SoFi Technologies (SOFI) Stock Forecast & Price Target

SoFi Technologies is expected to have a positive outlook due to a light 2Q guide, though the FY26 outlook is held firm. SOFI maintained its FY26 guidance in the 2Q, reporting expected net revenue of $1.115 billion, 30% EBITDA margins, and EPS of $0.10-$0.11. This outlook no longer includes any rate cuts, indicating stronger performance in a less favorable rate environment. Our BUY rating remains, but with a lowered target of $25 based on the company's consistent growth and margin expansion.

SoFi Technologies is currently experiencing strong growth in its core lending business, which is driving an increase in its GAAP revenue and adjusted revenue. However, the company is facing competition from both traditional banks and other neobanks, which could lead to a loss in market share or increased marketing expenses. Additionally, potential student lending reform or student debt cancellation could negatively impact the company's lending business. The company's recent acquisition of Galileo has also led to a decline in its technology platform revenue, which could continue to impact its overall performance. Overall, the company's strong balance sheet and growth potential are offset by competitive pressures, potential regulatory changes, and recent performance in its technology platform. These factors contribute to the analyst's negative outlook on SoFi Technologies' stock.