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SAN FRANCISCO--(BUSINESS WIRE)--Affirm (NASDAQ: AFRM) today announced an exclusive, multi-year collaboration with Sam's Club that will give eligible shoppers a clear, predictable way to pay over time. Affirm will be available on SamsClub.com in the coming weeks, with Affirm planning to expand availability to Sam's Club locations in 2027. “Making every dollar count shouldn't stop at checkout,” said Wayne Pommen, CRO at Affirm. “When people pay over time with Affirm, they know what they'll owe an.

Diversify Advisory Services LLC trimmed its holdings in shares of Affirm Holdings, Inc. (NASDAQ:AFRM – Free Report) by 13.5% during the third quarter, according to its most recent Form 13F filing with the SEC. The firm owned 307,734 shares of the company’s stock after selling 48,120 shares during the period. Diversify Advisory Services LLC owned approximately 0.09% of Affirm worth $23,363,000 at the end of the most recent reporting period.

Other large investors also recently modified their holdings of the company. Bank of New York Mellon Corp acquired a new stake in Affirm in the second quarter worth about $75,121,000. Ardmore Road Asset Management LP increased its stake in Affirm by 849.6% during the 1st quarter. Ardmore Road Asset Management LP now owns 600,000 shares of the company’s stock valued at $27,492,000 after buying an additional 536,814 shares during the period. Diversify Wealth Management LLC acquired a new position in Affirm during the 1st quarter valued at about $14,798,000. Allspring Global Investments Holdings LLC increased its stake in Affirm by 23.8% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 1,577,264 shares of the company’s stock valued at $71,829,000 after buying an additional 303,037 shares during the period. Finally, Spyglass Capital Management LLC raised its position in shares of Affirm by 15.2% during the 1st quarter. Spyglass Capital Management LLC now owns 1,662,325 shares of the company’s stock worth $76,168,000 after buying an additional 218,745 shares in the last quarter. 69.29% of the stock is owned by institutional investors and hedge funds.

Affirm Price Performance NASDAQ AFRM opened at $73.85 on Wednesday. The stock’s 50-day moving average price is $73.54 and its two-hundred day moving average price is $70.93. The company has a current ratio of 11.80, a quick ratio of 11.80 and a debt-to-equity ratio of 1.82. The company has a market cap of $24.92 billion, a PE ratio of 13.38, a PEG ratio of 2.92 and a beta of 3.82. Affirm Holdings, Inc. has a 1 year low of $42.10 and a 1 year high of $90.44.

Affirm (NASDAQ:AFRM – Get Free Report) last posted its quarterly earnings data on Thursday, August 27th. The company reported $4.62 EPS for the quarter, beating analysts’ consensus estimates of $0.35 by $4.27. Affirm had a net margin of 45.29% and a return on equity of 47.91%. The company had revenue of $1.07 billion during the quarter, compared to analyst estimates of $1.11 billion. During the same period in the prior year, the firm earned $0.20 earnings per share. The business’s quarterly revenue was up 33.1% on a year-over-year basis. On average, analysts predict that Affirm Holdings, Inc. will post 1.91 EPS for the current year. Insider Activity In related news, CFO Robert O’Hare sold 65,591 shares of the company’s stock in a transaction that occurred on Friday, October 9th. The shares were sold at an average price of $80.02, for a total value of $5,248,591.82. Following the completion of the sale, the chief financial officer owned 2,734 shares in the company, valued at approximately $218,774.68. This represents a 96.00% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Katherine Adkins sold 41,664 shares of the company’s stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $75.53, for a total transaction of $3,146,881.92. Following the completion of the sale, the insider owned 152,439 shares of the company’s stock, valued at approximately $11,513,717.67. This trade represents a 21.46% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 280,118 shares of company stock worth $22,223,307 over the last three months. 11.01% of the stock is owned by insiders.

Wall Street Analyst Weigh In Several equities research analysts recently commented on the company. Bank of America boosted their target price on Affirm from $93.00 to $104.00 and gave the stock a “buy” rating in a report on Friday, August 28th. Wolfe Research restated an “outperform” rating on shares of Affirm in a report on Friday, August 28th. Barclays upped their price target on Affirm from $97.00 to $105.00 and gave the company an “overweight” rating in a report on Friday, August 28th. TD Cowen cut their price objective on Affirm from $124.00 to $110.00 and set a “buy” rating for the company in a research report on Tuesday, October 6th. Finally, Royal Bank Of Canada increased their price objective on Affirm from $80.00 to $96.00 and gave the company a “sector perform” rating in a research report on Friday, August 28th. Twenty-four analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $97.69.

Read Our Latest Report on Affirm

About Affirm (Free Report)

Affirm Holdings, Inc (NASDAQ: AFRM) operates a financial technology platform that provides consumers with flexible payment options at the point of sale. Its services allow shoppers to split eligible purchases into scheduled installments, with terms and costs disclosed before a transaction is completed.

Affirm’s platform is available through online and mobile checkout experiences, as well as through the Affirm app. Its product offerings include buy now, pay later financing, the Affirm Card, and savings products.

