Affirm stock jumps after record quarter; BofA sees 35% upside

Affirm shares rose about 11% in Friday trading after the company reported adjusted earnings per share of $4.62, topping expectations of $3.77, and revenue of $1.2 billion. Reported net income was $1.6 billion, helped by the release of a valuation allowance on most of the company’s domestic deferred tax assets.

Revenue increased 33% year over year. Gross merchandise volume climbed 36% to $14.1 billion, marking Affirm’s 11th consecutive quarter of GMV growth of 30% or more. Revenue less transaction costs rose 39% to $589 million; that measure excludes payments to card networks and partners and is used to assess the company’s underlying unit economics.

For fiscal 2027 Affirm forecast GMV of more than $64 billion, at least 27% higher than about $50.2 billion in fiscal 2026. Management expects the revenue-less-transaction-costs take rate to stay around 4.16% of GMV, broadly in line with fiscal 2026.

Bank of America raised its price target to $104 from $93 and maintained a Buy rating, projecting nearly 35% upside. The firm noted changes in provision density reflected shifts in loan product and funding mix rather than weaker credit, and listed potential growth drivers not included in current guidance, including a possible bank charter, business-to-business lending, UK long-duration lending and brand-sponsored promotions. UBS increased its target to $90 from $82 and kept a Neutral rating. Needham raised its target to $100, and Citizens reiterated a Market Outperform rating with an $85 target. Analyst price targets now range from $55 to $124.

Shares have risen about 65% over the past six months, bringing Affirm’s market value to roughly $26 billion. The stock was trading near $77.49 before Friday’s gain. Investors and analysts will watch near-term GMV trends, measures such as revenue less transaction costs, provisioning dynamics and any updates on a bank charter or new partnerships.