As an important component of the "Digital China" strategy, whether enterprise digital transformation can bring positive financial returns has become a key concern in the industry. Using Chinese A-share listed companies from 2010 to 2022 as the research sample, the quantity of digital technology patents held by listed companies was innovatively employed to measure digital transformation. The impact mechanisms of digital transformation on financial performance were meticulously analyzed. It is found that digital transformation can effectively enhance financial performance, and this conclusion still holds after rigorous testing. Financial performance is improved through digital transformation by increasing operational efficiency, optimizing internal governance, reducing operational risks and information asymmetry, and alleviating financing constraints. The higher the degree of transformation for large enterprises, the stronger the promotion of financial performance. Whether achieved through independent research and development or introduction methods, digital transformation significantly promotes financial performance. However, for small and medium-sized enterprises, there exists an inverted U-shaped relationship between digital transformation and financial performance, with the introduction method proving more effective in enhancing financial performance. For companies in financial distress and highly competitive environments, the promotional effect of digital transformation on their financial performance becomes more pronounced. Furthermore, the more favorable the external environment in which a company operates, the stronger this promotional effect becomes.