See Also Five stocks we like better than Affirm Aurora Rejects Curaleaf’s Higher Bid, But the Takeover Fight Isn’t Over Centrus Energy Is Building a Nuclear Fuel Powerhouse—Why Is Its Stock Struggling? Halliburton Gains Traction: Multiyear Upcycle Ahead Meta Platforms’ AI Comeback Faces an Earnings Test—And a $10 Billion Charge 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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The buy now, pay later company helps make transactions happen sooner rather than later.

*Stock prices used were the afternoon prices of Oct. 17, 2026. The video was published on Oct. 19, 2026.

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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 +8%, compared to the Zacks S&P 500 composite's +1.4% change. During this period, the Zacks Internet - Software industry, which Affirm Holdings falls in, has gained 5.4%. 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 RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Affirm Holdings is expected to post earnings of $0.35 per share for the current quarter, representing a year-over-year change of +52.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.4%.

The consensus earnings estimate of $1.91 for the current fiscal year indicates a year-over-year change of -65.5%. This estimate has changed +1.8% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $2.87 indicates a change of +50.4% from what Affirm Holdings is expected to report a year ago. Over the past month, the estimate has remained unchanged.

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 #2 (Buy) for Affirm Holdings.

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

12 Month EPS

Revenue Growth ForecastWhile 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.

For Affirm Holdings, the consensus sales estimate for the current quarter of $1.21 billion indicates a year-over-year change of +30%. For the current and next fiscal years, $5.51 billion and $6.9 billion estimates indicate +29.4% and +25% changes, respectively.

Last Reported Results and Surprise HistoryAffirm Holdings reported revenues of $1.17 billion in the last reported quarter, representing a year-over-year change of +33%. EPS of $4.62 for the same period compares with $0.2 a year ago.

Compared to the Zacks Consensus Estimate of $1.11 billion, the reported revenues represent a surprise of +5.23%. The EPS surprise was +1300%.

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 #2 does suggest that it may outperform the broader market in the near term.

Shares of Affirm Holdings, Inc. (NASDAQ:AFRM – Get Free Report) have been given an average recommendation of “Moderate Buy” by the thirty-two brokerages that are covering the stock, MarketBeat reports. Eight equities research analysts have rated the stock with a hold recommendation and twenty-four have issued a buy recommendation on the company. The average 12 month target price among analysts that have issued a report on the stock in the last year is $97.69.

AFRM has been the topic of a number of research reports. Weiss Ratings raised shares of Affirm from a “hold (c-)” rating to a “hold (c+)” rating in a research note on Friday, August 28th. Royal Bank Of Canada increased their target price on Affirm from $80.00 to $96.00 and gave the stock a “sector perform” rating in a report on Friday, August 28th. Cantor Fitzgerald increased their target price on Affirm from $88.00 to $97.00 and gave the stock an “overweight” rating in a report on Monday, August 31st. Compass Point set a $100.00 target price on Affirm in a research report on Friday, July 17th. Finally, Scotiabank assumed coverage on Affirm in a research note on Wednesday, September 2nd. They issued a “sector outperform” rating and a $95.00 target price on the stock.

Get Our Latest Analysis on Affirm

Affirm Stock Performance Shares of AFRM stock opened at $70.51 on Thursday. The stock has a market cap of $23.79 billion, a PE ratio of 12.77, a price-to-earnings-growth ratio of 3.13 and a beta of 3.82. The stock has a 50-day moving average of $73.69 and a 200-day moving average of $70.08. The company has a debt-to-equity ratio of 1.82, a current ratio of 11.80 and a quick ratio of 11.80. Affirm has a one year low of $42.10 and a one year high of $90.44. Affirm (NASDAQ:AFRM – Get Free Report) last issued its earnings results on Thursday, August 27th. The company reported $4.62 EPS for the quarter, beating the consensus estimate of $0.35 by $4.27. The firm had revenue of $1.07 billion during the quarter, compared to the consensus estimate of $1.11 billion. Affirm had a net margin of 45.29% and a return on equity of 47.91%. The business’s quarterly revenue was up 33.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.20 earnings per share. As a group, sell-side analysts expect that Affirm will post 1.91 earnings per share for the current year.

Insider Buying and Selling at Affirm In related news, insider Katherine Adkins sold 41,664 shares of the company’s stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $75.53, for a total transaction of $3,146,881.92. Following the sale, the insider owned 152,439 shares in the company, valued at approximately $11,513,717.67. This represents a 21.46% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Michael Linford sold 79,219 shares of the company’s stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $90.01, for a total value of $7,130,502.19. Following the sale, the chief operating officer owned 120,713 shares in the company, valued at $10,865,377.13. The trade was a 39.62% decrease in their position. 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. Insiders sold a total of 280,118 shares of company stock worth $22,223,307 in the last three months. 11.01% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Affirm Several hedge funds and other institutional investors have recently made changes to their positions in AFRM. Mather Group LLC. increased its stake in shares of Affirm by 52.9% in the third quarter. Mather Group LLC. now owns 613 shares of the company’s stock valued at $42,000 after buying an additional 212 shares during the period. Osbon Capital Management LLC bought a new stake in Affirm during the 4th quarter worth approximately $49,000. Fideuram Intesa Sanpaolo Private Banking S.P.A. bought a new stake in Affirm during the 1st quarter worth approximately $34,000. Ascentis Independent Advisors bought a new stake in shares of Affirm in the first quarter worth $41,000. Finally, CX Institutional increased its holdings in Affirm by 2,724.3% in the second quarter. CX Institutional now owns 1,045 shares of the company’s stock valued at $85,000 after purchasing an additional 1,008 shares during the period. 69.29% of the stock is owned by institutional investors.

