Buy now, pay later company Affirm (NASDAQ: AFRM) reported revenue ahead of Wall Street’s expectations in calendar Q3 2026 (fiscal Q1 2027), with revenue rising 35.2% year on year to $1.26 billion. Guidance for next quarter’s revenue was better than expected at $1.45 billion at the midpoint, 1.1% above analysts’ consensus estimates. Its GAAP profit of $0.47 per share was 23.6% above analysts’ consensus estimates.
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Affirm (AFRM) Q3 CY2026 highlights:
- Revenue $1.26 billion vs S&P analysts’ consensus estimates of $1.21 billion (35.2% year-on-year growth, 4% beat)
- Pre-tax profit $205.1 million (16.2% margin)
- EPS (GAAP) $0.47 vs analysts’ consensus estimates of $0.38 (23.6% beat)
- Revenue guidance $1.45 billion at the midpoint for Q4 CY2026, above analysts’ consensus estimates of $1.43 billion
- Market capitalization $25.51 billion
Revenue growth
Reviewing a company’s long-term revenue performance reveals insights into its quality. Even a bad business can perform well for one or two quarters, but a top-tier one grows for years. Affirm’s revenue grew at a strong 36.6% compounded annual growth rate over the last five years. Its growth beat the average financials company and shows its offerings resonate with customers.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Affirm’s annualized revenue growth of 34.8% over the last two years is below its five-year trend, but the results still suggest healthy demand. 
Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Affirm reported year-on-year revenue growth of 35.2%, and its $1.26 billion of revenue exceeded Wall Street’s consensus estimates by 4%. Company management is currently guiding for a 29.1% year-on-year increase in revenue next quarter.
Key takeaways from Affirm’s Q3 results
Affirm delivered some key positives in Q3, beating analysts’ consensus estimates for both EPS and revenue. Even so, investors were likely hoping for more: Shares plunged 10.4% to $62.25 immediately after the results.
Considering an investment in Affirm? The latest quarter matters, but longer-term business quality and valuation matter more when deciding whether to invest in the stock. Read the full research report here (it’s free).
