SoFi Technologies (NASDAQ:SOFI) Trading Up 8% After Earnings Beat

Key Points

• SoFi beat quarterly expectations: Adjusted EPS came in at $0.12 versus $0.11 expected, while revenue reached $1.21 billion, up 42.5% year over year and above the $1.11 billion consensus.
• Growth momentum remained strong: Membership increased 35% to 15.8 million, and record quarterly loan originations reached $14.8 billion. Management raised 2026 revenue guidance to approximately $4.8 billion-$4.9 billion, but maintained EPS guidance at $0.60.
• Shares surged 8%, though caution persists: The stock climbed to about $16.47 after the report, while analysts remained broadly neutral with a consensus “Hold” rating and a $22.67 target; recent target cuts and insider sales remain potential overhangs.

SoFi Technologies, Inc. (NASDAQ:SOFI - Get Free Report)'s stock price traded up 8% on Thursday following a stronger than expected earnings report. The company traded as high as $16.48 and last traded at $16.47. 81,947,074 shares traded hands during mid-day trading, an increase of 16% from the average session volume of 70,757,461 shares. The stock had previously closed at $15.25.

The company reported $0.12 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.11 by $0.01. The firm had revenue of $1.21 billion during the quarter, compared to analysts' expectations of $1.11 billion. SoFi Technologies had a net margin of 14.65% and a return on equity of 6.25%. SoFi Technologies's revenue for the quarter was up 42.5% on a year-over-year basis. During the same period in the prior year, the company posted $0.08 earnings per share. SoFi Technologies has set its FY 2026 guidance at 0.600-0.600 EPS.

Key Stories Impacting SoFi Technologies

Here are the key news stories impacting SoFi Technologies this week:

• Positive Sentiment: Q2 results exceeded expectations. SoFi reported adjusted EPS of $0.12 versus the $0.11 consensus and revenue of $1.21 billion versus $1.11 billion expected. Revenue rose 42.5% year over year, while earnings increased from $0.08 in the prior-year quarter. SoFi Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Membership and lending momentum remained strong. Members grew 35% to 15.8 million, and quarterly loan originations reached a record $14.8 billion. Cross-selling also improved, with existing members generating 51% of new products. SoFi Record Revenue and Raised Forecast
• Positive Sentiment: Full-year revenue guidance was raised. SoFi now expects 2026 revenue of approximately $4.8 billion to $4.9 billion, above the roughly $4.7 billion analyst consensus. Management highlighted stable credit quality, lending strength and AI investments intended to improve engineering productivity and customer service. SoFi Lifts 2026 Revenue Forecast
• Neutral Sentiment: Options activity suggests speculative bullish interest. Investors purchased about 439,000 SOFI call options, roughly 14% above typical volume. This may support near-term trading momentum but does not change the company’s fundamentals.
• Negative Sentiment: Analyst target reductions remain an overhang. Morgan Stanley lowered its target from $16 to $15 and maintained an Underweight rating. Wells Fargo cut its target from $18 to $17 while retaining Equal Weight, reflecting caution about valuation, execution and interest-rate sensitivity.
• Negative Sentiment: Profit outlook was not raised. Although revenue guidance improved, SoFi maintained its 2026 EPS guidance at $0.60, leaving investors concerned that increased growth spending and AI investment could limit near-term margin expansion. An executive’s pre-arranged sale of 10,954 shares adds a minor sentiment headwind.

Analyst Ratings Changes

A number of brokerages recently weighed in on SOFI. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and issued a $18.00 price objective on shares of SoFi Technologies in a research note on Thursday, April 30th. Truist Financial upped their target price on SoFi Technologies from $17.00 to $18.00 and gave the stock a "hold" rating in a research report on Friday, July 24th. Needham & Company LLC lowered their price target on SoFi Technologies from $25.00 to $24.00 and set a "buy" rating on the stock in a report on Thursday. Keefe, Bruyette & Woods dropped their price target on shares of SoFi Technologies from $20.00 to $17.00 and set an "underperform" rating on the stock in a research report on Thursday, April 9th. Finally, Barclays reduced their price objective on shares of SoFi Technologies from $28.00 to $18.00 and set an "equal weight" rating for the company in a research note on Monday, April 6th. Seven investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $22.67.

Insider Transactions at SoFi Technologies

In other news, CTO Jeremy Rishel sold 102,123 shares of the stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $17.78, for a total value of $1,815,746.94. Following the completion of the sale, the chief technology officer directly owned 895,089 shares of the company's stock, valued at approximately $15,914,682.42. This represents a 10.24% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Kelli Keough sold 10,954 shares of the firm's stock in a transaction on Monday, July 20th. The stock was sold at an average price of $17.19, for a total transaction of $188,299.26. Following the completion of the sale, the executive vice president owned 367,728 shares in the company, valued at $6,321,244.32. This represents a 2.89% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 135,256 shares of company stock worth $2,370,822 over the last three months. 2.50% of the stock is currently owned by insiders.

Institutional Trading of SoFi Technologies

A number of hedge funds have recently modified their holdings of the company. Vanguard Group Inc. increased its position in shares of SoFi Technologies by 3.6% during the fourth quarter. Vanguard Group Inc. now owns 111,003,107 shares of the company's stock valued at $2,906,061,000 after purchasing an additional 3,900,895 shares during the period. State Street Corp boosted its stake in SoFi Technologies by 6.7% during the fourth quarter. State Street Corp now owns 25,937,928 shares of the company's stock worth $679,055,000 after buying an additional 1,637,430 shares in the last quarter. Geode Capital Management LLC increased its holdings in SoFi Technologies by 9.0% in the 4th quarter. Geode Capital Management LLC now owns 23,642,936 shares of the company's stock valued at $618,395,000 after buying an additional 1,951,248 shares during the period. Morgan Stanley raised its stake in shares of SoFi Technologies by 33.6% in the 4th quarter. Morgan Stanley now owns 13,323,366 shares of the company's stock valued at $348,806,000 after buying an additional 3,350,258 shares in the last quarter. Finally, Norges Bank acquired a new position in shares of SoFi Technologies in the 4th quarter valued at $321,515,000. Institutional investors own 38.43% of the company's stock.

SoFi Technologies Stock Up 8.0%

The company has a current ratio of 0.75, a quick ratio of 0.13 and a debt-to-equity ratio of 0.17. The business's fifty day moving average price is $17.26 and its 200 day moving average price is $18.52. The company has a market capitalization of $21.13 billion, a P/E ratio of 37.43 and a beta of 2.14.

SoFi Technologies Company Profile

SoFi Technologies, Inc NASDAQ: SOFI is a diversified financial services company that provides consumer-focused lending, banking, investing and financial technology products. The company's core offerings include student loan refinancing and private student loans, personal loans, mortgage lending, and credit card products. In addition to credit and lending, SoFi operates consumer-facing deposit and cash management accounts, an investing and trading platform, and an insurance marketplace through partner relationships, all designed to serve individuals seeking an integrated digital financial experience.

SoFi has grown beyond direct-to-consumer lending by building technology and infrastructure capabilities.

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