Affirm Company Profile (Get Free Report)

Affirm Holdings, Inc (NASDAQ: AFRM) operates a digital commerce and financial services platform that enables consumers to pay for purchases over time. Its point-of-sale financing products allow eligible customers to use installment loans, including both short-term and longer-duration payment options, with terms and costs disclosed before purchase.

Affirm’s services are offered through its merchant partners’ online and in-store checkout experiences, as well as through the Affirm app and website.

Further Reading Five stocks we like better than Affirm Tesla Wants to Make Its Own Chips—What Could Go Wrong? IREN Limited’s AI Pivot Gains Traction—But Can Its Data Centers Deliver? PBF Energy’s Stunning Rally Faces a Critical Test Citi Stock Falls Despite Earnings Beat: What Investors Need to Know

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In the latest trading session, Affirm Holdings (AFRM - Free Report) closed at $77.82, marking a -1.03% move from the previous day. This change lagged the S&P 500's daily loss of 0.02%. On the other hand, the Dow registered a loss of 0.35%, and the technology-centric Nasdaq decreased by 0.15%.

Prior to today's trading, shares of the operator of digital commerce platform had gained 7.15% outpaced the Computer and Technology sector's gain of 3.58% and the S&P 500's gain of 2.05%.

Analysts and investors alike will be keeping a close eye on the performance of Affirm Holdings in its upcoming earnings disclosure. The company's earnings report is set to go public on November 5, 2026. The company's earnings per share (EPS) are projected to be $0.35, reflecting a 52.17% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.21 billion, up 30.03% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.91 per share and revenue of $5.51 billion. These totals would mark changes of -65.46% and +29.41%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Affirm Holdings. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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 witnessed a 1.84% increase. Affirm Holdings is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Affirm Holdings is holding a Forward P/E ratio of 41.21. This valuation marks a premium compared to its industry average Forward P/E of 20.7.

We can also see that AFRM currently has a PEG ratio of 3.16. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.19.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 79, positioning it in the top 33% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

Affirm Holdings (AFRM - Free Report) closed at $76.28 in the latest trading session, marking a +1.29% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.47%. On the other hand, the Dow registered a gain of 0.1%, and the technology-centric Nasdaq decreased by 1.25%.

The operator of digital commerce platform's stock has climbed by 10.51% in the past month, exceeding the Computer and Technology sector's gain of 6.08% and the S&P 500's gain of 1.15%.

Analysts and investors alike will be keeping a close eye on the performance of Affirm Holdings in its upcoming earnings disclosure. The company's earnings report is set to go public on November 5, 2026. The company's earnings per share (EPS) are projected to be $0.34, reflecting a 47.83% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.21 billion, indicating a 29.95% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.87 per share and revenue of $5.51 billion. These totals would mark changes of -66.18% and +29.34%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Affirm Holdings. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 past month, the Zacks Consensus EPS estimate has remained steady. As of now, Affirm Holdings holds a Zacks Rank of #3 (Hold).

From a valuation perspective, Affirm Holdings is currently exchanging hands at a Forward P/E ratio of 40.19. This expresses a premium compared to the average Forward P/E of 20.39 of its industry.

It is also worth noting that AFRM currently has a PEG ratio of 3.08. 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 industry had an average PEG ratio of 1.19 as trading concluded yesterday.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 102, placing it within the top 42% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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SAN FRANCISCO--(BUSINESS WIRE)--Affirm Holdings, Inc. (NASDAQ: AFRM) today announced it will publish its first quarter fiscal year 2027 shareholder letter, including its financial results, on its investor relations website at https://investors.affirm.com/ on Thursday, November 5, 2026, after market close. The Company will host a conference call and webcast at 2:00pm PT that same day. Hosting the call will be Max Levchin (Founder and Chief Executive Officer), Michael Linford (President), and Rob O'Hare (Chief Financial Officer).

A replay will be available on the investor relations website following the call.

About Affirm
Affirm’s mission is to deliver honest financial products that improve lives. By building a new kind of payment network—one based on trust, transparency, and putting people first—we empower millions of consumers to spend and save responsibly, and give thousands of businesses the tools to fuel growth. Unlike most credit cards and other pay-over-time options, we never charge any late or hidden fees. Follow Affirm on social media: LinkedIn | Instagram | Facebook | X.

AFRM-IN

More News From Affirm Holdings, Inc.

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When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Affirm Holdings (AFRM - Free Report) .

Affirm Holdings currently has an average brokerage recommendation (ABR) of 1.44, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 36 brokerage firms. An ABR of 1.44 approximates between Strong Buy and Buy.

Of the 36 recommendations that derive the current ABR, 27 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 75% and 5.6% of all recommendations.

Brokerage Recommendation Trends for AFRM

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

The ABR suggests buying Affirm Holdings, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

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.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed 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.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Is AFRM a Good Investment?In terms of earnings estimate revisions for Affirm Holdings, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $1.87.

Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market 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 #3 (Hold) for Affirm Holdings. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Affirm Holdings.

