Affirm (AFRM) stock rose 12% to $86.80 in premarket trading on Friday after the buy now, pay later company reported fiscal Q2 results that beat Wall Street expectations across multiple metrics.

Revenue for the quarter ended June 30 was $1.17 billion, up 33% year over year and above analyst estimates of $1.11 billion. The result was 5.2% higher than consensus. Gross merchandise volume, or GMV, which measures the total value of transactions processed through Affirm’s platform, increased 36% to $14.1 billion, topping expectations of $13.4 billion. Direct merchant point-of-sale integrations accounted for roughly half of that growth, underscoring how the company’s embedded checkout partnerships remain central to its scale.

GAAP earnings per share came in at $4.62, far above the $0.35 analysts had expected. The figure included a $1.45 billion tax benefit. Pre-tax profit reached $169.1 million, equal to a 14.5% margin. GAAP operating margins rose to 12.6%, up 6% from the same period a year earlier.

Michael Linford, the company’s newly appointed president, called the quarter a “home run” and said it marked the 11th consecutive quarter in which GMV growth exceeded 30%.

Guidance above expectations

For Q3 of calendar 2026, Affirm guided for revenue of $1.21 billion at the midpoint, which is 3.6% above the $1.16 billion analysts had projected. For the full fiscal year, the company said GMV should exceed $64 billion, above the $63 billion consensus estimate. CEO Max Levchin has long said he wants Affirm to reach $100 billion in GMV, a level analysts currently expect by 2029.

Susquehanna analyst James Friedman raised his price target to $110 from $105 and maintained a Positive rating, describing the results and guidance as “exceptionally strong.”

Fintech peers trail behind

Affirm’s report stood out in a difficult environment for fintech stocks. SoFi is down 27% in 2026, while Klarna has fallen nearly 52%. Affirm shares are up just 4.1% year to date, lagging the broader market, although the latest earnings report may change that narrative.

Jefferies analyst John Hecht said fintech names had already begun outperforming the S&P 500 in the weeks before earnings, rising an average of 6.7% compared with a 3.2% gain for the index.

Linford said the results reflected strong consumer financial health. Excluding Peloton and Pay in 4 loans, Affirm’s 30-day delinquency rate rose 2.5% from a year earlier, a slower increase than the 2.7% to 2.8% gains seen over the previous three quarters.

Affirm also announced a new growth team led by Pat Suh, formerly senior vice president of revenue, to oversee its expansion into new markets.

On the partnership front, Affirm and Shopify said they will launch Shop Pay Installments in Australia. Shop Pay Installments has been one of Shopify’s most popular products in North America since its 2021 debut. Linford said the Australia rollout reflects Shopify bringing Affirm into new markets, pointing to a similar UK expansion the two companies completed last year.

Affirm’s annualized revenue growth over the past five years stands at 37.4%, and growth over the last two years has averaged 35.4%.