The upcoming earnings release of Affirm Holdings will be of great interest to investors. The company is predicted to post an EPS of $0.33, indicating a 65% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.11 billion, up 26.39% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.23 per share and revenue of $4.21 billion. These totals would mark changes of +720% and +30.62%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Affirm Holdings. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 1.2% rise in the Zacks Consensus EPS estimate. Affirm Holdings presently features a Zacks Rank of #2 (Buy).

Looking at valuation, Affirm Holdings is presently trading at a Forward P/E ratio of 43.6. Its industry sports an average Forward P/E of 19.55, so one might conclude that Affirm Holdings is trading at a premium comparatively.

One should further note that AFRM currently holds a PEG ratio of 3.06. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.06 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 43% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

Posted by Defense World Staff on Jul 18th, 2026

Allspring Global Investments Holdings LLC lifted its holdings in Affirm Holdings, Inc. (NASDAQ:AFRM – Free Report) by 23.8% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 1,577,264 shares of the company’s stock after acquiring an additional 303,037 shares during the period. Allspring Global Investments Holdings LLC owned approximately 0.47% of Affirm worth $71,829,000 as of its most recent SEC filing.

A number of other hedge funds have also made changes to their positions in the business. Royal Bank of Canada raised its holdings in shares of Affirm by 2.1% during the 1st quarter. Royal Bank of Canada now owns 193,601 shares of the company’s stock valued at $8,748,000 after buying an additional 3,892 shares during the period. Empowered Funds LLC raised its stake in shares of Affirm by 90.7% during the first quarter. Empowered Funds LLC now owns 16,852 shares of the company’s stock valued at $762,000 after purchasing an additional 8,014 shares during the period. Focus Partners Wealth purchased a new stake in shares of Affirm during the first quarter valued at approximately $243,000. EverSource Wealth Advisors LLC lifted its position in shares of Affirm by 18.5% during the second quarter. EverSource Wealth Advisors LLC now owns 2,738 shares of the company’s stock worth $189,000 after purchasing an additional 427 shares in the last quarter. Finally, First Trust Advisors LP lifted its position in shares of Affirm by 44.8% during the second quarter. First Trust Advisors LP now owns 191,525 shares of the company’s stock worth $13,242,000 after purchasing an additional 59,297 shares in the last quarter. Hedge funds and other institutional investors own 69.29% of the company’s stock.

Affirm Stock Down 4.7% Shares of AFRM opened at $76.07 on Friday. The company has a 50-day simple moving average of $73.19 and a 200-day simple moving average of $63.82. The firm has a market capitalization of $25.48 billion, a P/E ratio of 69.15, a P/E/G ratio of 3.23 and a beta of 3.67. The company has a debt-to-equity ratio of 2.39, a quick ratio of 11.32 and a current ratio of 11.32. Affirm Holdings, Inc. has a 52 week low of $42.10 and a 52 week high of $100.00.

Affirm (NASDAQ:AFRM – Get Free Report) last released its earnings results on Thursday, May 7th. The company reported $0.30 earnings per share for the quarter, topping analysts’ consensus estimates of $0.17 by $0.13. The business had revenue of $943.95 million for the quarter, compared to the consensus estimate of $995.27 million. Affirm had a return on equity of 11.17% and a net margin of 9.63%.The firm’s revenue for the quarter was up 32.7% compared to the same quarter last year. During the same period last year, the business earned $0.01 earnings per share. On average, equities research analysts expect that Affirm Holdings, Inc. will post 1.23 earnings per share for the current year.

Insider Transactions at Affirm In other news, Director Noel Bertram Watson sold 2,000 shares of the firm’s stock in a transaction on Wednesday, May 13th. The stock was sold at an average price of $65.00, for a total value of $130,000.00. Following the completion of the sale, the director directly owned 36,076 shares in the company, valued at approximately $2,344,940. This trade represents a 5.25% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Michael Linford sold 100,000 shares of the business’s stock in a transaction dated Friday, June 26th. The stock was sold at an average price of $80.04, for a total transaction of $8,004,000.00. Following the completion of the transaction, the chief operating officer directly owned 117,984 shares of the company’s stock, valued at approximately $9,443,439.36. This represents a 45.87% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 11.01% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth A number of equities research analysts have weighed in on the company. Morgan Stanley set a $79.00 price objective on Affirm and gave the company an “overweight” rating in a research note on Sunday, May 10th. Wells Fargo & Company increased their target price on Affirm from $89.00 to $96.00 and gave the company an “overweight” rating in a research note on Wednesday, July 8th. Citigroup lifted their price target on shares of Affirm from $100.00 to $115.00 and gave the stock a “buy” rating in a research note on Wednesday, July 1st. Weiss Ratings reiterated a “hold (c-)” rating on shares of Affirm in a research note on Wednesday, June 24th. Finally, Citizens Jmp reduced their price objective on shares of Affirm from $105.00 to $85.00 and set a “market outperform” rating on the stock in a research note on Friday, April 17th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat.com, Affirm currently has an average rating of “Moderate Buy” and an average price target of $92.04.