In the latest trading session, Affirm Holdings (AFRM - Free Report) closed at $70.44, marking a +1.75% move from the previous day. This change outpaced the S&P 500's 0.2% gain on the day. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, added 0.04%.

Heading into today, shares of the operator of digital commerce platform had lost 6.56% over the past month, lagging the Computer and Technology sector's gain of 4.78% and the S&P 500's loss of 0.35%.

The investment community will be paying close attention to the earnings performance of Affirm Holdings in its upcoming release. The company's earnings per share (EPS) are projected to be $0.34, reflecting a 47.83% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.21 billion, indicating a 29.95% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.87 per share and revenue of $5.51 billion. These totals would mark changes of -66.18% and +29.37%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Affirm Holdings. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.23% higher. Affirm Holdings currently has a Zacks Rank of #3 (Hold).

Looking at valuation, Affirm Holdings is presently trading at a Forward P/E ratio of 36.95. This valuation marks a premium compared to its industry average Forward P/E of 19.07.

It is also worth noting that AFRM currently has a PEG ratio of 2.83. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.14.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 93, finds itself in the top 38% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.

Key Takeaways Affirm is adding Crate & Barrel, Crate & Barrel Kids and CB2 to its merchant network.The partnership brings installment financing to more than 100 stores and websites across North America.Stronger customer usage could gradually lift Affirm's GMV and revenues, though volumes remain undisclosed. Affirm Holdings, Inc. (AFRM - Free Report) is expanding its pay-over-time reach through a new partnership with Crate & Barrel Holdings, bringing its financing option to Crate & Barrel, Crate & Barrel Kids and CB2 customers in the United States and Canada. Shoppers can use Affirm online and in stores, with biweekly or monthly payment options starting at 0% APR and no late fees or hidden charges.

The deal broadens AFRM’s merchant reach through an established North American retailer. Crate & Barrel Holdings operates more than 100 stores and websites across the United States and Canada, while more than 200 million customers visit its stores and websites each year. The partnership adds Crate & Barrel Holdings to Affirm’s network of more than 570,000 active merchant partners, further expanding its reach across the home-furnishing category.

Furniture and home-related purchases can include higher-value items, creating an opportunity for Affirm to facilitate more financed transactions. By offering Affirm across Crate & Barrel’s brands through online and physical channels, the company could drive higher transaction volumes as more customers use installment financing for purchases.

The near-term financial impact is difficult to quantify because the companies did not disclose any transaction volumes or revenue contribution. The partnership’s contribution will ultimately depend on customer engagement and the volume of purchases financed through Affirm. Stronger usage across Crate & Barrel’s brands could gradually increase the partnership’s contribution to Gross Merchandise Volume (GMV) and revenues.

How Are Competitors Faring?Some of AFRM’s competitors are Block, Inc. (XYZ - Free Report) and PayPal Holdings, Inc. (PYPL - Free Report) . Both companies continue to expand their pay-over-time offerings, increasing competition for consumer usage and merchant checkout volume.

Block is deepening Afterpay’s integration with Cash App by adding pay-over-time capabilities for eligible peer-to-peer transfers and card purchases. This gives XYZ additional opportunities to broaden installment-payment usage beyond traditional merchant checkout.

PayPal offers Pay in 4 and Pay Monthly. Pay in 4 supports four interest-free biweekly payments, while Pay Monthly provides financing over three to 24 months for eligible purchases up to $10,000. This gives PYPL exposure to both smaller and higher-value transactions.

AFRM’s Price Performance, Valuation & EstimatesShares of AFRM have risen 51.3% over the past six months compared with the industry’s 30.2% growth.

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From a valuation standpoint, AFRM trades at a forward price-to-sales ratio of 4.27 compared with the industry average of 4.01. AFRM currently carries a Value Score of D.

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The Zacks Consensus Estimate for AFRM’s 2026 earnings is pegged at $1.87 per share, followed by 53.3% growth next year.

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

In the latest close session, Affirm Holdings (AFRM - Free Report) was down 6.03% at $67.21. The stock trailed the S&P 500, which registered a daily loss of 0.77%. Elsewhere, the Dow saw a downswing of 0.67%, while the tech-heavy Nasdaq depreciated by 0.92%.

Heading into today, shares of the operator of digital commerce platform had lost 8.02% over the past month, lagging the Computer and Technology sector's gain of 6.26% and the S&P 500's gain of 0.96%.

The investment community will be paying close attention to the earnings performance of Affirm Holdings in its upcoming release. It is anticipated that the company will report an EPS of $0.34, marking a 47.83% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.21 billion, indicating a 29.95% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.87 per share and a revenue of $5.51 billion, signifying shifts of -66.18% and +29.37%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for Affirm Holdings. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 8.13% higher within the past month. Right now, Affirm Holdings possesses a Zacks Rank of #3 (Hold).

In the context of valuation, Affirm Holdings is at present trading with a Forward P/E ratio of 38.17. This represents a premium compared to its industry average Forward P/E of 18.89.

It's also important to note that AFRM currently trades at a PEG ratio of 2.93. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 1.13 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 89, this industry ranks in the top 37% of all industries, numbering over 250.

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.

