Affirm Holdings, Inc. (NASDAQ:AFRM) shares extended their rally Friday after the company reported late Thursday strong fiscal first-quarter results, which beat analyst expectations and reignited enthusiasm for the buy-now, pay-later firm's growth prospects.
The gains came as Affirm also announced an expanded financing partnership with Amazon.
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Affirm posted first-quarter earnings of 23 cents per share, more than double the consensus estimate of 11 cents. Revenue reached $933.33 million, beating the $883.14 million forecast and rising from $698.47 million a year earlier.
CEO Max Levchin credited the record performance to consistent execution and operational strength.
"Results like these are never an accidental success, and the last several quarters really felt like the team has accelerated from strength to strength," Levchin said, noting that Affirm achieved its highest-ever gross merchandise value (GMV) during the quarter despite fewer shopping holidays.
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Ahead of the results, JPMorgan analyst Reginald L. Smith reiterated an Overweight rating with a $94 price target, forecasting another GMV and revenue beat.
The results aligned squarely with that call, underscoring Smith's view that spending trends remain stable to accelerate for BNPL providers.
Following the earnings release, BofA Securities analyst Jason Kupferberg maintained a Buy rating and lifted his price target from $94 to $98, while Morgan Stanley's James Faucette kept an Equal-Weight rating and lowered his target from $90 to $83, reflecting differing perspectives on valuation after Affirm's post-earnings surge.
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Separately, Affirm announced it entered into a Second Amended and Restated Installment Financing Services Agreement with Amazon.com Services and Amazon Payments.
The new five-year deal, effective Feb. 1, 2026, will extend Affirm's installment loan offerings to eligible Amazon shoppers and through Amazon Pay on certain third-party retailer sites, with automatic annual renewals unless terminated.
AFRM Price Action: AFRM shares are trading 9.15% higher at $71.90 at the last check on Friday.
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