SOFI Stock Posts Best Day In 18 Months: Wall Street Analyst Says Focus Now On How Well Growth Holds Up

• Wang said next year will bring demanding comparisons for the company amid management's strong outlook. 
• Management said that it expects SoFi to post adjusted EPS of about $0.90 per share next year, roughly 48% above its 2026 target, and forecasts adjusted net revenue to rise about 27% to $6.4 billion in 2027. 
• Keith Buchanan, Partner, Board Member, and Senior Portfolio Manager at Globalt Investments, said that SOFI is a unique stock in the fintech space, especially in the way it accrues customers.

Shares of SoFi Technologies Inc. (SOFI) posted its best day in 18 months after record third-quarter results boosted the stock. 

However, Andrew Wang, managing partner at Runnymede Capital Management, said in an interview with Schwab Network on Tuesday that the focus should now shift from how quickly SoFi can grow to how well that growth holds up.

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He said that while personal loan growth and improved credit performance were “encouraging,” he added that “rapidly growing loan books do take time to reveal their full losses.”

SoFi Posts Record Q3 Results 

SoFi posted adjusted net revenue of a record $1.37 billion, up 44% and ahead of Wall Street estimates. Adjusted earnings rose to $0.18 per share from $0.11 a year earlier, also beating analysts’ expectations. 

The company’s total loan originations rose 71% to a record $16.9 billion, with personal loans comprising $12.6 billion. Student loan volume nearly doubled to $2.9 billion, the highest in the company's history. Revenue from the lending segment rose 68% to $807.4 million on an adjusted basis.

SoFi also signed a record 1.2 million members in the quarter, bringing the total to 17.1 million, up 35% from a year earlier. Products grew 44% to 26.7 million. 

The company provided a strong outlook, saying it expects adjusted EPS of about $0.90 per share next year, roughly 48% above its 2026 target. The company said that it expects adjusted net revenue to rise about 27% to $6.4 billion in 2027. 

What Wall Street Is Looking For From SoFi

Wang said next year will bring tougher comparisons for the company amid management's strong outlook. 

He added that the economic backdrop will matter for SoFi. “Lower inflation, with healthy employment, could help borrowers. Lower inflation because the economy is weakening is a different story,” he said. 

Wang believes that for SoFi, “the test is whether borrowers keep paying and earnings keep growing as the business matures.”

The analyst also clarified that the jump in the stock was not just a relief rally, but challenged some of the “pessimism” the markets had about SoFi's valuation, its consumer credit exposure, and whether it deserved a technology premium. 

“So the stock is up today, and it demonstrates that investors like getting evidence that earnings power is improving despite a difficult interest-rate environment,” he said. 

SOFI’s Forward P/E Is Near All-Time Lows

SOFI’s 12-month forward price-to-earnings multiple was also at 18.7x on Monday, the lowest on record. While this has improved to 20.3x after results, it is still near all-time low levels. 

SoFi’s Unique Positioning

Meanwhile, in the same interview, Keith Buchanan, Partner, Board Member, and Senior Portfolio Manager at Globalt Investments, said that while SOFI is a unique stock in the fintech space, especially in the way it accrues customers, “there are a lot of questions about whether or not they've become more of a mature financial services company.”

Buchanan contended that SoFi’s latest quarterly results show the company can turn customer acquisition into scalable profitability, an indicator markets have been waiting for. 

He added that while the full impact is yet to be determined, “the first signs really gave a lot of confidence to investors.”

SOFI Stock: Retail Stance

On Stocktwits, retail sentiment around SOFI stock improved from ‘bullish’ to ‘extremely bullish’ over 24 hours amid ‘extremely high’ message volumes. 

One user said, “$SOFI CRUSHED THEIR EARNINGS!”

Another user said, “The turnaround story began today. It's the bottom of the 1st inning.”

SOFI stock is down more than 37% year-to-date. 

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