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

Key Takeaways Affirm's FY26 GMV jumped 37% to $50.2 billion, supporting operating leverage and margin improvement.Funding costs rose to $454 million, though Q4 annualized costs fell 103 basis points to 5.8%.Credit losses increased, but recent loans are performing broadly in line with expectations. Affirm Holdings, Inc. (AFRM - Free Report) has entered fiscal 2027 with strong operating momentum, supported by robust Gross Merchandise Volume (“GMV”) growth and improving margins. Fiscal 2026 GMV increased 37% year over year to $50.2 billion, while fourth-quarter GMV rose 36% to $14.1 billion. Higher volume is supporting operating leverage, while improving margins indicate that the business model is gaining scalability.

Funding costs increased to $454 million in fiscal 2026 from $425.5 million a year earlier. However, the trend improved in the fourth quarter, with average annualized funding costs declining 103 basis points year over year to 5.8%, aided by favorable repricing across funding channels. With benchmark rates expected to be higher in fiscal 2027, maintaining funding efficiency will be key to further margin expansion.

Credit costs also warrant monitoring. Provision for credit losses rose to $796.7 million in fiscal 2026 from $616.7 million, while 30-plus-day delinquencies, excluding Peloton and Pay-in-X loans, increased 19 basis points to 2.5%. Still, recent loans are performing broadly in line with expectations, suggesting that credit remains manageable rather than becoming a broader constraint on earnings.

Overall, Affirm is increasingly shifting from a growth-at-scale story toward a profitability story. Sustained GMV growth remains important, but funding efficiency and credit performance will increasingly determine how much of that growth reaches the bottom line. If both remain disciplined, continued operating leverage could support further margin expansion in fiscal 2027.

How Are Competitors Faring?Some of AFRM’s competitors in the digital lending and payments space are Sezzle Inc. (SEZL - Free Report) and Klarna Group plc (KLAR - Free Report) .

Sezzle continues to benefit from strong BNPL demand, with second-quarter 2026 GMV rising 38% year over year. Faster revenue growth points to improving monetization, while operating leverage is supporting profitability. The key consideration remains whether credit costs stay contained as SEZL scales.

Klarna provides a broader BNPL and payments comparison, with second-quarter 2026 GMV increasing 18% and transaction margin dollars rising 42%. The disparity between volume and margin growth highlights the importance of monetization and cost discipline. For KLAR, sustaining profitability as growth moderates remains important.

AFRM’s Price Performance, Valuation & EstimatesShares of AFRM have risen 51.1% over the past six months compared with the industry’s 30.2% growth.

Image Source: Zacks Investment Research

From a valuation standpoint, AFRM trades at a forward price-to-sales ratio of 3.96 compared with the industry average of 4.42. AFRM currently carries a Value Score of D.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for AFRM’s 2026 earnings is pegged at $1.87 per share, followed by 53.3% growth next year.

Image Source: Zacks Investment Research

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

Amazon is teaming with Affirm to offer installment payment options to its U.K. customers. The partnership, announced Wednesday (Sept.

Picture someone who had a bad year. A few bills went unpaid, and their credit score took the hit. Then things turned around. Every payment since has been on time. The score hasn’t caught up.

Now picture someone whose trouble is just starting. A missed payment here, another there, spread across a few accounts.

On paper, those two people can look the same. Same number of missed payments. Same answer at checkout, and it’s usually no.

Last week, Affirm announced that a new underwriting model built to tell those two apart is live at U.S. checkouts. In a conversation with PYMNTS CEO Karen Webster, Affirm President Libor Michalek went past the announcement and into the parts that don’t fit in one: what the old models were missing, who stands to gain the most and what it sets up for Affirm next.

What they were missing, he said, was time.

“The time dimension of multiple purchases, multiple credit events in a customer’s life wasn’t being represented with particularly high fidelity,” Michalek told Webster.

Put simply, the older models were good at counting what happened. They had a harder time with when it happened and what came after. The new one draws on Affirm’s 14 years of lending history and uses transformer technology, the same kind behind large language models, to follow the story in order.

Five of the 10 Deserved a Yes Michalek gave Webster an easy way to think about it. Take 10 applicants an older model would turn down. It declines all of them because it can’t tell which ones will get in over their heads. A better model might spot five who can repay. The other five still get a no.

The bar didn’t move. Affirm can now see who clears it.

For those five people, that’s credit they would have been denied, which is a familiar story for a lot of subprime and near-prime consumers. For Affirm, it’s five customers it was sending away.

Thin Files Have the Most to Gain Webster asked the natural follow-up. What happens when there’s barely any story to read?

Michalek said even a short history has an order to it. Credit bureau records, Affirm’s own data and cash flow information that users choose to share all add to the picture.

“Where before two very different users could look the same because of that sparseness of data, we’re really able to tease them apart,” he said.

This is where Affirm saw its biggest jump. Among consumers with something on their credit report but not enough for a FICO score, the new model improved Affirm’s ability to rank who’s likely to miss a first payment by about 2.1 times as much as the next version of its older model did. One caution on that number. It measures how well the model sorts risk, so it shouldn’t be read as twice as many approvals.

Michalek also said Affirm will keep reporting repayment behavior to the credit bureaus. Affirm can make some decisions without a FICO score, but the rest of a customer’s financial life still leans on one. It does raise a question worth watching. As more lenders learn to read the behavior behind the score, how much will the score itself matter?

