Affirm (NASDAQ:AFRM) Delivers Strong Q2 CY2026 Numbers, Stock Soars

Buy now, pay later company Affirm (NASDAQ:AFRM) beat Wall Street’s revenue expectations in Q2 CY2026, with sales up 33% year on year to $1.17 billion. On top of that, next quarter’s revenue guidance ($1.21 billion at the midpoint) was surprisingly good and 3.6% above what analysts were expecting. Its GAAP profit of $4.62 per share was significantly above analysts’ consensus estimates.

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Company Overview

Founded by PayPal co-founder Max Levchin with a mission to create honest financial products, Affirm (NASDAQ:AFRM) provides a payment network that allows consumers to make purchases and pay for them over time with transparent, flexible installment loans.

Revenue Growth

A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Thankfully, Affirm’s 37.4% annualized revenue growth over the last five years was incredible. Its growth beat the average financials company and shows its offerings resonate with customers.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Affirm’s annualized revenue growth of 35.4% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Affirm reported wonderful year-on-year revenue growth of 33%, and its $1.17 billion of revenue exceeded Wall Street’s estimates by 5.2%. Company management is currently guiding for a 29.1% year-on-year increase in sales next quarter.

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Key Takeaways from Affirm’s Q2 Results

It was good to see Affirm beat analysts’ EPS expectations this quarter. We were also glad its revenue outperformed Wall Street’s estimates. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 7.3% to $84.31 immediately after reporting.

Affirm put up rock-solid earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).