Get Our Latest Analysis on AFRM

Affirm Company Profile (Free Report)

Affirm Holdings, Inc is a financial technology company that provides point-of-sale consumer lending and payments solutions for online and in-store purchases. Its core product is a buy-now-pay-later (BNPL) platform that enables consumers to split purchases into fixed, transparent installment loans with no hidden fees. Affirm offers a range of financing options through merchant integrations, a consumer-facing mobile app and virtual card capabilities, and tools for merchants to offer alternative payment methods at checkout.

Featured Stories Five stocks we like better than Affirm AST SpaceMobile Stock Sinks as SpaceX Fallout Rattles Space Sector Aehr Test Systems Stock Soars on Earnings, Eyes Over 150% Revenue Growth TSMC Just Gave AI Chip Bulls Another Reason to Stay Confident GE Aerospace Faces a Prove-It Moment in Q2 Earnings Want to see what other hedge funds are holding AFRM? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Affirm Holdings, Inc. (NASDAQ:AFRM – Free Report).

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Affirm Holdings (AFRM - Free Report) ended the recent trading session at $81.93, demonstrating a -1.79% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.79%. Meanwhile, the Dow experienced a drop of 0.26%, and the technology-dominated Nasdaq saw a decrease of 1.55%.

The operator of digital commerce platform's stock has climbed by 26.07% in the past month, exceeding the Computer and Technology sector's gain of 3.44% and the S&P 500's gain of 4.28%.

The upcoming earnings release of Affirm Holdings will be of great interest to investors. In that report, analysts expect Affirm Holdings to post earnings of $0.33 per share. This would mark year-over-year growth of 65%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.11 billion, up 26.39% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.23 per share and a revenue of $4.21 billion, indicating changes of +720% and +30.62%, respectively, from the former year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Affirm Holdings. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.52% increase. Affirm Holdings is currently a Zacks Rank #3 (Hold).

With respect to valuation, Affirm Holdings is currently being traded at a Forward P/E ratio of 48.05. For comparison, its industry has an average Forward P/E of 19.66, which means Affirm Holdings is trading at a premium to the group.

Also, we should mention that AFRM has a PEG ratio of 3.37. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software was holding an average PEG ratio of 1.07 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 104, finds itself in the top 43% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

Affirm Holdings (AFRM - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Over the past month, shares of this operator of digital commerce platform have returned +26%, compared to the Zacks S&P 500 composite's +2.2% change. During this period, the Zacks Internet - Software industry, which Affirm Holdings falls in, has gained 7%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Affirm Holdings is expected to post earnings of $0.34 per share, indicating a change of +70% from the year-ago quarter. The Zacks Consensus Estimate has changed +7.1% over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $1.24 points to a change of +726.7% from the prior year. Over the last 30 days, this estimate has changed +0.6%.

For the next fiscal year, the consensus earnings estimate of $1.7 indicates a change of +37.8% from what Affirm Holdings is expected to report a year ago. Over the past month, the estimate has changed +0.6%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Affirm Holdings.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Affirm Holdings, the consensus sales estimate of $1.11 billion for the current quarter points to a year-over-year change of +26.4%. The $4.21 billion and $5.32 billion estimates for the current and next fiscal years indicate changes of +30.6% and +26.3%, respectively.

Last Reported Results and Surprise HistoryAffirm Holdings reported revenues of $1.04 billion in the last reported quarter, representing a year-over-year change of +32.6%. EPS of $0.3 for the same period compares with $0.01 a year ago.

Compared to the Zacks Consensus Estimate of $997.92 million, the reported revenues represent a surprise of +4.09%. The EPS surprise was +76.47%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Affirm Holdings is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Affirm Holdings. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Affirm Holdings (AFRM - Free Report) closed the most recent trading day at $85.78, moving +1.42% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.72%. Meanwhile, the Dow experienced a rise of 0.3%, and the technology-dominated Nasdaq saw an increase of 1.12%.

Prior to today's trading, shares of the operator of digital commerce platform had gained 32.97% outpaced the Computer and Technology sector's loss of 6.12% and the S&P 500's loss of 0.9%.