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A Good Prediction Still Had to Wait a Year Michalek told Webster that Affirm had transformer models in testing more than a year ago. The predictions were good. That wasn’t enough to put them in front of customers.

Someone who gets declined needs to know why. The same application has to get the same answer every time. And all of it has to happen in under a second, while a shopper waits at checkout. Affirm kept working until the model could do all three.

What launched is a pairing. The transformer reads the payment history, and its read feeds into a more traditional machine-learning model alongside established credit, merchant and user information. Affirm said the pair beat the transformer on its own. Its first job was a second look at applicants the old system had declined. Next, it takes on full underwriting for new users, approvals and declines alike.

A Spending Limit Changes the Conversation All of this matters more because of how people now use Affirm. Its latest earnings showed more purchases at smaller amounts, which is what an everyday way to pay looks like.

Pay later has become working capital for the household. Consumers use it to match what they owe to when they get paid, across groceries, clothes and car repairs.

Everyday use brings its own challenge. One small purchase is easy to handle. Several of them, with payments landing around the same time, can be a different story. The model has to see how a new payment fits alongside what a customer already owes.

The Affirm Card shows how that reaches the customer. Anyone with a credit card knows their credit limit, and it answers one question: How much room do I have? The Affirm Card presents a spending limit, lays out payment plans and lets users weigh options such as the fastest payoff or the lowest interest. The questions change. What am I buying? What will it cost to pay over time? Which option works for me?

The customer chooses within guardrails. The underwriting decides where the guardrails sit.

And every purchase and repayment teaches Affirm a little more about that customer. Spending power can grow when the behavior supports it and hold steady when it doesn’t. That’s how a pay-later option works its way to the top of the wallet.

Asked how he’ll know a year from now whether it worked, Michalek pointed to approvals, delinquencies, customer growth and usage. The evidence, he said, will show up in quarterly results.

The first test may come sooner than that. The holiday season is weeks away, which means more purchases in a shorter window and more payments coming due together in the new year. A model built to know where a borrower is headed will gets its chance to show it can earn the customer’s next purchase, and the one after that.

Key Takeaways Affirm launched a transformer-based model for real-time underwriting at U.S. checkouts.The model approved more applications and produced 3.4% more completed purchases in testing.Affirm's model uses transaction and repayment data to broaden access while managing credit risk. Affirm Holdings, Inc. (AFRM - Free Report) is launching a new transformer-based machine learning model for real-time credit underwriting at U.S. checkouts. The system analyzes the order and timing of events across a consumer’s credit history, helping identify patterns that standard credit measures may miss. The model draws on 14 years of its transaction and repayment data, giving it a proprietary dataset to refine credit decisions. Affirm built the model to deliver fast and explainable decisions.

The announcement matters because Affirm is expanding approvals without simply lowering credit standards. In initial testing, the model approved applications that the previous system would have declined, including consumers with limited credit histories and no FICO scores. Those incremental approvals produced 3.4% more completed purchases than the control group. The loans also showed better performance than a comparable expansion under the previous model.

Financially, the model could support higher transaction volumes by enabling Affirm to approve more creditworthy consumers. More completed purchases can translate into greater loan originations, merchant activity and revenues, although the release does not provide a dollar estimate. The stronger early loan performance also suggests potential for better credit selection, but the financial benefit will depend on how these results scale.

The launch strengthens Affirm’s technology-driven underwriting strategy as it expands across digital commerce. Its ability to use transaction and repayment data to refine credit decisions could help broaden customer access while managing risk. While the early results show potential, the model’s long-term value will hinge on sustained credit performance and its ability to scale successfully across Affirm’s platform.

How Are Competitors Faring?Some of AFRM’s competitors in the digital lending and payments space are Upstart Holdings, Inc. (UPST - Free Report) and PayPal Holdings, Inc. (PYPL - Free Report) .

Upstart Holdings uses proprietary AI models to automate credit decisions across personal loans, auto loans and other products. UPST’s platform connects consumers with more than 100 banks and credit unions, with more than 90% of loans fully automated.

PayPal offers Pay Later products at checkout, including Pay Monthly for eligible purchases of $49 to $10,000. PYPL provides financing across millions of merchants, with terms and rates based on consumer creditworthiness.

AFRM’s Price Performance, Valuation & EstimatesShares of AFRM have risen 58.2% over the past six months compared with the industry’s 20.2% growth.

Image Source: Zacks Investment Research

From a valuation standpoint, AFRM trades at a forward price-to-sales ratio of 4.1X compared to the industry average of 4.2X. AFRM currently carries a Value Score of D.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for AFRM’s 2026 earnings is pegged at $1.87 per share, followed by 53.3% growth next year.

Image Source: Zacks Investment Research

AFRMcurrently carries 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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New model builds on 14 years of transaction-level underwriting experience and data to approve more eligible consumers at comparable levels of risk

SAN FRANCISCO--(BUSINESS WIRE)--For 14 years, Affirm (NASDAQ: AFRM) has underwritten every purchase individually, in real time, using machine learning models built in-house. That approach is central to what Affirm promises the people who use it: every purchase gets its own decision, based on what a person can responsibly repay that day, with no late or hidden fees.

Today, Affirm announced the latest advancement of that system: a transformer-based model that learns from the order and timing of events in a consumer’s credit history. The model is now live at checkout in the U.S.

