In this articleAFRM your favorite stocksCREATE FREE ACCOUNTwatch now0:4400:44Affirm posts earnings and revenue beat for Q4Closing Bell: OvertimeAffirm stock popped 20% Friday after the buy now, pay later firm beat Wall Street's expectations across the board in its fiscal fourth-quarter results.
The stock was already up 31% this year heading into the report, outpacing the Nasdaq's 12% gain.Earnings came in at 20 cents a and nearly doubled analyst expectations, with revenue also topping estimates at $876 million, up 33% from a year earlier.Net income was $69.2 million for the quarter, compared with a loss of $45.1 million in the same period last year.The firm also offered higher guidance for fiscal 2026 and upbeat guidance for the current quarter.CEO Max Levchin noted strength in the consumer and momentum in the U.S.
on an investor call Thursday."We feel quite excellent our ability to get paid back on time," he said.Going into the , the big question was whether losing Walmart to rival Klarna would drag on results.
Instead, Affirm's key volume metric jumped 44% from the year-ago quarter and beat the street by nearly a billion dollars, helped by its partnerships with Shopify and Amazon.Read more CNBC newsTesla sales plunge 40% in Europe as Chinese EV rival BYD's tripleNvidia CEO Huang says bringing Blackwell AI chip to China 'is a real possibility'Microsoft fires two employees over into its president's officeGoogle has eliminated 35% of managers overseeing small teams in past year, exec saysAffirm, which went public in 2021, faces intensifying competition in e-commerce as Klarna gains and prepares for an IPO — even as Affirm deepens ties with major retailers, including a deal with Apple last year.Affirm's is closely tied to consumer spending, with its online loans among sellers of electronics, apparel and travel.After contracting in the first quarter on an import surge ahead of President Donald Trump's April tariffs, the U.S.
economy expanded 3.3% in the second quarter, stronger than initially estimated, as consumers and es held up despite tariff volatility.The company has also been making a big push to win at the point of sale with the Affirm Card — its biggest bet for driving broader usage.That strategy is gaining traction: card GMV grew 132% to $1.2 billion, active cardholders nearly doubled to 2.3 million, and in-store spend surged 187%.
Zero-percent APR loans more than tripled and now account for 14% of card volume.Levchin also highlighted artificial intelligence as a bright spot, noting that early deployments of Affirm's new AdaptAI system have already dered an average 5% lift in merchant volume — underscoring the company's long-standing use of machine learning to power credit scoring and checkout optimization.Stock Chart IconStock chart iconAffirm year-to-date chart.WATCH: Affirm s surge 14% as card adoption and merchant AI drive upsidewatch now3:4603:46Affirm s surge 14% as card adoption and merchant AI drive upsideFast Money