Affirm Holdings (AFRM) Surges 10.59% on Google Pay Partnership, Q4 Earnings Beat

Affirm Holdings (AFRM) surged 10.59% in the latest session, marking its second consecutive day of gains and pushing the stock to a 14.01% increase over two days. The share price reached its highest level since August 2025, with an intraday rally of 25.02%, reflecting renewed investor optimism in the fintech company’s strategic momentum and financial performance.

The stock’s rally coincided with Affirm’s expanded partnership with Google Pay, which integrates its “buy now, pay later” (BNPL) solutions into the Chrome browser and key retail ecosystems. This collaboration, alongside a renewed multi-year agreement with Boot Barn, strengthens Affirm’s market penetration and aligns with its goal of becoming a preferred fintech partner. These initiatives are expected to drive transaction frequency and customer retention, particularly as consumer demand for flexible payment options remains elevated amid inflationary pressures.

Recent earnings results further bolstered confidence, with Affirm reporting $876 million in Q4 revenue—a 33% year-over-year increase—and a GAAP net income of $0.20 per share, reversing a prior-year loss. The company also exceeded expectations with a 43% rise in gross merchandise volume (GMV) to $10.4 billion. Management projected $855–885 million in fiscal 2026 revenue and a 23–25% non-GAAP operating margin, highlighting disciplined cost control and scalable growth potential.

Analyst sentiment reinforced the bullish outlook, as JPMorgan raised Affirm’s price target from $69 to $84, citing its leadership in the BNPL sector and alignment with macroeconomic trends. The firm’s “strong buy” rating underscores confidence in Affirm’s ability to outperform broader markets, particularly as the Federal Reserve’s dovish stance supports consumer borrowing. However, challenges persist, including a -31% pre-tax profit margin and a debt-to-equity ratio of 2.49, which reflect the capital-intensive nature of its growth strategy.

Insider activity also drew attention, with Max R. Levchin selling $1.2 million worth of shares while retaining a significant stake. This partial divestment contrasts with strong retail and institutional investor participation, as the stock hit a 52-week high and surged 41.3% year-to-date. Affirm’s strategic focus on core fintech partnerships and capital efficiency will remain critical in addressing profitability hurdles and sustaining momentum in a competitive BNPL landscape.