In its initial deployment, Affirm used the model to approve additional eligible applications that its existing system would have declined, including those with limited credit histories and no FICO scores. Measured against a control group, that produced 3.4% more completed purchases, and those additional loans performed better than a comparable expansion under Affirm's previous machine learning models.

"We’ve steadily accelerated the amount of data we use to train each generation of our underwriting models," said Libor Michalek, Affirm President. "What’s exciting about the transformer model architecture is that we can now find new information within the data we already have. Seeing a credit history more clearly means we can responsibly say yes to more people.”

Finding more signal in credit history

Affirm’s underwriting models have improved with each generation, learning from more transactions and repayment outcomes. They’ve long used credit-bureau measures such as balances, credit utilization, account counts, and payment history. Those measures remain important, but they summarize a credit history that is always changing.

The transformer can identify patterns within and across credit accounts, including how they change over time. It does that without a separate measure being designed for each pattern in advance, helping Affirm find more signal in existing data.

Built for decisions at checkout

Building a better model was only part of the challenge.

Affirm built a proprietary algorithm that produces the same level of explainability as traditional machine learning models, while keeping the model fast enough for real-time use.

Validation and ongoing monitoring help ensure the model’s explanations are accurate and reliable.

"Underwriting is the heart of what we do," Michalek added. "The goal isn’t to approve every transaction, it’s to make the right decision for each one. We don’t benefit from extending credit that can’t be repaid, which means saying yes to more people only works when we get even better at saying no."

About Affirm

Affirm's mission is to deliver honest financial products that improve lives. By building a new kind of payment network – one based on trust, transparency, and putting people first – we empower millions of consumers to spend and save responsibly and give thousands of businesses the tools to fuel growth. Unlike most credit cards and other pay-over-time options, we never charge any late or hidden fees. Follow Affirm on social media: LinkedIn | Instagram | Facebook | X.

AFRM-PR

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Affirm Holdings (AFRM - Free Report) ended the recent trading session at $73.55, demonstrating a +2.95% change from the preceding day's closing price. This change outpaced the S&P 500's 0.48% loss on the day. Elsewhere, the Dow lost 0.29%, while the tech-heavy Nasdaq lost 0.56%.

The operator of digital commerce platform's shares have seen a decrease of 8.82% over the last month, not keeping up with the Computer and Technology sector's gain of 1.49% and the S&P 500's loss of 0.82%.

Investors will be eagerly watching for the performance of Affirm Holdings in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.34, showcasing a 47.83% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $1.21 billion, up 29.95% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.87 per share and revenue of $5.51 billion, which would represent changes of -66.18% and +29.37%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Affirm Holdings. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 8.65% increase. Affirm Holdings is currently a Zacks Rank #3 (Hold).

Investors should also note Affirm Holdings's current valuation metrics, including its Forward P/E ratio of 38.13. This valuation marks a premium compared to its industry average Forward P/E of 19.75.

Investors should also note that AFRM has a PEG ratio of 2.92 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 1.09 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 35% 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.

Affirm (AFRM) still has some technical repair ahead following the company's post-earnings rally and selloff on the same day, says Rick Ducat. He takes investors through his technical analysis of the stock by highlighting key levels to watch in the chart.

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.

Shares of this operator of digital commerce platform have returned -13.2% over the past month versus the Zacks S&P 500 composite's -2% change. The Zacks Internet - Software industry, to which Affirm Holdings belongs, has gained 1.2% over this period. Now the key question is: Where could the stock be headed in the near term?

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 RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

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 +47.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +3.5% over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $1.87 points to a change of -66.2% from the prior year. Over the last 30 days, this estimate has changed +8.7%.

For the next fiscal year, the consensus earnings estimate of $2.87 indicates a change of +53.3% from what Affirm Holdings is expected to report a year ago. Over the past month, the estimate has changed +7.5%.

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

Revenue Growth ForecastWhile 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.

For Affirm Holdings, the consensus sales estimate for the current quarter of $1.21 billion indicates a year-over-year change of +30%. For the current and next fiscal years, $5.52 billion and $6.9 billion estimates indicate +29.5% and +25.1% changes, respectively.

Last Reported Results and Surprise HistoryAffirm Holdings reported revenues of $1.17 billion in the last reported quarter, representing a year-over-year change of +33%. EPS of $4.62 for the same period compares with $0.2 a year ago.

Compared to the Zacks Consensus Estimate of $1.11 billion, the reported revenues represent a surprise of +5.23%. The EPS surprise was +1300%.

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.

Bottom LineThe 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, Inc. (AFRM) Presents at Goldman Sachs Communacopia + Technology Conference 2026 Transcript

Merchant count rose 51% to 571,000 as the Affirm Card reached 5.2 million users Summary

Bernstein lifted its target to $110 citing merchant and card growth, while the stock traded in the opposite direction.

Bernstein SocGen raised its price target on Affirm Holdings AFRM to $110 from $100, keeping an Outperform rating and pointing to network effects across merchants, the Affirm Card and newer verticals. The firm initiated coverage in July at $100. Affirm shares were down 6.12% intraday.

