Affirm Holdings, Inc. (NASDAQ: AFRM) saw its stock price surge 12.16% in pre-market trading on Friday, following the release of its fiscal first-quarter 2026 results that significantly exceeded analyst expectations. The buy-now-pay-later company reported impressive earnings and revenue growth, showcasing the strength of its business model and increased adoption of its services.

Affirm reported earnings per share of $0.23, more than doubling the FactSet consensus estimate of $0.11 and marking a substantial turnaround from the $0.31 per share loss reported in the same quarter last year. Revenue also impressed, coming in at $933.3 million, surpassing the analyst projection of $883.2 million and representing a 34% increase year-over-year. The company's gross merchandise volume (GMV) increased 42% to $10.8 billion, driven by increased merchant integration and growth in direct-to-consumer business.

Looking ahead, Affirm provided a strong outlook for both the second quarter and full fiscal year. The company expects Q2 GMV between $13.00 billion and $13.30 billion, with revenue projected at $1,030 million to $1,060 million. For the full fiscal year, Affirm anticipates GMV to exceed $47.5 billion, with revenue expected to be about 8.4% of GMV. This positive guidance, coupled with the company's ability to achieve profitability while maintaining robust growth, has bolstered investor confidence in Affirm's long-term prospects in the fintech sector.