SoFi Technologies, Inc. SOFI will report its first-quarter 2026 results on April 29, before the bell.
The Zacks Consensus Estimate for earnings in the to-be-reported quarter stands at 12 cents, indicating 100% growth from the year-ago reported quarter. The consensus estimate for revenues stands at $1.04 billion, implying 34.8% year-over-year growth.
There has been one downward revision in earnings estimates in the past 60 days.
SOFI May Not Deliver Q1 Earnings Beat
Our proven model doesn’t conclusively predict an earnings beat for SOFI this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
SOFI has an Earnings ESP of -1.53% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
SOFI May Deliver Strong Segmental Growth
We expect a significant year-over-year improvement in the company’s top line in the to-be-reported quarter, driven by healthy business from the Financial Services and Lending segments.
The consensus estimate for Financial Services revenues is pegged at $475 million, indicating 56.8% year-over-year growth. The consensus mark for Lending revenues is pegged at $521 million, indicating 26% year-over-year growth.
Investment Considerations
SoFi’s stock performance shows a mix of hesitation and recent strength. Shares are down 39% over the past six months, but are up 24% over the past month. The company has made solid progress with its asset-light platform, reducing reliance on traditional lending and strengthening its position in consumer finance.
However, elevated valuations often introduce a degree of risk. When a company trades significantly above industry averages, even modest earnings disappointments or slower growth could lead to sharp market reactions. SoFi is trading at a forward 12-month Price/Earnings ratio of 28.24X, which is way higher than the industry’s average of 9.78X.
While SoFi Technologies’ expanding member base and diversified fintech platform offer meaningful growth potential, the current valuation implies that much of this optimism may already be reflected in the stock price. As a result, investors may closely monitor execution and profitability trends in the future.
A Zacks Rank #3 supports a more cautious, wait-and-see stance as investors digest valuation levels.
A look at major fintech peers highlights how rich SoFi’s valuation appears. PayPal PYPL remains one of the largest digital payments platforms globally, supported by a vast merchant and consumer network. Despite its scale and profitability, PayPal trades at more moderate valuation multiples than SoFi. Even with steady growth initiatives, it has not received the same premium investors currently assign to SoFi. PYPL trades at a forward price-to-earnings ratio of 9.08 and a trailing 12-month price-to-earnings ratio of 16.49.
A similar pattern can be seen with Block XYZ, the fintech company behind Square and Cash App. Block continues to expand its payment ecosystem and financial services offerings, yet it also trades at a comparatively lower valuation. XYZ trades at a forward price-to-earnings ratio of 17.44 and a trailing 12-month price-to-earnings ratio of 28.18.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report
SoFi Technologies, Inc. (SOFI): Free Stock Analysis Report
Block, Inc. (XYZ): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).