The upcoming earnings release of Affirm Holdings will be of great interest to investors. It is anticipated that the company will report an EPS of $0.34, marking a 70% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.11 billion, up 26.19% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.24 per share and revenue of $4.21 billion, indicating changes of +726.67% and +30.59%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Affirm Holdings. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.63% higher. Affirm Holdings is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Affirm Holdings is presently being traded at a Forward P/E ratio of 49.64. This valuation marks a premium compared to its industry average Forward P/E of 19.82.

We can also see that AFRM currently has a PEG ratio of 3.48. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.08.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 83, placing it within the top 34% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

People walk past a billboard built for the upcoming NATO summit in Ankara, Turkey, July 1, 2026. REUTERS/Efekan Akyuz Purchase Licensing Rights, opens new tab

BRUSSELS, July 3 (Reuters) - NATO leaders including U.S. President Donald Trump are set to affirm ​an "ironclad commitment" to collective defence under the alliance's Article 5 pact at ‌a summit in Ankara next week, according to a text approved by NATO ambassadors on Friday and reviewed by Reuters.

NATO members are also set to pledge €70 billion ($80 billion) in military assistance to ​Ukraine for 2026 and "at least equivalent levels" of support in 2027, according to ​the declaration, which still needs final approval from the leaders at ⁠the summit.

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"We ... have gathered in Ankara to reaffirm our ironclad commitment to our ​collective defence under Article 5 of the Washington Treaty and to the transatlantic bond. ​An attack on one is an attack on all," says the declaration for the summit, which takes place on July 7 and 8.

Trump has frequently railed against NATO and its members, accusing ​them of not spending enough on defence and relying on the United States ​to protect Europe.

After clashing with European leaders over the U.S.-Israeli war against Iran, Trump cast doubt ‌on ⁠the U.S. commitment to NATO's mutual defence pact and even said he was considering quitting the alliance.

But the text, approved by the ambassadors of all NATO's 32 members including the United States, suggests the U.S. president is willing to set aside those ​ideas, at least for ​now.

The declaration says ⁠Russia poses "a long-term threat" to "Euro-Atlantic security and stability" and says NATO's European members and Canada are delivering on their commitment at ​last year's summit in The Hague to increase defence spending.

"We ​are building ⁠the future: a stronger Europe in a stronger NATO," the text says. "European Allies and Canada, working with the United States, are assuming greater responsibility for the Alliance’s defence."

The text ⁠also ​states that "Allies reiterate that Iran must never have ​a nuclear weapon and call on Iran to fully respect freedom of navigation in the Strait of Hormuz".

($1 = ​0.8737 euros)

Reporting by Andrew Gray and Lili Bayer Editing by Bart Meijer and Peter Graff

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Andrew Gray is Reuters' European Affairs Editor. Based in Brussels, he covers NATO and the European Union and leads a pan-European team of reporters focused on diplomacy, defence and security. A journalist for almost 30 years, he has previously been based in the UK, Germany, Geneva, the Balkans, West Africa and Washington, where he reported on the Pentagon. He covered the Iraq war in 2003 and contributed a chapter to a Reuters book on the conflict. He has also worked at Politico Europe as a senior editor and podcast host, served as the main editor for a fellowship programme for journalists from the Balkans, and contributed to the BBC's From Our Own Correspondent radio show.

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Affirm Holdings (AFRM - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Shares of this operator of digital commerce platform have returned +7.9% over the past month versus the Zacks S&P 500 composite's -2.9% change. The Zacks Internet - Software industry, to which Affirm Holdings belongs, has lost 5.2% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Affirm Holdings is expected to post earnings of $0.36 per share for the current quarter, representing a year-over-year change of +80%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The consensus earnings estimate of $1.25 for the current fiscal year indicates a year-over-year change of +733.3%. This estimate has changed +0.6% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $1.69 indicates a change of +35.8% from what Affirm Holdings is expected to report a year ago. Over the past month, the estimate has changed -0.6%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Affirm Holdings is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Affirm Holdings, the consensus sales estimate of $1.1 billion for the current quarter points to a year-over-year change of +26%. The $4.21 billion and $5.33 billion estimates for the current and next fiscal years indicate changes of +30.6% and +26.5%, respectively.

Last Reported Results and Surprise HistoryAffirm Holdings reported revenues of $1.04 billion in the last reported quarter, representing a year-over-year change of +32.6%. EPS of $0.3 for the same period compares with $0.01 a year ago.

Compared to the Zacks Consensus Estimate of $997.92 million, the reported revenues represent a surprise of +4.09%. The EPS surprise was +76.47%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Affirm Holdings is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Affirm Holdings. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

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