The raise follows fiscal fourth quarter results reported August 27. Revenue less transaction costs, Affirm's non-GAAP measure, came in 7% ahead of consensus, and adjusted operating income beat by 12%. Gross merchandise volume ran 5% above consensus on growth in both Pay in X products and interest-bearing loans. Fiscal 2027 guidance for revenue less transaction costs landed 4% above consensus, with adjusted operating income guidance in the teens above.

Merchant count rose 51% to 571,000, an acceleration of eight percentage points, and Affirm now works with 80 of the top 250 US merchants. The Affirm Card has 5.2 million users, with gross merchandise volume up 125% year over year. Bernstein said newer verticals are growing at two to three times the rate of the overall business, helped by independent software vendor partnerships.

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

Click for the complete disclosure

Affirm just posted one of its strongest quarters in years, yet its stock is sliding twice as fast as the broad market to start the week. The disconnect between the numbers and the price action points to something happening beneath…

Shares of Affirm Holdings (NASDAQ:AFRM | AFRM Price Prediction) are unwinding a sharp post-earnings rally to open the week, handing back much of the gain built on Thursday’s fiscal fourth-quarter report. The move is more about positioning than any fresh news out of the company, which announced nothing today.

Affirm stock is down 4% to $74.51 in Monday morning trading, extending the drift lower that began in Friday’s afternoon session. Meanwhile, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.52% to $764.36, a soft session for the broad market that puts Affirm’s decline in sharp relief.

The context matters here. Affirm stock was up 4% year to date through Friday’s close, a figure that masks a huge intraweek swing. Friday saw the stock rally to an 11-month high, climbing 13% at its peak before paring most of that gain into the close.

Strong Print, Fading Trade Profit taking after a large prior run is the cleanest read. Affirm reported its fiscal fourth quarter Thursday, August 27, for the fiscal fourth quarter ended June 30, and the results beat on both revenue and volume. Affirm’s revenue rose 33% to $1.17 billion, against a $1.11 billion analyst estimate, while gross merchandise volume, the total dollar value of transactions processed on the platform, rose 36% to $14.1 billion, against a $13.39 billion estimate.

Affirm’s profitability inflected, as well. Adjusted operating income reached $353 million, a 30% adjusted operating margin, and GAAP operating income came in at $147 million, a 12.6% GAAP operating margin, up six percentage points from a year earlier. Active consumers grew 21% to 27.8 million, and transactions per active consumer rose 20% to 7.

The card story continued to compound. The Affirm Card business reached 5.2 million active consumers, up 125% from the prior year. Affirm’s credit quality also improved, with the 30-day delinquency rate on monthly installment loans, excluding Peloton and Pay in X loans, coming in at 2.5%, an improvement from the 2.7% to 2.8% range in each of the previous three quarters.

A Bigger Move Than the Setup The gap between the results and Monday’s reaction is the useful observation. A 4% decline in Affirm shares against a broad market down 0.4% is a far larger move than the broad market explains, which points to positioning in the stock rather than to anything in the results or in the wider market.

Friday’s session tells the same story from the other side. Affirm shares spiked toward an 11-month high intraday before rolling over, a signal that fast money used the report to sell strength rather than to build new positions. With no company-specific catalyst today, the unwind is just extending that same pattern.

CEO Max Levchin framed the demand backdrop on the call: “In times of inflation, we see more demand because folks are budgeting. They’re more thoughtful about how they want to use the money, and we’re there to help.” Affirm’s guidance backed that up. For fiscal 2027, the company guided to gross merchandise volume above $64 billion and an adjusted operating margin above 30.5%.

Peer Backdrop and Positioning Affirm sits in the installment-payments space alongside PayPal Holdings (NASDAQ:PYPL), though the two run very different growth profiles. Affirm printed 36% GMV growth in the quarter, a pace that puts it in a different bucket from the slower-growing large-cap payment platforms it’s often compared against.

That growth premium is exactly why single-session volatility runs so hot in Affirm shares. When a fintech name trades on multiples of forward revenue and forward operating income, small changes in positioning move the price far more than similar flows would move a mature payments stock. Monday’s selling is consistent with fast-money profit taking rather than any change in the underlying franchise.

What to Watch Next Position sizing is crucial here. A name that can spike 13% and give it back inside two sessions carries more single-session volatility than Affirm’s fundamentals suggest, so investors should consider keeping their position sizes moderate while the gap between the results and the share price stays unresolved.

Traders should watch for signs of stabilization in Affirm shares near pre-earnings levels, along with any sell-side revisions catching up to Thursday’s raised fiscal 2027 outlook. The read on today’s move is technical rather than fundamental in nature.

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Affirm Holdings, Inc. reported headline GAAP earnings of $4.62 per share, but this reflects a one-time tax allowance release, not core profitability. AFRM delivered strong operational results: 33% revenue growth, 36% GMV growth, and a 49% increase in adjusted operating income, with margins expanding meaningfully. Credit performance remained stable, and funding costs declined by 103 basis points to 5.8%, directly supporting improved profitability and margin expansion.

Affirm Holdings, Inc. posted strong quarterly results, beating expectations and driving shares up nearly 10% in off-hours trading. AFRM's resilient business model is evidenced by low delinquency rates and robust 36% gross merchandise volume growth, despite industry-wide credit concerns. Valuation remains elevated, with a forward P/E near 40 and Price/Sales around 6.3, even after a $1.5B tax benefit distorted GAAP EPS.