Affirm stock surges near 52-week high after earnings beat: should you buy?

Affirm stock skyrocketed 17% on Friday after a robust quarterly earnings report and optimistic guidance for the fiscal year 2026.

What really got investors excited was the whole package. Revenue was growing fast, they actually made money this quarter (which hasn’t always been a given), and suddenly the whole “buy now, pay later” space is looking a lot healthier than it did a year ago.

This development is optimistic for Affirm stock as the BNPL industry has been through the wringer lately.

A lot of investors were wondering if these companies could ever actually turn a profit or if they were just burning through cash indefinitely.

Affirm stock nears 52-week high after earnings report

Affirm stock was trading at $93.23 at press time, very close to its 52-week high.

Revenue jumped 33% to $876 million, beating the $837 million that analysts were expecting. They also earned 20 cents per share, nearly double what Wall Street predicted.

The real standout was that Affirm actually made money, $69.2 million in net income compared to a $45 million loss the same time last year.

What’s encouraging is that Affirm seems to be getting more efficient at what they do, even as the buy-now-pay-later space faces tougher competition and more regulatory scrutiny.

The company is signing up more merchants to offer their payment options, and consumers are using their credit products more frequently.

CEO Max Levchin talked up the company’s careful approach to lending money and managing risk, while also pointing to their big bets on AI technology that personalizes the experience for users.

The company is also looking to expand internationally, which could open up new growth opportunities.

One thing that’s really working for them is those 0% interest deals. They’re pulling in new customers with these no-cost payment plans, and then many of those people end up using Affirm’s regular loan products later on.

It’s a smart way to build relationships and create a pipeline for more profitable business down the road.

Should you buy?

Wall Street analysts were pretty happy with what they saw from Affirm stock. Several firms bumped up their price targets and stuck with their buy recommendations after the earnings report came out.

RBC Capital Markets, Stephens, and TD Cowen all called out the 33% revenue jump and the 43% increase in total transaction volume.

They’re seeing Affirm stock as better positioned than most in the buy-now-pay-later space, which has been getting more crowded and competitive lately.

BTIG analysts made an interesting point as they think Affirm is starting to become a real problem for traditional credit card companies.

More people are using the Affirm Card, and those zero-interest payment plans keep attracting customers who might otherwise just put purchases on their regular credit cards.

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