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Pre-Q4 Earnings: Is SoFi Technologies Stock a Portfolio Must-Have?

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Key Takeaways

  • SoFi will report Q4 results Jan. 30, with earnings seen at 12 cents and revenue near $982 million.
  • SOFI's Financial Services, Lending and Technology Platform segments are all expected to show strength.
  • SoFi shares are up 60.5% year over year but down 14% in three months as valuation concerns linger.

SoFi Technologies, Inc. (SOFI - Free Report) will report its fourth-quarter 2025 results on Jan. 30, before the bell.

The Zacks Consensus Estimate for earnings in the to-be-reported quarter stands at 12 cents, indicating 140% growth from the year-ago reported quarter. The consensus estimate for revenues stands at $981.9 million, implying 32.9% year-over-year growth.

There have been two upward revisions in earnings estimates in the past 60 days against two downward revisions.

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SOFI May Deliver Q4 Earnings Beat

Our model predicts a likely earnings beat for SOFI this time around. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks before they're reported with our Earnings ESP Filter.

SOFI has an Earnings ESP of +1.30% and a Zacks Rank #3.

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, Lending and Technology Platforms segments.

The consensus estimate for Financial Services revenues is pegged at $446 million, indicating 74% year-over-year growth. The consensus mark for Lending revenues is pegged at $488 million, indicating 17% year-over-year growth. The Technology Platform segment is expected to grow 12%.

Investment Considerations

SoFi’s stock performance shows a mix of strength and recent hesitation. Shares are up 60.5% over the past year, but the 14% decline over the last three months suggests a period of consolidation after a strong run.

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The company has made solid progress with its asset-light platform, reducing reliance on traditional lending and strengthening its position in consumer finance. That said, much of this optimism now appears reflected in the stock price. Valuation remains elevated, with SoFi trading at aforward 12-month Price/Earnings ratio of 42.51X forward earnings, which is way higher than the industry’s average of 21.6X.

As expectations reset, the stock may struggle to move meaningfully higher in the near term. A Zacks Rank #3 supports a more cautious, wait-and-see stance as investors digest valuation levels. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

As SoFi feels a bit expensive right now, Block (XYZ - Free Report) and Upstart (UPST - Free Report) may offer better value. Block, trading at a forward P/E of 20.24X, stands out for its diversified ecosystem, including Cash App and Square. Investors value Block for its balanced revenue streams and long-term fintech vision. In a choppy market, XYZ may offer steadier ground.

Meanwhile, Upstart, with a forward P/E of 16.94X, continues to lean into its AI-driven lending platform. Though UPST has faced volatility, it remains a strong contender if credit conditions stabilize. For those seeking growth at more grounded valuations, both Block and UPST deserve consideration while SoFi cools off.


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